The suit, lodged by Mr. Luis Carlos Sanchez and Robert Faris, denounced the use of well water without an authorized concession and tree felling of high value timber.
"The project is located in an area where there currently is not any legal operator established for the providing drinking water through an aqueduct, which means that a letter of availability can not be issued" says a letter given in evidence and signed on May 12 last by Guillermo Arce, of the Water and Sewerage company", reported Nacion.com
The project located in Santa Cruz and Carrillo in Guanacaste, includes the construction of 2,500 luxury villas in an area of 469 hectares.
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Demand for luxury properties in Panamanian coastal areas has grown and it is not unusual to end up paying up to $1,800 per square meter.
Residential projects, depending on their proximity to the beach and how well esteemed the area is, in many cases can exceed a million dollars.
The Chamber of Builders has recorded eight projects for luxury housing in the country with retail prices ranging from $100 thousand to $450 thousand.
The Chamber of Builders of Nicaragua (Cadur), argues that housing designed for more affluent people have had good sales. Currently there are eight projects of this type recorded in Managua and there are an estimated eight more that are not part of Cadur, with prices ranging from $100 thousand to $450 thousand.
The rise in prices in Costa Rica is encouraging foreigners looking to retire to increasingly turn their attention to Panama.
The rising cost of real estate in Costa Rica is forcing foreigners to look at other countries in the region in their search for a place in Central America to use as a second home for retirement.
In Costa Rica, this niche market was hit hardest by the U.S. housing crisis.
According to the Costa Rican Chamber of Construction the outlook is not encouraging and they do no foresee recovery in the short term.
Jose Alfredo Sanchez, vice president of the group, said "In Costa Rica, there has been a dramatic effect on the coast, where (project development) has not recovered in the short term because this would require strong economic growth in the U.S., which is not happening. "