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Is now a good time to buy Panama Apartments?

July 6th, 2010

panama-apartments in Panama City

The boom years for Panama City apartments (or condos) is well documented. The city’s status as the region’s most important financial center, its good transport links and shiny new infrastructure projects saw a flurry of investors snapping up apartments, mostly off-plan. Buyers arrived from well known destinations such as the US and Canada and from the more unusual, including Venezuela and Colombia.

But as the global financial crisis took hold, the whiff of oversupply grew stronger. The speculator who had been driving the market retreated, sales volumes dropped and a number of condo projects stalled or suspended operations completely.

Now, as we enter the second half of 2010, some market watchers are saying that it’s a good time for investors to come back into the Panama City apartment market. That inventories are high, sellers are motivated and it’s time to push for a bargain.

Unfortunately accurate price and transaction data is hard to find in Panama – something we’ve written about before. Often the best insight into what the market is doing comes from special offers at individual projects, a review of asking prices (ideally compared with previous years) and feedback from real estate agents on the ground.

After reviewing our database of Panama property prices and contacting local agents we were able to find examples of completed apartments priced at 30-40% below 2008 levels. These falls are not across-the-board as some developers are holding their asking prices firm. It may be a buyer’s market for apartments in Panama City, but don’t except (all) vendors to throw property at your feet.

Here’s our advice for those looking to get into the Panama apartment market:

  • Refine your search to established condo towers in prime areas that are completed.
  • Avoid off-plan purchases.
  • Buying re-sales from individuals may be a better option than purchasing directly from developers.
  • Be very clear about your objectives. Are you planning a Panama retirement? Are you more interested in a vacation home? An investment?
  • Build a network of local contacts to bring you real-time deals and get up to speed with what the best local market commentators are saying.
  • Don’t assume you’ll be able to get the kind of financing terms available before the economic downturn. The availability of mortgage finance has slimmed.
  • Finally, take your time. Be careful not to be seduced by discounts and incentives so that you forget considerations of value.

From Reveal Real Estate - charting overseas property trends in Central America.

When overseas retirement looms, retreat to Central America

June 20th, 2010

With close to 100 million Baby Boomers hitting retirement age in the next ten years, locations to live out the golden years have become a hot topic, and Central American countries are getting their fair share of attention. But what makes these relatively unknown and moderately misunderstood destinations a good choice for senior living? And which countries boast the best place to hang your hat for the foreseeable future?  Read on to find the top Central American countries to call home.

nicaraguaretire

1. Nicaragua is at the top of the list of places to retire abroad for those on a budget. The country’s benefit-laden retirement program was revised in 2009 and includes incentives such as no tax on foreign earnings and duty free imports from automobiles to household items. This combined with the innovative Law 306 (tax and import duty exemptions for tourist-related ventures), and the lowest cost of living in the region does much to encourage retirees to the country. And yet, Nicaragua has not yet realized the kind of influx that Costa Rica and Panama enjoy. Some put this to the ‘close relationship’ that the current President has with Hugo Chavez, the controversial leader of Venezuela. But others stress the ‘early in’ nature of the real estate market and it’s potential for future growth.

panamaretire

2. Panama still beats expectations. Between the beaches (70 to 90 degree weather year-round) and the highlands (50 to 80 degrees and less humidity), you’ve got a range of climates to choose from. But the real perks of retiring here include a stable government, modern banking (the U.S. dollar is legal tender), tax benefits (no tax on foreign-earned income, property tax breaks), and solid roads and telecommunications. The boom years saw hundreds of new condo towers in the capital city (see more analysis on Panama apartments) and real estate projects launched across the country. This was followed in 2009 by a marked slowdown in sales activity. Some over-leveraged projects stalled or suspended operations and re-sales were offered at large discounts. But as we enter the second quarter of 2010, local real estate agents note that enquiries are rising again.

belizeretire

3. Belize offers the classic Caribbean experience mixed with a long-standing culture of ecotourism. It’s a tiny country packing a remarkable amount of diversity between its borders - tropical forests, mountain summits, a palm-fringed coastline and the longest barrier reef in the Western Hemisphere. Belize stands out as being a true banking haven (retaining high levels of liquidity through the recent banking crisis) with strict secrecy laws.  A major bonus for retiring overseas in Belize is that the official language is English and the legal system is based on British law. Things have slowed since the financial crisis (except perhaps in Placencia where the market seems to be booming) and commentators talk about a more stable and less speculative market taking hold.

