The Light Rail in San Diego is almost six months away from operation but it already is having a huge impact on the real-estate market. Brand new condos and office buildings are being developed throughout the whole of the county. Since the advent of the project in 2004 a lot of developers have invested around six-billion dollars worth in both the private and public sector projects which were situated around the tracks of the light rail.
Critics however, has disagreed that the light rail is not the only reason for the development of real estate but it certainly was a mechanism that sped it up. They also said that the new transit system has put a huge burden on the taxpayers’ shoulders and the construction of the rail has slowed down a lot of businesses. Higher prices are being allotted for properties which are closer to the lines. Fuel prices are really high in the world market and have caused a lot of developers to change their attention towards the various transit-oriented developments. One of the renowned San Diego based company Constellation Property Group acquired around two acres of land near the Devil’s Stadium, this goes to show that a lot of developers are changing focus towards these rails.
As fuel prices rise higher and higher and driving times grows longer and longer, public transits are becoming more popular and that is the reason developers are focusing their efforts on developing with commuters in their minds. And location is the biggest factor for the high demands for the twenty-story residential buildings and hotels and retail spaces. The arrival of the rail system is expected to provide a large boost to property costs in the areas which are in the vicinity of the rail system; this system has worked in a lot of other cities that has undergone the construction of the rail lines. In Dallas metropolitan area the median values rose nearly twenty-five percent from 1997 to 2001 for the office buildings and the residential buildings median values increased almost thirty-two percent.
Century Plaza was a fifteen-story office building which was converted to a seventeen-story condo. This building was procured by Eqqus in December of 2004 and the location is at a prime place. Being just south of the light-rail station, it will be a very easy access to the station. This project has seen a lot of leasing activity and the company received almost all the down payments of the one-hundred forty-five units. Each unit is priced from three-hundred and seventy-thousand dollars for the one bedroom unit and two and a half million dollar for a duplex penthouse. Eqqus is also making new plans for four skyscrapers that would include five-start hotels, office spaces and a lot more condos. There is a very high interest among the investors for the various types of office spaces and some of the older buildings that would require some upgrade which are located around few blocks along the whole railway lines.
This light rail is already got the interest of the developers it is only a matter of time that the buyers flock in to buy the newly developed condos and living apartments.
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