Investment in land and real estate in Chiriquí, Panamá
Panama Portfolio offers an exciting investment opportunity:
Coco Beach Panama. Coco Beach is an exclusive beach resort in Chiriquí, Panama (a 2,5 hour flight from Miami). You will invest in a beautiful private beach with a deep blue sea, incredible sunsets and miles of pristine waving palm trees.
Coco Beach offers 152 desirable beachfront lots for investment. The lots are fully titled and have safe en publicly registered ownership.
By investing in Coco Beach, you will invest in:
- An exclusive beach resort
- Significantly undervalued beachfront lots
- Anticipated double value in 5 years
- Property fully managed by US/European management
- An emerging market
- Guaranteed political stability
Investment in land and real estate in Chiriquí, Panamá
By Frans van Woensel, Investment Director, Panama Portfolio.
Fact: land values at Coco Beach are extremely competitive.
The following visualization shows a comparison of land values at Coco Beach to major competing areas. Please note the CB value reflects the average of beachfront and oceanview lots and includes the two price increases of 5000$ per lot due end March 2019 and end May 2019. Graph below shows the cost of fully developed “ready to build” lots including all permits, registered in the public land registry.
Lot values at Coco Beach have appreciated historically and are expected to show a positive trend (based upon actual lot sales. factual until 2018, trend from 2019 onwards based on value drivers).
Please note: we expect this rapid price acceleration as the value of beachfront and oceanview lots at Coco Beach will be influenced by the following main factors:
- Registration of the lots in the public registry of Panama in January 2019
- The actual start of construction which started on Coco Beach in 2018
- Increased building activity on Coco Beach in 2019 and years beyond
- Relative value. The value of beachfront and oceanview land remains cheap relative to other areas, even with the projected price increases.
- Prices will be raised by 16-20 % by the developer in q1 and q2 2019. The first price raises
- 5000$ per lot end of March 2019 and 5000$ per lot end of May 2019 have been communicated to the market.
- Continued strong performance of the economy, both in Chiriquí and Panamá. Note in this respect that the Panamanian economy has been the fastest growing economy in North, South and Central America.
Oceanview real estate, a good investment
What determines a “good” investment?
A couple of examples: bad and good investments
Good: buying land and real estate at unique locations.
So land is in short supply, but another thing is sure as well: oceanfront land in a perfect climate in a safe country is in even shorter supply. Most people want to live in a safe environment close to the beach in a great climate if they can afford it.
Can you follow this logic? Now, lets take it a step further: oceanfront and oceanview land in a country which is universally regarded as the best country in the world to retire must be in even greater eternal short supply. Yes, this country is Panamá, it is the best country to retire worldwide (see the ranking in International Living) and it has a limited supply of ready to build risk-free oceanfront and oceanview building lots, while demand is growing. Is demand growing? Yes, already 16% of Americans indicated that they are thinking of emigration and more than 10000 Americans are retiring every day and many can not maintain their lifestyle. Unless they decide to move (a 3-5 hour flight) to countries like Panama, where they can lead a great lifestyle for less money. Currently we sell 40% of the lots and villas to Americans and 20% to Canadians.
Yes, you might say, but how about the risk that land in Panama is overvalued and that my timing is wrong? You might say: the values of oceanfront land in Panamá have already almost doubled over the last 10 years, isn’t it too expensive? The answer is no, it is not. Land in Chiriquí remains relatively inexpensive to other areas in Panama and oceanfront property remains relatively cheap relative to international standards.
Let’s now provide some more factual proof. Question: does Coco Beach real estate provide a good value?
Comparison of average condomium and villa pricings 2018 (Source CBRE/Encuentra24/Web):
|$/sq. Yard||$/sq. Meter|
|Santa Maria upscale Panama City||Apartment||City||2508||3000|
|Costa del Este upscale Panama City||Apartment||City||2592||3100|
|Playa Caracol upscale beachfront (half an hour west of Coronado)||Apartment||Beach||1672||2000|
|Brisas Playa Las Lajas (45 minutes east of David)||Apartment||Beach||1672||2000|
|Coco Beach Mallol Villa Chiriquí**||Villa excl. Lot||Beach||1171||1425**|
|Miami upscale Coral Gables USA||Apartment||City||3823||4573|
|Miami upscale Brickel USA||Apartment||City||4309||5154|
|Miami average USA||Apartment||City||3760||4497|
|San Francisco upscale||Apartment||City||9158||10953|
** The Mallol villa is build on a lot of on average 1500 square yards (0,3 acre) or for those more familiar with the metric system on average 1290 m2. The cheapest lots cost 60000$ for an area around 0,3 acre/1290 m2 which calculates to 48$ per m2 or 42$/square yard for a ready to build oceanview lot.
** In order to compare prices please remember that the mallol type 1, 2 bedroom villa with an interior surface of 84 m2 costs 119000 $ exclusive the lot. Including the lot prices for the Mallol villa at Coco Beach start at 179000$. A 3 bedroom villa costs 10000 $ more.
** Bottom-line: the pricing of the construction of the Mallol villa is extremely competitive. Basically you will buy a high quality villa including a great lot at a lower price than comparable apartment projects in the area (out of which Brisas Las Lajas is the only one at a distance of 2 hours from Coco Beach). Brisas Las Lajas basically only offers apartments, and there are no other comparable beachfront projects with villas in this area of Chiriquí, Coco Beach is truly a unique development.
Main value drivers
For more information about the value drivers in Chiriquí, please view the presentation below:
Want more information about Coco Beach?