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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Real Estate In Mexico Mexico is increasingly becoming the destination of choice for many US real estate investment professionals wanting to get a piece of the next big property boom action. With the current lackluster state of the real estate market in the US, many people are heading south with their dollars to find a good area in Mexico in which to invest in some real estate. There are several reasons that make Mexico an attractive place to invest in real estate. First, the number of US citizens and other foreign nationals planning to live in Mexico, often as a retirement destination, is increasing. Mexico offers a more pleasantly calm pace of life with better weather, less expensive living costs and more affordable health care coverage. So, even if you’re not thinking of living in Mexico, many other people are and that means there’s an increased demand for real estate which will lead to good investment value.

Isn’t YouTube great?? Mexico investment advice direct from the source - the people investing their money in Mexican real estate and investment properties. It is our humble opinion that Southern Baja California has more to offer than the northern part of this mexican peninsula.