Green Space Villa Community
A Greenspace Development is an alternative to living in an area with no room to breath and no privacy! This includes both the condominium lifestyle and private villas built on small building sites. To the contrary, a greenspace development is where a private villa can be built surrounded by green space. For example, many gated communities in the Dominican Republic have building lots as small as 500 square meters (m2). For reference, 500 m2 is equivalent to 1/8 of an acre. As you can imagine, villas built close together do not allow for much green space. The opposite is true in a Greenspace Development where the minimum lot sizes can range from 3,000 m2 to 4,000 m2 (about an acre). This web pages shows how you can buy a building lot or a finished villa in a greenspace community. The land may be in a safe and secure area by itself — or a gated community being developed. Either way, it’s a great alternative to the condominium or crowded villa lifestyle. In a perfect world, the greenspace community will also offer tremendous ocean or mountain views which is easily found on the north coast of the Dominican Republic. Added amenities include an international social nucleus, short distances to some of the best beaches in the world, and nearby shopping and restaurants.
Traditional Focus on Density is Now Changing – Land developers in the past have focused on maximizing profits by maximizing the density of residential units that can be built on a site. But is this really the best use of the land? Is maximum density what people really want? I think not!
Existing Product or New? – Most gated communities have been designed with maximum density in mind. This is especially true when land values have increased due to location and demand. An alternative is to find a remote location that will offer lower density and future appreciation. In the past developers have been afraid to face the risk of planning a low-density residential community in a remote location. However, the Dominican Republic so much untouched land available with the right business plan.
Why Not Build a New Green Space Villa Community? – If security, accessibility, quality, and affordability in a new and modern gated community is of interest, why not create a product that meets those interests? Why not become part of a growing trend to form partnerships and join a company on a pre-sale basis and be part of the development team? This includes discounted prices on pre-sale villas or development profits as an investor with a chance to choose your own building lot and have input on the Master Plan of the community.
Security – Accessibility – Quality – Affordability
Living the Dream – It seems everyone’s dream is owning an affordable villa on a pristine beach in the Caribbean. Unfortunately, this is becoming harder to achieve. This difficulty stems from two realities. First, many pristine beaches in the Dominican Republic are already being used by hotels or all-inclusive resorts. Second, beaches not occupied by high-density developments are either remotely located, or controlled by landowners hoping a large hotel company will pay top-dollar for their beachfront land.
Thus, the dream of owning a private villa on a pristine beach is becoming more unlikely. Stating this in a different way, the high cost of beachfront land is becoming so expensive that developing a new and modern villa community with green space and water access at an affordable price is now a real challenge. At the same time, we find people seeking seasonal or long-term usage are now looking for private villas with more open green space and water access. In addition, there is increasing demand for affordable villa communities in the Dominican Republic that offer: Security – Accessibility – Quality – Affordability
The form to the right can be used to request more information about the Master Plan of the community, Villa Designs, and Floor Plan layouts. More information is also available for pre-sale buyers of both the building sites and villa construction.
Land Price Comparisons
The examples show the difference in land prices on the north and south coasts of the Samana Peninsula. The comparison focuses on Las Terrenas on the north and Samana on the south, which is the bay side of the peninsula.
Las Terrenas Land Values
Land Costs $150 to $500 /m2
Samana Land Values
Land Costs $15 to $95 /m2
For reference, 1 Acre = 4,047 square meters (m2), and based on this, 1,000 m2 equates to a 1/4 acre building site. Assuming a greenspace concept, a minimum lot size could be set at 3,000 m2. (Each community will vary.) Using the costs /m2 stated above, 3,000 m2 would start at $450,000 usd in Las Terrenas and the same size building site in Samana would start at $45,000. Building costs can range between $900 to $1500 usd, depending on contractor pricing and amenities. For example, an owner-builder cost for a 2-bedroom villa of 100 m2 could be $100,000 plus a land cost of $45,000.
Greenspace Community (Option 1 Location)
Greenspace Option 1 Lifestyles
Individual Sites – Individual building sites with clear title are now available for sale. Infrastructure includes paved roads to site, electricity, well water, and high-speed Internet. Because of the sloping hills, all villas have unrestricted views of the Bay of Samana.
