- Stability, Infrastructure & Tech Adoption
Costa Rica’s pro-business policies—such as tax incentives for foreign investors and a “rentista” visa program—continue to attract global investment. Improved infrastructure like airport expansion, upgraded highways, and nationwide high-speed fiber internet have greatly enhanced connectivity; properties with >100 Mbps now command ~15 % premium
Moreover, modern rental offerings increasingly feature smart-home setups, including voice control, keyless entry, solar power, EV chargers, and smart appliances—all boosting appeal and yields.
- Eco‑Luxury & Sustainability
Costa Rica’s strong sustainability ethos drives demand for eco-conscious rentals. Features like solar panels, rainwater harvesting, sustainable building materials, and green certifications (e.g., CST program) are now common—and often essential—for attracting discerning guests.
Vacation Rental Hotspots
- Manuel Antonio: ~56 % occupancy, premium demand from eco-tourists
- La Fortuna: ~52 % occupancy with room for higher-end development
- Nosara: ~56 % occupancy at ~$460/night ADR
Yet, Jaco stands out as the largest and most mature short-term rental (STR) market in Costa Rica.
Jaco: The Crown Jewel of Vacation Rentals
Basic Market Metrics
- Largest STR inventory: 2,376–3,944 active listings
- Annual occupancy ~41 – 45 %
- ADR ~ $313–$330/night
- Typical revenue per property ~ $27,900–28,800 annually
- Listings grew ~ +3–8 % last 12 months
Seasonality Patterns
- Peak (Dec–Apr): Occupancy ~85–95 %, ADR ~$331–$338/night; monthly revenue ~$4,400
- Shoulder: Occupancy ~65–75 %, ADR ~$305–$320
- Low (Aug–Oct): Occupancy dips to ~25–28 %, ADR ~$288–$290
Market Maturity & Investment Profile
- Deep history: 30+ years of development; strong mix of retirees (45 %), Costa Ricans (30 %), and investors (25 %)
- Price ranges: condos $175K–$750K, ocean-view homes $350K–$750K, land $250K–$1M
- Yields: luxury vacation 6–8 %, long-term rentals 5–7 %, commercial 7–10 %
- Appreciation: ~4–7 % annually
- Risks: competition from rising inventory, beach erosion, traffic/parking, management/maintenance costs
🏗️ Jaco’s New Project Boom & Its Effects
Recent waves of new developments—high-rises like Solea, BOHO, Selva, and others—are altering the landscape. Here’s what it means:
- Supply Surge: With several hundred new units coming online, competition is intensifying
- Owner Response: Larger owners are upgrading existing properties—enhancing photos, prices, reviews, and digital outreach.
- Pricing Dynamics: Upscale listings may maintain premium ADRs, while average units may see softening rates
- Shifts in Rental Types: Some owners pivot toward long-term or digital-nomad rentals to mitigate seasonality.
- Regional Spillover: Nearby hermosa, Esterillos, and Herradura are seeing spillover development and infrastructure growth.
💡 Strategies for Vacation Rental Investors in Jaco
- Win in Peak Season: Aim for 85–95 % occupancy with dynamic pricing during Dec–Apr.
- Stand Out: Offer smart-home tech, eco-friendly amenities, EV chargers, solar, rainwater systems, and high-speed internet.
- Optimize Shoulder & Off‑Seasons: Use flexible rates, extended-stay discounts, remote-worker appeal.
- Renovate older units to stay competitive with newer inventory.
- Professional management is key—responsive listings on Airbnb, VRBO, Booking; good reviews; well-maintained property.
- Explore long‑term stay options for nomads or temporary workers to smooth income.
- Plan for risks—address coastal erosion, parking, regulatory compliance.
Summary Table: Jaco Vacation Rentals at a Glance
| Metric | Value (2025) |
| Active listings | 2,400–4,000 (+3–8 %) |
| Avg. Occupancy | ~41–45 % overall; 85–95 % in peak periods |
| ADR | $313–$330/night |
| Avg. Annual Revenue | ~$28 K/property |
| Investment Yields | Vacation rental: 6–8 %; long-term: 5–7 % |
| Price Range | $175 K–$750 K (condos), up to $1 M+ land |
| Appreciation | 4–7 % annually |
| New Supply Impact | Higher competition, value-driven pricing |
| Investor Strategy | Quality amenities, eco/smart features, pro management, off-season flexibility |
Final Thoughts
Costa Rica continues to be a magnet for retirees, digital nomads, and eco-tourists—backed by strong infrastructure, sustainability focus, and favorable regulations. Jaco emerges as the standout market: large, mature, strategically located, and offering attractive returns.
While new construction introduces pressure, savvy investors can thrive through property upgrades, tech-forward amenities, thoughtful pricing strategies, and flexible rental models. With the right approach, Jaco vacation rentals can deliver both lifestyle enjoyment and steady income growth.