
Gentrification in Costa Rica: Negative Impacts and Sustainable Proposals
BY NAMUBAKShare
Gentrification, an increasingly common phenomenon in various parts of the world, is having a significant impact in some regions of Costa Rica. While it can bring economic development and infrastructure improvements, it also generates a series of negative consequences, especially for local communities and the environment. Gentrification in Costa Rica is rapidly transforming coastal and rural areas into luxury destinations, profoundly affecting the lives of their original inhabitants.
This article explores the negative effects of gentrification in Costa Rica , focusing on how these transformations are affecting the local population and the natural environment, and proposes sustainable alternatives to mitigate their impacts.


What is Gentrification?
The gentrification It is a process of urban transformation that occurs when higher-income people move into a neighborhood historically inhabited by lower-income residents. This phenomenon can result in the renovation and modernization of housing, the development of new businesses and services, and, overall, an increase in property values in the area.
However , while gentrification can bring improvements to local infrastructure and the economy, it also has negative effects. Most notable among these is the displacement of original residents, who often cannot afford the new costs of living (higher rents, rising retail prices, etc.) and are forced to move to more affordable areas. Gentrification can alter the culture and identity of a neighborhood , transforming it into a place that no longer reflects the characteristics and history of its original residents.
In short, gentrification is a complex process that can revitalize urban areas, but it can also generate exclusion and social inequality.
The Phenomenon of Gentrification in Costa Rica
The gentrification in Costa Rica has gained strength in areas that, until recently, were considered remote or underdeveloped. Places like Santa Teresa, Nosara, Playa Penca, and other towns on Costa Rica's North Pacific coast have experienced a boom in luxury property construction, a massive influx of expats, and a resulting rise in the cost of living. San Juanillo in Guanacaste has been a case that has had a huge impact, since the construction of a mega residential project was the cause of the destruction of an indigenous cemetery almost 800 years old
This phenomenon has not only displaced local communities but has also altered the social and cultural fabric of these regions.

Santa Teresa Beach: An Emblematic Case of Gentrification
Santa Teresa, “is” a small fishing village on the Nicoya Peninsula, which has been drastically transformed in the last two decades. With its reputation as a haven for surfers and luxury-seeking tourists, locals have seen housing and property prices rise unsustainably.
As a result, many original inhabitants have been displaced to more accessible areas or forced to live in precarious conditions.

Negative Effects of Gentrification
Displacement of Local Communities
One of the most visible impacts of gentrification in Costa Rica is the displacement of local communities. increase in the cost of housing and the lack of effective regulations have led to many families being unable to afford to live in their lifelong homes. This displacement not only affects the economic stability of families, but also uproots entire communities , fragmenting the social fabric that has sustained these areas for generations.

Loss of Cultural Identity
The massive arrival of foreigners and the construction of luxury properties have transformed the cultural identity of many coastal areas. Businesses and services that once catered to the needs of the local community are now geared toward meeting the tastes and demands of new residents and tourists. This shift has diluted the authenticity of these regions, turning them into homogenized versions of global tourist destinations.
Environmental Impact
Costa Rica is known for its incredible biodiversity , however the The accelerated development that accompanies gentrification has also had a significant environmental impact . The rampant construction of luxury villas, hotels, and other businesses has led to deforestation, water pollution, and biodiversity loss. Furthermore, the increase in the floating population has put additional pressure on public services and waste management, resulting in problems such as garbage accumulation and water pollution.
This is being seen in communities in both the Pacific and the Caribbean, specifically in the Southern Caribbean where the The Socio-Environmental Kiosks Program of the University of Costa Rica (UCR), together with the environmental defender of the area, Philippe Vangoidsenhoven, have warned that forest is being cut down on land located in Playa Negra, in Puerto Viejo , in order to provoke a change in land use to expedite the urbanization of this entire coastal area. You can see the full article here

Santa Teresa, Nosara, Manzanillo de Talamanca: The Next Tulums?
A New York Times article in 2016 He compared Santa Teresa to Tulum, Mexico, describing it as “the next Tulum.” Both destinations have followed similar trajectories: they began as quiet, authentic towns and transformed into luxury destinations that, while attractive to tourists, became inaccessible to many of their original residents.
In Tulum, uncontrolled tourism development has led to housing problems, overexploitation of natural resources, and a growing disconnect between the local community and the tourism industry. Santa Teresa appears to be following a similar path, raising serious concerns about its future.
Proposals to Combat Gentrification: Towards a Sustainable Future
While the negative effects of gentrification are evident, it is also possible to implement more sustainable practices that allow for balanced development. Some proposals include:
Regulation of the Real Estate Market
It is crucial that the government implement stricter regulations in the real estate market to protect local communities from speculation and skyrocketing housing prices. Setting limits on the construction of luxury properties and ensuring access to affordable housing can help maintain social balance in these areas.
Investment in Local Infrastructure
Investing in local infrastructure that benefits both residents and tourists is critical. This includes improvements in waste management, access to clean water, and public transportation. Furthermore, promoting sustainable tourism, which respects the environment and local culture, can be an effective way to generate income without compromising the region's identity.
Promotion of Local Culture
Promoting and protecting local culture is essential to preserving the identity of these regions. Supporting local businesses, artisans, and cultural activities can help maintain the authenticity of the area while providing an enriching experience for visitors.
Education and Awareness
Educating and raising awareness among both the local community and new residents and tourists about the impacts of gentrification and the importance of sustainability can be key to more balanced development. Initiatives that promote respect for the natural and cultural environment can contribute to more harmonious coexistence.

In summary
Gentrification in Costa Rica, especially in areas such as Santa Teresa, Nosara, and the Southern Caribbean, poses significant challenges for local communities, the environment, and the cultural identity of these regions.
However, With the implementation of sustainable practices and appropriate regulations, it is possible to mitigate these impacts and promote development that benefits both residents and visitors.
It is essential that all stakeholders, from local authorities to investors and tourists, work together to ensure that Costa Rica remains a place where natural beauty and cultural richness are accessible to all.