As Panama City continues to grow, property investors are looking for new opportunities. In recent months, potential buyers are starting to show more interest in projects on the edge of the city, such as Amador Causeway, which offer convenient access, without the noise and congestion.
Brokers throughout the city are reporting an increase in inquiries about Amador Causeway, the string of connected islands in the Panama Bay. The Panama government has committed more than $300 million to turn Amador into Panama City’s next big tourist destination.
But there is a limited supply of international-grade homes available on Amador. Only three developers have been granted permission to build on Amador, including the Naos Harbour Island Residences and Marina, which PPR represents.
Since PPR started working with Naos Harbour Island 1½-years-ago, the number of units rented full-time has almost tripled and sale prices of the most coveted units have increased by more than 10 percent. Long term rentals of some units are yielding more than 6 percent a year.
“Investors are taking note of the increased rental opportunities in a waterfront neighborhood that is growing and very appealing to international renters and buyers,” says Brian Kelly, Punta Pacifica Realty’s project manager for Naos.
The first phase of Naos is nearly completed with two of the three towers home to full-time residents, which helps give potential buyers and renters a clear idea of the project’s vision. And Amador offers several specific advantages for investors.
For example, Amador is the only area in Panama City where short-term rentals are allowed, providing a lucrative alternative to long-term rentals. The short-term rental program in Naos is producing 20 percent more than the average long-term rentals for some owners.
But more than anything, it’s the progress visible every day on Amador that is drawing investors’ interest.
A few weeks ago, the local transportation authority unveiled the expansion of the main causeway, including bikes and running paths and more parks, which dramatically improved the commute on the Causeway. They also installed dividers in key traffic areas which have helped tremendously the flow of traffic in and out of Amador. The drive from the center of the city at peak times—rush hour!—is only 15-20 minutes.
Projects under construction on Amador include a $15 million expansion of the Frank Gehry-designed BioMuseo which will include an aquarium; a new home-port cruiseterminal on Isla Perico; and Panama City’s largest convention center.
Amador has a very open and free feeling, with little to no congestion of any kind, which is very appealing to buyers and renters who want something outside the center of Panama City but still close enough to enjoy all the city has to offer.
This was a guest post by Punta Pacifica Realty, the premier real estate expert in Panama’s most exclusive luxury condominium market. Have an article, idea, opinion, tips, or just about anything else Panama related you would like to write about on PTY Life? Become a guest blogger like Punta Pacifica Realty by sending a message to firstname.lastname@example.org.