costaricaretire

4. Costa Rica has long been considered a great place retirement overseas and for many years set the benchmark to follow for other Central American countries. More recently however, its retirement program has fallen behind its regional neighbors that offer more incentives aimed specifically at retirees. As it’s only her second day in office, it’s too early to see what Laura Chinchilla, Costa Rica’s new President, has planned.  The capital city of San Jose and the Central Valley region seem to be bucking the general slowdown and attracting an ever-growing number of retirees. The northern Guanacaste region also appears to be climbing back after a difficult year in 2009.

Guest post contribution by Sarah Harris, of Zen College Life, the premier directory for online degrees. Find out more information about a psychology degree.

How to find your perfect master planned community in Central America

February 10th, 2010

find-perfect-community-central-america

OK so you’ve found a beautiful condo with a great view of a surf break. Or a luxury mansion where you can impress your friends with your lavish international lifestyle.

But can you really love your home if you don’t like your community, the surroundings or your neighborhood?

We don’t think so. So we encourage you to become a real estate community profiler. Start by figuring out exactly what you’re looking for, the kind of lifestyle you enjoy, the amenities you need and zero in on the community that delivers. Do this before you start comparing individual houses, lots or condos.

To get you started on your profiling, we’ve put together a list of 8 types of master planned community you’ll find in Central America.

1. Status communities

Status communities are at the top of our Price Rank. They tend to be beachfront, exclusive, and packed with community amenities - such as a golf course, marina, hotel, private club, fitness center, sports facilities, convention center, etc. If you’re in Costa Rica or Panama you may even see a top tier brand name associated with the community. Think Four Seasons, Trump, Ritz-Carlton… Properties in status communities tend to be large custom built houses or upscale condos.

2. Golfing communities

Completed golf courses in Central-AmericaYes, you’ve guessed it. Golfing communities have golf courses and attract golfing enthusiasts. The graphic shows the completed golf courses in the countries we cover. Costa Rica leads the field with 9. Of course many more are under construction or planned. Most golfers like to play on different golf courses so remember to look for the geographical clusters within (say) an hour’s drive of each-other. Read more on golf property in Central America.

3. Surfing communities

Walking barefoot out of your property, surf board in hand, straight out to the break is something surfers dream about. Luckily in Central America there are many property developments where this is possible. In fact we’ve found over 60 master planned communities located within walking distance to a surf break. Here’s the list and map. We also looked at developments within an hour from a break and the list is longer.

4. Historic communities

It’s really only Nicaragua and Panama that can boast ‘historic communities’. In Nicaragua these are clustered in and around Granada; purportedly the oldest continually inhabited city in the Americas. Nicaragua also has Leon, a city that rivals Granada when it comes to the colonial feel. But you’ll find more master planned communities located around Granada. If you’re in Panama, head straight for the Casco Viejo area of Panama City for colonial buildings with serious curb appeal.

5. Retirement communities

As North American retirees take stock of economic realities, it’s clear that many are looking for a more affordable life overseas. The retiree trend has not escaped the attention of real estate developers and we’re seeing a growing number of communities, or sections within communities, designed specifically to cater for the over 55s. Look out for on-site medical facilities and organized social activities such as bridge, painting, yoga and so on.

6. Escape communities

International real estate (and vacation homes in particular) are commonly marketed as a form of escape. An escape from the stresses of the modern world and the hustle and bustle of 9-5 living. Places where you can switch off your cell phone, unwind and embrace a simpler, less hurried lifestyle. Destination resorts have popped up all of the place, sometimes in very remote areas to cater to this need. The remoteness is repackaged as a benefit that delivers ’space and privacy’.

7. Urban core communities

Moving overseas is not always about fulfilling your escapist dream (See #6). Sometimes you want to be close to amenities and be highly accessible. Panama City stands out in this regard. It’s the most cosmopolitan of all Central American cities and a world class financial center. We’re not just talking about coffee shops, restaurants and nightlife but world class shopping centers, banking, theater and fine arts. The Central Valley area of Costa Rica probably comes in a close second.

