The UNESCO Old Town Casco Viejo in Panama City has taken the next step in its development. In 2022, the spectacular Hyatt Hotel (Forbes report) and the beautiful Sofitel opened. These luxury brands and the planned connecting road to the new cruise port and exhibition centre will further stimulate the real estate market in Casco Viejo. Construction developments and lifestyle continue to push into the old town district of Santa Ana. “Regus”, one of the largest co-working companies in the world, plans to open its offices at Plaza Santa Ana in late 2023. This is also where Fashion Week took place in September 2023.
Since 2017, I have been searching for properties to invest in the Old Casco Viejo In Panama City, as I have always been convinced of the potential of the UNESCO Old City. However, this search has been difficult as many of the properties have a weak point (e.g. old, dark, damp, location, noisy, badly cut, etc).
Therefore, we decided to build a residential building according to our ideas and standards. Modern flats with a historic façade in a top location.
With our experienced local building partners we are constructing and selling 20 flats in the Casco Viejo (67 – 191sqm / 1-3 bedrooms) at the church square “Plaza Santa Ana”, which is one of the most beautiful squares in the old town. Selling prices from 280,000 USD. Including kitchen appliances, air conditioning, built-in wardrobes, double-glazed windows, etc.
Click on the link to find the project description of Casa Antigua Domingo.
From my point of view, the flats offer the best value for money for an investment between 280,000 USD – 780,000 USD in the entire UNESCO Old Town.
We are happy to send you floor plans, prices and availability.
UNESCO tax incentives:
– 30 years no property tax
– 10 years no income tax on rental income
The purchase of such a flat is suitable for applying for a residence permit in Panama. With the Golden Investor Visa for investments in construction projects, the visa can be obtained within 30 days (info link).
Klaus Happ’s company “FRAPAN-Invest” advises investors who want to invest in real estate in Panama. Furthermore, Klaus Happ will be happy to advise you personally on the subject of “Plan B in Panama”.
The real estate market in Panama is internationally one of the most interesting for investments. We would like to be your trusted local partner and assist you with the initial purchase. Additionally, we can take care of your real estate in Panama in a sustainable way.
Profitable, safe and beautiful:
Investments in Panama
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Klaus Happ’s company “FRAPAN-Invest” advises investors who want to invest in real estate in Panama. Furthermore, Klaus Happ will be happy to advise you personally on the subject of “Plan B in Panama”.
The real estate market in Panama is internationally one of the most interesting for investments. We would like to be your trusted local partner and assist you with the initial purchase. Additionally, we can take care of your real estate in Panama in a sustainable way.
Profitable, safe and beautiful:
Investments in Panama
Panama is a country that in recent years has become a popular choice for investors looking for a “Plan B” or to make an interesting capital investment. I too, as an experienced real estate consultant in Panama investor, decided to invest in the Armonia real estate project. In this article, I would like to describe my motives and support potential investors in their decision.
When I was introduced to the Armonia project, I was excited by its prime location, right near the popular Avenida Balboa. This location is known for its proximity to stores, restaurants, recreational activities, as well as its impressive skyscrapers. Armonia’s apartments are also designed to be small but efficient. This appealed to me because it’s an ideal solution for singles or couples looking for a second home or in need of a Plan B. In particular, the apartments also rent well to professionals from the U.S. companies located nearby.
Another important point for me was that Armonia is a brand-new project and has a modern concept. Since the coronavirus has changed the way we work and live, it was important to invest in a property that responds to these changes. The Armonia project is designed to meet modern demands and provide a proper lifestyle.
As an investor, it was very important for me to work with an experienced and reputable developer. Armonia is being developed by Grupo Los Pueblos, one of the best developers in Panama. I have been working with the founder and CEO of GLP for years. They have developed numerous large projects such as the Ocean Reef Islands and have an excellent reputation in the industry. Accordingly, I have great confidence in their ability to successfully deliver the Armonia project.
Armonia’s payment structure is designed to be liquidity-friendly for investors and offers an attractive return. After signing the contract, 10% is due. Thereafter, further payments of 2.5% each are made at intervals of 3, 6, 9, 12, 18 and 24 months. Upon completion, 75% of the purchase price is due. Down payments in excess of 25% earn interest at 6% per annum until completion. Accrued interest is applied to the final purchase price. The offer of the interest rate mentioned here is valid for current purchases, but can of course change. Therefore, please contact me directly.
