Infrastructure improvements are one of the biggest drivers of overseas real estate values. I’m talking airports, roads, bridges, and cruise ship ports. Anything that improves the accessibility of a piece of real estate makes it more desirable.

The development of a viable tourism infrastructure also drives values. Golf courses, hotels, man-made beaches, boutiques, restaurants, and marinas all bring visitors. Visitors spend money, which creates jobs. And jobs in turn heat up real estate values. Of course, it helps if the infrastructure improvements happen in a place with a great climate and a short flight from major affluent population centers.

Just north of Puerto Vallarta, along a stunning stretch of coast know as The Riviera Nayarit, the Mexican government is investing $1.5 billion to improve accessibility and develop tourism infrastructure.

The section of government responsible for this is called the “National Trust Fund for Tourism Development.” Founded in the 1970’s, its task is to create jobs and increase foreign revenue by backing tourism resorts. They think big: These are the guys who set their sights on a coconut plantation as the site for their first major project. Only known by a few local fishermen back then, you’ve probably heard of it today…

Cancun.

Resorts backed by this agency dramatically outperform other beach resorts in terms of visitor numbers, room occupancy—and appreciation in real estate values.

The Riviera Nayarit runs along the Pacific coast north of Puerto Vallarta to San Blas. By 2020, the government expects 14,000 hotel beds and 1 million annual visitors.

Nayarit won’t be a carbon copy of Cancun. Although Cancun was a huge success, its development wiped out any trace of traditional Mexican charm or authenticity. In Nayarit, height restrictions, density regulations, and stricter zoning will help make the resort more sustainable than Cancun.

Many development groups make bold promises about infrastructure and amenities. But this branch of Mexico’s government get it done. They bring the tourists. Jump into their slip stream, buy early-in pre-construction, and kick back while they do the work. Before you know it the piece of Nayarit you bought will be part of a mega and high-end resort. Hopefully you’ll be sitting on a tidy profit.

Source: Mexico is About to Create a Mega Resort: Here’s How You Can Profit

This from Today’s Financial News:

Wish you had a time machine? I just might be able to help you out with that!

Back in the early 1980s, International Living recommended buying real estate in northern Costa Rica. Readers who took this advice reaped big rewards.

This part of Costa Rica became the No. 1 destination among foreign retirees and investors who wanted to buy land that would increase dramatically in value. These buyers made very wise decisions, as the prices for beachfront property along the Pacific coast increased six-, eight-, tenfold, and beyond throughout the ’90s.

Your chance may have passed in this part of Costa Rica, but I can tell you where to find another pocket of opportunity… a place where prices have stayed low. Why? The area I’m talking about has been difficult to get to. That’s set to change — giving you the opportunity to position yourself ahead of the Path of Progress.

Some of the most amazing scenery in Costa Rica is in an area that runs south of Quepos on the border with Panama. Landscapes here in Costa Rica’s southern zone are dramatic: panoramic ocean views… lush tropical rainforest… and jungle-clad slopes rising sharply away from pristine stretches of sandy beach.

In a country with an established real estate market like Costa Rica, this sounds like just the type of place that would attract a lot of fervent investors. Difficulty getting there has kept it under the radar in terms of development and kept prices far lower than areas to the north.

The Costanera Highway is unpaved between Quepos and Dominical and the airports are small, local affairs. The airport in Palmar Sur is a one-woman show — she issues tickets, checks baggage, and answers queries, while you sit on a wooden bench overlooking the small strip, alongside your co-passengers… all 11 of them. No duty-free shop or airport food here.

These are exactly the kind conditions I look for when scouting for a good real estate opportunity… especially when plans to improve the infrastructure are in place.

For now, pricing here is among the lowest in Costa Rica. I found 1.25-acre lots close to Ojochal for as little as $65,000. Construction costs are roughly $90 per square foot.

So for $245,000, you can own your own piece of this tranquil setting in a custom-built, 2,000-square-foot house on a large lot.

That really is a good-value buy, considering that in Manuel Antonio, near Quepos a 2,200-square-foot condo averages $595,000 and a 1.25-acre lot is listed at $325,000.

The important news for investors is that road improvements on the Costanera Highway are underway and scheduled for completion next year. This should cut the 90-minute trip from Quepos to Dominical to 25 minutes.

An international airport is planned for Palmar Norte. Due to be completed in 2010 (the government has already allocated funds), the airport is planned to open in stages; the first, in 2010, will allow international flights with a maximum capacity of 50 passengers.

Eventually, the plan is to have a runway capable of accommodating even the world’s largest passenger plane, the Airbus A-380. An airport of this scale needs to be close to a hospital and one opened last year in Cortes, just 10 minutes from the airport.

I have been bullish about the opportunity in Costa Rica’s southern zone for the past six months. Today I got word of a government policy decision that makes this opportunity even more exciting.

The Costa Rican authorities have tightened up the regulations for developing land in this area. They are committed to controlling the pace of change, and prevent destruction of primal rainforest. This limits the number of future projects, and sets out to preserve the raw beauty of the landscape.

That all points to one thing if you get into this market today… the value, like northern Costa Rica in the ’90s, will soar in value.

Source: Another Chance to Make Big Profits in Costa Rica… But You Must Act Now