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Latin America Investment News on Viva Tropical

Surging Real Estate Prices in Alajuela, Costa Rica

Article Summary:

In the past two years, land prices in the radius around Alajuela, Costa Rica have risen six-fold. What triggered this surge? The answer may lie in the boom of industrial construction, residential and commercial activity in the area.

Photo Credit: El Financiero

Original Article Text From El Financiero via Google Translate :

Where Can Build More?

Seven counties in the country account for 35% of the projects handled between 2011 and the first two months of 2012. Two years ago, the square meter of land for commercial properties in the county of Alajuela, specifically in the radial-was priced between $ 30 and $ 40. Today, according to real estate firm Colliers International, the cost is $ 250.

What triggered this goodwill? The answer may lie in the boom of industrial construction, residential and commercial is living the area. According to statistics from the Association of Engineers and Architects (CFIA), since 2010 the county ranked first in the country in terms of square meters processed.

In fact, only by taking into account the 2011 and the first two months of this year, Residential accounts for 9.5% of the more than 8.7 million square meters accounted for by that entity.

The resort Mango Park-located near the airport, including a Marriott Courtyard hotel, a shopping mall called Mango Square and office center, is one of the projects that have contributed to growth in construction.

In addition, the concentrated Coyol an important sector of manufacturing companies medical device that has driven, in turn, the central county residential development.

However, the “hot” nation-building does not end there. San Jose is second with 663,761 meters square processed. We are Santa Ana and Escazú, with 364,268 and 341,382 meters square, respectively.

The ranking is completed by three cities in the Greater Metropolitan Area (GAM): Heredia, Cartago and La Union. Only those seven counties comprise 35% of construction matters before the CFIA between 2011 and 2012. Further placed Santa Cruz, Perez Zeledon, Santa Ana and Moravia, among others.

Notably, the CFIA also takes into account construction projects led by the State, as well as private projects. However, according to that state, last year 38% of the projects handled corresponded to residential developments, while 21% offices, 14% urban sector and 10% industrial.

Such distribution may be due in part to booming residential towers in the GAM. In July 2011, EF announced that at least 11 millionaires vertical projects were already under construction in locations such as Paseo Colon, La Sabana, Rohrmoser and Heredia.

Also, according to Colliers, the canton of Alajuela has been building about nine residential in the last three years and only in the district of Ulloa (county of Heredia), the firm identified 56 residential condominiums. As for the commercial segment, Colliers points to the construction or expansion of some 13 centers throughout the GAM, considering large malls like Metropolitan Paseo, in Carthage, Lincoln Plaza, in Moravia, and shopping malls such as Mall Lagunilla in Heredia.

The business centers are not far behind. The real estate research firm reported 15 developments in the process of building, which corresponds to a total 142,846 meters square.56% of these offices are located between Escazú and Santa Ana and Escazú Forum II Corporate Center are just two examples of new office centers that operate in the area.

Similarly, Hall concentrates almost a third of such constructions and east of the GAM (Montes de Oca, Guadeloupe and Three Rivers) is over 16,000 square meters for more office centers. Meanwhile, the industry faces the foundation of 120,925 meters square from ships tailored to customers in Coyol of Alajuela and Ofibodegas, which are located mostly in Heredia and Escazú.

For Víquez Olman, president of the Realtor Connection Real Estate Viquez, there are several factors that influence the ranking of nation building.

The urban development of these counties, together with the climate and the proximity of basic services such as hospitals, supermarkets, banks, and the airport are among the reasons.

Also, Laura Chinchilla, director of architecture Urban Development building, which currently has five proposed housing in San Pedro and Heredia said that in addition to the services, availability of land with the characteristics of land use for projects high density would be influenced.

Meanwhile, Danny Quiros, manager of Colliers real estate intelligence, believes that it is a cycle-residential-office trade that began in San José and Escazú, Heredia arrived and now enters Alajuela and Cartago.

Sectors that arouse
The latest figures processed square meters account for major changes in the dynamics of the building in the country.Gonzalo Delgado, president of the Costa Rican Chamber of Construction (CCC), ensures that the cantons of San Jose, Santa Ana and Three Rivers have been the most benefit from this trend.

Aleyda Bonilla, president of the Costa Rican Chamber of Realtors, believes that the dynamic response to firms began to understand the importance of quality of life for its employees.”It is logical that people who live in the east of the city or even in Carthage, mobilize every day to their jobs, losing on the way to three or four hours,” says Bonilla.

In addition, the developers recognized that the presence of a majority of universities in the east of the capital and, therefore, a large amount of labor, makes the office centers and residences, a very attractive investment.

If not, let them say the owners of Mall San Pedro, who are providing $ 35 million in an office center adjacent to the complex consisting of three buildings, 20,000 rentable square feet and which will open from April 2013.On the other hand, places like Carthage also beginning to wake up, especially with the arrival of a new mall and fast food chains.

Jose Gerardo Chavarria, president of Mega Developments, which owns the Metropolitan Paseo, explained that the county has advantages of high population density (in 8 miles there are 500,000 residents) and a significant monthly income per household ($ 1,500).Despite this, Heredia, Escazú and Santa Ana continue to grow at the same pace in recent years.

According to Pedro Sanchez, an analyst at market research firm NAI, west of the capital gained between 10% and 15% equity last year and is projected to increase further.

The trend is also echoed in other regions that are part of this boom. Danny Quiros, of Colliers International, said that only in the case of commercial properties, the price per square meter ranges from $ 800 to $ 1,000 in areas such as San Pedro de Montes de Oca, making it one of the most expensive.

The place is followed Curridabat ($ 600 to $ 800), Zapote ($ 400 to $ 600), Escazú (between $ 350 and $ 410), Santa Ana ($ 200 to $ 400) and Heredia ($ 300 to $ 350).When it comes to residences, the Chamber of Realtors reports that San José, Escazú and Santa Ana offers the highest rate per square meter, or $ 250.Montes de Oca is placed second with $ 200 and the list continues Alajuela $ 100.Moreover, the sources agree that the slower development remains in coastal areas.

The construction of a new RIU hotel in Carrillo, Guanacaste, and the millionaire tourism project Pellas Group, La Cruz, are good signs, but, according to Pedro Sanchez, nowhere near the growth experienced before the crisis of 2009

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From El Financiero

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