Panama Real Estate - Head for the Beaches

Part VI...

We’re heading to the Pacific coast south of Panama City to finish up the great Panama Real Estate Expedition. Sorry for the narrative interruption but I was lured away by the siren song of an income-producing project.

As you can see from the Panama map below there is a great deal of coast line, both on the Atlantic and the Pacific. But, but, but, but…..

From everything we read, the beaches south of Panama City on the Pacific fit our profile better than some of the other areas. We were interested in areas that were easily accessible via Panama’s international airport, somewhat developed, very good roads (four-lane Pan-American Highway), and a drier climate. This part of Panama’s coast is known as Arco Seco (dry arc) because of its shape and because there is significantly less rain than the rest of the country. This part of the coast is touted as the playground for the wealthy and I would have to agree after looking at some of the prices.

So off we went with our trusty real estate agent. As we were driving he told us about fabulous properties on the coast that sounded perfect. “Let’s go see it.” Well, there is nothing to see. “OK” Repeat, again and again. The entire country is in the planning stage. The roads were really good and there was no traffic (even on a Saturday) so at least we were making good time. Since there was no real estate to see, yet, we checked out the areas. All the same – nothing to see. This is what I called the Pioneer stage of real estate development.

Out of desperation, our agent took us to a golf course community called Malibu although it didn’t sound like anything we’d be interested in. But being in the development end of real estate I thought it would be interesting to see this really affordable community. Tiny, but affordable villas under $200,000 for starters. For the economically challenged there is also a “Hut” model, pictured below. Room for two hammocks, outdoor shower, grill, a roof over your head. Low maintenance. Life is good! Looks perfect after a day on the links and a drink at the clubhouse. Home at last!

Malibu’s developers were working on roads and starting six model units. When we finally rousted someone to open the sales office door (another locked sales office with whoever inside) we saw what seemed like millions of red sold dots on the site plan. Who needed these gringos (us)? We drove down to the beach and were eaten alive by mosquitoes, each the size of a Ford. When we got back in the car the mosquitoes followed us. They seemed delighted with the prospect of new blood in the neighborhood. What a nightmare!

Malibu is located near Gorgona which is getting a lot of press. There are many buildings planned along the beach front and it will be interesting to see which developers get off the ground.

Further down the highway we were finally reaching our limit on “time from the airport” of two hours. “Stop the car!” We were at the outer limit and found ourselves at Playa Blanaca, “Beach Resort, Spa & Residences”. This development was well underway and there was a hotel. People were coming and going, mostly by hotel van, but this was somewhat promising. We were told that the existing properties had been “under-built” so the balance of the project was taken up a few notches to suit a higher-end buyer. BAM!

The only problem…To get close to the ocean it was $500 to over $1,000 per square feet and very small units…500 sq.ft. which included a good bit of terrace space. Ouch! There were some units in a high-rise and they were slightly less but still very pricey. It did hold some promise to become a very active, lively vacation spot. They have a really good, detailed web site so check it out.

On the way back to Panama, we stopped at the developed golf course beach resort of Coronado. This was a somewhat impromptu stop since we coerced our agent into showing up something built-out. Here we saw a finished condo building where there were several units for sale. Now we’re talking. These were large three and four bedroom units with panoramic beach views and above an expansive pool complex. The balconies were large and very comfortable. Price tag….$300,000 to $370,000 for a upper floor four bedroom unit with a glorious view.

The building had been recently completed and these units were owned by “investors”. We were told the price was negotiable. Front door to airport entrance was 1 hour, 10 minutes. All the right answers. A third condo tower of the same skew was going up next door.

Coronado was probably one of Panama's early resort developments. There were mostly single-family homes around the golf course and beach front. The homes ranged from modest but nice two bedroom to multi-million dollar mansions. There were a few “family compounds” that were exquisite. The community showed no signs of professional management.

Playa Bonita...

We spent our last four days in Panama at the InterContinental Playa Bonita just a few minutes south of the Bridge of the Americas at the mouth of the Panama Canal. It was absolutely beautiful! I never saw anyone swimming in the ocean and guessed that it was still too close to Panama City to escape pollution and the cargo traffic from the Canal was also too close for clean water standards to be high.

