Appraiser’s Perspective | Peninsula Papagayo, Costa Rica Appraisal

By: David Yepes, Siany Loaiza

Peninsula Papago is considered to be the most luxurious and prestigious touristic master plan of Costa Rica and Latin America. The project is located in the northeast corner of Costa Rica, on the Pacific Ocean. The property is in the Guanacaste state and is comprised of 1,400 acres. There are ultra-luxury residential projects, hotels, and extensive amenities including golf courses. Of the gross area of the property approximately 70% is conserved as green area – which is undeveloped. This makes PP one of the most eco-friendly and conservation-focused master plans in Latin America.

History

In 1965, the Banco Centroamericano de Integración Económica (BCIE) started an initiative to politically incentivize touristic development in Central America. Each country that participated established touristic hubs that were planned to be developed. In the case of Costa Rica, Peninsula Papagayo was designated as one of these hubs. After the verification and approval of the economic, technical, and feasibility studies, the law 6758 (Ley Reguladora del Desarrollo y Ejecución del Proyecto Turístico de Bahía Culebra) was approved in 1999.

The touristic hub of the Golf de Papagayo thereby was created under the authority of the Costarricense de Turismo (ICT). In 2016, the Gencom group – a specialist in the design and implementation of ultra-luxury master plans and hotels, bought the majority of the ownership of Ecodesarollo Papagayo and began development.

General

Metrics, Infrastructure – Paved roads, freshwater system supplied by wells, water treatment plants, underground electric and fiberoptics.

Administration – Peninsula Papagayo is overseen by the Costarricense de Turismo (ICT).

Products

• Branded Residences (Associated with hotel brands) – Single-family residential homes, villas, apartments, custom home lots).
• Non-Branded Residences – single-family residential, villas, apartments, lots.
• Ultra-Luxury Hotels – branded and operated by the most prestigious brands in the world.

Amenities

• Beach Club
• Golf Course – designed by Arnold Palmer – only playable by customers – residents
• Golf Clubhouse
• Marina Papagayo – 180 boat slips with planned expansion to 350 slips
• Access to the following beaches: Playa Pachote, Playa Prieta, Playa Virador, Playa Blanca, Playa Jicaro, Playa Nacascolo.
• Sports Park – under construction

Projects

• Alta Vista Residences – Community of 14 house lots at the base of Los Sueños rainforest reserve and overlooking La Iguana golf course.
• Bay Residences at Del Mar – 30 oceanfront condos of 2000 square-foot residences with 3 bedrooms and 2 bathrooms. In addition, it has three community pools and jacuzzies, as well as a fully equipped gym.
• Bella Vista Condominiums – Luxury beachfront condos of 3,100 square foot with 3 bedrooms.
• Colina Condominiums – Colonial-style condominiums of 15 buildings, 3 stories high with 6 units each building.
• Del Mar Condominiums – Neighborhood of 84 residences configured in two primary floor plans of 3 bedroom and 2 bathrooms.
• Marbella – 6 building condominium of two units with only 3 bedrooms and 3.5 bathrooms. Each building has pools and jacuzzis with terraces surrounded by gardens.
• Miramar – Condos of 3 bedrooms and 3 bathrooms with 1,700 square feet of living space.
• Vista del Sol – Ocean view residences with areas up to 5188 square feet, as well as swimming pools, gardens and terraces.

“The projects will be refinanced, then development will begin on phase Il of Peninsula Papagayo” Real Estate Agent, Guanacaste

Single Family Homes

• Fairway Estates (2021) – 14 home sites at the base of Los Sueños rainforest reserve.
• Del Bosque Lots – 16 home lots from 3,191 to 3,873 square feet in size.
• Eco Golf Estates – Single family homes and lots with golf course views. 4-bedroom minimum size.
• Las Brisas – 10 single family villas from 22,000 to 24,000 square feet in size.
• Montebello – Forest views residences of 4 buildings which have 3-bedrooms and 3 bathrooms.
• Montecielo – 30 ocean view residences of 3-bedrooms and 3.5-bathrooms.
• The Estates – 7 oceanfront view lots average 14,000 square feet in size.
• Tres Bahias – Private luxury homes located along the golf course with a view to the resort, ocean, fairway and rainforest.
• Veranda – 64 golf course homes of 1,2 or 3 bedrooms.
• Villa Malibu – 8 single family homes.
• Villa Rivera – 18 beachfront homes.

