News

In many ways, 2017 will go down as an important and fruitful year for Punta Pacifica Realty (PPR), as the Panama City property market continued to grow and mature.

While many players faded from the market, we were expanding, looking for new and better ways to serve our customers. We added both sales and property management positions, as well as more support staff focused on providing efficient and friendly service for our clients.

A large chunk of our growth came in property management, where PPR Property Management has established itself as the top team in Panama City. No property management firm in the city handles as many luxury units or can boast the track record of finding top-rate tenants and maintaining impeccable, high-end apartments.

The number of luxury apartments managed by PPR grew by 10 percent in 2017 and our client list expanded, in large part due to our relationships with multinational companies headquartered in Panama City. Panasonic, Nestlé, Sony, Samsung and Procter & Gamble are among the big international conglomerates that use PPR to find homes for their executives, giving PPR a deep resource to keep apartments rented with executives and their families.

Thanks in large part to the growth in multinationals, the property management team rented 20 or more apartments in a single month four times in 2017, which is near-record activity for the firm. The most popular address for executives remains the Trump Ocean Club, but there was also an increase in other Punta Pacifica towers, as tenants embraced the convenience and luxury amenities of the waterfront community of skyscrapers.

On the sales side, it was a busy year, as more investors decided the time was right to buy into the Panama growth story. At the end of 2016, we sold the last of the developer-controlled apartments in the iconic tower, which changed the dynamics of the TOC market. Without the developer-units artificially impacting sales, demand is setting the price levels, with top units increasingly in short supply.

We also see the expansion of sales in other parts of Panama, including the increasing sales and rental activity at Naos Harbour Island Residences and Marina on the Amador Causeway. It’s really exciting to see the growth and excitement along the Causeway, with construction moving forward on the new convention center and a cruise port.

We also saw activity growing in new developments around the Santa Maria Country Club and Costa del Este neighborhoods, as well as increased resale activity in the area of Avenida Balboa.

All the activity kept PPR’s staff busy and I’m proud of the way everyone performed in 2017. They handled all the pressure with passion and a smile. We continued to expand our training and development programs, which has always been an important part of PPR’s culture. And we were proud to see the personal growth in so many members of the team. Three of our associates–Raúl Hassan, Michela Dattilo, and Ryan Vidal— joined our Mont Blanc Club, which recognizes outstanding performance in sales and rentals.

Panama City is a challenging landscape, but the economies of the United States and Europe are improving at a steady rate, creating more opportunities in Panama. Investors are once again looking to reconfigure their portfolios, looking to diversify and add stability.

The activities of the last year made it clear that Panama’s economy is no longer dependent solely on the Panama Canal or the United States. Panama is officially the Hub of the Americas, serving as the logistics, financial and trade center of the region.

Panama’s new relationship with China provided a vivid example that Panama is only starting to scratch the surface of international markets. We are already seeing more Chinese renters and buyers, and we expect to see more from the Middle East and Europe as air connections grow and Panama’s beauty and attributes become better known around the world.

As we start the new year, I wanted to take this time to thank our entire PPR family. There is no better time to express how much I appreciate the trust—and patience—of our clients and tenants. And I want to share my gratitude and respect to the PPR team for all the hard work, diligence and enthusiasm they show on a daily basis.

I am looking forward to another great year.

Duncan McGowan is president of Punta Pacifica Realty, a Panama real estate agency focused on Punta Pacifica, the exclusive neighborhood of 18 towers perched on the edge of the Pacific Ocean.