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The Two Not-To-Be-Missed Panama Developments

By in Blog with 0 Comments

Buying pre-construction is one of the most flexible ways to purchase a property before completion, as it allows you to lock in today’s price and come up with the balance in two to three years.  

Here’s what most buyers new to Panama don’t realize:  Early buyers in real estate developments in Panama are almost always friends and family FIRST. They buy because they are somehow connected to the developer and they usually purchase before the project is ever even taken to the market. These are the buyers who get in really, really well and often end up selling before the project is completed.

The next round of buyers already know the area and perhaps have purchased with the developer before. They probably had their radar up for a new project and managed to catch a deal on one of the first few price lists because they were LOOKING.

The last wave constitutes the general public who typically “close out” a project within 12 months of being 100% built. These buyers see their risk/return profile improving since the risk of the building not getting constructed is pretty much eliminated. These buyers get in at market price or maybe slightly below.

Determining the success of developers in Panama is a time-consuming process. And because there are so many out there, we decided to construct our own proprietary vetting process. This took us almost a year to complete and was a process of trial and error, meeting with banks, and understanding how to really make sure if a particular developer is someone we want to back. The list is finally ready and here’s our first bit of news:  This message should act as an early warning for two projects that opportunistic investors need to be paying attention to.

Because once we start moving some inventory, the developers can and almost always DO raise the prices!

We have chosen two projects that we believe hedges the inherent risk of buying early-stages; issues such as project financing, titling, approvals, pre-sales, and the reputation of the builder and their past projects have been researched, confirmed, and have our official endorsement as being investments that we can recommend with confidence.
Let’s take a look at the details.

Project 1: Zaphiro Tower
Location El Cangrejo, Panama City
Price Apartments starting at $250,000
Size Two bedrooms, 115 meters (1,240sf)
Why we like it Great opening price point, efficient and modern layout, hot neighborhood
The angle In a rental market sweet spot: $100 million planned for neighborhood improvements
Timeline Construction just started, delivery slated for early 2018
Status 40% sold

What makes the Zaphiro project so special?

Zaphiro Panama Pre-Construction Panama Equity

  • Timing

This is ground floor pricing on the city project and very, very early stages on the beach development’s second tower.  The locations are prime: NOT AAA, but moving that way.  In other words, you are not paying top dollar because the neighborhood has already maxed out…on the contrary, expect some appreciation as the neighborhood grows.

  • Price

We really like the numbers. Whether it’s buy-to-lease or buy for a second home, the holding costs are low, the initial price points are attractive, and we believe there’s upside based on the area, the design, and the pre-sale pricing.

Project 2: Ocean Waves
Location Gorgona, 10 minutes to Coronado
Price Starting at $206,000
Size 1, 2, and 3 bedrooms starting at 85 meters (900sf)
Why we like it Amenities galore, much better than the standard.  Direct unobstructed views of the ocean, great sandy beach for miles.
The angle Vacation rental potential and less than 5 miles from Coronado’s critical mass
Timeline Tower one is complete, tower two delivery end of 2018

How to Get the Most Out of Your Pre-Construction Buy

Contact us today to request the most recent price and availability list on the projects above via email.

About The Author

Kent Davis, founder and Managing Director at Panama Equity real estate, has been widely quoted in publications such as Wall Street Journal, Time Magazine, The Miami Herald and the Financial Times for his unabashed views on the Panama real estate market. Panama Equity is regarded as one of the most active real estate agencies in Panama and Kent’s articles, reports, and market research projects have been syndicated by press agencies including Bloomberg and the Associated Press.   Connect with the Author via: Email | LinkedIn | Facebook | Google+

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