Costa Rica Construction – Up 70% in the last 12 months

In the last 12 months construction work had an explosive 70% increase, due to the building of houses and hotels in the coast area.

From October 2004 to September 2005 3,271,605 square meters were built throughout the country, between October 2005 and September 2006 that number grew up to a 5,554,902 square meters.

Strength: According to the Costa Rican Chamber of Construction (CCC) the housing item grew in a 68%, meanwhile commerce in a 100% and industry in a 142%. The peak of this sector is reflected on the monthly index of economic activity (Imae), which shows the monthly behavior of national productivity.

Miguel Tapia, financial director of the CCC indicated that Imae of construction is at it’s highest point in history, which grew a 14% in the last year. The contributions of this sector has increased the internal gross product up to an 8.1% in the last year. Tapia said that construction work is mainly growing in coastal areas like Santa Cruz in Guanacaste and Garabito, Puntarenas.

The First: Throughout this year Santa Cruz is the district that registered the most constructed square meters, approximately an 11% of the whole country. Houses, hotels and malls are the ones mainly built.

Leader:

1. Santa Cruz beats the San Jose by 2.6 times it’s amount of square meters built. This district of 40,0000 people, has registered a swell in the index of human development.
2. Santa Ana is the second largest new construction area.
3. Heredia is the third and ..
4. Carillo, Guanacaste the fourth.

The president of CCC, Jaime Molina estimates construction works will keep up next year “We can’t talk about huge projects that will expand the numbers just of a few small ones.” Molina gave an example of how there are 25 apartment buildings, from 8 to 15 floors high under construction in Jaco, Garabito. He added to be very optimistic about warehouse construction because of the new government and CAFTA with the US.

Crucial: Vice-president of Real Estate Development Council, Enrique Egglof, said to maintain the construction work in its peak it’s necessary to minimize ties and permits.

Dynamism continues in 2007:

When asked which factors affect more in that 70% increase of construction?

Jaime Molina, Presidente Cámara de la Construcción replied that; “The enlargements of tourism activities generates construction of tourist projects and commerce as well as low interest rates and financing.”

Will this growth be conserved next year?

“The tendency of this growth will be conserved because they’re many projects being design currently and permits given.”

Will coast areas maintain as developer magnets?

“Indeed, Guanacaste and Puntarenas, until this moment equal the same amount of square meters built in San Jose. Condos built in the shores also impulse local commerce.”

What type of construction is being held?

“Residential condos in the coast area as well as the urban areas, houses, malls and tourist projects.”

Our thanks to José Enrique Rojas and our friends at La Nación – Costa Rica’s largest Spanish circulation newspaper for their permission use this article.

Andrew Makarik

to@welovecostarica.com

Andrew Makarik is the main editor of WeLoveCostaRica, a fan of this sunny country. He is also a loving husband and a has a lovely daughter. By being a devoted family man and the biggest Costa Rica fan, he wants to make more people feel at home there. WeLoveCostaRica unites people and helps them find new home or a new travel destination. This website is a friendly community where everyone can find not only information, but also new friends and travel pals. Andrew is also passionate about IT and programming, so he himself maintains a friendly atmosphere in this cozy environment of WeLoveCostaRica.com.