estate boom in Panama over the past five years has seen many areas
affected. These areas include Panama City, the Pacific coast, the
Caribbean coast and Panama's many highland destinations. We have seen
substantial land planning developments in areas such as Boquete, where
"gated communities" have become the status quo. These gated
communities are able to offer a higher level of security than a
stand-alone home, especially to foreigners moving or retiring in
Panama, who prefer to have this piece of mind.
We have also seen many "lot" projects springing up in Panama,
particularly along the coasts and higher elevation areas such as El
Valle and Cerro Azul. People attracted to this type of product
generally do not plan on moving to Panama for at least another three to
five years, and as a result, are not in a rush to begin building their
dream home. These people want to secure a prime piece of building lot
for the future, so that when the time is right and they are ready,
everything will be set in place for building their home.
By purchasing lots beforehand, these people also give themselves plenty
of time to figure out exactly what it is they would like to build on
their lot and not have to jump into any rushed decisions that might
later be regretted.
Undoubtedly however, the area that has seen the most activity within
the Panama real estate market is the condo market. Panama condos are
being developed all throughout the country. The area that has seen the
strongest development is, not surprisingly, Panama City. As Panama's
commercialized hub, Panama City has experienced a stealth surge of
condo developments that are still going strong as of the third quarter
of 2008. The demand that drives this Panama condo boom stems from
retirees, second home seekers, investors and wealthy international
business people that think Panama City is an extremely strategic place
commercially and politically to own real estate.
Outside of the city, Panama condo developments have been occurring
gradually along the Pacific coast, in areas within 2 hours of Panama
City, such as Gorgona, Coronado, Punta Barco, Playa Blanca and so on.
Panama has hundreds of miles of unspoiled beaches, a commodity that
although has been taken for granted by the local population is very
much in demand in the eyes of the rest of the world. Like the Pacific,
the Caribbean has also started to develop its supporting
infrastructure, and as a result, a number of beach condo developments
have come to fruition there as well.
The market for Panama condos will continue to hold, especially as other
parts of the world continue to suffer from inflated real estate prices,
unstable credit markets, turbulent oil prices and rapidly changing
political climates. Panama is not just great weather! Panama offers a
democratic stable government, a booming economy that is not reliant on
any one industry and a growing reputation around the world as a top of
the heap tourist destination. As long as the country can keep up with
its supporting infrastructure, we will continue to see more Panama
condos being developed as a natural progression of an emerging market's
development. It's not that real estate market that is driving the
economy...it's the economy that is driving the real estate market!