8. Eco-communities

One of the characteristics of the post crisis investor is an interest in “contributions to larger concerns such as environmental preservation, the local community and sustainable approaches to building, water, and energy”. Recent years have seen a huge growth in master planned communities embracing the sustainability agenda ( and no, not just in Costa Rica). It’s sometimes hard to get past the green-washing but here’s a list of projects that have made public disclosures. The green trend is here to stay, we just need better ways of distinguishing the projects that churn out empty eco-cliches from the ‘intentional communities’ that are taking real action on the ground.

Now you’re ready to start finding a master planned community that fits your lifestyle. Are there any categories we’ve missed? Let us know in the comments. And once you’ve narrowed things down don’t forget to ask these 10 questions before you buy.

From Reveal Real Estate - charting overseas property trends in Central America.

After the storm: Pessimists vs. Optimists

February 1st, 2010

financial-crisis-international-real-estate-Central-America

The global financial crisis and its impact on international real estate is still discussion topic #1 among investment analysts, real estate agents and developers in Central America. Everyone agrees that 2009 was a difficult year. The tricky part is that the arguments being presented paint quite different scenarios for the future.

On the one hand, large-scale real estate projects, especially if heavily leveraged, have proven vulnerable. The suspension of the St. Regis project in Costa Rica in the wake of the Lehman Brothers collapse was the first high profile example. Other project closures and suspensions followed in 2009 including the Rosewood at Costa Carmel (Costa Rica), La Punta Papagayo (Costa Rica), Marea Alta (Nicaragua), and Orchid Residences (Panama City), to name a few.

But perhaps more important than the direct impact of the international financial crisis, the property pessimists argue, was the indirect effect of tighter lines of credit in North America - the main source of buyers for international real estate in the region. No longer is the market being carried by North American buyers flush with equity and easy credit. It’s easy to point to low sales volumes and falling prices to make this point.

Any bright spots? Counter trends?

One can overdo the gloom.  The optimists point to sticker prices on the downside in Central America relative to more mature markets. The relatively low levels of lender mediated activity across the region meant that the market did not suffer the kind of foreclosure crisis we’ve become used to reading about in the US.

Second, international real estate markets, and Central America included, are increasingly being seen as tax-friendly, safe haven investments. The kind of places investors and retirees seek to shield themselves from the US financial system.

Added to this, is a new wave of lifestyle buyers looking for areas where the real estate is cheaper and, crucially, the cost of living more affordable. We included examples of developers, such as Montecristo Beach & Golf Resort in Nicaragua, Grand Baymen in Belize and Valle Escondido in Panama, successfully marketing to these buyers in a recent article for the International Property Journal.

The upshot?

The impact of the financial crisis has been mixed both within and between countries. Developers are having to adapt quickly to a new market.  Those that understand the mindset of the post-crisis real estate investor are best placed to succeed.

Investment activity is trending towards well-planned developments with good locations, quality products and a master plan that delivers against end-user requirements. Pre-construction offerings in weak locations face an uphill battle.

The property pessimists are right that the boom years are over for international real estate in Central America.  It’s a different market now, with buyers firmly in the driving seat. Welcome to the ‘new normal’.

From Reveal Real Estate - charting overseas property trends in Central America.

What’s the cheapest real estate you can find in a master planned community in Central America?

December 20th, 2009

central-america-international-real-estate-price-rank-2009

2009 has been a tough year for real estate sellers in Central America. Sales volumes are down, buyers are more risk adverse and financing is tight. The one bright spot is a growing group of ‘lifestyle buyers’ looking for cheap properties and a low cost of living. Many see Central America as an affordable safe haven and a way to side-step the worst effects of an economic downturn at home.

As it’s cheap real estate these lifestyle buyers are after, we thought we’d offer up a resource that highlights the lowest priced real estate in the four countries we follow: Belize, Costa Rica, Panama and Nicaragua.

Not surprisingly, the most affordable way into the market is by purchasing a lot or homesite. Our analysis looks at master planned communities targeting the international buyer. This means that a lot purchase comes with access to community amenities. Swimming pools, clubhouses and fitness centers are the most common. In some of the larger, resort-style communities, you’ll find golf courses, restaurants, shopping centers, racket courts, hotels and marinas.

