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.
