Why Older Homes Are Often Better Than New Construction in Costa Rica

When house hunting in Costa Rica, many buyers instinctively gravitate toward shiny new construction. However, savvy investors and homeowners often discover that older properties offer superior value, better locations, and surprisingly solid construction that can be transformed into dream homes with the right vision. There are some things that you just can’t change about a property and these are worth noting when considering buying a property in Costa Rica.

The Best Lots Are Already Taken

The reality is simple: the majority of the prime real estate in Costa Rica's most desirable areas was claimed decades ago. The original buyers and builders had the luxury of choosing from virtually every available lot, and they naturally selected the cream of the crop. These pioneers chose properties with spectacular sunset views, natural cooling airflow, proximity to hidden river swimming holes and waterfalls, and convenient access to town centers.

Today's new construction is often relegated to whatever lots remain available, which typically (but not always) means less desirable locations, awkward orientations, or compromised views. While these properties may feature modern amenities, they can't compete with the inherent advantages of premier locations that were snapped up decades ago. It is important to note, though, that there are still some sensational parcels of land left for sale, but because they are becoming more and more rare, their value has gone up significantly.

Superior Construction Through Necessity

Older Costa Rican homes were built during an era when imported materials were expensive and difficult to obtain. This limitation actually resulted in superior construction quality. Builders relied heavily on locally abundant materials like concrete and rebar, using them generously throughout the structure. Since these materials were relatively inexpensive compared to imported alternatives, builders didn't skimp on structural integrity.

Materials are a significant part of the budget. In 2025, prices for materials like cement, wood, steel, and finishes have risen due to inflation and global demand. The cost of materials has increased anywhere from about 9% (ready-mix concrete) to 50% (exterior paint). Today's builders face much higher costs and often use lighter, more economical construction methods to control expenses.

Established Outdoor Living and Mature Landscapes

Older Costa Rican homes typically feature extensive covered terraces and outdoor living spaces that were designed for the tropical climate. These homes understood the importance of seamless indoor-outdoor living long before it became a modern trend. The generous use of covered outdoor space provides natural cooling and creates perfect areas for entertaining and relaxation.

The landscaping around older homes tells an even more compelling story. Decades of growth have created mature tropical gardens filled with established fruit trees, flowering plants, and natural shade canopies. These mature landscapes provide privacy, natural cooling, and year-round beauty that would take decades to recreate from scratch.

Room to Grow, Protection from Overdevelopment

Older properties in Costa Rica often sit on larger lots that provide multiple benefits. These spacious grounds offer room for additions, guest houses, or expanded outdoor amenities. Equally important, many of these larger properties are difficult to subdivide due to their configuration or local regulations, providing natural protection against sudden neighborhood density increases.

This means you're unlikely to wake up one day to find multiple new homes being constructed on subdivided lots next door. The established neighborhoods around older homes tend to maintain their character and privacy over time.

Modern Upgrades Made Easy

The beauty of older Costa Rican homes lies in their potential for transformation. With today's expanded access to materials and finishes, these solid structures can be modernized while maintaining their colonial charm. Key upgrades that can dramatically transform an older home include:

• Opening up larger windows to capture views and improve natural light
• Installing modern kitchens and bathrooms with contemporary fixtures
• Applying fresh paint in modern color schemes
• Updating or completely rebuilding swimming pools with contemporary finishes
• Adding modern lighting and electrical systems
• Incorporating contemporary furnishings that complement the colonial architecture

Import Advantages for Homeowners

Recent changes in Costa Rican law have made it much easier to import household items and furnishings. New inversionista, rentista, and pensionado residents will be entitled to a one-time import tax exemption on household items. It offers perks like no import fees on household items and easier residency processes. This means homeowners can now access a much wider range of furniture, appliances, and decorative items to complete their renovations without the prohibitive import taxes that once made such upgrades expensive.

The Economics of Renovation vs. New Construction

Building costs in Costa Rica continue to rise steadily, making new construction increasingly expensive. The combination of higher material costs, complex permitting processes, and construction delays means that many of the best older homes are now listed at or above replacement cost. For buyers who want a turnkey solution, purchasing a well-maintained older home can provide immediate value without the stress and uncertainty of new construction.

However, for those willing to invest sweat equity alongside financial investment, older homes present incredible opportunities. The solid structural foundation of concrete and rebar construction provides an excellent base for creative renovations that can result in unique, personalized homes at a fraction of new construction costs.

Character and Location Outshine Newness

While new construction certainly has its place in Costa Rica's real estate market, older homes offer a compelling combination of superior locations, solid construction, established landscapes, and renovation potential that's hard to match. The key is recognizing that the best lots were claimed long ago, and the homes that sit on them represent an opportunity to own a piece of Costa Rica's prime real estate.

For buyers with vision and patience, older homes provide the perfect canvas for creating a modern tropical lifestyle while maintaining the character and charm that makes Costa Rica special. Sometimes the best investment isn't the newest construction, but rather the oldest home in the best location.