But the place was heaven and the expanse of salt water pool systems left no regrets. We thought what a perfect place to have a condo. Just a few minutes from Panama City but yet it felt like a beach resort. Well someone already thought of it – the Bern family of developers. There new development at Playa Bonita (they were also the developers of the InterContinental) to be something really special! No news published yet, but stay tuned to the Bern web site.

If seclusion is what you want, head to the Pearl Islands. We went there fishing but it is not for the casual second home. It is remote, quiet, and expensive. We did not find the pearls or the fish. In one of the fishing and pearl capitals of the world and we found neither. It was, all-in-all, a frustrating day. The good news was that we came back to Playa Bonita and all was forgotten.

We did not consider any properties on the Caribbean side of Panama. After seeing the Punta Indian territories it spoiled us for anything more modern. If you will indulge me one more post on Panama, I want to relate our stay in the Archipelago of San Blas at the unique resort called the Coral Lodge.

Real Concepts’ Panama Real Estate Series:

Part I – Panama Real Estate From This Side of the Canal

Part II – Panama Real Estate - What’s So Good About It?

Part III – Panama Real Estate – The Hangover Comes Next

Part IV – Panama Real Estate Bohemian Style – Casco Viejo

Part V – Panama Real Estate - Have It All In Amador

Part VI – Panama Real Estate – Head for the Beaches

Part VII – Panama Real Estate – The San Blas, Coral Lodge Adventure

Panama Real Estate - Have it all in Amador

Part V...

Another very desirable real estate area in Panama City is the Canal Zone. The Canal Zone is the area that was the US military facility during the construction and control of the Panama Canal and comprises 5 miles on either side of the Canal. The United States turned this area over to the Panamanians in December of 1999.

So what makes this area so desirable? For starters there is an excellent infrastructure in place left by the US including roads, sewage systems, roads, and schools. There are lots of parks and mature landscaping creating a rich tapestry of green and a calm, peaceful, suburban feel. Downtown Panama City is only minutes away. The new US Embassy and Consulate are located in the Canal Zone as well as the City of Knowledge which is an international complex for education, research, and innovation. It’s purpose it to “promote and facilitate synergy between universities, scientific research centers, businesses, and international organizations.” It's always nice to have smart people in the neighborhood.

Again, we were seeking water views so, as nice as the Canal Zone is, we gravitated to the sub-Canal Zone market of Amador. Very, very scenic with inspiring views of the Panama Canal, the Bridge of Americas, the Bay of Panama, the downtown Panama City skyline, and the historic district of Casco Viejo and its old sea walls.

The huge draws for Amador other than the spectacular views and superior location are:

It is by the Amador Causeway, which connects 3 islands, Perico, Naos and Flamengo and was built with rock excavated from the Panama Canal. It provides a picture perfect long expanse to walk, run, and bike by the water.

There is a host of shopping, restaurants and marinas on Flamengo Island and more planned.

Smithsonian Institute has a research facility on Naos. Amador is also the future site of the Frank Gehry designed Museum of Bio Diversity, as well as the Naos Island Harbor Project.

The Figali Convention Center is also located on Amador. This convention center is where the Miss Universe Pageant was hosted and is a popular venue for concerts including Carlos Santana, Alanis Morrisette, and The Red Hot Chilly Peppers.

Amador is 10 minutes away form downtown Panama City and is adjacent to the Bridge of the Americas, which allows for a no-hassle exit to the Pacific beaches south of the city.

No matter where you might be considering real estate in Panama you need to know whether it is titled (what we know in the US as “fee simple”) or if it is “concession”. There is a good bit of concession property in the Amador area and here is a very brief explanation: “Concession property is normally found in special coastal or other governmentally protected areas where titles are not permitted by law. In many cases, real estate developments built on concession property offer time share or fractional ownership arrangements.” I don’t think any of the properties listed below are fractional ownership but some are concession properties. Once again, you need a Panamanian lawyer. Concession property is regarded with a great deal of suspicion, for good reason. Just know to be aware and ask the question.

