More surf lagoons are being incorporated into mixed-use developments as developers seek to increase land values, residential demand and destination appeal, with projects in the United States, Brazil and South Korea citing higher property values, investor returns and tourism activity.
In a press release, examples listed by surf park developer Wavegarden include projects ranging from destination resorts and urban developments to private residential communities and sports clubs.
In Virginia Beach, Virginia, Atlantic Park combines a surf lagoon with apartments, retail, restaurants, office space, a boutique hotel and an entertainment venue as part of a $350 million mixed-use development. According to the company, part of the project’s financing was supported by city-backed municipal bonds.
In Brazil, Praia da Grama, a private residential community, reported a 178% internal rate of return, a 9x equity multiple and full payback within three years. According to the company, residential lots in the final phase sold for 10 times the price of earlier phases after the surf lagoon was announced.
“Wavegarden didn’t just add a surf lagoon to Fazenda da Grama, it completely changed the market perception of the development,” said Oscar Segall, CEO of KSM Realty & Founder of Praia da Grama. “What had been a slow-moving residential project suddenly became a lifestyle that resonated emotionally across multiple generations. The lagoon with its palm-fringed white sandy beach created a strong sense of exclusivity and demand that translated directly into accelerated sales and a substantial increase in land value.”
The company also cited Beyond The Club in São Paulo, where membership sales reduced capital exposure before opening, and Wave Park in South Korea, where a surf lagoon formed part of a successful bid for a waterfront redevelopment project.
According to the company, surf lagoons are increasingly being incorporated into year-round developments that combine residential, hospitality, retail, entertainment and sports uses, with developers using them as commercial amenities intended to increase the value of surrounding real estate.