So what’s the starting price point for lots in master planned communities?

We’ve built a ranking table to answer this question, giving the results in overall price and price/sqft for 2009. The table complements the earlier PriceRank we prepared for single family houses and condos. The columns are sortable letting you organize the list in different ways. If you want to know what amenities are offered by each real estate development, click through to the individual page for the answer. You’ll also see if the amenities are planned or completed.

A quick glance at the table shows two broad themes:

  • Real estate developments located in Nicaragua tend to rank lower (ie are lower in price) than those in Costa Rica, with Belize and Panama falling somewhere in between. This pattern mirrors the level of maturity of the real estate markets - from emerging (Nicaragua) to middle markets (Panama and Belize) to the most mature (Costa Rica). We’ve analysed this before by plotting ‘development curves’ to show the relative levels of each of the markets.
  • Generally speaking ocean property has a premium over other locations. Master planned communities on the ocean rank higher for the most part than lake/river and pastoral locations.

Rank Real estate development Country Location Location type Median price ($) Median price/sqft
1 Camino Del Rio Belize Belmopan Lake/river 20,000 2
2 Lomas de Santa Rosa Costa Rica Tamarindo Pastoral 21,200 6
3 Club Alegria Nicaragua Granada Pastoral 21,500 2
4 Better in Belize Belize Belmopan Lake/river 23,000 1
5 Prana del Sol Nicaragua Tola Ocean 25,000 3
6 Rancho Las Lomas Costa Rica Parrita Ocean 26,500 4
7 Villa Davina Panama David Lake/river 28,400 3
8 Casa Llanta, Nicaragua Nicaragua South of San Juan del Sur Ocean 30,000 1
9 Congo Hills Nicaragua San Juan del Sur Ocean 30,000 3
10 Rancho Los Suenos Panama Espave Pastoral 31,000 2
11 Waterside Belize Flowers Bank Lake/river 31,730 1
12 Progresso Heights Belize Corozal Lake/river 34,816 3
13 Rancho del Oro Nicaragua San Juan del Sur Ocean 35,000 2
14 El Camino del Sol Nicaragua San Juan del Sur Ocean 38,175 5
15 Apanas Lake Estates Nicaragua Matagalpa and Jinotega Lake/river 39,900 2
16 Rancho Papayal Nicaragua San Juan del Sur Ocean 40,000 2
17 La Vista Nicaragua Nicaragua Tola Ocean 40,000 2
18 Consejo Shores Belize Belize Corozal Ocean 42,500 2
19 Seahorse Tropics Nicaragua San Juan del Sur Ocean 44,200 4
20 Villa Lagos Nicaragua Granada Lake/river 45,240 5
21 Parque Maritimo el Coco Nicaragua South of San Juan del Sur Ocean 48,600 7
22 Las Fincas de Escamequita and Las Haciendas Nicaragua South of San Juan del Sur Ocean 49,000 1
23 Belize Reserve Belize Cayo Pastoral 49,950 2
24 Paraiso de Amelia Nicaragua San Juan del Sur Ocean 50,000 4
25 Tamarindo Beach and Ocean Estates Nicaragua Central Pacific Nicaragua Ocean 50,000 5
26 Bella Mar Nica Nicaragua Tola Ocean 52,561 5
27 Cerros Sands Belize Corozal Ocean 53,500 5
28 Dreamscapes Belize Belize Dangriga Ocean 54,111 5
29 Finca Java Nicaragua Matagalpa and Jinotega Lake/river 55,000 0
30 Selva del Mar Nicaragua Tola Ocean 55,000 5
31 Bella Vista Guasacate, Nicaragua Nicaragua Tola Ocean 59,000 12
32 Altos de Maria Panama Chame Highlands 59,100 3
33 Club Vistalagos Nicaragua Laguna de Apoyo Lake/river 64,000 4
34 Cantamar Playa Yankee Nicaragua South of San Juan del Sur Ocean 65,000 4
35 Montanas de Caldera Panama Boquete Highlands 67,500 4
36 Finca del Mar Nicaragua Central Pacific Nicaragua Ocean 70,500 4
37 Hills of Santa Marta Nicaragua Tola Ocean 72,000 6
38 Turtle Cove Lake and Yacht Club Costa Rica Arenal Lake/river 72,720 4
39 El Encanto del Sur Nicaragua San Juan del Sur Ocean 73,500 4
40 Costa Dulce, Nicaragua Nicaragua South of San Juan del Sur Ocean 82,000 6
