An analysis by provinces reveals an uneven recovery in the construction sector and how the coasts are expanding their potential. This was announced last Thursday by the Federated College of Engineers and Architects (CFIA) by sharing the data for the first semester of the year, according to which Guanacaste is at the forefront of construction projects.
In general terms, there is a 3.4% increase in construction intentions, compared to the same period in 2022. Followed by Guanacaste, San José, Alajuela and Puntarenas appear as the areas with the most projections.
Regarding the use there are also variations. The growth of the urban sector allows projecting a greater record of square meters in the short and medium term in residential and commercial; while the commercial sector returns to the levels it had before the pandemic.
The case of Guanacaste
The fact that for the first time Guanacaste appears as the province with the largest number of square meters projected for construction was defined as “historic by the CFIA.” Between January and June of this year, 1,200,882 square meters were established with expectations of starting works. In addition, 18% of the country’s topography work was carried out in the area.
As an example, Santa Cruz registers 598,400 m², which implies that development doubled in just 1 year. The data also makes it the canton with the highest rate in the country.
Growth in Guanacaste is divided among:
• Urban sector (urban infrastructure works)- 487,476 m²
• Housing sector- 471,932 m²
• Commercial sector- 136,109 m²
“Since the previous year, we had noticed significant growth, both in Guanacaste and in the Central Pacific sector, and this makes us very happy because we know that they are areas where investment and socioeconomic development are urgent”, said the president of the CFIA, Marco Zúñiga. “The historic levels that Guanacaste reaches are the good news that its inhabitants have been waiting for many years, since, through works related to engineering, architecture, consulting and construction, the cycle of economic growth and social well-being is completed through the generation of permanent and temporary jobs”, he added.
Public works are stagnated
Coupled with optimism about new private construction comes concern about public investment. In this area, the institution speaks of “stagnation.” According to the data for this period (January-June 2023), of the total square meters, only 6.9% are public works; Therefore, private investment is the one that gives the greatest economic boost to the country.
“When analyzing the construction of public works, we noticed a kind of ‘stagnation’, since in 2022, 2021, 2019, 2017 and 2015 there is a similarity of registration and in none of those years did it reach 1 million m2. During the best years of 2016 and 2018, public works registered percentages of 19.5% and 21.9% with respect to the total works, when the recommended rate would be around 30%”, explains the Executive Director of the CFIA, Guillermo Carazo. “Always based on technical criteria, we have insisted to the different government authorities on the need to establish dynamic public works execution plans, both in design and later construction tenders, as well as fast track (joint design and construction), for road works, aqueducts, and educational and health infrastructure, among others”, he added.
The issue of social housing also worries the construction sector. Although it rose 15% compared to the previous year. However, it is still 35% below 2021 and previous pandemic years (File)
Other points to be improved
In conclusion, the CFIA also listed some necessary areas of intervention to achieve further construction development. Among them are:
• Ask AyA to build the infrastructure that is required in the country, as well as speed up the management and response to water availability letters.
• Carry out an analysis of the Subdivision and Urbanization Regulations (RFU) that allows for increased construction in rural areas.
• Advance with the project that would stop the increase in VAT for construction from 8% to 13% as of September; since it implies an increase in the costs of engineering, architecture, topography and construction services of 5%.
