Cashing In On a Second Home in Central America: How to Buy, Rent and Profit in the World's Bargain Zone. Tom Hammond Kelly
causeway was previously “off limits” to Panamanians when the Canal was under U.S. control but is now prized real estate. It’s a recreational hotspot during the weekend, with outdoor cafes, discos and shopping. The one highway that goes along the causeway is studded with palm trees and pedestrian walkways, providing breathtaking vistas of the city and canal. Land is limited in this area, but several new construction projects are under way there and offer views in all directions.
Urban living: Punta Pacifica
and surrounding central-city areas
Punta Pacifica (a former airport) is new, with every square inch of land under construction. It offers new high-rise developments from major and well-known multinational developers, with spas, marinas, penthouses and other amenities that make it seem like a mini South Beach in Miami. The newer projects offer parking and high levels of security. The buildings are all striking and the area has an exclusive feel to it, although it is short on sidewalk and street life. But it has easy access to nearby downtown and entertainment, health care, restaurants and anything else you can imagine. Prices tend to be steep in this neighborhood, with many of these condos pricing out at the top luxury level. It remains to be seen how this neighborhood will look and feel when completed; but it appears to be on the rise—in more ways than one.
Buyers who want to be near Punta Pacifica but seek a more established neighborhood may opt for nearby Punta Paitilla, where buildings are older and the area is more established, with tree-lined streets and more affordable prices.
Another main artery with easy access to Punta Pacifica is Balboa Avenue, which is Panama’s version of Michigan Avenue (Chicago), Sunset Boulevard (Los Angeles) or Park Avenue (New York). It’s the city’s main drag, with the ocean on one side and high-rises on the other. It connects Punta Pacifica with Casco Viejo and all points beyond. Several parks line the waterfront with a nice walking area. Parts of Balboa Avenue might look run down with old warehouses and buildings—but looks can be deceiving. These vacant and under-utilized properties will soon transform into modern and attractive high-rises, with oceanfront views of ships and boats and a world-class skyline within walking distance to nearly every possible amenity. This high-profile area is also definitely worth a look.
Costa del Este:
Suburban living in the middle of it all
The stretch of road from Tocumen Airport to downtown Panama City is a well-planned area with a U.S. suburban-style feel. The showcase neighborhood, Costa del Este, which is the brainchild of a prominent Panamanian business family, can be reached via a couple of exits clearly marked from the Corredor Sur. It is split down the middle by the toll road (Corredor Sur).
This neighborhood contains subdivisions with attractive tract-style homes, complete with garages, yards, sidewalks and pools. It could be in Anywhere, U.S.A. Several multinational businesses have set up headquarters in this area, with expansive office parks and parking lots. Several private international schools catering to a variety of ages are nearby. A large park is centrally located with many other adjacent green spaces.
Costa del Este also offers high-rise living, for folks who want ocean views and accessibility but not the congestion of other areas closer to Panama City. The new high-rises, nearly all of which are under construction or in planning stages, line up along a nice stretch of ocean called Paseo del Mar—the area is being dubbed as Panama’s Ocean Drive. When complete, this will be an attractive area that will be lively and convenient but with a suburban feel to it.
The area has strict zoning for commercial, residential, industrial and high/low density. New projects are selling fast. Costa del Este will be built out in the near future, but plans exist to build new neighborhoods nearby that include more single-family homes, golf courses and other amenities that will satisfy buyers who want the “U.S. suburban” feel. As Costa del Este expands and prices escalate, development will stretch all the way to the international airport along the Corredor Expressway. The next hotspot in the region is the highly publicized Costa Sur.
Downsides of Panama City—“reality check”
Not all is perfect in Panama City, nor are we out to paint an unrealistically ideal picture of Panama City (or anywhere in Central America). Here are a few things to consider. These observations are not meant to take the wind out of your sails, but rather to serve as a “reality check.”
While it is easy to find properties with an ocean view or ocean front, keep in mind that, by and large, the water surrounding Panama City is not safe for swimming and tends to be polluted. Although plans are under way to clean up the Bay of Panama, you will find that the dramatic tides that occur in the afternoons and evenings expose unsightly expanses of rock and mud that produce an unpleasant smell. You will soon realize that the Bay of Panama is by no means Miami Beach.
Panama City is inspiring and has a modern feel to it, but bear in mind that Panama City is not a U.S. city, and you will find some distasteful trappings associated with the third world, including blaring horns; cars badly needing mufflers; buses, trucks and taxis that belch noxious fumes; potholes; and occasional slums. Lack of zoning can sometimes create a hodgepodge that is unsightly and makes you realize that Panama is not the paradise you may have been led to believe. Some parts of town look and feel like any other third world country.
Panama City is large and fast-paced, but things can move slowly and are unpredictable. Rush hour can triple or quadruple your travel times. In general, service tends to be slow in Panama City (and all over the country for that matter). Simple errands can take what seems to be an eternity. We offer the disclaimer that Panama—like most places in Central America— is not for the “faint of heart.” An adventuresome spirit is needed, along with some flexibility and understanding that despite similarities, it is not America.
Outlying areas of Panama City
While Panama City is surrounded on all sides by water, there are no real beaches. This is due in part to tides and pollution (which will be addressed by a multimillion-dollar clean-up effort in the future by the government of Panama). If you want to live on the beach and still make day trips to Panama City, the area prime for development is the Pacific beach corridor 60 to 90 miles west from Coronado to the former Rio Hato Air Force Base. This region is referred to by some as the Costa Blanca and by others as the Arco Seco, or Dry Arc of Panama, named for its infrequent rains in the summer months that can pour on nearby Panama City. This coastal area begins at Coronado, an upscale beach area popular with Panama City residents, which is built up with single-family residences, condos and other services.
Further up the coast, several new projects on the ocean offer anything to match taste and budget. This is an area that is still a work in progress, so don’t expect to find the amenities that you would find in Panama City (two hours away via divided highway). The ocean here is cleaner than in Panama City, but it comes with often treacherous waves and periodic dramatic tides.
A few all-inclusive resorts cater to tourists, and the master-planned communities are spectacular for anyone looking for oceanfront living. Developments such as Vista Mar and Buenaventura boast world-class golf courses, oceanfront homes at amazing prices, and landscaping, ambience and development that give them an upscale feel. As in many locations in Panama, the heat and humidity can be intense, but this is your best bet for oceanfront living within a manageable drive to Panama City. The surrounding topography is varied and diverse, with interesting small villages tucked away in the mountains. A drive up the mountains takes you to a cooler climate, with several developments taking shape that cater to second-home buyers. An area called Valle de Anton is especially interesting and charming. It features a weekend craft market that draws in day trippers and tourists from Panama City. This area offers outstanding beauty in a mountain setting with easy access to the beach and Panama City. The 2-hour drive to Panama City is the downside. In the coming years, this region will have more ample shopping and services but, in the meantime, it is limited.
Island