41 Starfish Reef Panama Bocas del Toro Ocean 84,000 3
42 Hacienda Los Molinos Panama Boquete Highlands 84,660 6
43 Pacific Marlin, Nicaragua Nicaragua San Juan del Sur Ocean 85,000 7
44 El Club del Mar Nicaragua South of San Juan del Sur Ocean 89,000 7
45 Papagayo Golf Lots Costa Rica Playas del Coco Ocean 90,000 1
46 Remanso Beach Resort, Nicaragua Nicaragua South of San Juan del Sur Ocean 92,792 12
47 olcan Springs Ranch Estates Panama Volcan Highlands 97,250 4
48 Bahia Lomas Estates and Marina Panama Bocas del Toro Ocean 98,499 4
49 Balcones de Majagual Nicaragua Marsella / Maderas Ocean 99,000 6
50 Mansions at Banyan Bay Belize Ambergris Caye Ocean 101,000 15
51 Paradise Dreams Panama Bocas del Toro Ocean 103,333 10
52 Boquete Country Club Panama Boquete Highlands 107,189 5
53 Valle Verde Costa Rica Central Valley Highlands 107,685 1
54 Boquete Plantation Panama Boquete Highlands 110,000 7
55 Rio Oria Estates Panama Azueros Peninsula Ocean 112,000 1
56 Cala Azul Nicaragua San Juan del Sur Ocean 117,000 11
57 Orchid Bay Belize Corozal Ocean 119,000 9
58 Finca las Brisas, Costa Rica Costa Rica Nicoya Ocean 120,750 2
59 Montanas y Mar Costa Rica Quepos/Manuel Antonio Ocean 122,500 1
60 Cheetah Chombo Costa Rica Cahuita Ocean 125,500 1
61 Cerro Grande Estates, Costa Rica Costa Rica Tamarindo Ocean 126,250 1
62 Placencia Yacht Club Belize Placencia Ocean 130,000 18
63 Gran Pacifica Nicaragua Central Pacific Nicaragua Ocean 132,665 21
64 Montecristo Beach and Golf Resort Nicaragua Central Pacific Nicaragua Ocean 133,833 10
65 Rancho Santana Nicaragua Tola Ocean 136,750 5
66 Residencial La Esmeralda, Costa Rica Costa Rica Tamarindo Ocean 137,500 4
67 Hacienda Iguana Nicaragua Tola Ocean 140,417 7
68 Tierra Pacifica Costa Rica Playa Junquillal Ocean 145,000 2
69 Sanctuary Bay Estates Belize Belize Stann Creek Ocean 146,500 3
70 Bosques de Vista Marina, Costa Rica Costa Rica Playas del Coco Ocean 150,000 6
71 Playa Santa Rosa Nicaragua Central Pacific Nicaragua Ocean 155,563 13
72 Costa Paraiso Nicaragua South of San Juan del Sur Ocean 159,000 7
73 Rancho Villa Real, Costa Rica Costa Rica Tamarindo Ocean 171,000 3
74 Portasol Costa Rica Dominical Ocean 180,500 2
75 Sittee Point Belize Hopkins Ocean 193,500 13
76 Lobster Cove Panama Chuchecal Bay Ocean 208,750 8
77 Pura Jungla, Costa Rica Costa Rica Paraiso Ocean 209,275 2
78 Lomas del Mar, Costa Rica Costa Rica Playas del Coco Ocean 212,500 3
79 Brisas del Pacifico, Nicaragua Nicaragua San Juan del Sur Ocean 217,174 9
80 Eagles View, Costa Rica Costa Rica Nosara Ocean 224,900 5
81 Valle Escondido Panama Boquete Highlands 227,140 7
82 La Reserva Camaronal, Costa Rica Costa Rica Samara Ocean 233,475 18
83 San Buena Golf Costa Rica Southern Pacific Ocean 234,400 11
84 Ladera del Mar Costa Rica Playas de Coco Ocean 237,000 4
85 Villas Cabo Vela Costa Rica Playa Grande Ocean 247,000 3
86 Sunset Point Bocas Panama Bocas del Toro Ocean 255,000 10
87 Manuel Antonio Estates Costa Rica Quepos/Manuel Antonio Ocean 284,000 5
88 Cabo Caletas Costa Rica Costa Rica Esterillos Ocean 285,000 18
89 Cocoplum Belize Belize Placencia Ocean 305,250 11
90 Sonidos del Mar, Costa Rica Costa Rica Nosara Ocean 306,667 28
91 Coco Bay Estates Costa Rica Playas del Coco Ocean 311,250 12
92 Balcones del Lago Arenal Costa Rica Arenal Lake/river 315,000 4
93 Rancho Playa Negras Costa Rica Playa Negra Ocean 337,112 22
94 Lora Hills Costa Rica Costa Rica Playa Ostional Ocean 498,877 11
95 Hermosa Heights Costa Rica Playa Hermosa Ocean 565,000 48
96 The Four Seasons Papagayo Peninsula Costa Rica Papagayo Ocean 950,000 31
97 Hacienda Pinilla Costa Rica Tamarindo Ocean 970,983 45
98 Isla Viveros Panama Panama Isla Viveros (Pearl Island) Ocean 993,866 18

