Credits Effects on Constructions in Costa Rica

From the point of view of project designers, these financial difficulties are unfortunate hindrances especially to high-status projects of, for example, the planned $800-million development of the Punta Cacique hotel along the Pacific Coastline scheduled to start on 2010. This project includes the rise of luxurious residential sites, two hotels, and various facilities such as a tennis court and spa. The difficulties in construction credit terms, however, make it impossible for the project to start next year as planned.

Construction design and management firms that are focused on real estate development are also faced with the same hindrances. Steffi Graf and Andre Agassi, who designed an advanced tennis facility for the Cacique project, were disappointed with the delay and uncertain shoot off of the project. The pair’s other ventures such as a five-star hotel and resort located in Indaho was also halted because of credit limitations. A disappointing but appropriate move, the construction firms’ decision to postpone projects serves as a calculated judgment of current market conditions. The hiatus, explains Blaine Kirchert of the Regent hotel development team, is merely to buy time to further study the potency of the market, especially during challenging times. He says this in reference to the construction standstill of the St. Regis Hotel and Regent Hotel project set in the area of Guanacaste. The former project was originally funded by the Lehman Brothers, which experienced a major downfall in 2008. Also tied to the U.S. bank was Mandarin Oriental’s Manzanillo project.