Beating the Odds - 3 Panama Real Estate Projects Breaking Ground, and Fast
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In Panama, we’ve always found its better to be overly-cautious about real estate. So many projects and developments have changed (for better or worse) during construction, that it has proven, maybe more so than ever, to be better safe than sorry. Many are not upholding standards originally set and some have failed completely as we’ve discussed in our Report.
But when seemingly-implausible projects are overcoming odds and progressing as projected (or better), it can be a boost not only for the morale of the developers but for the morale of the Panama real estate market as a whole. Below are three projects which once seemed so grand and striking, that we couldn’t help but conjure up some doubt regarding their completion. But much to our shagrin, they’re carrying on with business as usual and making strides in a race to completion: offering tremendous return to investors as unique real estate acquisitions in Panama.
We talk a lot about investing in unique real estate in Panama which, as a country, offers the opportunity for buyers to enter the ground floor of development (and thus the greatest return in the long run). Here are three projects we’ve found not only proving pessimists wrong with their impressive development, but offering a truly unique investment as the first or the best.
Ultra Modern, No Kids Allowed: OK well I don’t think there’s any sign saying that, but this one is called Ocean Sky and it’s located in Coco del Mar which seems to have an upcropping of new projects in a space somewhat less hectic than Punta Pacifica. A number of older, residential homes in this neighborhood make for a nice balance (see Obarrio for a good example of this proportion) of tall buildings and homes side by side. The quality of the finishings and materials on Ocean Sky is significantly better than most in the city and the interior design was done to the tee (Adriana Hoyos). Overall, it sets itself apart because it’s a modern building targeting a different crowd: the urban professional or couple (which for me beats screaming kids in the pool any day). Guaranteed ocean views and momentous progress make this one a pretty sure fire bet.
What makes it unique? Extremely high end furnishings, one of first wave of Coco del Mar projects, and unobstructed ocean views (getting harder and harder to come by these days)
The Caribbean’s First Project: We like to be naysayers of projects like these but the truth is, Bala Beach Resort on the Caribbean Coast is the first kid on the block and from an investment point of view, this is what Panama is all about. Phase one is over 90% sold out which is always a good sign for new buyers (the fact that lots of other people are buying). The hesitations we’ve had about this project in the past seem to be proven wrong as roads are going in and foundation appears to be completed by June. The developers have had success with locals thus far, a benchmark being their on-site question and answer session with locals and local leaders. Commitments by developers include improvements to the local medical clininc, painting the facades of buildings, and bringing in additional road access. This is all topped by a new fire station that the Bala crew will be contributing to the area.
What makes it unique? First project on the Caribbean Coast with any momentum, socially-aware developers integrating with community, perhaps cheapest ocean-front condos in the country?
Trumping the horn: All the confusion and uncertainty we once had regarding Trump’s new tower in Punta Pacifica is quietly being put to rest. Construction financing which had been a serious doubt of ours is now officially and fully funded which represents (I imagine) the largest bond offering for a residential tower in Latin America. The Trump construction team is moving with gusto on-site, increasing workers from 200 to 500 per day. Around $15M worth of concrete has been poured and lots of construction equipment has been imported from Italy which makes is immune to an otherwise shortage in Panama City. Actual construction is up to the 5th floor which shows tremendous progress from when they started and of course, all permits have been granted.
What makes it unique? The Trump brand, unobstructed ocean views in ever-crowded Punta Pacifica, high-speed progress thanks to stable funding and imported equipment.
As cynics, we always feel it’s better to be critical and apprehensive about new projects in Panama and oftentimes this plays out to be proper foresight. But there are indeed projects, like those above, that are upholding their end of the deal and appear to be offering the kind of end product to their investors as originally proposed. Whether you are looking to live in one of these projects or simply make a smart investment, you can rest assured we’ve seriously underestimated their prowess.
Matt Landau is a Panama Investment writer and the author of The Panama Real Estate Report, a How-To Guide on buying real estate in the Republic of Panama.
*Note: This was not a paid article. Any referrals that result from this article are not compensated for. The author has no working relationship with any of the developers.
