Panama City Market update

Market Research
(by market equity)

Panama Equity Real estate is proud to bring you the most current market data available. As many investors are beginning to realize, current and reliable information about the real estate market in Panama is hard to come by. We have taken the initiative and partnered with a number of agencies to compile and share sales history in order to give the buyer more transparency and report on trends within the real estate market.

The Panama Equity Real Estate Index can be used with other international metrics – such as cost of living, unemployment, inflation, etc – to develop an individual investment strategy or to refine a corporate expansion strategy. It is important to note that The PE Real Estate Index is not an exact science: our predictions and forecasts are purely observations as a result of being involved regularly in the marketplace.

Balboa Avenue Panama Real Estate Report
Written by Kent Davis

Panama Equity Balboa Avenue Report: August, 2010

This quarter, we have focused the Panama Equity magnifying glass on Panama’s bourgeoning

waterfront strip Avenida Balboa. Find inventory statistics that show where the opportunities can

be found and what you should be cautious of. Also in this groundbreaking report, compiled

buyers data and average rental prices, along with a special disclosure on who’s getting duped and

for just how much!

I. Report Highlights:

– An estimated 2,087 new units are to be completed by 2013, bringing the grand total of

completed condominium units on Avenida Balboa to 3,396

– In the last 12 months, a total of three new buildings have been delivered on Avenida

Balboa which represent 556 new units

– Furnished two-bedroom rentals for an industry standard, high-floor condominium on Avenida Balboa are fetching

a 15-30% premium versus unfurnished units on the same floor. These furnished units are currently in very short

supply

Avenida Balboa has, for some time, been the hallmark Panama City property hotspot. It’s iconic

stretch includes a high-end residential/commercial district, the Cinta Costera costal boardwalk,

Read more…

Costa del Este, Panama City February 2010
Written by Kent Davis

A monthly analysis of real estate market transparency in Panama

Subject: Costa del Este, Panama City, 1/2/2010

The Panama Equity Real Estate Index can be used with other international metrics – such as cost of living, unemployment, inflation, etc – to develop an individual investment strategy or to refine a corporate expansion strategy. It is important to note that The PE Real Estate Index is not an exact science: our predictions and forecasts are purely observations as a result of being involved regularly in the marketplace.

The following Costa del Este indexes are based on price/m2 (price per square meter)or, in the case of rentals, a monthly price. Our data is comprised using a minimum of fifteen currently available properties and reflects a change over three months (in this case, since Q4 of 2009).

Analysis: This report shows a softening of the existing resale price, based on a fourth quarter average per square meter cost of $1,721 per square meter. Preconstruction showed a slight increase, which may be due to the fact that Parque del Mar developers Bern issued their ultimatum for any preconstruction reassignments to be closed by January 1st. This final sales wave temporarily dropped prices in that building, however now that the units have been sold, we expect prices to hold steady in that building for the short term. We saw a similar pricing correction in the two-tower Sevilla complex in the month of November for the same reason. Prices there are holding out at around $1575-$1650/m2 range in Sevilla, depending on the floor.

The Neighborhood: Costa del Este is Panama’s first planned community, and as such enjoys many benefits of extensive urban planning including wide main thoroughfares, a tree lined oceanfront boulevard, and plumbing and sewer infrastructure designed to handle the exponential growth. It’s comprised of high-end, single family homes in 17 gated communities with three in construction, as well as thirteen complete high rises and another twenty four condo towers planned or in construction. Luxury retail lines the main street Calle Cincuentenario. Several car dealerships including Lexus, Porsche, and Landrover are in operation, as well as specialty grocers, department stores, gyms, banks, and other retail chains like Novey, Riba Smith, and Farmacia Arrocha. Colegio San Augestin, a top ranked school in Panama (link), is also located in Costa del Este. Costa del Este is also home to several large commercial complexes, including the home offices of Proctor and Gamble, Copa, Edemet Edechi and a number of other large corporations. Four high rise commercial projects are planned or in construction for the Costa del Este area.

Surprise Sector: In each report we like to identify one surprise sector of the Panama real estate marketplace that has made some noise over the past three months. This quarter, commercial real estate in Costa del Este has been the star candidate, with occupancy levels reported at nearly 100% and supply extremely restricted. In the month of January, Panama Equity agents closed one transaction in La Costa tower on a high floor with direct ocean views for $1595 per square meter, representing a savings of close to $85/m2 or $15,980 in total savings.

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