Tucked away in the Talamanca Mountains, high in the valley of the Chirripó Pacífico River, lies San Gerardo de Rivas, a small and traditional Costa Rican town. Known for its rich agricultural history, stunning landscapes, and close-knit community, this quiet town is now at the center of a growing real estate battle.
What was once a peaceful farming community is now experiencing skyrocketing land prices, an influx of foreign buyers, and increasing tensions between locals and new property owners.
So, what exactly is happening in San Gerardo de Rivas? Is foreign investment revitalizing or destroying this community? And what does this mean for other rural towns in Costa Rica facing similar issues?
Foreign Buyers and Rising Land Prices: The Changing Face of San Gerardo de Rivas
For generations, Costa Rican families have lived off the land in San Gerardo de Rivas, with agriculture serving as the backbone of the local economy. Farms passed down through families have provided livelihoods and preserved traditional ways of life.
However, in recent years, wealthy foreign investors have set their sights on this pristine mountain region, eager to purchase land at any cost. The result? A real estate frenzy that is rapidly pricing out local families.
One lifelong resident shared his personal experience:
“On one occasion, while I was milking the cows at 5 a.m., a couple arrived and I thought, ‘How strange, why are they coming at this time?’ They told me they were interested in buying my farm, and I asked them why since I wasn’t selling it. They replied, ‘But we want to buy it from you; that’s why we’re here.’”
Offers of millions of dollars for farmland have become commonplace, and some properties are now selling for over a million dollars per four hectares. Worse yet, foreign buyers divide these large farms into smaller plots, then resell them at exorbitant prices, flipping their investment fourfold in a matter of months.
How does this work?
- A foreign investor purchases four hectares for $1 million.
- The land is split into four smaller plots.
- Each plot is resold for $1 million apiece.
- The investor quadruples their investment with minimal effort.
For longtime residents, these price increases make it impossible to compete in their own town, as the cost of land far exceeds what locals can afford.
Water Access and Community Conflicts
Foreign investors aren’t just driving up property prices—they are also altering the local landscape in ways that disrupt traditional ways of life.
One major issue? Water access.
Foreign buyers looking for pristine, untouched land insist that their real estate agents secure properties with access to a river, natural springs, or aquifers. This might seem harmless, but in some cases, foreign property owners have been accused of restricting access to public water sources, leaving locals without reliable water for farming and daily needs.
In at least one case, a foreigner went as far as building a private aqueduct in an area that lacks Asada, Costa Rica’s local water management authority. This privatization of resources directly conflicts with Costa Rica’s long-standing traditions of communal land and water use.
Residents say that the problem is not the presence of foreigners themselves but rather their unwillingness to integrate into the local way of life.
“The problem is not that they are here; it’s that they don’t respect the culture. They come here imposing things they shouldn’t.”
The tension is growing, as locals feel displaced in their own town while outsiders bring in new rules, higher costs, and restrictions on what used to be communal resources.
Are Foreigners Destroying or Revitalizing San Gerardo de Rivas?
This issue isn’t unique to San Gerardo de Rivas. Across Costa Rica, foreign investment in real estate has been both a blessing and a curse.
The Positive Side of Foreign Investment
- Economic Growth – Foreign buyers bring in large amounts of money, which can help local businesses and infrastructure projects.
- Tourism Boost – Foreign-owned eco-lodges, resorts, and vacation rentals bring jobs and tourism revenue.
- Development of Services – Foreigners often fund projects, such as better roads, internet services, and restaurants, that can benefit both locals and expats.
The Negative Side of Foreign Investment
- Land Displacement – High property values push out local residents, making it difficult for younger generations to buy land in their hometowns.
- Loss of Cultural Identity – Foreigners sometimes fail to adapt to local customs, leading to conflicts and resentment.
- Resource Control – When foreign property owners restrict access to rivers, land, or roads, it undermines the local way of life.
While some see foreign investment as a positive economic force, others argue that it destroys the social fabric of rural communities, turning traditional Costa Rican towns into gated compounds for the ultra-rich.
What Can Be Done to Protect Local Communities?
Costa Rica is one of the most sought-after destinations for expats, retirees, and real estate investors, but without proper regulation and policies, towns like San Gerardo de Rivas could lose their identity entirely.
Here are some potential solutions to balance investment and community preservation:
1. Strengthen Land Ownership Protections for Locals
The Costa Rican government could implement policies that prioritize land sales to Costa Rican citizens, such as:
- Land ownership caps for foreign buyers.
- Higher taxes on speculative real estate sales to discourage flipping.
- Incentives for locals to retain and develop land sustainably.
2. Regulate Water and Natural Resources
Foreign landowners should not have the ability to block access to water or communal resources. Costa Rica could:
- Mandate local Asada control over all water sources.
- Require environmental impact assessments before major developments.
- Enforce stricter rules on privatization of rivers and aquifers.
3. Encourage Community Integration
Expats and foreign investors should be encouraged to integrate with local traditions rather than imposing outside customs. Towns could:
- Promote cultural education programs for new residents.
- Require community approval for large real estate developments.
- Foster partnerships between locals and foreign landowners to mutually benefit both groups.
The Future of San Gerardo de Rivas
San Gerardo de Rivas is at a crossroads. While foreign investment brings money and development, it also threatens the very character of the town.
If nothing is done, the town risks losing its traditional identity, replaced by luxury homes, restricted access to natural resources, and a community where locals can no longer afford to live.
On the other hand, smart policies and responsible investment could allow locals and foreigners to coexist, ensuring that Costa Rica’s rural towns remain accessible, affordable, and culturally intact.
The question remains: Will Costa Rica take action before it’s too late?
