Costa Rica's Luxury Boom: Papagayo Unveils New Andaz Residences

PENINSULA PAPAGAYO, Costa Rica – February 17, 2026 – In a decisive move that underscores the robust health of the luxury real estate market, Peninsula Papagayo has announced plans for a second oceanfront collection of Andaz Residences. Following the successful launch of its first phase in 2023, this new neighborhood will introduce 35 exclusive homes, further cementing the peninsula's status as a premier destination for high-net-worth individuals seeking both lifestyle and investment value.

Developed by global luxury investment firms Mohari Hospitality and Gencom, the project is slated to begin construction in mid-2026, with an anticipated completion date in 2028. The residences, priced from under $4 million, will feature two-, three-, and four-bedroom floor plans. According to the developers, early commitments from existing homeowners have already been secured, highlighting strong insider confidence ahead of the public release.

Designed by the acclaimed firm Predock, the enclave is envisioned to harmonize with its natural surroundings. The architectural language speaks of elevated simplicity, utilizing warm timber, textured stone, and handcrafted tile. Each home is planned to feature private plunge pools and expansive indoor-outdoor living spaces, with most boasting generous rooftop terraces that offer sweeping, uninterrupted views of Culebra Bay. The entire residential enclave will be serviced and managed by the adjacent Andaz Peninsula Papagayo resort.

The Global Surge in Branded Living

This expansion is not an isolated event but a reflection of a powerful global trend. The branded residences sector is experiencing unprecedented growth, projected to nearly triple in size between 2015 and 2025. These properties command an average price premium of 33% globally over their non-branded counterparts, a figure that rises to 39% in resort locations like Papagayo. This premium is driven by a confluence of factors: the assurance of quality, access to world-class amenities, and the 'lock-up-and-leave' convenience of professional property management.

Hyatt, the parent company of the Andaz brand, is strategically capitalizing on this demand. The brand's philosophy, which centers on creating an authentic connection to local culture, resonates with a new generation of affluent buyers who prioritize experiences over mere assets. Owners at the new Andaz Residences will have the option to participate in a managed rental program, turning their property into a performing asset within the Hyatt ecosystem.

"This project reflects the growing demand we see for Andaz-branded residential living in one-of-a-kind destinations," said Tina Necrason, Global Head of Branded Residential at Hyatt. "Owners at Peninsula Papagayo will enjoy the innovative design, connection to place, and intuitive service that define the Andaz brand."

Why Costa Rica's Gold Coast Shines

The choice of Costa Rica's Guanacaste province, known as the nation's 'Gold Coast,' is a calculated one. The country's stable democracy, favorable foreign investment laws, and world-renowned 'Pura Vida' lifestyle have made it a magnet for international capital. The real estate market here is rapidly maturing, supported by the World Bank's recent classification of Costa Rica as a high-income economy.

Fueled by the accessibility provided by the nearby Daniel Oduber Quirós International Airport in Liberia, which serves non-stop flights from 17 U.S. cities, the region has seen property values climb steadily. Luxury vacation rentals in Guanacaste can yield an annual ROI of 6-10%, making it an attractive proposition for investors. The Andaz Residences are poised to capture this demand, offering a turnkey solution backed by a global hospitality leader.

Building a Holistic Luxury Ecosystem

The new residences are a key piece of a much larger, master-planned vision for the 1,400-acre peninsula. The development's philosophy is rooted in 'geo-luxury,' with a steadfast commitment to preserving 70% of the land as natural wildlands. This dedication to sustainability is a core part of its appeal and is formalized in its 'PPGY Legacy 2030' strategy, which guides environmental and community initiatives.

Owners gain access to a comprehensive ecosystem of amenities that extend far beyond their private homes. This includes an exclusive owners' clubhouse with a resort-style pool and co-working lounges, membership access to the Clubhouse at Prieta Beach, and the Arnold Palmer Signature golf course. A significant recent addition is Papagayo Park, a 20-plus-acre sports and wellness hub that features tennis, pickleball, a lap pool, and a kids' adventure zone, further enhancing the family-friendly, multi-generational appeal of the destination.

"The new Andaz neighborhood is a direct response to the demand – advancing the success of our first phase, the debut of Papagayo Park, and the continued transformation of the Andaz Peninsula Papagayo experience into something truly extraordinary," noted Francesca Poddie, Peninsula Papagayo's Chief Operating Officer and EVP of Development.

This period of growth also includes a series of significant enhancements at the Andaz Peninsula Papagayo Resort, including reimagined guestrooms, a new trattoria-style restaurant named Gaio, and an expanded beach house retreat. The destination's forward momentum is further bolstered by the appointment of a new General Manager, Markus Laahanen, a veteran hotelier with over two decades of experience in luxury resorts across the globe. His leadership signals a continued focus on elevating the guest and resident experience as Peninsula Papagayo enters its next chapter of development.