Panama Canal Village. This new planned village looks very ambitious but exciting. When we were there it looked like the site work was underway. The translation on the web site leaves a lot to the imagination so be sure to check out the facts on this development as it may have an impact on a real estate decision. Check out the site plan.

Here are the properties that are proposed and underway. The following information is from the Panama Realtor web site. They don’t have the listings on these properties and you can probably find the same info on a host of realty sites.

Naos Harbor Island, Phase II, preconstruction. Phase I must be sold out and under construction. Phase II offerings: 1,076 sq.ft. to 2281 sq.ft. including large balconies, from $275,000 to $670,000. The problem is it's on “concession” from the government so you only have the legal right to the property, in this particular case, for 40 years with a 20 year renewal, maybe. Not titled property.

Aquamarine. Under Construction. 1,496 to 1,819 square feet from $222,000 to $386,000.

Windows to the Ocean. Under Construction, preselling. 1334 to 3013 square feet from $260,000 to $600,000.

Ocean Gate. Preconstruction. 1205 to 2658 square footage from $179,200 to $706,200.

The Bridge. Preconstruction. Not sure about the views on this one. 2131 to 5844 square feet starting at $257,400.

Amador Heights. We saw this property under construction. The developer said it was concession. Great views. From 2,852 square feet and $450,000. There are also larger penthouses.
360º. Titled. They have not started construction and we were told that the government permits had not yet been approved but imminent. 1020 to 3,000 square feet from $272,900 to $602,000. The only project that listed central air-conditioning.

Real Concepts' Panama Real Estate Series:

Part I – Panama Real Estate From This Side of the Canal

Part II – Panama Real Estate - What’s So Good About It?

Part III – Panama Real Estate – The Hangover Comes Next

Part IV – Panama Real Estate Bohemian Style – Casco Viejo

Part V – Panama Real Estate - Have It All In Amador

Part VI – Panama Real Estate – Head for the Beaches

Part VII – Panama Real Estate – The San Blas, Coral Lodge Adventure

Panama Real Estate Bohemian Style - The Casco Viejo

Part IV...

My favorite real estate prospecting adventure in Panama started out as a tourist expedition to Casco Viejo, also called Casco Antiguo, the oldest city on the Pacific Coast of the Americas. This is where present day Panama City was founded in 1673 at the mouth of what was to become the Panama Canal. The original settlement, La Viejo, was burned to the ground when the pirate, Henry Morgan, arrived to loot, rape, and pillage the capital in 1671.

Although some of the buildings date back 300 years, several large fires over the centuries have left fewer colonial structures than one would hope. But it is still a joy to witness its present day metamorphosis which is a renovation and restoration work in progress. It is not for the faint-of-heart urban dweller.

The architecture of Casco Viejo is Spanish colonial with a French influence left behind by the French who made the initial attempt to build the Panama Canal in the late 1800s. Caribbean influence over the years has also left its imprint on the architectural styles. This sounds like an architectural recipe for disaster, but it works. Even the mix of restored and ruined, rich and poor somehow blends together without jarring the senses. Laundry drapes across some balconies, beautiful potted gardens with colorful bougainvillea vines reside on others, all coexisting in a peaceful and beautiful fashion.

Casco Viejo was left to ruin as Panama modernized and built wider, auto friendly boulevards and sleek modern buildings. By the mid 1900s, the upper class had vacated and it became an area for the poor. Fifties-style tenement housing radiates north of the beautiful core colonial area at the end of the peninsula.

We headed out one morning in our rental car and tourist map to see the old city. From the major artery, the Avenue Los Martires, which runs from the Bridge of the Americas to Avenue Balboa, we kept missing our turn because we didn’t trust that our route to this famous destination was through some of the worst slums I have ever seen in mass. As far as the eye could see there were tenements in such sad states of repair it was hard to believe that people could exist in them.