We’re continuing to sort through the data we collect, looking for the best ways to present and dig out the facts. We’d love to have your ideas and suggestions. They’ll be more price rankings to follow. We also plan a “Master Plan Completion Index” to give a sense of how far along real estate developments are with their master plan - a piece of information that savvy real estate investors should follow with care.

Stay tuned by subscribing to updates.

From Reveal Real Estate - charting overseas property trends in Central America.

Panama listed in Forbes top 10 retirement havens

November 13th, 2009

panama-retirementYet another publication heralding a Panama retirement as a top choice for baby boomers.  Panama joins 9 other countries on the Forbes hit-list: Austria, Thailand, Italy, Ireland, Australia, France, Malaysia, Spain and Canada.

Forbes pulled together the list of top 10 retirement havens using a range of criteria from “safety to retiree-friendly visa requirements to decent medical care.”  Quality of life, cost of living and climate for retirees were also factored in.

Sam Taliaferro picked this up over at his Panama Investor Blog where he listed some of the positives for Panama:

“Positives: Panama has almost everything: year-round sun, low taxes, massive discounts for seniors, first-world amenities, quality private hospitals, bird-filled rainforests, a dollar economy and easy flights from the U.S. Panama City is considered safest of all Central American cities, with worldly buzz because of the canal, and a World Heritage Site.”

Panama is emerging strongly from the recent economic crisis, faster than some of its regional neighbors.  Major infrastructure projects are underway or recently completed, including the Cinta Costera in Panama City, the upgrading of the airport at David to accept international flights, and of course the expansion of the Panama Canal.

Panama offers retirees a benefit laded retirement program packed with tax exemptions, incentives and discounts and day to day living costs are cheaper than in the US.  Another positive is a dollar based economy, a factor that reduces currency risks, especially for North Americans.

Of course each country has “assets and liabilities” and much depends on what kind of lifestyle you are looking for.  So the key to a successful retirement as an ex-pat?   Know yourself and do your homework.

From Reveal Real Estate - charting overseas property trends in Central America.

Scouting international real estate in Central America requires a fair bit of bumping along unpaved roads

November 9th, 2009

I seem to spend a lot of my time bumping along unpaved roads in Central America on my way to see how overseas property developments are progressing.

Sometimes this can give you the feeling that you’ve arrived at a secret paradise, miles from anywhere, when the bumpy road suddenly opens out to sweeping vistas, lush gardens and well appointed homes. Ahh, you think, no one except other discriminating investors like myself will take the time to reach and assess this opportunity so I’m guaranteed exclusivity, privacy and maybe somewhat of a discount due to the access.  But, more often, the bumpy trip can leave you tired and grumpy and heaven help a developer who doesn’t then have a cool drink on hand and something worthwhile to show you as an investment opportunity.