Rents in good used and larger apartments are currently around 15 USD per sqm in Panama City. Smaller and new apartments in an excellently designed building like Armonia I estimate at 18-20 USD per sqm.
Armonia is a promising opportunity for investors who are looking for a Plan B in Panama or who want to make an interesting capital investment. A brand-new project in a prime location, financially attractive and developed by an experienced developer – these advantages convinced me as an investor. Investors should seriously consider the project, it offers an excellent opportunity to invest in a property in Panama.
FRAPAN-Invest is the representative of the Armonia project in German-speaking Europe. We are your competent contact and will be happy to provide you with floor plans and price lists to help you with your investment decision.
We will be happy to accompany you with our experience in the purchase process in Panama.
Klaus Happ’s company “FRAPAN-Invest” advises investors who want to invest in real estate in Panama. Furthermore, Klaus Happ will be happy to advise you personally on the subject of “Plan B in Panama”.
The real estate market in Panama is internationally one of the most interesting for investments. We would like to be your trusted local partner and assist you with the initial purchase. Additionally, we can take care of your real estate in Panama in a sustainable way.
Profitable, safe and beautiful:
Investments in Panama
As an international real estate investor looking for a Plan B in Panama or a capital investment, the exclusive real estate project “The Palms” on Ocean Reef is an excellent choice. I myself have purchased on Ocean Reef and would like to share my motivations for buying to help you in your purchase decision. These are my motivations for buying an apartment on Ocean Reef.
The following video gives a first impression of this special construction project.
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The Ocean Reef Islands are the most exclusive and beautiful real estate project in Panama and unique in Latin America. The supply is inherently limited by the “island” location of the project and no third island may be built. This uniqueness naturally has a major impact on the current and future price trends of Ocean Reef real estate.
Apartment sales are moving quickly. “The Palms” is the last project of this kind on Ocean Reef because there are no more large lots that could be developed. Prices are rising, and I was eager to secure an apartment on Ocean Reef for my family in this unique project for the future. As an investment and plan B.
The 147 sqm apartments offer the most affordable entry to Ocean Reef. They are efficiently sized, each with two bedrooms and parking spaces, and are flooded with light from the glazed living room and bedrooms. The apartment is large enough for a family. Four apartments of this model are still available as of June 2023 and I bought one of these.
The location by the sea with morning sun and the beach feeling provides tranquility in the middle of the metropolis. There is a large pool area with a beach club that provides relaxation. It is not too hot in the afternoon and the beach feeling can also be enjoyed in the center of Panama. We feel very comfortable here.
The apartments at Ocean Reef Islands are very attractive to potential tenants because of the exclusive design, uniqueness and limited number of residential buildings. Since this is the most beautiful and exclusive project in Panama and almost everyone would like to live there, high rental demand is expected.
Grupo Los Pueblos is a visionary developer that has been active since 1985. It has developed more than 5 million square feet and is responsible for the development of the 25th largest mall in the world, Albrook Mall, among other projects. I have worked with the founder and CEO of GLP for years. They have developed numerous large projects and have an excellent reputation in the industry. Accordingly, I have great confidence in their ability to successfully deliver “The Palms.”
The payment structure preserves liquidity. 20% is payable upon signing of the contract and a further 30% gradually during the construction phase. Finally, 50% is payable upon completion. Down payments via the regular payment plan receive an interest rate of 6% p.a. until completion. Accrued interest will be applied to the final purchase price. The offer of the interest rate mentioned here is valid for current purchases, but of course it can change. Therefore, please contact me directly.
In summary, investing in an apartment at Ocean Reef is a unique opportunity for international real estate investors. With an exclusive, unique and limited offer, a fantastic oceanfront location, a top developer and an efficient payment structure, it is a very interesting investment.
We will be happy to accompany you with our experience in the purchase process in Panama.
Klaus Happ’s company “FRAPAN-Invest” advises investors who want to invest in real estate in Panama. Furthermore, Klaus Happ will be happy to advise you personally on the subject of “Plan B in Panama”.
The real estate market in Panama is internationally one of the most interesting for investments. We would like to be your trusted local partner and assist you with the initial purchase. Additionally, we can take care of your real estate in Panama in a sustainable way.
Profitable, safe and beautiful:
Investments in Panama
What additional costs should you expect when buying a property in Panama? With our report we would like to give you an overview of the costs when buying a property in Panama. In addition, we show you the ongoing monthly costs.
What are the incidental costs of buying real estate in Panama? We would like to give you a brief overview of the costs involved in buying real estate in Panama.