We’ve been in worse (but not usually in our own car) so we locked the doors, made the turn, and launched ourselves into the slums. I confirmed we were on the right road by the occasional remaining street sign. The streets are narrow, the buildings are close and the people along the streets are even closer. We were obvious tourists out of our league although we did not have on Caribbean garb or Panama hats. How could they tell? The murderous stares were enough to convince us we did not blend in.

With this as a preamble we headed for the historical center sure that it would be impossible to get out of the car. I thought the most we could do was to roll down the window and snap a quick photo of the old town but I wasn’t holding out much hope at this point. By the way, I have no pictures of the tenements because it seemed unthinkable to so blatantly take a picture of people’s poverty while they’re staring at you. I also figured they would pull us out of the car and beat the crap out of us.

But finally we got to the end of abject poverty and came into the colonial district where there were people walking around, there were shops, museums, restaurants, parks and great looking old architecture. Mind you it was not Charleston; there were still plenty of ruined structures, boarded up buildings, and less than affluent apartment buildings, but I didn’t feel like I was going to die while the sun was up. We let out a sigh of relief, parked the rental in one of the few parking spaces, paid a guy to watch the car, and set off down the narrow streets.

There were some beautiful renovations, at least from the outside, and so well done they had to be condos, not rentals. There was a good bit of construction but nothing that seemed insanely outpaced of demand. In 1998 UNESCO declared Casco Viejo a Patrimony of Humanity, in other words a site of world interest, due to the physical and universal aspects of this historical location. I think it generally means this is something worth protecting and we’re watching you; don’t screw it up. Apparently the Panamanian Historical Society is alive and working in the area with strict guidelines for developers who restore.

There are policemen everywhere, which felt pretty cozy, but which also speaks to the need. There are charming street vendors along the old fortress walls by the sea selling better than average tourist fare including plenty of Punta Indian molas and Panama hats.

The starving artists came first to Casco Viejo and opened their studios and galleries followed by supporting bars and restaurants. Now Casco Viejo is the Panamanian epicenter for the bohemian lifestyle, an edgy urban neighborhood with plenty of panache and more than a little danger. There are no banks, grocery stores, or gas stations. If this is an objection, we were told you could have the groceries delivered, have “your guy” wash your car for $2, and have a courier take your deposit to the bank, another $2. Sorry, I know I said before that you could get anything done for $1, but this is in a high-risk zone. The extra buck is for protection.

Some say don’t walk the streets at night, always take a cab. Depending on what publication you’re reading you’ll get different advice but it is not considered a completely safe area, yet. Someone told us about one renovation that had gang shoot-outs in the next building for the first year. I guess the gangs moved down the street when they couldn’t stand the early morning construction noise.

After a long lunch at a Portuguese restaurant (hurray, we did not have to suffer more Chilean wine) we stopped by the local real estate office which happened to be owned by an American who lived in the neighborhood. Being a resident, she was a wealth of information and being an American she anticipated our interests and our concerns.

The old quarter is no longer cheap and as the area continues its evolution. It’s hard to get a grasp on a price per square foot because the few units are all so different and balcony and rooftop garden area is included in the square footage. There are also additional governmental incentives to buyers in this historical district. I’m sure prices here will soar. The sheer limitation of numbers will increase values. The poor areas to the north will surely eventually win out to developers as the Casco Viejo’s popularity rises. If and when this happens I hope the affordable housing (slums) will improve in another location, although they might loose the ocean views.

Although there were certainly drawbacks (similar to moving to Harlem in the 70s) I loved this area and felt it had more upside potential than anything we’d seen. It was a very refreshing real estate experience after the sleek high-rises and a very enjoyable place to spend the day. The pictures speak for themselves. Even the boarded up buildings were beautiful.

These two photos were taken from the same spot in opposite directions on the old fortification sea walls.

What’s not romantic about a colonal-style rustic balcony overlooking the Pacific blue? I’d call that a golden real estate brand.

Real Concepts’ Panama Real Estate Series:

Part I – Panama Real Estate From This Side of the Canal

Part II – Panama Real Estate - What’s So Good About It?

