Manuel Antonio is not just a tropical paradise but also one of Costa Rica’s most touristic hotspots, making it a prime location for real estate investment. Whether you’re looking to settle down or generate income through short-term or long-term rentals, the area’s booming tourism and limited availability of high-quality month-to-month rentals create excellent opportunities. As a first-time homebuyer, here are the top tips to help you navigate this unique market.
1. Understand the Dual Purpose of Properties
Manuel Antonio’s real estate market caters to both residents and tourists. Many properties are designed for dual purposes—ideal for living while generating income from rentals. Whether you plan to use the property yourself or lease it out on platforms like Airbnb, understanding these dynamics is crucial.
2. Capitalize on the Demand for Rentals
Tourism drives high demand for short-term vacation rentals in Manuel Antonio. Additionally, there’s a significant shortage of high-quality, month-to-month rentals for expats, digital nomads, and seasonal workers. Investing in a property that can cater to both markets can maximize your return on investment.
3. Partner with a Local Real Estate Expert
Navigating the competitive Manuel Antonio market requires expertise. A trusted local agent can help you find properties with strong rental potential or locations suited to your personal needs. They’ll also guide you through Costa Rica’s unique property acquisition process.
4. Focus on Location and Accessibility
In Manuel Antonio, proximity to beaches, national parks, and tourist hubs significantly boosts property value and rental demand. Properties located near the main road or within walking distance of attractions like Manuel Antonio National Park command higher rental rates and attract more consistent bookings, whereas areas like Naranjito and Villa Nueva gain traction with local business owners and expats due to ease of access, safety and tranquility.
5. Look for Rental-Ready Features
If rental income is a priority, prioritize properties with high-demand amenities such as ocean views, pools, air conditioning, and multiple bedrooms. Fully furnished homes are especially attractive to short-term renters and expats seeking temporary housing.
6. Plan Your Investment Strategy
Decide if your goal is short-term vacation rentals, long-term leases, or a mix of both. While vacation rentals often yield higher daily rates, they require more management. On the other hand, month-to-month rentals provide steady income and require less hands-on involvement.
7. Prepare for Maintenance Costs
The tropical climate in Manuel Antonio, while beautiful, can take a toll on properties. Regular maintenance is essential, especially for homes near the ocean, where salt air accelerates wear and tear. Allocate part of your budget for ongoing upkeep to ensure your property remains attractive to renters.
8. Consider the Lack of High-Quality Long-Term Rentals
Manuel Antonio’s scarcity of quality month-to-month rental properties presents a lucrative opportunity for investors. Properties offering modern design, reliable Wi-Fi, and air conditioning are highly sought after by professionals and expats. Catering to this niche can help secure stable, long-term tenants.
9. Factor in Taxes and Costs
While property taxes in Costa Rica are low—0.25% of the registered value—keep in mind the additional costs of managing rentals, including property management fees, utilities, and insurance. These expenses are especially relevant for rental properties, which often require concierge or maintenance services.
10. Understand Legal and Residency Requirements
Foreigners have the same rights as locals when purchasing property in Costa Rica. However, if you’re planning to live in or frequently manage your rental property, obtaining residency can simplify your operations. Research your options and consult with a legal expert to understand the process.
The Investment Potential of Manuel Antonio
With its booming tourism industry, Manuel Antonio is an excellent location for first-time buyers looking to invest in rental properties. The combination of high short-term rental demand and a shortage of premium long-term rentals ensures that the right property can deliver a strong return on investment.
Final Thoughts
Buying your first home in Manuel Antonio is a rewarding experience. Whether you’re seeking a personal retreat or an income-generating investment, this vibrant community offers unparalleled opportunities. By understanding the market and working with local experts, you can make a smart and successful purchase.
Ready to Invest?
Contact me today to explore rental-ready properties or find your dream home in this tropical gem!
