Value increased 25% to 60% in sites, farms and villas near Caldera Highway
Cristina Camacho Sandoval (read original article from El Financiero HERE )
The owners of land surrounding the newly opened road to Ciudad Colón-Orotina are fit for happiness.
The price of property increased by 25% and 60%, although in some areas increased to 100%, according to a survey done by EF Realtors.
For example, the properties facing the road have experienced an increase of 30%.
Construction in areas such as Athens, Orotina, central canton of Puntarenas and Esparza, recorded in the first two months of this year a major spike in relation to last year, with these facts expectations are flattering on real estate.
Months before the opening of the highway, Gonzalez began to notice the interest of people to buy land and vendors had increase the price of their properties. In fact, Easter is all booked solid.
In general, there are projects with permission to build villas along Turrucares, Athens, Guácima, Siquiares and San Rafael, said Thomas Fernandez, CEO of RCB Consulting Real Estate Bureau.
In Orotina, the property also feels excitement.
The real estate agent Jorge Rosales explained that since a year ago that six and twenty acres of land were valued at between ¢ 4,000 and ¢ 5,000 per square meter.
"Today the cheapest I found is ¢ 10.000 square meter for large areas, but also about ¢15,000 to ¢18,000," he said.
Despite this situation, Rosales acknowledged that "not everyone comes to buy and not all are willing to pay these prices" and believes that will soon the area will reach a stage of balance that will give way to gradual development.
More rod and cement
Let's see how it goes for the construction sector in these areas thru the route of the new highway.
In Orotina, for example, one of the destinations where people arrive since the highway opened on January 27th, building permits, awarded in the first two months of this year reached 7574 square meters.
While in January and February 2009 were given 2190 meters square, 28% less.
This data is from the Department of Professional Responsibility Federated College of Engineers and Architects (CFIA).
In other cantons, the increase follows the same dynamic. In San Mateo, went from 189 to 1483 square feet allowed, in Esparza, the change was from 2899 to 17,364, in the central canton of Puntarenas, the work endorsed increased by 16%.
Also very similar increases occurred in the cantons of San Rafael de Alajuela and Atenas.
In contrast, the San Rafael Coyol has followed with an interesting development, especiallythe industrial complexes, which for Ignacio Esquivel, industrial consultant firm Colliers International,says justify increases in land values.
$ 30 - $ 40
is the range of increase in prices per square meter on villas in Orotina.
30%
is the increased value of land across the street that the new highway passes through.
75%
of land has raised there price in areas like the San Rafael Coyol from about three years ago.
In most cases, work focuses on urban and residential development but also, to a lesser degree,also apply for permits of commercial and industrial building.
The housing market is confident that the distance that now separates San Jose from Orotina and all surrounding areas will bring more commercial development and housing.
This will result, as Víquez Olman said, manager of the company's Real Estate Connection Víquez in more people living in these places and more obligation to provide urban services.
Orotina is projected as the place where development will be stronger and will become a small capital with shopping centers and similar developments within two years, as required by Tomas Fernandez, RCB.
Some Orotina farms have risen from $ 30 to $ 40 (square meter) and the value of condominiums and rental space on the beach, for now have remained but soon will go up," explained Víquez.
José Francisco Barquero, president of the Costa Rican Chamber of Realtors coincides.
To Barquero, rising prices for land immediately gave access to development. In the near future that should empower municipalities to improve access and basic services like electricity, telephone, garbage collection and water.
Will also see benefit to other places like Jaco and Quepos.
Puntarenas Vice Mayor, Juan Luis Bolaños, admitted that he works with several pieces projecting growth: improvements in the parking system in front of the Avenue of tourists and an increase to three garbage collection days per week. Also plan to place video cameras to help police.
It also hopes that the Ministry of Public Works and Transport (MOPT) is expanding to four lanes to achieve the main entrance to the province.
Beware the boom
This market turmoil experienced by the Central Pacific road to real estate should also be viewed with caution.
Why? Luis Diego Espinoza, director of Innova Real Estate, said that pending the opening of the road, many investors bought land and now want to sell at lower prices.
An oversupply, "he said could lead to a housing boom that is somewhat misleading because while there is a good road, there are few other basic services.
Evans gives an example. Sectors such as the access that connects San Pablo de Turrubares to the highway, about eight miles, is in poor condition and may have to go through a bridge built in the 30s.
He knows that the area will continue to grow and increase its surplus, but also wants to avoid a repeat of Guanacaste, where prices soared and many began building without proper regulations.
All agree that building in real estate will be accompanied by appropriate development plans and strict controls on prices.
More people?
Population data presented below are taken from the Census conducted in June 2000.
People: We considered the cantons or districts near the new highway connecting Columbus City Orotina.
Alajuela: central Canton has 42,889; Guácima: 15,450; San Rafael: 19,162, Río Segundo: 11,036; Homeless: 21,075; Turrucares: 5986, San Mateo: 5343, Athens: 22,479; Orotina: 15,705.
Puntarenas: Puntarenas central Canton has a population of 102,504 inhabitants. Esparza has 23,963.