It’s important to be prepared before you set out - to know exactly where the project is located, how long it will take to get there and on what sort of road. So on Reveal Real Estate we include a location map for each real estate development and answer these 3 questions:

  • Is the road paved from the nearest international airport? (if it’s not paved, we’ve estimated the amount of driving time on unpaved sections)
  • What is the total driving time from the international airport?
  • How long does it take to drive to the closest town with a decent sized grocery store?

This data is useful on a project-by-project basis when planning a trip, doing a price comparison, or for tossing up real estate options; but there’s also something to learn from aggregating the data and analyzing by country.  So here’s the picture for Panama, Costa Rica and Nicaragua.

Is the road paved from the nearest international airport?

international-real-estate-paved-roads

In broad terms the data reflects the level of investment each county has made on its infrastructure and the remoteness of the main property purchasing destinations.  Panama leads the field when it comes to paving.  You can drive in comfort, on paved roads, to most of the real estate developments featured on Reveal Real Estate, including of course all the condo projects in Panama City.

Costa Rica real estate follows close behind with over 70% of the developments having paved access. We haven’t yet seen the new section of road between Quepos and Dominical, but this should improve driving comfort further.

If you’re interested in scouting for Nicaragua real estate, be prepared for a bumpier ride.  Only 20% of the projects on Reveal Real Estate have paved access.  But if the planned coastal road from the border with Costa Rica heading northwards following the ribbon of development ever gets off the drawing board, this would change the picture quite dramatically.

How long does it take to drive to the airport and the nearest grocery store?

international real estate driving time

The pattern between the countries is similar when it comes to driving times.  Real estate developments in Panama and Costa Rica have a shorter driving time on average to the airport and to a decent sized grocery store than those located in Nicaragua.

If you need to pop out to a grocery store with a decent range of items you’re looking at a 9 minute drive, on average, in Costa Rica.  In Nicaragua, your grocery run is 23 minutes on average.    Of course this varies considerably for each real estate development. Check each development page for individual driving times.

What about Belize real estate?

belize-paved

We’ve included the Belize real estate data separately as it’s not directly comparable to the other countries.  The terrain is quite different, particularly on the coast, and visitors mostly get about by taking short internal flights and then getting in a golf cart for the final stretch.  Many of the projects on Ambergris Caye for example do not have paved access but in practice all this means is a short golf cart ride on a sand road.

Infrastructure is steadily improving in Belize.  The paving of the 16 mile road along the Placencia Peninsula is underway with the section from Maya Beach to Placencia Village already completed.  So the only bumping we’ll do on our next trip to Placencia will be over speed-bumps.

So what does all of this mean for pricing?  Does paved access lessen a development’s exclusivity?  Does a long driving time from the airport or grocery store mean that prices will be lower for comparable real estate? We’ll be looking at this in our second post on accessibility.  Stay tuned.

From Reveal Real Estate - charting overseas property trends in Central America.

10 questions you must ask the real estate developer before you buy

September 16th, 2009

international real estate in Panama, Costa rica, Belize and Nicaragua

Master-planned communities in Central America come in all shapes and sizes - from small condo buildings to developments covering thousands of acres offering resort style amenities.  Many offer pre-construction sales where you buy before you see the finished product.   Great gains can be made as properties are offered at a discount.  But you have to be confident that the developer will deliver.  The starting point is getting answers to these 10 questions below, before you sign the contract.