Part III – Panama Real Estate – The Hangover Comes Next

Part IV – Panama Real Estate Bohemian Style – Casco Viejo

Part V – Panama Real Estate - Have It All In Amador

Part VI – Panama Real Estate – Head for the Beaches

Part VII – Panama Real Estate – The San Blas, Coral Lodge Adventure

Panama Real Estate Party - The Hangover Comes Next

Part III...

The real estate business is having a big party in Panama City, Panama, that is. The choices seem endless. The Pacific coastal frontage between the Bridge of the Americas to the Costa del Este provides a huge footprint for thousands of new prime condominium units both proposed and under construction.

It is impossible to absorb all the real estate possibilities in Panama City in just a few days but like any market when you start defining the more salient characteristics of each the volume becomes more manageable. We only addressed new condominiums in the city choosing not to venture into the more complex market of single-family resale residences. And we were interested in the water views, which for most means the towers.

The most obvious, visible, and recognizable market is the high-rise condominium buildings overlooking the Pacific along Avenue Balboa, San Francisco, the very exclusive Punta Pacifica, and Costa del Estes. Only Costa del Estes has the feel of a quieter suburb. All are prime locations within walking distance to shopping, restaurants, banks, etc. The sheer number of cranes employed tells you somebody thinks this is the place to be.

Panama is experiencing the most rapid growth in the country’s history apart from the decade when the Canal was under construction. The anticipated increase in economic activity from the Canal expansion and the influx of North American and European retirees and investors has set off the current building boom. There has also been a large influx of people from neighboring countries, most of which number from Columbia, has also contributed to the increased construction.

By some estimates there are a staggering 20,000 units on the market in a city with a population of less than a million, the vast majority of which could not afford a single one of these new properties. According to the most recent edition of a weekly real estate bulletin called “Square Feet Panama” there are more than 40,000 condos and apartments proposed or under construction. “A year ago it was 11,000 units.” Although it is not the local market that developers are seeking to fill their buildings, it is still shocking that condos priced at a total of $5.7 billion are on the market in a nation with a $16.5 billion economy.

The new high-rise towers range between 35 and 60 stories and some projects include several towers. A wide variety of unit sizes can be found with most ranging from 1,000 to 3,200 square feet. Several of the Punta Pacifica buildings offer larger units up to 7,000 and even 10,000 square feet. Trump’s Ocean Club includes a hotel and casino and is offering units as small as 1,076 square feet, but with very over-the-top pricing.

The square footage quoted includes balcony areas.

The cost per square foot has increased over the last two years, but especially in the last twelve months. You would be a much happier buyer had you bought or contracted in 2004 and 2005 when prices were as low as $90 per square foot and a two bedroom overlooking the Pacific in downtown Panama City could be had as low as $110,000. Today you see very little less than $200 a square foot other than the very lowest floors and undesirable units. To get a new unit with a valuable view the price will be from about $250 to well over $500 per square foot on the Punta Pacifica.

Now here is the kicker. Air-conditioning is not included in most units. We were in disbelief. Of course I was also in disbelief when we stayed in a hotel in Laguna Beach and there was no air. But this is different, this is always hot and humid! Anyway, we were told you’re on your own to install air in a $750,000 condo. The ceilings are high enough so that you can install a split unit and box in the venting.

I’m going to supply a perspective here:

1) Construction prices have gone up everywhere in large part due to the building boom that was taking place in the US and now in China, India, Dubai, and other emerging markets. Demand locally for materials and skilled labor has also impacted prices in Panama.
2) I heard on several occasions that the housing product has been upgraded over the last two years due to the buyers demanding a higher grade product.
3) Comparable housing product in a significant city in the US is still substantially more expensive. Panama is still a relatively good buy but it doesn’t feel like they’re giving it away any longer.
4) The cost to live in one of these new high-rise towers including city cost of living, association maintenance fees, property taxes is less than half of what you will pay in a comparable situation in the US.
5) Offshore income is not taxable.

Even with these justifications for current pricing, I think a housing bubble exists in the Panama City condo market in the areas described above. I did not see the same bubble in the Causeway, Canal District or the Casco Viejo areas, but a “bust” has long reaching fingers.

