In its 2026 Mid-Year Red Paper, The Agency examined the growing prominence of multigenerational compounds: properties designed not merely to accommodate a large family, but to preserve independence, connection and long-term value across generations.

The report places this shift within a historic transfer of wealth to Generation X and millennials, alongside changing family structures, caregiving needs and a growing preference for properties that can remain relevant through different stages of life. Rather than viewing a residence solely as a private home, families are increasingly considering its potential to become what the report describes as a “family alignment asset”, or a physical setting where lifestyle, legacy and financial planning converge.

For The Agency Costa Rica, this global conversation has particular local relevance.

In Costa Rica, especially within the greener residential areas surrounding the Greater Metropolitan Area, the opportunity often begins not with a completed compound, but with the right property: sufficient usable land, an established residence or carefully selected building site, convenient access to services and the flexibility to create additional spaces as a family evolves.

The question is therefore not simply whether a property is large enough. It is whether its location, configuration and ownership framework can support several households without compromising privacy, ease of use or long-term value.

More Than a Large Family Home

A multigenerational compound is distinct from a conventional large residence. Its defining quality is not sheer scale, but the way the property manages the relationship between proximity and autonomy.

A well-conceived compound may include a principal residence, independent villas or casitas, guest accommodations, home offices and spaces for caregivers or staff. Shared gardens, outdoor kitchens, terraces and recreational areas can encourage connection, while separate entrances, kitchens and private living areas allow each household to maintain its own rhythms.

This distinction matters. Adding bedrooms to one oversized house may accommodate more people, but it does not necessarily create the independence required for several generations to live comfortably over time. The strongest compounds provide each household with a genuine sense of arrival, retreat and ownership within the larger estate.

Creating spaces where several generations can live close to one another, share everyday life, and still preserve the independence of each household.

Tere Silva, The Agency Costa Rica

The concept should also be distinguished from multifamily real estate. A multigenerational compound is organized primarily around one family and its long-term needs. A multifamily property is a broader development model that may contain several residential units for relatives, guests, long-term tenants or a combination of private and income-producing uses.

Some properties can support both ideas. A family may retain a principal residence and one villa for private use while reserving another unit for guests or rental income. The appropriate model depends on the family’s intentions, the property’s physical capacity and the regulations governing its use.

That distinction becomes especially clear in properties that already separate living spaces into complete, autonomous residences. In Hacienda Pinilla, for example, Private Oasis Home combines a three-bedroom main house with an independent two-bedroom guest residence, each with its own pool and outdoor areas. In Santa Teresa, Prime Dual-Home Property follows a similar logic with a four-bedroom principal residence and a fully independent two-bedroom guesthouse. Both demonstrate how a property can serve family life and hospitality without requiring everyone to share the same domestic space, while also preserving the option for one residence to function independently when circumstances change.

Why Costa Rica Fits the Conversation

Costa Rica offers a compelling setting for families considering this type of long-term residential plan. Within parts of the Central Valley, it is possible to find privacy, mature landscapes and a strong connection to nature without becoming disconnected from healthcare, schools, commerce and the principal business districts of San José.

This balance is especially relevant for international families and Costa Ricans returning after years abroad. Relatives may divide their time between countries, visit for extended periods or require a permanent base that can be managed while certain residences are unoccupied. A successful property must therefore work equally well during everyday family life, seasonal visits and future transitions.

Rising land values, the need for greater security, and demographic changes are encouraging us to explore a new way of living: small family communities that combine privacy, proximity, and well-being.

Tere Silva, The Agency Costa Rica

A Property That Can Evolve

Not every family needs, or should attempt, to complete an entire compound at once. In many cases, the more resilient strategy is to select a property that works well in the present while protecting meaningful options for the future.

An existing principal residence may later be complemented by an accessible home for aging parents, a guest villa, a residence for adult children or a private office removed from the main household. A secondary structure may change functions more than once: from guest accommodation to a permanent home, caregiver residence or income-producing unit.

This is where the distinction between total land area and usable land becomes important. Acreage alone reveals little about a property’s genuine potential. Topography, access, privacy between building areas, infrastructure and the ability to introduce utilities efficiently often matter more than the headline measurement.

Existing infrastructure can be just as valuable as undeveloped capacity. Emerald Hills in Piedades de Santa Ana is a useful example: its one-hectare setting already includes two principal homes, an independent studio, a caretaker’s residence and supporting structures, along with a private water well. Rather than forcing an owner into an immediate, comprehensive redevelopment, that existing framework creates the possibility of adapting the property in stages, assigning different buildings to family, guests or staff as needs evolve.

A larger established estate can offer another form of flexibility. Art Estate in Santa Ana combines a substantial principal residence with a separate guest house, staff accommodations, independent water, backup power and nearly five acres of private grounds. For a family considering long-term use across several generations, these supporting elements matter because they reduce the number of operational questions that need to be solved later. The value lies not simply in the size of the property, but in how much of the estate’s underlying infrastructure is already in place.

The insight for buyers is not that one approach is inherently superior. It is that the property should be selected according to how much of the family plan is already defined. A family with an immediate housing requirement may value an existing principal residence. A family with a longer horizon may place greater value on the ability to master-plan the estate from the beginning.