What running costs should you expect for an apartment in Panama City? We give you an overview.
We are happy to accompany you with our experience in the purchase process in Panama.
Klaus Happ’s company “FRAPAN-Invest” advises investors who want to invest in real estate in Panama. Furthermore, Klaus Happ will be happy to advise you personally on the subject of “Plan B in Panama”.
The real estate market in Panama is internationally one of the most interesting for investments. We would like to be your trusted local partner and assist you with the initial purchase. Additionally, we can take care of your real estate in Panama in a sustainable way.
Profitable, safe and beautiful:
Investments in Panama
Our annual report on real estate in Panama is a guide for anyone interested in purchasing residential property in Panama, whether as an investment or a home. Are you looking for a Plan B in Panama or a high-yield investment opportunity? As real estate experts in Panama who have been helping clients find the perfect properties for many years, we present below our real estate market report for Panama City and the Coronado Beach area 2022 / 2023.
If you are also interested in the reports from previous years, feel free to check them out here.
In 2022, some normality has returned, the borders of most countries are now open without restrictions and people are travelling abroad more. However, in addition to the aftermath of travel restrictions due to Covid, there have also been economic problems on a global scale. A weakened euro, rising interest rates, high inflation and steadily increasing energy prices have unsettled many people in Europe or even prompted them to find an (additional) residence outside the EU. Likewise, European and especially German politics have suffered a high loss of confidence and many citizens are starting to think of a plan B. A popular destination country – for both private individuals and companies – is Panama.
The year 2022 has seen a steady growing trend for housing demand in Panama City and surrounding areas. With occupancy rates of 90% in prime locations in Panama City, the city by the sea is now enjoying great popularity. One of the consequences of this is that more and more investors are putting capital into rental properties. The luxury segment is seeing rising prices and both private sellers and developers are less willing to engage in price negotiations. Rental prices in Panama City are also rising again, as the demand for housing, especially in Panama City’s prime locations, is high.
In particular, Panama’s stable economic situation and the USD as the national currency have attracted many interested parties for private property, but also multinational companies, which house employees in the surrounding residential towers. Unlike many other nations, Panama’s economy grew again by about 9% in 2022, with another 5% growth forecast for 2023.
Visa options in Panama have also contributed to Panama’s growing popularity. The investment amount of at least USD 300,000 for a residence permit in Panama in the form of the Golden Investor Visa has been maintained, contrary to the government’s original plans.
Especially for investors who have capital freely available, the real estate market in Panama is very interesting. However, should you consider taking out a loan, be prepared for a difficult banking process and high interest rates of 7% – 8%. An option to buy a property with less equity at the beginning could be to invest in new construction projects in Panama City like Armonia or Oceana. Because here you pay the purchase sum over the construction progress. More information on this can be found below.
The government of Panama is planning to greatly expand the tourism sector in the coming years and is focusing especially on attracting Europeans to the country. The focus is on ecotourism and luxury travel; an increased flight offer covering more routes will attract a variety of new target groups. In addition, many international tourists are arriving at the new cruise terminal in Panama City.
While demand in the North American and European real estate markets has declined in the past year, Panama continues to enjoy an increasing number of prospective buyers from abroad. This is due to the much more favourable purchase and construction prices, the USD and the country’s geopolitical situation. In addition, the political situation in some South American countries has become more uncertain, which increases Panama’s relative attractiveness. There are many new and very attractive construction projects in Panama, mostly in the luxury segment, which are usually sold during the construction phase or before.
Also, more and more multinational companies are settling in Panama City, leading to the creation of more jobs and rental demand.
The increased demand for rental flats in Panama City means that there are currently only 5-10% vacancies in prime locations.
From our point of view, the prime locations in Panama City are the old town Casco Viejo, Avenida Balboa, Punta Pacifica and Costa del Este. In addition, of course, the Ocean Reef Islands (cover photo), which occupy a special position and on which we will report.
In Costa del Este there is still a very high demand for rentals due to the many large corporations that often have their headquarters here. Avenida Balboa is also very popular with tenants because of its prime location in the first row on the Pacific. It offers many jobs as well as nightlife and leisure opportunities in the immediate vicinity. The good buildings in Punta Pacificas are also in high demand due to their quiet and exclusive residential location. Rental prices in Panama City in the locations and qualities mentioned are currently around 14-16 USD per square metre.
