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Inside Costa Rica, Tuesday June 19, 2007

"Jacó Growing Upwards
Soon the Jacó beach horizon will be dramatically changed with rising condominium towers of up to 27 floors. The development of these large projects has taken Jacó residents by surprise.

Originally there were between 12 and 18 such projects planned for the small mid Pacific beach town. However, the count is now up to 50 of towering buildings never before seen in the area.

An inspection by the Colegio de Ingenieros y Arquitectos (College of Engineers and Architects) carried out over the past weeks of the Puntarenas province localities, shows that 21% of the projects do not count with the required construction permits.

Jacó is one of the fastest growing communities as more and more construction projects spring up from the ground every day to forever the change the small communities horizon.

The growth is so rapid that area residents are still having to adapt of living surrounded by tall buildings.

The mayor of Jacó confirmed the number of projects underway and in the planning state and admitted that the municipality is not ready for such growth, lacking the infrastructure to meet the growing demands on the little resources it has.

The majority of the condos are being sold to foreigners, who are reported to be paying up to us$1 million dollars for a beach front unit.

Included in the projects are developments like Day Star, Sonesta Jacó, Ramada, Costa Linda and an exclusive resort by St. Regis.

The total amount of investment being pumped into the area over then next several years is calculated at us$17 million dollars and expected to generate more than 5.000 permanent jobs."

_________________
Pura Vida
Only Irish coffee provides in a single glass all four
essential food groups:
alcohol, caffeine, sugar and fat.
Alex Levine

Interested to see how this whole condo thing is going to play out. The ones that are built look like they are sitting empty. I don't know how they are going to fill these things, excluding families. And what is the rep for Jaco? Drugs and hookers. Either a lot of people hiding money or either I'm just not savvy enough to understand the condo market in Jaco.

- is that a mis-print?

I don't think that would pay for a single high rise project here in the states.

_________________
"An intellectual is someone who has found something more interesting than sex." – Edgar Wallace (English author) - then I must be a complete moron.

The 17 million would barely cover a 100 unit building here in Costa Rica, it is a misprint or a mistake.



BKTUNA
I am nevergoing home

Hey Stinky,

I must be dumber than sludge, b/c the first 10 things on my mind at any given time are
1 sex
2 sexual positions
3 sex
4 how to go about getting sex
5 sex
6 whom I can have sex with
7 sex
8 when can I go to have sex
9 sex
and
10 What do I have to do to get more sex....

It seems to me that the boom is a lot of speculators going overboard. Jaco's appeal is twofold: It's on the ocean and it's close to San Jose. Other than that, (and a p4p scene) it has a lot less to offer than many, many other places in CR.

If all these places get built, or even half, I forsee a glut of condos. If you are going to actually LIVE somewhere, rather than just visit, why pick Jaco? Those after a quick buck like what's been going on in Jaco. But bubbles burst. I spent 7 months selling my house in California, and I can attest to that fact. Greed may guide investors in Jaco, but greed can bite you on the butt.

_________________
"The only normal people are those you don't know very well." Joe Ancis

There is already a glut of condos in Jaco. Most that are purchased are being purchased by speculators, not end users. This is what is fueling all the building. The developers are selling these units in pre-sales before they buildings are even built. Thus the developers are not taking on that much risk. The real risk is borne by those that buy these units on hopes that they can sell later at a higher price.

Costa Rican tourism industry has been basicly flat the last year or so. The airlines are reporting fewer flights and slightly lower number of total visitors.

There are not the number of new visitors to support all this new capacity. My guess is that not all of these projects will go forward. When the pre-sales start drying up, only then will the new development slow.

I would guess a lot of these condo units would end up as rentals, either tourist or expats.

With no new hotels being built in central Jaco the last 3 years, it may work out.

As far as the baby boomer retirees buying in Jaco, I can’t see it happening on a large scale.

TT

I would invest elsewhere. Jaco beach is disgusting. I wouldn't swim there and the beach itself is filthy and unsafe.

Rentals? Who is going to fill all that capacity? Existing hotels are already crying the blues because of all of the capacity that has already come on line. It is only going to be worse when all of this new capacity comes on line. Hope springs eternal.

There are two things on my mind that make Jaco attractive.

1. There is suppose to be a 4 lane road with bridges going to Jaco with that will cut the drive time down to an hour.

2. The hour drive time is to San Jose. The airport is in Aljuela which is closer to Jaco by 10 to 20 minutes. Of the plane and in your condo in 50 minutes. Night life in SJ less than an hour away.

If I was doing a vacation home. These are 2 things that I would consider in buying or even renting. They have been talking about this road for twenty years. I met a investor from Boston on a plane who said he was at a meeting with some minister who said the road will happen. And his group was buying there because of the road. Also in looking at other places to fly down to. Think about Belize, Gutalemua, Nicaland, El salvador, Hondoraus. They are all listed as dangerous. Not SJ. Then look at planes that fly south and you find long lay overs every where except SJ. Many airlines flying in several times a day. With a 4 lane highway. You can leave the family at the condo and be at the Feista Casino by the airport in 40 min. Or the Del Ray in 1 hour. Closer than Santa Anna.

_________________
Take a walk on the wild side.

IF, and that's a very big IF, they build that highway, then yes...

As you said, they've been talking about that damned highway for 20 years... I have no doubt that it will EVENTUALLY get built, but will it be in my lifetime? (I'm 35)...

I think alot of you guys shunned Jaco for the dry Guanacaste area. Jaco is the best place to own property. If you really believe that the drugs, crime, etc are really gonna be there when all is said and done, then I have the brooklyn bridge for sale!! any takers? Its going to become the second largest city in Costa Rica. Its better centrally located than anywhere else in the country. ou can bitch about the crime and the drugs, etc. But when you have St. Regis (5 star), Ramada Resorts (4star), and Sonesta(4star). Do you really think it will be a dump? The Spaniards in Caldera and Hilton building close to Esterillos. How can you compare? Tamarindo is an overpriced dump, just as much crime takes place there, there is a huge water shortage, there is no costanera, and prices are ubsurd over there. I dont hear anyone complaining about that area. I am not bashing anyone. just giving my point of view.

Ok, Let me have it!!!