RE Investments

Home
2007 Book
Cottages for Rent
RE Investments
Offshore Living
Newsletters
Photo Gallery
Coronado House
Video
My CV

Panama Real Estate Investments

As of May 2008 Panama has enjoyed a construction boom mode for the past three years now and the pace is not slowing down.

Thanks to the canal expansion decision, a Hong Kong entrepreneurial attitude, a sophisticated and well-educated business community and strong international demand for housing and office space the beat goes on.

Here are several specific investment ideas/opportunities available for the "greater Coronado" area. Panama City has other opportunities of course.

In Panama City there are at least 50 major high-rise buildings currently under construction. This high rise density equals the entire skyline of say Montreal or most of Miami.

These skyscrapers and low rise shopping centers utilize world class architectural skills as one would expect in New York City and other major world capitals. There are huge districts such as Costa del Este filling up with luxury million dollar residences of 5000 to 10,000 square feet.

In the outlying "country" resort areas such as Coronado, Boquete and Bocas del Toro, the hectic construction pace also continues with a much higher "owner occupancy" ratio.

For example, in Coronado a massive luxury four tower condominium and beach house project is nearing completion with each tower having 60 large units of approximately 2000 square feet each. A fifth tower is planned. The common swimming pool contains one million gallons.

Another luxury Coronado project called "El Alcazar" with 64 units is almost finished. There are only a few units left with condos in the 3000 to 7000 square foot range. Three or four other large projects are rising from the ground and just across the river in what used to be the "back water" town of Gorgona about 10 major developments are in various stages of development. Many of them have their first phase "sold out".

In cooler Altos del Maria, a mountain resort 30 minutes from Coronado, 75% of the 2000 lots on 5000 acres have been snatched up mostly by expats in the last 3-4 years. The sales rate was recently estimated at 600 lots per annum and prices were rising quickly as well almost matching those of Coronado.   

Large numbers of new luxury hotels are popping up on both coasts with the Red Frog and Playa Blanca some of the latest additions and still under construction.

Panama is clearly benefiting from a mad rush of "early adopter" Baby Boomers looking to secure a sensible second home or permanent retirement residence.

Panama has clearly become a magnet for developers ... adding to my general happiness here. Having completed my own small development project in Coronado including a significant renovation of my personal residence and the renovation/construction of three guest houses ... I have started a "new career" as a "building facilitator" to expats. So far I have facilitated the construction of three large "high end" houses of about 4000 square feet each and I have three more clients waiting.  

With baby boomers being produced in record numbers, there is no shortage of new housing demand. Surprisingly there are very few high end "spec houses" available and so most people have to wait an average of 12 months for a new house or buy an older house and then renovate it.

Local building contractors offer several options to the prospective owner occupant including a "fixed price" at about $600 per square meter or "cost plus" deal averaging about 25% on labor and materials for their supervision.

For the investor, several local building entrepreneurs offer a "50/50" split on the profits received from a flipped property which is generally a single family house.  The entrepreneur typically decides on the specific piece of land to be developed and then manages the entire construction project on a day-to-day basis. 

 

 

 
Email richard@panamamundo.com or Skype me at "PanamaMundo"
Copyright © 2005 LGB Associates LLC
Last modified: 06/09/08