Image source: Sanaulac.vn
2023 was a challenging year for many markets worldwide. Interest rates surged, political tensions escalated, and trust in financial systems wavered. However, amidst this turmoil, Panama's real estate market stood strong. Investors recognized Panama as a secure haven to diversify their portfolios and escape uncertainty in their home countries.
With an impressive lineup of world-class projects under development or completion, Panama's real estate market remained vibrant, attracting new investors. The top projects reported consistent and robust sales. Even the protests surrounding the government's Cobre Panama mining contract in late 2023 failed to dampen interest in Panama properties from investors, homebuyers, and renters. Looking back, here are the key themes that shaped the market in 2023.
Ocean Reef Hits FOMO Stage
The Ocean Reef Signature Resort Collection entered a new phase in 2023, solidifying its position as the most successful series of projects in Panama's history. From the wellness-focused Seascape Resort to the highly sought-after rental properties in the newly completed Beach Club Residences, the Ocean Reef projects continued to exceed expectations. The Palms, the last major resort-style property on the islands, became a hot seller.
As existing projects sold out or reached their final stages, Ocean Reef Islands began to transform into a mature community, with limited resales and a scarce supply of new units. This scarcity fueled a fear of missing out among buyers. The highlight of the year was the launch of Club Residences, an extraordinary development in the heart of the second island, featuring private office spaces, luxury car parking, and rooftop paddle sports.
Rise of Costa del Este and Santa Maria
Costa del Este and Santa Maria Golf and Country Club emerged as vibrant suburbs of downtown Panama City in 2023. These areas, already popular among buyers, reached critical mass and transformed into diverse communities accommodating families, young couples, and executives. The dwindling inventory of top buildings in both locations became a challenge. These areas offer beautiful, amenity-filled projects, refreshing ocean breezes, and the convenience of living just minutes away from the city center. Costa del Este presents an exciting urban center, while Santa Maria offers the exclusivity of a country club lifestyle that cannot be found elsewhere in Panama.
The Rental Market Surges
Punta Pacifica Realty's property management team had a successful year in 2023. Vacancies decreased, and rental rates saw steady growth as more executives and families flocked to Panama. In response to this demand, Panama's property team expanded, adding new team members, clients, and services. To further enhance efficiency and customer satisfaction, the management team implemented the Operational Excellence (OpEx) philosophy, continuously monitoring PPR performance. Additionally, they appointed Candy Barcenas Justiniani, a Panamanian with over 30 years of experience working for multinational companies in the United States, as the new Chief Operating Officer.
Branded Developments Pay Dividends
In 2023, our sales team noticed a clear trend among buyers - a preference for branded properties. The reputation and name recognition associated with top brands attracted customers. The success of the Wanders and Yoo brand, led by Philippe Starck's designs, continued downtown, resulting in high rental rates. La Maison by Fendi, situated in the prestigious Santa Maria Golf and Country Club, proved to be a winner among local and international buyers. These examples highlight the significant impact that a strong brand can have in the real estate market.
Visa Programs Spur New Interest
Panama's generous visa programs garnered significant attention in 2023, making it easier than ever to enjoy the benefits of living in the country. The Panamanian version of a "Golden Visa" received widespread recognition due to its straightforward application process, which can be mostly completed from abroad. Panama also took the lead in introducing a remote work visa, capitalizing on the growing trend of working remotely and making it convenient for businesses to set up operations in the country. Both visa programs contributed to a steady flow of buyers and renters in the real estate market.
Tourism Marketing Surges
Panama's efforts to promote tourism worldwide gained traction in 2023. Marketing initiatives focused on eco-tourism and the cultural aspects of the country that had been relatively overlooked in the past. Tourism, seen as a relatively untapped opportunity, serves as a catalyst for all sectors of the Panama real estate market. The government's commitment to increasing investment in promoting Panama as a destination has been evident.
Beach Destinations on the Rise
The stunning beaches in western Panama are generating significant buzz. People are starting to believe that Panama has the potential to become a beach resort destination comparable to Costa Rica and Hawaii. Playa Caracol has already positioned itself on the radar, but the anticipation grows for the spectacular western beaches to become the next big thing in Panama. Expect to hear more exciting news about this in 2024.
Image source: Sanaulac.vn
From all of us at PPR, we extend our heartfelt gratitude to our clients, friends, and partners for a remarkable 2023. We recognize that our success stems from the trust we build together. It has been an exhilarating year, and we look forward to continued collaboration in 2024.
