The chances are that when you think of Panama, images of its canal, straw hats or large cigars spring to mind. Although world-famous for its 48-mile canal that connects the Pacific Ocean with the Atlantic, there is a lot more to this fascinating country in Central America. Here you will discover more species of birds and trees than in the whole of North America as well as beautiful landscapes, a rich culture, and endless tourist activities. These include rainforest tours, surfing, snorkeling, diving, hiking, white water rafting and zip-line tours. Once you’ve immersed yourself in nature, head into Panama City for a taste of world-class dining, vibrant nightlife, casinos and boutique shopping.
So, with all this in the country’s favour, how is its property market performing? Duncan McGowan, president of Punta Pacific Realty, says, “Panama’s luxury real estate market has changed significantly since the boom years of 2005 – 2008. Back then almost all luxury projects were pre-construction and the high-end neighbourhoods were Punta Pacifica, Balboa Avenue and Costa del Este. With an emerging luxury market, buyers were mainly looking at pre-construction projects in these areas. Today, in addition to those neighbourhoods, new luxury areas have sprung up like Ocean Reef Islands, Santa Maria Golf & Country Club and parts of Marbella.
Mr McGowan believes that this has made the competition fierce amongst developers who need to keep innovating and improving to drive sales.
“In a buyers’ market in a mature luxury market there are many existing as well as pre-construction options available and each developer knows this and needs to try to outdo the competition,” – he explains.
“Our buyers are from North America, Europe and South America with prices between $3,000 – $5,000 per square metre and, despite less buyers, these prices keep slowly inching higher. I expect in five years the market will have shifted from a buyers’ market to a sellers’ market.”