Gated Communities – Large parcels of land are also available for a Greenspace Gated Community Concept. This option requires a like-minded group of investors who commit to a building site (or sites) within the master plan of the community. Initial investors will have say in the master plan layout, site selection, and community amenities. Typically, a corporation is formed and shares are distributed to investors of the community.
Villa Design Options
Community Master Plan
We have assembled a list of available properties suitable for green space development on the Samana Peninsula. These properties range from panoramic ocean views from a mountain setting to flatter communities with water access. Pre-sale buyers will have their choice of developments and the opportunity to participate in the design of the Master Plan for the community which will identify green space tracts, common areas for amenities, and roads within the community for villa access.
Villa Design Options
Although custom villa designs will be available, pre-sale buyers will also have input on 5 or so villa designs that will be created by an architect of choice. These designs will be more economical than the custom designs. The designs presented above are a sample of the concept to be used. The villa design on the left is of Millennium Villas currently under construction in the center of Cabarete. Please let us know if you would like more information about this product.
Floor Plan Options
Along with the Villa Designs, there will also be corresponding floor plans from which to choose. Pre-sale buyers will also have the opportunity to offer input on the floor plan options. Custom designs are also a possibility. Because of the green space concept — and the longer-term nature of the residents — the focus will be on single level villas rather than multi-story villas. This will especially important to those joining the community for retirement purposes.
Community – Social Center – Boutique Hotel
Depending on the location and size of the property selected for development, a Boutique Hotel may be part of the planned community. This hotel would have a reception area, restaurant, and other amenities like a spa, gymnasium and media room that could also be used for seminars or group meetings. This social center could also include a community swimming pool and lounge area. Since the average villa surrounding the boutique hotel will contain 2 bedrooms, the hotel could be used by extended family members or guests — especially during holiday times. The size and design of the boutique hotel will compliment the size and design of the community and conform to the green space community lifestyle with a focus on tranquility and nature trails.
RENTAL PROGRAM – Although the primary market for the private villas are seasonal or full-time residents, a rental program should be available to all villa owners. If done in this manner, The Boutique Hotel could also serve as a reception center to enhance villa rentals and occupancy for the entire community.
The Real Estate Heirarchy
People buy real estate for many reasons. The majority of real estate buyers prefer to own a home rather than renting. Many people also invest in a second home… either locally or internationally. Then there are the professionals who purchase land for investment. With all this in mind, we have developed a hierarchy for potential profit with real estate investments. All of this depends on market cycles, but assuming stable and realistic markets, we see the hierarchy of potential profits to be rated as follows:
1 – Real Estate Developer
2 – Real Estate Investor
3 – Real Estate Broker
4 – Real Estate Buyer
1 – Real Estate Developer – Depending on the development, real estate developers strive to make 15% to 20% return on their investments.
2 – Real Estate Investor – People who invest in real estate typically strive for a minimum of 10% Internal Rate of Return based on Annual Net Operating Income (NOI) and Net Sale Proceeds.
3 – Real Estate Broker – Real Estate Brokers tend to make between 5% and 10% of sales.
4 – Real Estate Buyer – The casual real estate buyer simply wants the property to increase in value over time and maybe get a 5% rate of return on rentals.
Based on this, we are putting together a group of real estate investors interested in purchasing real estate through a corporation that will purchase land for real estate development of affordable villas in a green space community… i.e. an alternative to buying at retail prices.
Is the Green Space Concept Possible? – When considering “Low-Density” vs. “High-Density” – Do the numbers justify the decision?
Stating this in a different way: is it possible to develop a green space community with private villas built on 1,000 m2 of land, priced at $250,000 (on average) to include 150 m2 of living space, private swimming pool, terrace, private gardens, and a 2-car garage?
In conclusion, we think this is possible! We also feel there are buyers for this product on a pre-sale basis. In addition, we feel there are buyers who will consider the alternative of investing in the development company and be part of the development team. If done in this manner, pre-sale buyers and investors would take part in the overall Master Plan and design of the green space villa concept. And, as mentioned above, these buyers who are investors in the development company would receive price advantages for villas purchased — and potential profit from additional sales of villas in the community to full retail buyers. (Investment options will vary dependent upon the land selected for the green space villa community.)