Panama City’s real estate market is entering the next phase of the cycle, with developers offering more pre-construction deals.
In many ways, pre-construction deals are a sign of a healthy and vibrant market, reflecting market demand for new projects. In Panama City, prices are stabilizing and the market is absorbing existing stock, setting up the next round of construction.
Several projects in Panama City are offering pre-construction pricing, which represents a significant opportunity in a market with a growing economy and strong fundamentals. Pre-construction deals come with a heightened amount of risk, but they also are a chance to invest early in quality projects.
Evaluation of any pre-construction deal must start with a blunt analysis of several factors. It starts with the developer. Do they have a track record of delivering projects? Do they have strong ties to the community?
It’s also important to examine the quality of the project. Does it have all its permits? Is the location and level of quality strong enough to attract buyers? Will it be a place where people will want to live?
From an investor standpoint, Panama has made great strides in protecting the rights of buyers. After evaluating the recent pre-construction deals, we feel these projects have all the elements for a successful development.
Beach Club Residences (Ocean Reef Islands): Ocean Reef is a one-of-a-kind project in Panama Bay made of two man-made islands anchored by the city’s largest marina. The community is already taking shape and the Beach Club Residences offers a chance to buy waterfront properties, right next to the marina. Pre-construction prices start at $800,000; it’s unlikely we’ll see anything under $1 million on Ocean Reef in the future.
Hyde by Wanders & Yoo: This Marbella project will carry the Yoo brand, a proven winner around the world. Yoo is big on the cool factor, creating distinctive, design-driven projects that really excite buyers interested in a modern lifestyle, as evidenced by Yoo Panama, one of the city’s most popular projects. Hyde, which offers all the amenities and service of a top hotel, is located in up-and-coming central Marbella area in the heart of the city. Prices start in the low $400,000s.
Ocean House (Santa Maria): Santa Maria offers the type of secure, lush, golf course community coveted by buyers, only minutes from downtown Panama City and Costa del Este. Ocean House is a unique development, and the only development within the Santa Maria walls, offering smaller units with all the amenities and benefits of Santa Maria, including the opportunity to join the golf club, which is reserved for Santa Maria property owners. Prices start at $290,000, well below other towers with larger units.
All these projects are from well-established developers and offer the potential for sharp appreciation from the pre-construction levels, as well as tremendous places to live and vacation. Each represents superior quality and amenities as developers innovate and improve their product to stand out in a competitive landscape by focusing on lifestyle.
Every pre-construction deal comes with a level of risk, but these projects at pre-construction levels represent a chance to pay today’s prices for tomorrow’s top projects.
Duncan McGowan is President of Punta Pacifica Realty, one of the largest and most influential sales, rentals and property management firms in Panama City.