Two business groups in the capital are building two projects that combine residential, commercial and office spaces.
The need to diversify risk when selling various types of real estate, and to meet the demand for residential centers where residents have easy access to shops and services, has led to real estate investors to focus on mixed-use projects, which have "everything in one place. "
A company from Honduras is developing a mall measuring 200 thousand square meters in the city of Alajuela.
Next month the Lady Lee Corporation will begin construction of City Mall in Alajuela, measuring 200 thousand square meters, and having 300 commercial premises and parking for 2,700 vehicles.
Enrique Rodriguez, head of Public Relations and Communication of the new complex, told Crhoy.com that "the earthwork has already been done and now, in March, we will begin building the huge structure, a project which is being managed by the Honduran company Postensa".
The tax on capital gain charged on real estate transactions discourages building middle-class housing.
The construction industry and the private sector have asked the Honduran Congress to repeal the 10% capital gains tax charged on real estate transactions. Both sectors believe that the tax discourages real estate development.
"The Law of Public Finance Planning, Control of Exemptions and Evasion Measures approved by Congress last year taxes at 10% the buying and selling of real estate ."
Shopping centers and hotels in the city and on the coast are part of the new projects planned for this year and 2015.
Four commercial and mixed-use projects are predicted to boost the sector in 2015. These are City Mall, City Place in Santa Ana, Ocean Mall in Puntarenas and Jacó Beach Walk in in Jaco beach. City Mall and City Place are currently under construction and are projected to start operations in the middle of this year.
There is Increased investment in medium-sized commercial developments in the vicinity of residential areas.
Changes in people's habits, looking to cut commuting time from their place of work to their homes is influencing the investment decisions made by real estate developers who are focusing on building medium sized malls (between 1,000 and 5,000 m), located in the vicinity of residential areas and at high traffic points.
During 2013 the value of building permits increased by 27%, with projections being that it will keep up the same pace during 2014.
The dynamism of the construction sector experienced in 2013 will continue into 2014. The development of residential, commercial and megaprojects developed by the State such as the Metro, have propelled the sector.
Data from the National Institute of Statistics and Census (INEC) reveals that in 2013 "the total value of construction and additions in the country was $1.552 billion, while in 2012 it was $1.197 billion.
The increase of 13 % compared to 2012 is mainly due to changes in international prices of construction materials.
In the capital city the cost of construction of an apartment building is about $1267 per sqm, while in the metropolitan area and its surroundings the cost is $1,169 per sqm." In relation to 2012 , the increase is 13 %, because in that year, what was paid in the city was $1,112 and $1,042 in the surrounding area", reported Prensalibre.com.
In 2013, homes priced over $120,000 accounted for 20% of all units, while in 2012 the figure was 12%.
The data were revealed by Elisa Suarez, Executive Director of the National Housing Developers Council (Convivienda).
The developers of these projects expect that by the end of 2013 they will have sold about 1,642 such homes, representing 20% of the market, up 8% from last year.
The AVIA real estate project to be built in the Zona Viva will have three towers, parking for 2,500 vehicles, and a convention center.
Elperiodico.com.gt reports: "The mixed-use project includes an investment of $125 million and is being driven by Grupo Cofiño Stahl and FS Richard, who after a contest to choose the design submitted by the firm Permuller & Cohen began the construction phase in the area measuring 16,400 square yards. "
The sectors involved have agreed on a solution which means that the cost of the underground cabling will be between 1% and 3% of the cost of each house.
A short while ago it was believed that home values would increase by between $7000 and $9000, when the construction sector had not reached an agreement to amend Law 15 of April 26, 2012.
Panamaamerica.com.pa reports: "According to Law 15 of April 26, 2012, in order to lay the cables concrete viaducts should be used, which is very expensive, according to industry players. For this reason they have proposed the use of PVC and polyethylene pipes, especially regulated for this purpose, which does not affect the quality and safety of the system ... ".
In Costa Rica half of the municipalities do not have a master plan that establishes conditions for urbanization.
Currently the Ministry of National Planning and Economic Policy (Mideplan) has approved six projects to develop these plans in the municipalities of Montes Oro, Poás, Pérez Zeledón, Siquirres, Orotina and Naranjo. Others such as Desamparados, Hojancha, Coto Brus and Grecia are under study.
The growth experienced in real estate development in the Pacific coast of Panama has not been tightly regulated.
Capital.com.pa reports: "... at the most recent construction fair, Capac Expo 2013 there were presentations of 36 projects in the Pacific area corresponding to the category of second homes or country housing units with access to beaches." Of these projects, 80% are located between Punta Chame and San Carlos and they don't include hotels.
In the last year the country has built about 120 thousand square meters of new class A and AB office spaces, and recorded an availability rate of 11.9%.
In recent years, Costa Rica has become one of the major markets for offices in Latin America, ranking eighth in creation of supply in this sector, according to a study by the US real estate firm Jones Lang LaSalle (JLL).
Construction unions in Panama are looking for a way to avoid an excessive increase in the value of homes due to underground cabling.
"The guilds of Panama involved in building and selling homes, have joined forces with the aim of making underground cables in new residential projects (...) not having a significant impact on the price of homes ...", reported Panamaamerica.com.pa.
There are plans to build a mini-city on the beach in Puntarenas, two mega projects and 6 other smaller works that represent $211 million in investments.
The three largest projects will be developed by local companies in the province of Puntarenas, in the Central and Garabito cantons. "These, together with six other smaller private works, represent investments of over $211 million and the use of more than 164 hectares of land in the next 15 years," noted an article in Elfinancierocr.com.