Branded Communities

Andaz Costa Rica

Is a community of 5 buildings that are low-rise and designed by Arq. Ronald Zürcher that are utilized as second homes and vacation homes that have a natural and relaxed architectural style.

• Products: There are 25 residences of 2 to 3 bedrooms that are currently in construction (2022). There are alto lots and a 4-star boutique hotel (Hyatt Andaz, owned by Gencom Group). In this community there are four restaurants, a kids club, two pools, a gym and a spa.
• Number of lots/units: 25 residences and a 140-room hotel
• Estimated # Sold, % Sold: Approximately 72% of the residences have been sold
• Selling Start Date: Sales started in June 2021 – which implies an absorption of 1.5 units per month.

Four Seasons Private Residences

An exclusive community that is beachfront and with ocean views and is characterized by peace and privacy, as the villas are located on a ridge that overlooks Bahia Prieta. The community was designed by Ronald Zürchar, with a contemporary style and is the only project that is administered by the Four Seasons Company.

• Products: Private villas of 2-3 bedrooms, apartments of 2-3 bedrooms, and single-family homes of 4 to 6 bedrooms, and a Four Seasons Resort (3 restaurants, pools, and other amenities).
• Number of lots/units: 65 residences in total – that include villas, apartments, and homes.
• Estimated # Sold, % Sold: 100% of the units have been sold
• Selling Start Date: 2006
• % Price Incr. Per Year: The apartments are currently selling for prices between $2-2.5MM USD and the villas are selling between $3.9-$5.5MM USD. The housed range from $9-$15MM.

Ritz-Carlton Reserve

This is an exclusive ultra-luxury community that is located on between 43 to 46 acres with views of the Bahia Pachote. The project is slated to be opened in 2024 and is being management by the Ritz-Carlton company. The Nekajui Ritz Carlton Reserve hotel will be owned by the Gencom Group and managed by the Ritz-Carlton Company.

• Number of Units: 36 private residences and 107 hotel rooms
• Estimated # Sold, % Sold: 20 residences or 55% of the total or about 3 per month
• Selling Start Date: January 2022.

Six Senses Peninsula Papagayo

Is an ultra-luxury brand of hospitality which is owned by IHG (International Hotel Group). Six Senses is a project that is being developed ty the Canyon Equity Group who is a vertically integrated luxury resort and hotel development group. The project will be located on the highest point of the Peninsula Papagayo and will have panoramic views. The hotel and resort will have 48,000 M2 and is planned to be opened in 2024. Originally, the project was planned be opened in 2021, however, there have been setbacks in the development timeline related to the pandemic, and related permitting delays.

• Products: Six Senses resort, Six Senses branded residences
• Number of lots/units: 42 resort units, and 31 luxury villas

Non-Branded Residences in Peninsula Papagayo

Bahias by Antoine Predock

An exclusive low-density community with ample setbacks which aim to preserve the privacy of homeowners. The project is characterized by its beach views of the bays. The project was designed by the prestigious architect Antoine Predock. At this date, the project is in construction and the first units will be delivered in November in 2023.

• Products: Single Family Homes
• Number of Units: 13 single family homes, generally on 1 acre lots
• Estimated # Sold, % Sold: 13, 100%
• Price Range: From $5.7-$9.5MM

Las Terrazas

Condominium units with luxurious views of the Nacascolo Reserve and Bahia Culebra. The project was designed by Ronald Zürcher and was built in 2018.

• Products: Apartments or Condos
• Number of Units: 16 apartments
• Price Range: $2.1-$2.2MM USD

Prieta Estates

Subdivision with 55 single family homes located on Bahia Prieta.

Pacifico Oeste

This subdivision offers lots from 1.6 to 2.5 acres with prices that range from $1.3 to $3.5MM USD.

LOGAN Central America has a Resort

Residential division that specializes in appraisals of second homes, in the resort markets of Central America. In Costa Rica, these areas include Jaco, Papagayo, Tamarindo, Guanacaste and other areas. Typically, the appraisals are done for purpose of acquisitions, divorces, legal settlements, litigation, IRS Tax purposes, and international financing.