How has Covid-19 impacted Panama’s Beach Real Estate Market?
There is no denying the impact Covid-19 has had on Panama’s economy. Construction is at an all time low, farms and offices are operating with lower outputs with new health regulations and inspection.
The Pandemic in Panama has undoubtably created new obstacles for owners and investors. With that it has also created opportunity.
This pandemic has had us rechecking our values, evaluating what’s important to us, is it our freedom, our home? Or Is it our investments we value that will carry us through hard times?
Likely it’s all of the above.
For many, the opportunity this pandemic is offering is a change in lifestyle.
With reduced capacity in office spaces and virtual school in Panama, living full time at the beach has become more attainable for many.
Currently the property management devision of our Coronado Real Estate team is seeing an influx of inquiries and bookings on our Pacific beach rental properties. A high percentage of our rentals are booked though the months of November, December and January 2020, despite international travel being at an all time low. Many of our properties have been booked since June, renewed monthly by foreigners and Panamanians who are temporarily relocating from Panama City during the pandemic.
What we are finding is more and more of these individuals, couples and families are renewing their leases, realizing they can work remote, or commute.
This is creating opportunity in Panama’s beach real estate market.
Panamanians and foreign residents are looking to withstand this pandemic. Whether it is by entering the rental market, or by price slashing offering fire sale prices on their luxury beach homes in Coronado.
“Emerging markets” like the beach market from Punta Chame to Coronado all the way to Bijao, and Buenaventura are becoming ‘hot spots’ brimming with life beyond the holidays and weekends.
I don’t see this changing anytime soon.
And if it doesn’t, Panama’s Pacific Beach Real Estate market will become a seller’s market in the coming years.
There is undoubtably a higher demand for beach front or properties with beach access currently as the country has restricted access to beaches for over 6 months due to the cover outbreak. Moreover, construction at the beach has practically stopped. We are already seeing a shift in supply and demand.
As you probably know, real estate prices depend on the law supply and demand.
If the demand for property is high, property becomes scarce, prices go up and it becomes a seller’s market.
We are seeing a high demand in beach real estate in areas like Coronado, Rio Mar, Costa Esmerelda, Bijao and Buenaventura already. I predict as international travel rebounds supply will become scarce.
However, the window of opportunity will not last.
Panama is a melting pot of financial stability with a renowned history as the region’s business hub. Our economy has been amongst the most stable in the region and foreign governments will continue to create opportunities post covid-19.
So while the end of these turbulent is nowhere near, nothing creates opportunities like crisis.