Hello Owners and Potential Investors,

We wanted to pass on an independent article regarding the unprecedented real estate boom that is currently taking place in the Rosarito-Ensenada corridor.  The Costa Baja is coming along nicely and we have also heard recently that plans to build a convention center across the Blvd. from the Resort are in the works.  This would be a great addition for Ensenada and a valuable asset for the Costa Baja given our convenient and desirable location.  The past three weeks has been an especially busy time at the Resort with the Easter Holiday, the Rosarito to Ensenada Bike Race, and this weekends Lexus Newport to Ensenada Yacht Race, we have been full to capacity and overwhelmed with interest from potential owners.  This is an exiting and prosperous time in Baja and it's future is even more promising. Take Care for Now,

www.CostaBajaCondoHotel.com

The Tourism Corridor’s Real Estate Development Boom

Imagine your home surrounded by rolling green hills, blue skies, an ocean breeze, and the air filled with the history of Baja California? That’s the American Dream real estate developers are building on the coast of Baja California as they await the arrival of over 6 million potential clients from southern California, Washington, New York, and other U.S. cities. Today, there are currently 73 mega projects under development, and within the next five years, plans for investments along the Tourism Corridor range from five to eight billion dollars. There are still other projects, which are in the planning stages for realizing this typical American Dream. Real estate investments are beginning to change the landscape of the coastal region. And the conurbation of Rosarito, Tijuana and Ensenada are bringing about a transformation of their traditional models as cities.Real Estate developers and service providers can already envision a different BAJA in just a few years. It will not be the same.

The Real Estate Boom

The “residential” visitors or tourists are those that own a second residence here, unlike the tourist that visits during the traditional seasons. They are apt to stay in their own house or apartment. They generally rent or purchase their overnight accommodations, bypassing hotels altogether. According to experts in tourism, the second residence visitors that do not rent hotel rooms tend to continue to consume in the plethora of establishments that offer beverages and meals in the community. Those that have their housing near the beach areas are more likely to frequent local businesses. Whereas those with homes or apartments in urban areas tend to use their property as a base, and from there they visit the local sights and entertainment.Taeko Sihimuzu Kano is the director of Rosarito’s Tourist Plan of Action agency. She maintains that due to the different attributes residential tourism brings to the mix, many countries, especially in Europe, have been rescued in times of dire economic crisis. Spain, on the Mediterranean coast, is one example. Another case in point is Cancún. The Mayan Riviera is one of the leading residential tourist centers in the world.The northern Baja is now experiencing that phenomenon and it is a tremendous opportunity for development. It is also gives us an opportunity to plan the growth and devise specific actions in order to transform the region’s environs and attract significant investment for tourism projects.

Growth Has Overtaken Us

The president of the real estate development association (Asociación de Desarrolladores Inmobiliarios), Javier Collignon, said “Growth has overtaken us,” recognizing the real estate boom along the coast. “It was not planned, and that is precisely the reason we should work on solutions to the challenges that need to be addressed such as: land ownership reform, urban infrastructure, public services, and offer additional services for the tourist.” He stated that the construction of developments is not new, but the increased volume of projects is unprecedented. Construction projects under way for the Tijuana-Ensenada corridor in the past two years total 73 developments, a total of 3,000 residential units. Similar numbers are in the study, application process, and paperwork-filing phase.One of the most important projects, called “Ventana al Mar” (Window to the Sea), is located at km. 84 of the Tijuana-Ensenada toll road. This project alone includes two thousand residential units to be built in 10 phases. 1,102 of them will be homes, two condo-hotels with 851 units, two club houses, restaurants, and 63,000 square meters of commercial land, as well as 2,000 single family lots. All this on 250 square hectares. This project alone, which will be built in 10 phases, entails an investment of 450 million dollars. It is estimated that within the four to five years investments could reach a total of five to eight million dollars. These major investments will no doubt change the quality of tourism and economy of the area, but it will also serve as a model for development at other coastal Baja California cities.According to the Office of Urban Control (Dirección de Control Urbano) for the city of Rosarito, there are 12 projects that have been officially approved, and three more that are still in the filing process. José Carlos Gay González noted that the office receives an average of 12 applications per year and that by the end of this administration there could be between 36 to 40 projects of this type being built.The buyers of these upscale properties will require a level of service to which they are accustomed. “It’s not just a matter of an increased volume of business. This will require a quality level of service, something which is lacking in Rosarito” explains Arístides Valdespino. He added, “It’s up to the local authorities to be conscious of that reality.”

Growth or Development, a Disconnect

The real estate boom came upon us because southern California simply ran out of space for housing developments at or near their beaches. Developers set their sights on Baja California and have started to build. Javier Collignon added, “The demand has far exceed our expectations. It’s estimated that there is a potential market of 6 million prospective clients, in California alone.” Buyers from Florida, Washington, and New York have also demonstrated an interest in investing here. This potential for growth is unprecedented. Today, most real estate developments follow a formula, which include: a lounge area; a swimming pool; a parking area; and a recreation room for gatherings. There will soon be a demand for higher quality integrated services, entertainment, and for recreational activities. Investors will no doubt take an interest in projects that also offer future business opportunities.  “...nobody can stop this now.”
The president of the real estate development association (Asociación de Desarrolladores Inmobiliarios), Javier Collignon, recognizes there are many challenges that confront us and that “we have no choice but to resolve them.“Ventana al Mundo” Window to the World, Collignon contends that dialogue is the principal tool everyone must use, today and in the future. “We all need to work in concert, the ejido landholders, with the authorities, with the investors, with the real estate developers,” he added. He pointed out an important work in progress, the project called “Ventana al Mundo” (Window to the World). This is a revitalization agreement with the City of Tijuana and real estate developers to improve the image of the coastal corridor. The agreement clearly delineates that the city will beautify and clean up the highway from the border crossing to the toll road at Playas de Tijuana. This includes adding garden areas, improving pavement of roads, painting the border fence, and cleaning of all refuse along that route. The real estate developers, in turn, have agreed to adopt a mile (each), which they will maintain and keep clean and tidy in the future. A similar agreement is being negotiated with the city governments of Playas de Rosarito and Ensenada. That’s just one example of the dialogue that’s beginning to take place.The statewide public utilities office (Comisión Estatal de Servicios Públicos) is studying alternate sources of potable water. The state congress is considering changing some archaic real estate legislation as it pertains to construction and urbanization. These actions will most likely add to the current boom, as it will even become easier to develop properties in the Mexican Baja Region.

Excerpts credited to Baja Times