The “Square Feet Panama” article reports further, “Speculators are the ones who have put down deposits on 70 percent to 90 percent of these units.” One man told us he lived in a finished building that was eerily empty because so many of the units were purchased by investors. Checking for interior lights, or the lack thereof, on an evening drive-by also gives cause for caution. Miami had the same feel of exuberance a few years ago.

“It’s hard to find evidence that white-haired North Americans are mounting an invasion of retirees, and you can almost hear the air escaping from the bubble.” I find this pretty amazing fodder for a real estate publication but they write that when speculation turns to where the money is coming from to buy these units, “people look over Panama’s shoulder and see Columbia, where cocaine has built fortunes looking to be laundered. Such whisperings have not stopped other investors from coming.”

On the flight back to Atlanta we sat across the isle from an American developer who has been developing in Panama for seven years. He was raving about the opportunities in Panama. Big smile. I didn’t get the particulars but I would have had known earlier in the flight he was a developer in Panama.

Maybe Panama is not exactly like the Wild West, but it’s pretty darn close. More tomorrow about the three sub markets of Panama City, then off south down the Pacific Coast to look at resort property.

Real Concepts’ Panama Real Estate Series:

Part I – Panama Real Estate From This Side of the Canal

Part II – Panama Real Estate - What’s So Good About It?

Part III – Panama Real Estate – The Hangover Comes Next

Part IV – Panama Real Estate Bohemian Style – Casco Viejo

Part V – Panama Real Estate - Have It All In Amador

Part VI – Panama Real Estate – Head for the Beaches

Part VII – Panama Real Estate – The San Blas, Coral Lodge Adventure

Panama Real Estate - What's So Good About It?

Part II...

There is plenty to recommend about Panama. Here's a short list:

NO HURRICANES. Panama is one of the many real estate funnels for the storm and insurance-beset Florida market.

NO EARTHQUAKES. Or tsunamis. That’s always a plus although Panama has not yet siphoned the Southeast Asian market.

NO ACTIVE VOLCANOES. Ditto on the Sicily and Pompeii markets. Didn’t recognize a single Italian, although I’m sure they’re there somewhere. PRISTINE BEACHES. If you go far enough. The Gulf of Panama is pretty disgusting at low tide due to a century of uncontrolled pollution (now supposedly in hand) and a 20 plus foot tidal drain leaving behind every piece of trash that ever hit the water. I’m guessing they are releasing treated effluent into the gulf which, if so, should be harmless but still causes rumor mills to whisper that raw sewage is being dumped into the gulf. This is a very popular YouTube video on Panama:

CURRENCY IS THE US DOLLAR. That’s easy and stable and is a huge draw for foreign investors of which there are plenty. More discussion to come on the active real estate investor market.

GDP PER CAPITA IS $7,100. You can get just about anything done for a dollar. Tipping is 10%. Approximately 37% of the population is below the poverty level and unemployment rides between 9% to 14% ensuring a continued slave market society. In Panama City a live-in maid and cook will run about $200 a month. The luxury high-rise condos all have a separate maid's quarter.

INTERNATIONAL POPULATION. Panama City is a cosmopolitan, international city and although the climate is tropical, it is definitely not a shorts and flip-flop lifestyle. The city is a major international commerce and banking hub, home to more than 80 of the world’s largest banks and other large multi-national corporations. You can find plenty of Chanel, Prada, and just about every other designer and at pretty good prices although much of what I saw has already been cleared from US shops. The new high-rise condo towers that blanket the inner city’s coastline caters to a lifestyle I can only describe as a mix between Miami and New York. It is a ridiculous expression, but it fits: it’s a lifestyle of informal formality. For every mile you travel away from the city’s center you can remove an article of clothing finally cumulating with the bathing suit set.

