In every property cycle, opportunities emerge that we kick ourselves for missing. The market turns and suddenly we all wish we had invested in that special project at price levels that were available in a short window.
Buying during the pre-construction phase of quality projects traditionally represents the biggest opportunity for capital appreciation. Developers offer pricing that will never be seen again, as they raise capital.
In Panama, several current projects check all the boxes for pre-construction opportunities. Pre-construction deals always include a measure of risk – we are all familiar with the horror stories – but these projects evaluated by Punta Pacifica Realty have all the elements for successful development.
Several factors are always key in evaluating pre-construction offer. Perhaps most importantly, it starts with the developer. Do they have a track record of delivering projects? Do they have strong ties to the community?
It’s also important to examine the quality of the project. Does it have all its permits? Is the location and level of quality strong enough to attract buyers? Will it be a place where people want to live?
From an investor standpoint, Panama has made great strides in protecting the rights of buyers. And there is no denying the pre-construction upside. Payment structures make investing easier and, beyond prices, you often have access to some of the best units in the units.
Panama City is going through a period with several projects offering pre-construction deals, reflecting the confidence of developers and the financial community in the market’s long-range prospects. But three projects stand out as unique opportunities, from our perspective:
You’ve heard us talk about this one quite a bit in recent weeks. Ocean Reef is a one-of-a-kind project in Panama Bay and the Beach Club Residences offers a chance to a private island community, waterfront properties, right next to the marina. We have exclusive pricing on the remaining two units in the first phase. Prices start at $800,000; it’s unlikely we’ll see anything under $1 million on Ocean Reef in the future.
This Marbella project will carry the Yoo brand, a proven winner around the world. Yoo is big on the cool factor, creating distinctive, design-driven projects that really excite buyers interested in a modern lifestyle, as evidenced by Yoo Panama, one of the city’s most popular projects. Hyde, which offers all the amenities and service of a top hotel, is located in up-and-coming central Marbella area in the heart of the city. Prices start in the low $400,000s.
Ocean House (Santa Maria): Santa Maria offers the type of secure, lush, golf course community coveted by buyers, only minutes from downtown Panama City and Costa del Este. Ocean House is a unique development, and the only development within the Santa Maria walls, offering smaller units with all the amenities and benefits of Santa Maria, including the opportunity to join the golf club, which is reserved for Santa Maria property owners. Prices start at $290,000, well below other towers with larger units.
All these projects offer the potential for sharp appreciation from the pre-construction levels, as well as tremendous places to live and vacation. Each offers superior quality and amenities as developers innovate and improve their product to stand out in a competitive landscape by focusing on lifestyle.
In every way, these projects at pre-construction levels represent a chance to pay today’s prices for tomorrow’s top project.