Panama City
Once an important point for trade between colonial powers,
Panama City is still a bustling, commercial hub, situated on the
Pacific coast and the Panama Canal. The city has a population of
just under 500,000, with a large proportion of employment in
international banking and other financial and service industries,
in addition to the retail and hospitality sectors and, of course,
the port with its shipping and trade. There are also plans for the
local airport to be expanded into an international centre to
rival Miami as a regional connection point for travellers.
The city can be divided into two main areas: the
modern district with its proliferation of high-rise condominiums,
retail malls and office blocks; and the old town, Casco Viejo, a
colonial gem. The government has offered financial incentives for
those investors willing to renovate properties in the Casco Viejo
district, and the increasing number of fashionable
bars and hotels provide evidence that things are starting to
change here. For investors who like a challenge, property in this
area represents an opportunity to earn in the long-term, with
prices from under $100,000 for pretty, crumbling houses to over
$350,000 for restored properties.
Balboa
The area of Balboa, directly on the canal, is already a large
and important shipping port, but it is soon to be a
centre of further economic growth. Two new mega-ports are planned
in the area, in addition to the construction of a large oil
refinery.
Much of the property in Panama City consists of apartments,
often in apart-hotel complexes both in the city centre and suburbs,
catering to the local residential population and the
ex-pat employees and retirees market. Prices are not as low as
might be expected in a location that is still seen as something of
an emerging market, and range from around $50,000 for a one-bedroom
property, such as a suite in a hotel complex in a less sought-after
area, or a small house in the suburbs. More central property costs
from around $120,000 to over $500,000 for something plush with
ocean views or in an attractive rural location. Larger apartments
or family villas with three bedrooms in exclusive estate locations
can cost upwards of $350,000. Average rental returns of between
6.5% and 8% can be expected for an apartment in this area.
Beach resorts
Pacific coast resorts, such as Conorado, Gorgona and Punta Barco
are around an hour from Panama City and have long been popular with
both overseas visitors and Panamanians. Prices here can be
high: $160,000 will get you a standard one-bed apartment in a
new-build high-rise with beachfront access, whilst $190,000 will
buy two-bedrooms or a small house in an inland location. Large
villas with gardens or apartments in ritzier developments cost from
around $250,000 up to over $600,000. Rental returns average between
7% and 15% depending on whether the property is a villa or
apartment and its proximity to the beach.
Colon
The province of Colon on the Caribbean coast has some of the
country's most spectacular scenery and best beaches. It is also
home to Colon City, Panama's second largest city and busy
international commercial hub. Colon also has a free trade zone
measuring around 400 hectares and is situated at the entrance of
the Panama Canal on the Caribbean coast. The region is one of the
most important trade centres in the world, second only to Hong
Kong, with some of the best air, rail and road infrastructure in
the country. Unfortunately, the city is in decline, crime-ridden,
with 40% unemployment and large numbers of people living in slums.
It is not a location that attracts many investors. However, the
area also offers attractive coastal towns, such as Portobello and
Isla Grande, and is the site of several new marina developments.
Prices range from $50,000 for small apartments to around $250,000
for larger properties and from $350,000 for a family home with
land.
Bocas del Toro
Bocas del Toro is an archipelago on the Caribbean side of the
country; there are five main islands and many smaller, undeveloped
ones. An area of unspoilt tropical forests, beaches and reefs, the
location appeals to weekending locals and overseas tourists as well
as investors. Homes on the main islands of Boca del Toro vary
wildly from $80,000 to over $650,000 depending on size, amount of
land and location. Land prices start at around $1,000 per square
metre depending on their proximity to the waterfront or beach.
Buyers should note that much of the land in this area, especially
beachfront, is government owned meaning that there is not
necessarily any legal title to it. Vendors may attempt to sell with
'possession rights' (see Purchase Process), but this does not grant
any legal ownership.
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