Where to find First-World Infrastructure Overseas

Wednesday, March 31, 2010

Dear Reader,

First-World infrastructure is an essential for most property buyers. They want decent roads and hub airports, internet and cell coverage, and cable TV…nice shopping malls and restaurants, and maybe even drinkable tap water.

In addition, most people looking to rent will likely want those things, too.

Don’t get me wrong. It’s sometimes worth investing in the “Path of Progress” (a promised new road, bridge or airport) as it can lead to significant property appreciation. We’re watching a Path of Progress story unfolding right now in Costa Rica. The upgraded coastal road opened officially in January. Getting to this area is now a comfortable, enjoyable drive for the first time in thirty years. Property prices stayed low because it was tough to get here. With a planned international airport on the cards, too, we expect property prices to rise.

For places that currently deliver on the “First World Factor”, here are our three choices.

In Central America, Panama; and specifically Panama City. It’s unique among capital cities in Central America, boasting a Miami-style skyline with gleaming high-rises lining the Bay of Panama. The roads and highways are fast and modern. The international airport is the hub of the region, with many direct flights to the Americas and Europe.

City traffic jams decreased with the opening of the coastal belt highway on one of the main thoroughfares, Avenida Balboa, last year. This project transformed the area, with a boardwalk, basketball courts and green space overlooking the bay. The next step is a new metro system, with construction expected to start in July this year.

The city is implementing wireless internet in public plazas and parks. Cell coverage is good, with a choice of providers, and new companies entering the market. You can get cable TV, high-speed internet with speeds of up to 10MB, and roaming broadband. The tap water in the city is drinkable, and the sewage system is undergoing a major modernization citywide.

You’ll find familiar brands on the supermarket shelves, and stores like Levis, Nine West, and Converse. The city’s malls are large and modern. You’ll find almost every world cuisine, too, in the hundreds of restaurants scattered across the city.

The Johns Hopkins affiliated hospital in Punta Pacifica is unique in the region. It’s more modern and better equipped than the hospitals I’ve experienced in the UK and Ireland.

In Uruguay, you’ll use highways that are well-maintained and clean. The new international airport opened in January 2010, with a significant upgrade.

Cable TV and internet services are reliable, with a choice of providers. The city buses have Wi-Fi, as do all town squares across the country. The tap water is drinkable country-wide. The British Hospital in Montevideo provides first-rate medical care.

The shopping malls and grocery stores are clean, convenient and well stocked. You won’t see as many familiar US brands as in Panama, but you’ll come across European ones (such as malt vinegar and curry pastes from the UK). A big plus is the freshness and variety of produce, sold in street markets held on different days across the city.

Mexico’s southern Yucatan coast is postcard-perfect. The turquoise Caribbean ocean washes gently onto powder-sand beaches, and the jungle interior hides ancient Mayan ruins. Offshore, the world’s second longest barrier reef teems with tropical fish.

Development of this area started in 1970, when Cancun was still a coconut plantation, and the area lacked basic infrastructure. The Mexican government invested heavily, building paved roads, bridges, drainage and electricity systems, and then financing the building of hotels to attract tourists.

Today, Cancun has 150 hotels, an international airport with hundreds of daily flights, and good, paved roads. You’ll find Sam’s Club, Costco, Home Depot and Walmart, along with McDonalds, and Starbucks. There are modern hospitals, many with US trained doctors, and numerous medical clinics. Cell phone coverage is good, and internet and cable TV are widely available. And the clubs and nighttime entertainment here are some of the best you’ll come across.

Development is now spreading south of Cancun, to the Riviera Maya coast (between Playa del Carmen and Tulum). The lessons learned in Cancun, though, will make sure that the Riviera Maya is not overdeveloped (height and density restrictions are in place, for example, so you won’t see a string of high-rise towers along the beach).

Playa del Carmen, the jewel in the Riviera Maya, was a small village, with packed sand streets. In the last 10 years, it rapidly shed those fishing village roots, becoming a hip beach town. The streets are paved or cobbled now, and the stores more up market. There’s even a Walmart and Sam’s Club here. The main street, 5th Avenue, is a cool place to hang out in the evenings. The restaurants and cafes vary, with everything from traditional Mexican to Thai food on offer. The shops sell a mix of luxury goods, handcrafts, jewelry and textiles.

Last week, the Mexican president launched plans for a new international airport in the Riviera Maya, close to Tulum. This makes getting here easier (although the Riviera Maya’s close proximity to Cancun’s international airport, on good roads, means it’s very accessible already). The new airport will bring 3 million tourists directly to this area, which should mean further investment in amenities like medical clinics, and golf courses. If you’d like to explore the Riviera Maya for $150, click here.

Margaret Summerfield