It's always fun to read the opinions of other real estate professionals. Everyone has a slightly different take on things...everyone tries to spin the current investment climate in the most positive way. Of course we do...that's our business. We aren't here listing property and writing endless emails to potential clients because we believe the market here is dead. We'd all be out pedaling some other product or simply lay down and die, too.
No, we're in this business to stay and it behooves anyone who really believes in the vitality of
Panama Real Estate to change with the times and take a long hard look at
who is likely to be buying real estate in Panama today and in the coming months. First, I think it is prudent to look at who
was buying real estate in Panama before the economic crisis really developed a head of steam. A caveat first: we have, from the beginning focused on the interior provinces of Panama--we have never been part of the condo feeding frenzy of the city because, frankly, all those high-rises give me the creeps. So what I am addressing here are all the
other places in Panama.
Cocle--the neglected step-child, Los Santos and the
Azuero--Mel's stomping ground and darling of the "this is the new Costa Rica" set,
Chiriqui--the stalwart and steady haven with
David--the decidedly middle class commercial center,
Boquete--the established escape to eternal spring,
Boca Chica--the unbelievably undiscovered paradise, and
Volcan--where no one who lives there wants anyone else to know about it. Who bought in these places? And who is likely to do so in the future?
The
Chiriqui Highlands have attracted second-home buyers and retirees for decades. I think the Swiss and the Germans were the first to arrive. If you look at the photos on the walls at the Panamonte Hotel in
Boquete, you can see some amazing photos of some extremely brave and adventurous people who came to the area nearly a hundred years ago. I don't think those early expats would really be too surprised that their little village has become the charming attraction it is today. It was pretty then and it is pretty now. But the days of buying a second home for half a million dollars that you use a few times a year have definitely waned. The fact remains, however, that those gorgeous mountain homes are still there and they're still for sale (albeit at somewhat--not drastically) reduced prices.
Volcan remains a little known mountain town with a small supply of reasonably priced 'local' housing. The few developments in progress there have been stunned by the current market. The little frontier town tends to attract a very independent-minded type of buyer who shuns 'gated-community lifestyles' and whose pioneer mentality seeks to preserve indenpendence and privacy.
Chiriqui's Pacific jewel,
Boca Chica had just started to come on board the
Panama Real Estate bandwagon when the market hit the fan. This may actually be a good thing. The trend in the area is strongly leaning toward carefully conceived eco-communities and small, high quality lodges and inns catering to high-end sports fishermen and eco-tourists. We're unlikely to see high-rise condos or a Marriot spring up on
Boca Chica's pristine coastline any time soon. And since Mel has cast his lot with the
Azuero, land prices here are still very affordable considering you're only an hour away from Malek airport and all the conveniences of
David and you have some of the most stunning scenery in all of Panama. We're looking for more attention here from the investment sector seeking places for high-end, low-rise resort style developments. That money is still out there and it's looking for somewhere to call home.
The
Azuero, especially anything remotely close to
Pedasi is due for a reality check. We've seen the area hyped by celebrities and the 'trust fund baby' crowd for the last few years and the consequent spike in prices doesn't appear to be coming any closer to reasonable than it was a year ago. It is an admittedly charming area but it is starting to look like a Panama realtor's answer to a Prada handbag. Exceptions are found in land far back from the coast and in housing surrounding the city of Chitre, where you can actually buy groceries and find a doctor.
We see three types of buyers right now:
1.)Escape artists who feel their native countries can no longer provide them a safe haven for what remains of whatever fortune they once had. Large or small, net worth is shrinking along with the world economy and there's a sizable contingent of folks who believe that Panama will provide a means to stop the bleeding. (see posts on "Panama Economy")
2.)People on fixed incomes who foresee looming inflation hacking away at their quality of life and for whom Panama as an answer to the conundrum of how to live well on less and less. (See February 16 post)
3.)Investors who are looking to develop property to sell to groups one and two.
For those of us in the real estate profession, it is a time to hunker down, a time to treat every potential buyer like royalty, a time to work diligently with those of our sellers who truly want to sell toward realistic prices, and a time to prepare ourselves for a changing world.
Visit our website:
http://www.buyingrealestateinpanama.com
September and October are peak whale watching months in the Chiriqui Gulf and our recent trip seaward didn't disappoint. The humpbacks come to the area to give birth to their calves in the warm waters. These are rainy months here and sometimes the fishing can slow down due to the murky water being fed into the ocean from the swollen rivers. The whales can make an otherwise lukewarm fishing day a real treat. This particular day didn't disappoint on either, though, as we still managed to bring some treats for the table home from the expedition.
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