MEDICAL CARE. If retirement is the goal, Panama offers many discounts including a 15% to 20% reduction on medical expenses depending on the nature of the care. I don’t know what caveats this medical discount may carry but I would guess that health care is a huge consideration for most retirees. There is no Medicare or equivalent for US citizens in Panama and most US insurance carriers do not offer extended coverage in Panama. Medical care is much cheaper in Panama than the US, but still… As we were constantly criss-crossing the city and the countryside, navigating through some very interesting and dangerous driving situations, I was really, really glad we did not have to test the ER facilities. I also have never heard of anyone opting for Panamanian cosmetic surgery to save a few bucks (there are some things you just don’t risk).

FOREIGN INCENTIVES. As you might expect, incentives and discounts continually change so information sources need to be updated frequently. We were told by a real estate agent that the property tax exemption (sliding scale) for new construction housing expired or changed in the last week.

RETIREES. Any resident woman over the age of 55 and any man over the age of 60 can get a discount on just about anything including restaurants, hotels, travel, movies, water consumption, telephone service, banking services, etc.

ADVOCATES. Absolutely, positively have to have a lawyer to buy real estate. Until you have one under your arm you will not be taken seriously as a buyer.

PUBLIC TRANSPORTATION. Well, kind of. The bus system consists of a huge fleet of painted school buses with wildly varying degrees of decoration. Some are quite plain with few details and some have been painted by airbrush artists that obviously relocated from the US after the decline of the 80’s painted van fad. Some could also be failed tattoo artists. Many buses have flashing colored lights and weird whirling tire rims with loud Mack Truck mufflers, and one even had its entire side airbrushed with Pamela Anderson. Anything to get people to ride their bus! The buses are privately owned and an individual can own one or a hundred – theoretically. We were told the owners “rent” the buses to drivers for a set amount and the driver then pockets what he is able to collect in fares. You can not imagine the ensuing chaos as the drivers vie for positioning to maximize their passengers. It is cut throat stuff. We did not brave the “public transportation” experience, but I’m very sure it’s cheap. We were told that the upper-crust is raising hell about getting rid of this crazy system, but apparently many of the owners are politicians. Go figure. Taxis are very reasonable but without meters.

CLIMATE. It's hot and humid. You need sunscreen and bug repelent. Period.

THE CANAL. Fascinating, nine-mile, man-made wonder of the world! The Panama Canal is THE reason for the strategic importance of Panama. In October of 1996 the people of Panama passed a referendum to expand the Canal which the US completed almost a century ago. The expansion will double the load capacity of the vessels traveling through the Canal as well as increasing the number of vessels that can pass. It is fascinating to watch the cargo vessels lined up waiting to enter the Canal Zone. You can watch this parade at a distance from most western areas of Panama City with great views from the high-rise condo towers. Six hours allowed for west bound, then six hours for east bound. We were told that the cost for the current large vessels to pass through the Canal is about $250,000. An average of 38 ships can travel through per day for a whopping $9,500,000 - all in one days work! There is a huge rain forest reserve surrounding the Canal which is necessary to generate the rain water to operate the locks. The new expansion employs engineering that conserves and reuses 60% of the water used in lockage. Monday, September 3 (our Labor Day) was a national holiday to celebrate commencement of the Canal expansion. It was quite an event. Side note for art lovers - Paul Gauguin was a day laborer on the Panama Canal. For more on the Canal’s history check out David McCullough’s The Path Between the Seas: The Creation of the Panama Canal.

NORIEGA IS IN JAIL IN FLORIDA. What a thug. In 1989 Noriega declared war with the US. On December 20, 1989 the US attached in a mission called “Operation Just Cause” under the presidency of George Bush Sr. It could have just as well been called “Don’t Mess With the Canal”. After extradition to the US and with a laundry list of atrocities pinned to his chest, Noriega was nailed for drug trafficking in 1992 in Florida (like the mob and the IRS). He is expected to be released this year.

Real Concepts’ Panama Real Estate Series:

Part I – Panama Real Estate From This Side of the Canal

Part II – Panama Real Estate - What’s So Good About It?

Part III – Panama Real Estate – The Hangover Comes Next

Part IV – Panama Real Estate Bohemian Style – Casco Viejo

Part V – Panama Real Estate - Have It All In Amador

Part VI – Panama Real Estate – Head for the Beaches

Part VII – Panama Real Estate – The San Blas, Coral Lodge Adventure

Panama Real Estate From This Side of the Canal

Part I...