Generally, 2-bedroom flats continue to experience the highest rental demand in Panama City, as the second bedroom can be used individually as a home office, guest room, etc. The “Wanders & Yoo” flats are also in high demand.
The “Wanders & Yoo” is a very promising building project, which is a very interesting investment now that Tower 1 has been completed. The quality of the construction as well as the great location in Bella Vista, one of the most popular districts of Panama City, will create an enormous demand for rentals.
Both residential towers were designed by the internationally renowned designer Marcel Wanders and are characterised by a lively and special interior. Of course, the residents of the 2- and 3-bedroom flats have access to a swimming pool on a roof terrace, various social areas, a spa with sauna and a fitness gym.
Currently, one of the residential towers is already in the final phase of construction. Although a large number of the flats have already been sold, there are still exciting opportunities. The price per square metre is around US$3,500.
Other high-end construction projects in Panama City are the apartment complexes “Armonia” in Bella Vista and “Oceana” in Santa Maria. Both are located in prime locations within the modern city and are being built by one of Panama’s most renowned developers.
Construction on both residences is scheduled to begin in the first half of 2023 and the purchase price will be staggered based on the progress of construction. Due to the lower purchase prices in the Armonia project, it is also possible to buy in 1A location with a lower budget.
For more detailed information you can follow the respective links or contact us directly. We will be happy to assist you and guide you through the entire purchase process.
In addition, for the first time there are resales on the Ocean Reef Islands, i.e. flats that have already been completed and are now being resold for first-time occupancy.
Here we can offer two great flats directly at the marina:
The Ocean Reef Islands in the middle of Panama City are particularly noteworthy for their unique location and quality. You will not find a comparable project in all of Latin America. Buyers are international and many investors buy repeatedly on Ocean Reef because they are satisfied with their previous investments. Over the past two years, sales prices have steadily increased and are currently around USD 6,000 per square metre. Since there are only a few available building plots left and no more island may be created, prices will probably continue to rise.
The UNESCO old town of Casco Viejo is attracting more and more investors and offers a special charm with its historic facades and old streets. About 40% of the flats currently being built in our construction project “Casa Antigua Domingo” have been sold or reserved. Comparable projects on site, which are currently being built, range between 4,500 – 7,500 USD per sqm, depending on location and quality. We start at 4,100 USD per sqm including air conditioning, kitchen appliances and built-in wardrobes. The cheapest flat costs approximately 290,000 USD. From our point of view, the apartments offer the best value for money for an investment between 250,000 USD – 750,000 USD in the entire UNESCO Old Town. More details about the construction project at Plaza Santa Ana can be found here. By the way, buying one of the properties is suitable for applying for a residence permit in Panama!
Both the Hyatt Hotel and Sofitel have opened in close proximity and the government’s increasing investment in tourism is drawing more and more travellers to the Old City. Investment in Panama’s Old Town is rewarded with the following tax incentives:
Properties in the beach area of Coronado continue to be popular. Due to the proximity to Panama City and the good infrastructure, the area is a popular destination for renters, holidaymakers and buyers. The advantage is that AirBnB rentals are allowed here, unlike in Panama City, which allows one to use the property partly oneself while it produces additional income. Panama is currently experiencing a strong recovery of the tourism sector, which is positive for the entire real estate market in Panama. This is because many tourists in the past have experienced the uniqueness of Panama during their holidays and have subsequently become interested in buying real estate. The strong tourist recovery can be seen and felt in Panama. Furthermore, Panama’s airline “Copa Airlines” has been able to increase its turnover. The capital’s airport has also reached pre-Corona flight numbers again in 2022; Terminal 2 has opened.
On one of Panama’s longest sandy beaches, in Punta Chame, a new beach community has been developing for several years. The place is a popular destination for windsurfers and the coast offers breathtaking views of the sea. Many Panama City residents head to the town, about an hour’s drive away, for the weekend to relax and enjoy their water sports. In the newest apartment complex in the Playa Caracol beach project, there are flats for sale with 2 and 3 bedrooms and a size of 70 – 90 sqm. These are suitable as your own holiday home, but also as an investment.
If you decide to buy a property in Panama – whether as an investment or as a plan B – we would like to give you some advice.
Choose a good property manager in Panama who will take care of your needs and keep the tenant happy. A good property manager usually costs 10% of the monthly rent. We offer such property management in Panama City to our clients.
