From The Panama
Perspective of January 21, 2014:
PROPERTY PRICES RISING IN PANAMA
Make no mistake; the last six
months in Panama have seen a noticeable rise in property values,
especially along waterfront districts like Balboa Avenue, Punta
Pacifica, and Costa del Este. Strong demand from the US and
Canada, Venezuela and Colombia, along with an uptick in the
economy of European countries like the Spain and the UK in 2013,
and a decreased supply of new apartments for sale have driven up
prices by as much as 10% in certain areas.
Because developers were not building new high rises between 2009
and 2012, the next 12-24 months' supply of brand new
apartments will be limited to a handful of projects; this as
opposed to the roughly 4,000 new apartments that hit the market
over the last three years.
This slackening of new inventory, combined with steady/rising
demand will continue to drive prices up.
Some low-priced apartments in high end areas still do come on
the market from time to time, including a one bedroom apartment
just listed along trendy Balboa Avenue. The Bayfront building, a
favorite amongst the corporate expat scene, boasts a rooftop
swimming pool, gym, along with a private movie area and business
Now may be the right time to take a serious look at getting into
the market, which after being flat for over three years is once
again trending upwards. Real estate prices in Panama have
historically followed similar markets like Miami, and are
usually on an 18 month lag. Considering what happened in Miami
just over two years ago, it's no surprise that Panama real
estate prices are on the way up.
Buildings like the Allure have seen strong sales and only have
six remaining apartments, ranging from $375,000 to $1.5M.
Rentals in this building are also in high demand, due to the
building's close proximity to the Calle Uruguay dining
district and the Cinta Costera Park system.
Just down the street from Allure sits the Grand Bay Tower, a
project from Empresas Bern, one of the best developers in
Panama. A listing that caught our eye in this tax exonerated
building is a city-view apartment currently tenant occupied and
listed for a quick sale price by the owners at $175,000. It's
the type of turnkey property that buyers looking for investment
returns can jump on to start generating positive cash flow from
For those looking to get in on ground floor pricing, the Casco
View development could be a winner. We like the low cost model
in Panama, and the fact that the building is just outside of the
Historic District of Casco Antiguo means that early buyers will
be in the path of progress as development continues to push into
the areas currently considered to be under developed and off of
the investor radar.
In the real estate game, it's not just about location, it's
about timing and 2014 is going to be a game changer for
Panama. The Metro will open and the road reorganization projects
throughout the city will be completed, plus the historic
renovations in old town and the Cinta Costera 3 will also all be
completed, breathing new life into a city that's felt like it
has been under construction for the last five years.