La Paz is the Capital of the state of Baja California Sur, and as such, the tourism industry developed differently than many coastal towns in Mexico.

The downtown Beach Front land was not developed with high rise Condominium and Hotel projects. There by setting the stage for the type of beach front development that we see today. Low density development of Condo Projects along the beach adjacent to town. There are some exceptions.

This density footprint to some degree, dictates the price of real estate in the area. As a result, La Paz land values are such that they are attracting developers and investors from around the world, who are looking for reasonable prices on large pieces of land.

These are two pieces of the overall puzzle.

Density guidelines dictate the prices of the raw land as they relate to the price that the market will pay for a particular vacation home or condominium. As a result, because the raw land prices are reasonable, we can build a low to medium density project, price it competitively, and have fewer units to absorb in the sales cycle.

This is a low density development opportunity, which also fits with the Green Building concepts that are we are seeing every day. Green Building used to be associated with specialty projects and markets, but now is becoming a mainstream construction solution for our area.

It all fits well together.

Clients who wish to own a Green home, a home that offers an earth friendly environment are also looking for a little more space around them. They will gravitate to the low density developments because that also is part of the vacation home signature that they want to buy.

If the raw land prices continue to be competitive, Developers and Investors will be able to continue to build Low Density, Green, earth friendly developments, which are priced competitively and offer upscale amenities for the owners.

The developer can count on a higher return on investment, over a shorter period of time, as there are simply fewer units in the development to build market and sell.

Lower density developments therefore have less risk to the developer. That is just one of the reasons that La Paz, and Baja Sur in general, are receiving so much international attention.

We have all heard that “green” and “Sustainable Design” is not only the way of the future but the way of the present. Yet in some areas, going green hasn’t become so, not yet at least. With the ever rising costs of materials, the slowing housing market and an economic recession looming around the corner, lots of developers are somehow “putting off” using a sustainable design until more strict regulations are put into place or until they’re forced by the market. But a difficult market does not mean that developers have to stay away from environmental and social responsibility either.

There are many steps that a developer can take, without losing all the parameters that he would expect from a traditional development, in order to improve the bottom line without leaving a big mark in the environment. All that’s needed is a little bit of creativity and a good team of knowledgeable engineers, architects and land planners that will make sure that incorporating sustainable design practices, as many as they can, that are practical for the project and the site.

Once considered more of a lifestyle, “green living” is now a tremendously attractive market that allows developers to reap great rewards from their investment. A fast growing number of developers want to create “better places” incorporating responsible concepts; it’s just a learning process.

Achieving a balance between marketable projects and environmental conservation is not a difficult task at all. Developers will find that with strong communication between site engineers, project managers, city officials and environmental consultants will allow them to establish the correct standards that fit both the objectives of the project and the city or state’s regulations.

When most people think of real estate as an industry, it brings up images of tracts of single family homes, large commercial and condominium towers and shopping malls. But are there benefits other than providing housing, office space and shopping opportunities? If this is all that is taken into consideration, the real estate industry can seem to be doing whatever it can to fulfill its own interests, sometimes above the best interests of the community. But there are benefits that arise from real estate that too often are not considered, shortchanging the industry and, in some respects, giving it a bad image.

Golf Courses

Real estate developers learned a long time ago that, if you want to sell real estate, you have to deliver amenities. Building tracts of homes or condominium towers is not enough. If you want a project to sell well, add extras such as golf courses, marinas and commercial spaces. In this region, there is only one golf course that’s currently being built for the Paraiso del Mar development that is striving to open by year’s end. There are more golf courses to come but they are still in the planning stages.
Building golf courses is a major investment, and involving the sale of homes along the fairways goes a long way toward paying for the course. Golf is one of the main drivers behind tourism promotion throughout North America and is only starting here in La Paz. Promoting this destination is simply easier with the availability of good golf courses, just ask any realtor.

Marinas

Another important amenity offered by real estate developers are marinas. There are currently four already built in La Paz and two more to be built in the next few months (Marina Palmira, Marina Costa Baja, Marina de La Paz and Marina Singlar). Real estate can pay for a marina investment much faster than mortgage fees can. Of the secondary industries, these would probably be the most obvious, although it is amazing how few people have thought about this when I bring it up. But there are other benefits, as well. Probably, the most obvious would be the additional revenues for the municipality through property taxes. Next would be home decoration and art galleries.

Vacation homes first of their kind in Southern Baja to combine an Eco-conscious green approach with the luxury lifestyle. In an ever changing market, those who stand still are usually left behind…or worse, run over.

La Concha Pearl, the Greenest building in Baja, built by Newtek Construction Solutions of La Paz, is leading the charge for luxury Green living in Baja. The building materials and systems are state of the art. This project is the most energy efficient building in Baja. It will be the first U.S. Green Building Council LEED certified building in Baja.

La Concha Pearl combines the beauty of beachfront living, modern day luxuries, elegance and amenities with Green, energy smart and Eco friendly principles. Walls and floors are built out of Quad-Lock and Quad-Deck building systems. These provide superb energy efficiency. Windows, air conditioning, appliances and lighting are all the top of the line in energy savings. Solar power is incorporated throughout the design. The result is a Green smart building that uses approximately 60% less energy consumption than similar style conventionally constructed structures.