Source (www.journalcr.com) By Rosibel Pérez C.
In the southern part of Liberia, near the Daniel Oduber International Airport, the growth of real estate development projects has become one of the most important in the province because of the wealth of available resources. But the lack of planning could turn this growth into a future urban mess.
“The main investment dollars come from the United States, though there is no statistical information,” said Enrique Egloff, vice president of the Real Estate Development Council (CODI). “Development in this area is fueled by the expectations of expansion of the airport.”
In the surroundings of the airport, there are 24 projects with an investment of $19 million, according to the Municipality of Liberia’s Engineering Department. They all have their permits to begin construction as long as they comply with current rules regarding land use, number of levels allowed for each building, and others.
The main projects include businesses, warehouses, condominiums and residential communities, which span investments from $23,000 to $2 million.
“This growth should be in harmony with the environmental and the social, taking into consideration aspects such as health, education, roads and water resources,” Egloff pointed out.
Next targets
Developers have their eyes on the country’s coastal areas, with the Liberia-Carrillo-Santa Cruz coastal corridor being No. 1. The Garabito-Parrita-Aguirre corridor is the next target.
It’s important to highlight that the Liberia-Carrillo-Santa Cruz corridor encompasses 62 percent of projects and 75 percent of investment in residential developments outside of Costa Rica’s Great Metropolitan Area. Beyond the country’s borders, there are new destinations to explore in Panama, the country with the highest growth in the area. Nicaragua is another investment target due to the incentives given and the easy paperwork, in addition to the low land prices, all of which navigate in the current political uncertainty.
Strategic alliances
One of Costa Rica’s weaknesses as a destination for investors in the excessive paperwork that must be completed in order to obtain construction permits. That’s why a strategic alliance between the Federated Engineers and Architects Association (CFIA), the Real Estate Development Council (CODI) and the Costa Rican Chamber of Construction has created the Program for Competitiveness and Efficiency in Construction (POSECO).
This program seeks to influence the central government to eliminate unnecessary paperwork.
“There’s all this tramitología (paperwork and requirements) that is excessive and illogical, as there’s very poor control once construction begins and the developers do whatever they please,” said Olman Vargas, director of CFIA.
In addition to this alliance, CFIA offers a Web site where blueprints are okayed so they can be printed and taken to all the institutions that must provide permits. It is expected that by the middle of 2007, a platform of services that includes all institutions involved in the process will be implemented.
As Vargas sees it, the construction boom must be accompanied by plans to make sure public infrastructure can sustain growth, considering key services such as water, electricity and roads. He said one way to address this issue is to have the public and private sectors come together.
CODI is one effort to bridge the gap between both sectors. It is a private entity aimed at finding solutions to optimal land use as well as establishing legal requirements in accordance with real estate development.
“Our role is working with the government and public institutions to improve procedures,” Egloff said. “We work with the Environmental Technical Secretariat, the National Housing and Urban Development Institute, and others.”
Costa Rican growth has not been planned well and there has been little control of needed services. In addition, land prices are very low compared to international prices, all of which has given way to the current construction boom.
Near the Daniel Oduber International Airport, land is divided in two parts: urban zone and rural zone. The square meter is used to measure the urban zone, and the current price is $2.9 per square meter. The rural zone is measured in hectares, each with a fiscal value of approximately $681 — but the commercial value can grow up to 600 percent.
“Land prices are going to go up, and the boom is going to stop there, and that’s going to happen relatively fast,” Vargas said.
