Cost per Square Meter Rises in San Jose Costa Rica
The Costa Rica News (TCRN) – The increase in the number of available buildings – especially in terms of housing and trade – in the five districts of San Jose Costa Rica downtown is causing a rise in the cost per square meter.
During the last three years Mata Redonda, Merced, Catedral, Hospital and El Carmen concentrate half of the total square meters built. After the repopulation process through vertical construction implemented by the Municipality of San Jose, these five districts gained added value.
Capital gain increases when a property´s price rises. This occurs due to factors related to supply and demand in an area, as well as to updated tax value and redefinition of land use.
Housing. The houses that were built in these five districts constitute 40% of all built in San Jose during the previous year, according to the Chamber of Construction (CCC).
Buildings in condo towers in La Sabana, Rohrmoser, Nunciatura and Paseo Colon are the most outstanding. In these places, the cost per square meter ranges from ¢ 135,000 to ¢ 425,000. However, in the market the price per square meter in these places can reach ¢ 600,000, although eight years ago it cost ¢ 200,000. Gonzalo Delgado, president of the CCC believes that the repopulation of the city has had a direct impact on the added value of San Jose´s territory.
In fact, the districts of El Carmen, Merced and Catedral had an increase in the number of households by almost 10% and in Mata Redonda the increase was of 22% over the same period.
Edgar Santamaria, regional director of Century 21 for Central America, explained that the cost of land increased because of the convenient location of the lots and the possibility of building higher density towers as well as pedestrian friendly communities.
Trade: 50% of the 158 605 m² of new commercial buildings in 2012 were located in the five districts, most of which are rented. According to Colliers, Costa Rica, the buildings located in Central Avenue are the most expensive ones, with prices of up to $95 per square meter monthly, as opposed to the $ 60 of Multiplaza.
On the other hand, "boulevards have led to increased pedestrian traffic, which leads to a rise in prices," said Danny Quiros, intelligence manager of the firm.
Aleyda Bonilla, president of the Costa Rican Chamber of Real Estate, said the added value of land in San José rose because it has all the necessary public services. LN
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