One of the great development opportunities in La Paz is the diversity of product that we can offer to prospective clients.

We call these ¨Mixed Use Environments¨ and they are truly diversified.

This phrase is not new, but what it means is new, it is an evolutionary change. For years, this simply meant that the client would be in a Vacation Resort environment, that offered a full ownership Condominium product, a Fractional Ownership Condominium product, a conventional time share product and a regular hotel product.

Great for the developer! Not so great for the client.

For the Developer it meant that they were maximizing their marketing costs and had a higher client efficiency because there was always money being spent on one of the products available.

To the client however, the end result was an ownership in this mixed use environment that did not have any focus, or certainly did not focus on their needs. For example, it was not uncommon for guests who were renting at $200.00 per night, to share facilities with owners of Time Share weeks, who paid much more for their accommodation.

The next step was to offer ´value added features´ to for the time share owners and fractional owners. This added a level of services to for the owners that had paid more for their inventory, but it still all took place in a very busy, very high density environment, crowded pools, restaurants and beaches became part of an ownership, which was once defined as private and intimate.

As the vacationing population has a much more diversified schedule, so must the development offer a much more diversified schedule.

New Developments in La Paz will feature mixed use environments in much smaller ´clusters´. One area would be a boutique style hotel, with their own amenities including many services, and their own grounds and access to the beach. Another area, would be for the Shared Ownership owners, offering amentias more suited for clients staying three or four months. The third, the Condominium portion of the project, would offer services conducive to a the needs of full ownership clients. The fourth, single family dwellings, would offer different sets of amentias.

So development in La Paz, will offer true mixed use environments that are much more spacious, and offer amenities suited and designed specifically for that owners needs.

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.

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.

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