  1. Find out what kind of title the developer has to the land and ask to see the master title insurance policy.  Ensure the legal due diligence on these documents is carried out by a good quality attorney.  The developer may recommend their own attorney, but it is always safer to conduct an independent review of the documents before signing.
  2. Ask whether the development masterplan has been approved by all relevant authorities.   In particular, check to see if environmental impact statements have been submitted, and approved.   Authorities across Central America are getting increasingly stringent in their environmental regulation.
  3. Investigate whether the developer has the capital to move the real estate development forward or if they are relying on sales revenues.  Remember that limited financial flexibility or low project sales can adversely impact the timely completion of a project.
  4. Do some research into the past experience of the developer and and ask to be put in touch with previous buyers.  Try and get background information or bios on the entire developer team including builders, architect, marketers, operators and master-planners.
  5. The builder being used is a critical component of the development team.  If the developer is using a well respected local firm that has a track record in the type of construction required by the master plan, this is a good sign.  If possible try and see examples of buildings that have been completed by the builder so that you can get a real sense of the quality of their work.
  6. Find out how much time of the year the developer spends in-country.  If the developer is foreign, but lives full-time in the country where the real estate project is located, this is a positive indicator for their long term commitment to the project and country.
  7. Find out about the water source and whether the developer has ensured that there will be enough supply even when the development is fully built-out.  Ask how sewage is being handled and does the process comply with local regulations.  Check to see if power lines will be underground or overground.
  8. Read the Codes Covenants and Restrictions (CC&Rs) carefully.  CC&Rs in some international real estate developments can be highly restrictive, down to what you can or can’t grow in your garden, what pets you can have, the architectural style that is allowed, or the color of your roofing tiles.  Make sure you know what you’re getting into. In most cases the CC&Rs will be enforced by a Home Owners Association (HOA) - a legal entity which allows the developer to transfer ownership and management of the community to the homeowners after it has sold a predetermined number of units or lots.  Ask to see a copy of the Association bylaws and budget.
  9. Don’t forget to find out about after sales service such as property management, rental management and marketing support for re-sales.  Make sure you are comfortable with the level of service that the developer intents to provide after the sale.
  10. Find out if the developer is addressing the social and environmental impacts of the development and whether there are any programs in place to support the local community.  Efforts to protect the environment, treat employees and suppliers fairly and ensure that the local community is benefiting are all good signs of a ‘responsible’ approach to development over the long term.

Finally, remember also to check out our 16 insider tips to purchasing international real estate in Central America.

From Reveal Real Estate - charting overseas property trends in Central America.

Panama property: doing better than many markets, but not immune to the global downturn

July 26th, 2009

Panama City at night

The Panama property market is changing. Yes, list prices for real estate in resort communities, condo towers and gated developments in Panama are falling for the first time since the boom. But before we get caught up in the gloom, the good news is the falls are smaller than those we’re getting used to seeing elsewhere in global property markets.

The picture in 2009

The chart provides a snapshot of where things stand in 2009.

panama-prices-20091

  • By price per square foot, beachfront condos top the list at $253.  But in terms of overall price, ocean view houses rank as the most expensive property type with a median price of $624,600.

  • 5 property categories break the $200 per sqft price point: beachfront condos, ocean view condos, urban view condos, ocean view houses and water view houses.

  • Of the 10 most expensive real estate developments catering to international buyers, 9 are located in Panama City.  Donald Trump’s Ocean Club tops the list with a median price per/sqft of $483 for remaining apartments (see below).

panama-city-top-end1

Comparing with prices in 2008

panama-prices-changePanama real estate prices have fallen since 2008 but the falls are relatively small when compared with other markets around the world.  The median price per square foot has declined 3.55% for serviced lots, 2.02% for condos and 6.8% for single family houses between 2008 and 2009.

Panama is certainly not immune to the global economic downturn.  You just have to look at the fall in GDP growth rate from 11.7%  in 2007, to 8.3% in 2008 to a predicted 3% in 2009.  But the country is still beating regional averages across a range of economic indicators and many remain optimistic about the country’s ability to ride out the economic difficulties, particularly with recently elected President Martinelli at the helm.

It’s a new market in Panama

Things may still get worse before they get better.  Local developers and real estate agents are warning about project delays and closures.  In areas where a high level of sales have been made pre-construction (such as Panama apartments in Panama City) more price falls are expected as buyers default on their payments.   And resale prices are already significantly undercutting developer-direct prices in many areas.

Sellers, used to riding the long boom years, are slowing coming round to the fact that it’s a new market in Panama.

From Reveal Real Estate - charting overseas property trends in Central America.

Revealed: 2009 Panama real estate statistics

June 3rd, 2009

panamareport2009

Listing prices in Panama are decreasing for the first time since the boom.  We’ve partnered with the Panama Report on releasing this data on the Panama real estate market.  The aim: to put data into the hands of consumers so that they can make more informed investing decisions. Head on over to the Panama Report for the full findings.

From Reveal Real Estate - charting overseas property trends in Central America.

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