October 2013 Blog
The 2008-09 Great Recession had a devastating impact on Latin American resort properties as well as on the United States’ homebuilding industry. As economic recovery slowly adds to the confidence level of American consumers, a great many new and workout development opportunities are emerging in Central America and the Caribbean Basin. Tourism is increasing and is likely to escalate in concert with growing employment and personal incomes in the United States.
Parker Associates has a long history of guiding profitable real estate development in Latin America, including Costa Rica, Colombia, Mexico, Puerto Rico, Dominican Republic, Turks and Caicos, Aruba, Curacao, and The Bahamas. Current revival of many real estate projects in these countries is creating secure investment opportunities with potential high rates of return. The new lifting of restrictions on international REITs has opened fresh potential for individual investors to become involved in Costa Rica REITS as well as those targeted to other Latin American countries.
A current survey of development activity in northwest Costa Rica, the favored destination of Americans and Canadians since the re-opening of the Liberia Airport ten years ago with direct flights from many United States and Canadian cities, reveals development plans and construction of several American Flag hotels. The new projects include Hyatt, Hilton, Marriott, Paradisus and Crowne Plaza flags. They range in location from the popular resort town of Tamarindo right up to the Nicaragua border. A Costa Rica Hard Rock Café developer has announced a new facility to be located in either Tamarindo or Playas del Coco.
Perhaps the biggest new resort development in Costa Rica is planned by the Spanish Sol Melia Paradisus Resorts which has announced plans to sell its 15-year interest in the Paradisus Playa Conchal (original development on 960 hectares guided by strategic planning by Parker Associates) and develop a 5-star resort with 281 hotel rooms and superior amenities adjacent to Papagayo Bay on 21 hectares of sloping terrain with magnificent views of the bay and surrounding coastline. SunVest Holding SA and DIA SA of Costa Rica are investment partners in this exclusive resort development.
Additionally, new investment in the Playa Panama area promises to stimulate long-dormant plans for the adjacent golf course development, a portion of which, within walking distance of the beach, is approved and platted for a jump-start over neighboring plans. This southern area of Papagayo Bay is already a popular tourist destination and promises to add many amenities and housing opportunities this decade.
A particular market segment on affordable seniors housing, both independent and assisted, as well as medical center amenities, including medical wellness and seniors spa centers, is receiving special attention because of Costa Rica’s new retiree legislation with funding available in support of this sector—a direct target on the American/Canadian “baby-boomer generation” advancing into retirement years that promises to be a major investment focus in coastal Guanacaste.
As I write this blog, we have just received information from a Dominican Republic family spokesman announcing the new availability of several large family holdings in the popular eastern portion of that country, including a strategic beachfront tract adjacent to Bavaro Beach suitable for a full resort development.
If you would like to explore further details on these or other warm-weather locations, please contact David F. Parker at (904) 992-9888, or firstname.lastname@example.org.