Seek assistance with the purchase process in order to keep an eye on possible incidental purchase costs in Panama from the beginning. Experience shows that it takes on average about 3 months from price agreement to registration in the land register – it is worth a lot to have someone with the necessary know-how at your side.
Klaus Happ’s company “FRAPAN-Invest” advises investors who want to invest in real estate in Panama. Furthermore, Klaus Happ will be happy to advise you personally on the subject of “Plan B in Panama”.
The real estate market in Panama is internationally one of the most interesting for investments. We would like to be your trusted local partner and assist you with the initial purchase. Additionally, we can take care of your real estate in Panama in a sustainable way.
Profitable, safe and beautiful:
Investments in Panama
Panama is a quiet and peaceful place to live. However, in July there were protests and street blockades, the likes of which have not been seen in over 30 years. In the meantime, the situation has returned to normal. Find our report on the background here.
In July, there were mass protests and street blockades all over the country. This was triggered by the increased cost of living and expensive energy prices, which the whole world is currently struggling with. This was joined by demonstrations against the ever-smouldering issue of corruption and other issues that are a thorn in people’s side. Basically, people in Panama like to demonstrate peacefully, but not in a way that affects the country’s transport system and infrastructure.
This time, however, the protests were more violent and partly deliberately organised by trade union groups (including the construction union), associations and other groups that wanted to fuel the mood and exploit it for their own benefit.
After all, presidential elections will be held in 2024 and the election campaign will start soon. This is where an unsettled mood and publicity-grabbing pictures in social media are to the advantage of one or the other. And if you then bring your own photographers into the crowd and create exaggerated images, you exaggerate the event in your favour.
The provinces of Chiriqui and Veraguas, which are located in the interior of the country, were the centre of the largest protests. Here there were some clashes with the police and complete road blockades of the Panamaericana, which is by far the most important traffic artery and connects the country.
In the capital Panama City, things were comparatively quiet. But the protests in the interior had a short-term impact on supplies in the supermarkets, because the country’s own products such as vegetables were stuck on the Panamericana.
The unanimous opinion of the people in Panama we spoke to is that protests (especially against corruption) are good as long as they remain peaceful and meaningful. But the protesters, who took to the streets for the “people”, have partly harmed themselves. Less well-stocked supermarket shelves and farmers and other traders who made huge losses and had to throw away their products.
At the beginning of the protests, the government had hidden and hoped that the problem would solve itself. But now the government has been sitting at the table with the different interest groups (and there are many of them…) for weeks to find solutions and compromises. The government has made several concessions, including subsidising fuel prices and “freezing” the prices of other staple foods. Negotiations are still ongoing, including on the prices of medical and pharmaceutical products.
The people responsible for stopping the trucks carrying food have now been arrested.
These protests cannot be compared to the violent protests in other countries in Central and South America. But they should be a warning to the government to tackle the problem of corruption in a targeted way and to distribute the country’s large revenues (from the Panama Canal, among other things) fairly and invest them sensibly (education and medical care for all strata of the population, etc.).
Extreme parties from the left and right have never had a chance in Panama, because the population is aware of the bad developments in other Latin American countries. This can also be assumed in the 2024 elections.
Klaus Happ’s company “FRAPAN-Invest” advises investors who want to invest in real estate in Panama. Furthermore, Klaus Happ will be happy to advise you personally on the subject of “Plan B in Panama”.
The real estate market in Panama is internationally one of the most interesting for investments. We would like to be your trusted local partner and assist you with the initial purchase. Additionally, we can take care of your real estate in Panama in a sustainable way.
Profitable, safe and beautiful:
Investments in Panama
According to an international study, Panama ranks first in the world in applications for a Golden Investor Visa. Panama increasingly moves into the positive focus of international investors and thus occupies 1st place among the world’s most popular investor visas (info link). We are happy to assist you in applying for your residence permit in Panama.
As of October 2022, the minimum investment for the Golden Investor Visa in Panama will be increased to 500,000 USD. For the Friendly Nations Visa in Panama, it will remain at 200,000 USD.
Click here for an overview of the most important visa types incl. video.
Klaus Happ’s company “FRAPAN-Invest” advises investors who want to invest in real estate in Panama. Furthermore, Klaus Happ will be happy to advise you personally on the subject of “Plan B in Panama”.
The real estate market in Panama is internationally one of the most interesting for investments. We would like to be your trusted local partner and assist you with the initial purchase. Additionally, we can take care of your real estate in Panama in a sustainable way.
Profitable, safe and beautiful:
Investments in Panama