The time is 6:30 a.m. I am in the Panama Airport waiting for the daily Delta flight to Atlanta. After almost two weeks looking at Panama real estate and plenty of vacation time, I am ready to get the hell out of Dodge.

The “wild west” is an apt description of the real estate market in the country of Panama. Coming on the heels of the real estate boom in Costa Rica, Panama seems tired of taking second place in the record books. Their development exuberance shames Miami even at its pinnacle. Even Trump has climbed on board.

Although we are in no way ready to retire, my husband and I, and several friends and business associates, were interested in Panama for the promise of cheap real estate, low cost of living, sunshine, blue water, and great fishing. I found Panama intriguing because it went beyond tourism with a business-based economy. The US and world interest in its stability because of the Panama Canal, positions it for continued growth and potential. Favorable tax laws render it one of the largest global banking markets, not to mention it also has the second largest free-trade zone in the world, the first being in Hong Kong.

From Atlanta, Panama is an easy 3.5 hour dinner (by Delta's definition) flight which leaves daily at 6:00 p.m. With no delays, a Panama City pillow can be had by 11:00. With a one hour time difference the early morning return flight puts us back in Atlanta by 1:00 p.m. and except for Atlanta customs’ procedures it would be a piece of cake. The drawback to the Atlanta flight schedule is that travel to any part of Panama other than the city requires an overnight stay on both ends of the trip.

We looked at real estate in downtown Panama City, the Casco Viejo (the old colonial quarter), the Canal District in and around the old US military base and Causeway area, southern coastal property on the Pacific, the Pearl Islands, and the Colon coastal area on the Caribbean coastline.

After day one, we fired our real estate agent that we contacted via email prior to our trip. It is more appropriate to say we just let him fade away. He was a very young Russian that had been in real estate in Panama for one year via New York via Russia where he had a “watch business”. We had to go through heavy security including passport check (everything except a pat-down) in order to get into his office. YIKES! There is no MLS and agents seem to have the same sources for property information as the buyers. Exclusive listings did not appear common, which seemed to make selling a single property like a crap-shoot .

We spent three days at the edge of the world in and near the Kuna Indian territory, the Archipelago of San Blas in the Caribbean Sea, where there are no roads, no running water, and no electricity except by generator, but so incredibly beautiful it hardly mattered. And no internet or telephones except a few cell areas. Even the Kuna Indians have to have their cell phones.

Of course we wanted what we could not have. The Kuna Indians would not sell. There was real estate we could not afford and some we would not have. But buying real estate there is not so easy. You can’t just find something you like and put a deposit down, write a contract. First of all you have to find a sales center (if new construction) that will open their locked doors.

Well that was only the beginning. It was a fun, fascinating trip filled with many laughs, much confusion, too much Argentinean wine (local wine access being another problem with living there), and the experience of practically every form of water transportation from, dugout canoes, kayaks, speed boats and yachts.

The regional flights to remote areas were a real trip. Tiny planes landing on runways so short even I could sprint in 20 seconds, had the feel of a drug run into the jungle. We were instructed to pay attention to where we exited because the pilot made unscheduled and unexplained stops to who knew where. We felt lucky the jovial pilot (captain, flight attendant, mechanic, and baggage handler) cut the engine as we tumbled out. Paradise Island Redux.

Back to civilization. I’m going to unpack my bags, spend some time with my dogs, and then fill you in on our real estate experiences and our take on the wild and wooly market.

Stay tuned.

Real Concepts’ Panama Real Estate Series:

Part I – Panama Real Estate From This Side of the Canal

Part II – Panama Real Estate - What’s So Good About It?

Part III – Panama Real Estate – The Hangover Comes Next

Part IV – Panama Real Estate Bohemian Style – Casco Viejo

Part V – Panama Real Estate - Have It All In Amador

Part VI – Panama Real Estate – Head for the Beaches

Part VII – Panama Real Estate – The San Blas, Coral Lodge Adventure