Architecture has an opportunity to respond to a new reality: homes that bring families together without sacrificing privacy, within secure settings that embrace nature and remain flexible enough to evolve over time and with changing needs.

Tere Silva, The Agency Costa Rica

Independent Estate or Gated Community?

One of the most consequential decisions is whether to pursue an independent estate or a property within a gated community. The choice is not simply between privacy and security. It determines how much control a family retains over future construction, operating costs, architectural decisions and the everyday management of the property.

Independent properties: autonomy and long-term flexibility

An independent property can offer greater control over the placement of residences, internal access, landscaping and the separation between private and shared areas. It may be better suited to families seeking several detached structures, substantial gardens, staff accommodations or a project completed in phases over many years.

That autonomy brings additional responsibility. Security, internal roads, utilities, drainage, landscaping and maintenance may need to be organized privately. A family should therefore evaluate not only what can be built, but how the completed estate will operate when some residences are vacant or when day-to-day management passes to a different generation.

Dos Monitos in Playa Grande illustrates what this model can look like once fully realized. The estate is organized around a six-bedroom principal residence and three independent guest villas, each positioned to maintain privacy and each functioning as a complete living environment. Its configuration shows why compounds of this scale can be particularly adaptable: one generation may occupy the main residence while other family members use separate villas, yet the property can also operate as a retreat or rental asset without materially changing its physical organization. It is the degree of independence between structures, not simply the number of bedrooms, that gives the estate its flexibility.

Properties within gated communities: structure and ease of management

A gated community may appeal to families who value controlled access, maintained common areas, established roads and recreational amenities. These advantages can be especially meaningful for owners who travel frequently or occupy the property seasonally.

Private Oasis Home in Hacienda Pinilla offers a clear example of that balance. Although its main residence and guest house function independently, they sit within one of Guanacaste’s most established gated resort communities, giving the family a private residential compound while also benefiting from managed access and amenities that include a Beach Club, golf, tennis and extensive nature trails. In Hacienda Okhra in Santa Teresa, Private Villa with Guest House and Ocean Views provides a similar dual-residence format within a gated setting, combining a three-bedroom principal home with an independent two-bedroom guest house. These properties show why the condominium or gated-community model can be attractive to families who want separate living arrangements without assuming every layer of estate management themselves.

The trade-off is that physical capacity does not necessarily equal development permission. Condominium rules may govern the number of residences, architectural language, subdivision, construction schedules and leasing. These restrictions should be studied before acquisition, rather than after a family has commissioned a design.

Designing for Privacy, Connection and Longevity

A successful compound begins with the relationships it is meant to support. Architecture follows from that understanding.

Privacy should be designed deliberately. Residences do not always need to be far apart, but entrances, bedrooms, terraces and principal views should avoid unnecessary exposure between households. Thoughtful orientation and landscaping can create meaningful separation without fragmenting the property.

Shared spaces require equal care. A pavilion, pool, garden or outdoor dining area can encourage spontaneous family interaction without making one household responsible for hosting every gathering. These spaces work best when they feel central but not unavoidable.

Some of the strongest examples treat shared and private outdoor space as two different layers rather than one common amenity. At Dos Monitos, the guest villas each have their own pool and private setting, while the main residence remains the natural center of the estate. Private Oasis Home in Hacienda Pinilla takes a similar approach with separate pools for the principal and guest residences. That separation may seem like a luxury detail, but it has a practical consequence: family members can spend extended periods on the same property without every routine becoming collective. In multigenerational living, this type of spatial independence can be as important as separate kitchens or entrances.

Accessibility should be integrated before it becomes an urgent requirement. A residence intended for parents or grandparents may benefit from a single-level plan, step-free entrances and easy access to the principal home. Building these features into the original plan is generally more elegant than adapting a residence later.

Infrastructure should also anticipate expansion. Utility capacity, drainage, parking and service access can either preserve future flexibility or make subsequent construction disproportionately complex. A master plan need not dictate every future building, but it should prevent today’s decisions from obstructing tomorrow’s options.

Finally, architectural consistency should not become architectural sameness. Related materials, rooflines and landscape strategies can establish a coherent estate while allowing each household to retain its own identity. That balance can make the compound feel established over time rather than assembled all at once.

More than a property, a compound is a legacy that brings generations together: it offers grandparents a secure environment and gives the family the reassurance of always being close.

Tere Silva, The Agency Costa Rica

Planning the Legacy Before Building It

Architecture is only one component of a successful family estate. The ownership and governance structure can be equally consequential.

Families should consider who will be responsible for operating expenses, which areas will be private or shared, how improvements will be approved and what will happen if one branch of the family no longer wishes to use the property. These questions may feel premature during acquisition, but they become more difficult once several households have invested in the estate.

The Agency’s Red Paper notes that intentionally structured compounds can help prevent one of the recurring problems associated with inherited real estate: fragmentation when heirs develop different priorities. Clear agreements around use, expenses, decision-making and succession can protect both the asset and the relationships surrounding it.

In Costa Rica, this planning should bring together real estate, legal, tax, architectural and estate-planning advice. International families may also need to coordinate decisions with advisors in the jurisdictions where individual family members reside.

The objective is not to make family life overly formal. It is to ensure that the property can remain functional when circumstances change and when the generation that created it is no longer directing every decision.

Articles you might like