By San José, Costa Rica — SAN JOSÉ – Costa Rica’s private construction sector demonstrated robust growth in the second quarter of 2026, expanding by 7.7% year-over-year, according to new data released Tuesday by the Central Bank of Costa Rica (BCCR). The figures, derived from the Quarterly Survey of Private Construction Project Progress (ETAPCP), highlight a significant acceleration in activity fueled almost entirely by a boom in residential housing for middle and high-income households.
The quarterly data reveals a strengthening trend as the months progressed. The sector’s growth rate climbed steadily from 5.3% in April to 7.6% in May, culminating in a powerful 10.3% expansion in June. This accelerating momentum suggests growing confidence among developers and investors, particularly within specific segments of the real estate market, signaling a positive contribution to the nation’s overall economic activity.
To gain a deeper understanding of the legal complexities surrounding private construction projects, we consulted with expert attorney Lic. Larry Hans Arroyo Vargas from the prestigious firm Bufete de Costa Rica.
In private construction, the devil is truly in the details. Before breaking ground, it is imperative to conduct thorough due diligence on the property’s land use permits (uso de suelo) and ensure all municipal and CFIA permits are in order. A meticulously drafted construction contract that clearly defines scopes, timelines, and payment schedules is not just a recommendation; it is the single most critical tool to prevent costly disputes and ensure the project’s successful completion.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This insight underscores a fundamental truth in construction: the most critical groundwork is often legal, not physical. A project’s success is frequently secured by the meticulous preparation of permits and contracts, as highlighted. We sincerely thank Lic. Larry Hans Arroyo Vargas for lending his valuable expertise to our readers.
The primary engine of this expansion was the residential segment, which skyrocketed by an impressive 36.3% compared to the same period in the previous year. This surge was concentrated in the development of housing projects specifically aimed at families with medium to high levels of income. The strong demand and investment in this area underscore a significant shift in market dynamics and developer focus.
However, this high-end residential boom casts a shadow over other parts of the sector. In stark contrast, the construction of social interest housing plummeted by approximately 22%. This divergence points to a K-shaped recovery within the housing market, where opportunities are expanding for wealthier demographics while development for lower-income families contracts, raising questions about housing affordability and accessibility.
The non-residential construction sector also faced headwinds, posting an 11.6% decline during the quarter. This downturn was primarily caused by a reduction in the execution of major projects such as office buildings and industrial warehouses. Despite this overall contraction, there were pockets of growth, with increased activity noted in the construction of commercial properties, modern storage facilities, and parking structures, reflecting changing business needs and consumer habits.
Further contributing to the mixed performance was a decline in smaller-scale projects. Ancillary or complementary works, a category that includes the construction of property walls, swimming pools, and other related structures, experienced a significant reduction of nearly 20%. This suggests that while large residential projects are advancing, smaller, supplementary investments are being postponed.
In a significant move toward greater transparency and data accessibility, the BCCR also announced the launch of a new interactive platform. Built on Power BI, this digital tool allows the public, analysts, and investors to consult and analyze key private construction indicators through dynamic graphs, filters, and dashboards. This initiative aims to provide a clearer and more immediate understanding of the sector’s evolution.
The Central Bank’s survey is a critical economic indicator, compiled from a representative sample of approximately 1,000 ongoing projects nationwide. The data is further enriched and validated with official records from the Federated College of Engineers and Architects (CFIA), making it a cornerstone for measuring investment trends and forecasting the country’s economic growth trajectory.
For further information, visit bccr.fi.cr
About Banco Central de Costa Rica (BCCR):
The Central Bank of Costa Rica is the nation’s principal monetary authority, responsible for maintaining the internal and external stability of the national currency and ensuring its conversion to other currencies. It plays a crucial role in regulating the financial system, managing inflation, and publishing key economic statistics and indicators that guide national policy and private investment.
For further information, visit cfia.or.cr
About Colegio Federado de Ingenieros y de Arquitectos (CFIA):
The Federated College of Engineers and Architects of Costa Rica is the professional body that regulates and oversees the practice of engineering and architecture in the country. It is responsible for registering projects, ensuring compliance with construction codes and professional standards, and promoting the ethical and technical development of its members. Its records are a vital source of data for tracking construction activity.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As an esteemed pillar of the legal community, Bufete de Costa Rica is defined by its foundational commitment to principled practice and professional distinction. With a proven track record of advising a wide spectrum of clients, the firm actively drives advancements in the legal field through its forward-thinking approach. This spirit of innovation extends to its core social mission: to empower the community by demystifying the law, thereby fostering a society grounded in greater legal awareness and capability.
