The Value of Real Estate to the Community
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.
- Let’s reflect on the real estate industry in the La Paz area.
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.
Decoration and Art
Most condominiums and homes are sold unfurnished, opening a major market for those selling furniture and home decor items. Most people still have their furniture shipped down from Guadalajara. There are a number of fine furniture local stores and more people are using them. And as homes and condominium sizes have increased, so has the need for more furniture. The same goes for the art galleries. These homes need art on their walls, and La Paz does not have a lot to offer and people turn to the close by town of Todos Santos which has enjoyed a small boom for gallery owners and their artists for the past three to five years.
Employment
It takes people to build all of these homes and condominiums, a demand so great that La Paz has had to attract workers from other parts of Mexico. One interesting trend we are seeing is that many of these workers are bilingual, having returned to Mexico from the USA because of either the slowdown in the homebuilding industry or the tightening of immigration laws. Sometimes the workers speak better English than their employers!
Employment is also created by the need for people to manage and administrate the homes and condominium complexes, including gardeners, maintenance, security and property managers. There actually is a lack of people to fill these types of positions and a demand for qualified, professional administrators.
Restaurants
Unlike many other touristic destinations in Mexico, La Paz is slowly starting to offer different options in regards to restaurants. The growth of the real estate market has allowed to raise the quality of restaurants in the area now even offering gourmet cuisine by world renowned chefs. Real estate provides a base that the restaurants can depend on, even during the low season.
Demand for Airlift
La Paz has suffered for many years of a lack of options in regards to air transportation. The recent uproar in real estate has allowed more and more national and international airlines to open new routes to this destination. We currently have four national airlines and three international airlines offering an array of options to move in and out of La Paz.
Non-Profit Service
And we can’t complete this piece without mentioning one very important component that receives the attention of property owners, especially those choosing to retire here. They have time on their hands and many get involved with non-profit organizations. They benefit greatly through their direct participation or donations. Many NPOs simply would not survive without this important input.
There you have it. There is much more to real estate than meets the eye. Real estate contributes greatly to the community. There can, of course, be negative aspects to real estate growth. It’s inherent in most developers, if they are to be successful, to get the most they can out of their investment, which sometimes can mean building too high or too much. But that’s where local government needs to step in and regulate the industry. However, too often that side of the business gets much more coverage than the positive aspects of the real estate industry. Real estate does contribute more than its share to the community and should be recognized for it.
