Panama is one of the fastest growing real estate markets in the world; and Trump Ocean Club – one of the first luxury projects to enter the market, is “sailing” to the finish line.  Utilizing strategic marketing and offering a quality product, this gorgeous landmark is half-way built and almost fully sold-out.  Not all Panama City buildings, though, have the guarantee of Trump distinction and quality, which has resulted in an influx of marketing “tricks” to boost slow (or non-existent) sales.

One element of Trump Ocean Club’s success has been the team’s avoidance of short cuts or ploys, and a constant focus on creating (and delivering) the best, most exclusive and unique project in Panama. TOCs competitors have used all kinds of silly methods to save their projects, such as paying a celebrity to say they are "owners", throwing million dollar parties, giving away cars, etc.  The buyers have been smarter than that – they simply want the best product on the market, and they found it at Trump Ocean Club. In reference to the recent celebrity tales heard around town, celebrities that buy in a Trump building know they will never broadcast their information. TOC respect’s their client’s privacy immensely, that's what make it so exclusive.  The proof as they say is in the pudding – Trump Ocean Club has made constant sales each and every month, often tripling the numbers of even their closest competitors.

As the current state of the US markets continue to remain troubled, US and foreign investors and condo buyers are looking for sound opportunities, good asset protection, and positive ROI.  Panama condos, high-rise luxury developments, and resort condo communities have been providing these great investment vehicles now for a few years. 

The Panama market is strong and values continue to increase as does new construction.  Panama resembles Miami of the late 90's and early 2000's.  Does this mean a "bubble" will be created by over supply and unrealistic price increases?  Probably not any time soon.  Latin American markets are a bit more complicated to invest in and with more money required to put down by buyers, investors must think more long term.  These regulations will keep th "flippers" out but still give savvy buyers and condo investors an opportunity for good returns over time. 

New Panama condos for sale are still priced very well and give the buyer a good profit margin over time.  Not to mention, Panama is increasingly becoming a better place to live as the government improves infrastructure, hosptials, schools, and overall safety. 

Exciting things are happening in Costa Rica and other Central American markets where real estate and condos are experiencing double digit appreciation much like we saw in California and Florida before the housing bust.  This growth persists in countries such as Costa Rica, Panama, and Belize. This reality coupled with low prices for homes and condos make these markets key targets for foreign investors, home buyers, US buyers and investors, and investment clubs. 

According to many local experts we are just at the cusp of the growth.   Better infrastructure, schools, hospitals, government stability, and safety are all providing a sound foundation for fast and healthy growth.  The question is whether these markets will resemble the current US markets in 5 years with overvalued properties and an abundance of supply sitting on the market.  I think this will all depend on how investors tackle this opportunity. 

Prices are so low relative to US prices that even with rapid appreciation it would take a while for Costa Rica condos and Panama condos to be drastically overvalued.   It is more difficult to buy property in Central America as an investor because most countries call for 30% down payments or more.  This requirement will bring more qualified investors who seek long term holds and keep out the people who do not really have the liquid capital for proper investing. 

Condo and commercial development is booming in Panama in efforts to meet the high demands for Panama condos and homes, hotels and tourist accommodations, infrastructure.  Many people who come to visit Panama also invest in Panama real estate and condos, become involved in construction and building, and take advantage of the great tax advantages and cheap labor available. The Panamanian Institute of Architecture and Urbanism shows that new construction of high-rise condos, luxury resorts, new commercial development and office space is the fuel that keeps the Panamanian economy alive and well.  Legislation has even been passed to further stimulate new construction which offers special tax incentives to builders. Developers of new Panama condos can receive great incentives and benefits based on these new legislations.  For example, builders working in designated “tourist” zones” are granted 20 year tax exemptions!!  In September 2006, new legislation was authorized providing 15 year tax exemptions for builders constructing new Panama condos and homes.

But wait, it gets even better…individuals and builders who do invest in Panama (i.e. building new condos and commercial builders) are now granted the possibility of work visas and citizenship! Having had a historically strong economy in Latin America, Panama has had steady growth, low inflation rates, and a growing population which is setting the area up for further success as a major economic powerhouse.  Economic growth was 6.3% in 2006, continuing a strong five-year upward trend.

Countries such as Panama, Costa Rica, Honduras, Nicaragua, Guatemala and Belize provide a wealth of political, economic, and ethnic diversity.  Over the past 20 years Central America, once considered very dangerous and politically tumultuous, has developed into a world class tourist destination as well as a big target for US and foreign real estate developers and investors...especially in the area of new high-rise condos and resort communities.

Panama condos continue to make strides as major players such as Trump enter the market further branding the area for success.  Panama once only know for the “canal” know attracts European, Asian and many Latin American cultures and money!  But who knows what will happen as we continue to flood that market...will prices continue to increase creating the dreaded bubble?

Apparently, Nicaragua is now considered to be the safest country in Central America according to the Harvard Business School studies.  If so, then we can only presume there will be an ever increasing amount of international consumer confidence in that area. 

Before “pulling the trigger” on your new Panama condos or investment properties I would strongly suggest many trips to the desired area, consultations with local real estate experts and attorneys, and the gain a sound understanding of the purchase process.  Central America and all of Latin America will continue to gain world-wide recognition for luxury condos and home building, especially as these countries further advance their water systems, Internet access, infrastructure, and economies. 

The answer is most definitely yes!  As buyers, investors and speculators began search for other markets to enter while leaving behind a disastrous state of affairs here in the US, new markets like Costa Rica and Panama became open to the feeding frenzy.  Costa Rica has been a popular market for building and investment by US buyers and real estate companies for many years now but Panama is a bit new to the scene.

Once Trump entered the scene officially branding the area as a viable condo market all bets were off.  During 2007 prices began to sky-rocket and new construction was everywhere.  Panama condos have been on everyone’s mind over the past year.  US and other foreign buyers and investors have been flooding the market.  Sounds familiar right?

So to go back to my question above…yes, when the US enters a housing slump and possible recession, buyers, investors and speculators seek other opportunities outside the US…they want someplace else to “park” their money.  Panama condos seem like a great place to me.  On the other hand, what does it take for us to push another once healthy and exciting market into its own “bubble” situation?

Trump Ocean Club in Panama: “Talking the Talk” and “Walking the Walk”

PUNTA PACIFICA, PANAMA – (December 2007) - While many other real estate projects are “biting the dust” in the Republic of Panama, Trump Ocean Club International Hotel and Tower is certainly living up to everything it said it would. As one of the only million dollar high rise developments in Panama whose construction plans began on time and are currently progressing onward, Trump Ocean Club is certainly not just “talking the talk” but they are most definitely “walking the walk”.

Each Trump condo property is unique in its own way and makes a statement in true TRUMP STYLE but Trump Ocean Club sets itself apart from the rest as the first of its kind in Latin America. The master plan includes condos and condo-hotel units, a magnificent wellness spa, an oversized infinity pool & deck, Yacht Club & Pier, and a private beach club on Contadora Island. Other exclusive amenities include the electrifying on-site 45,000 square foot Trump International Casino, upscale boutiques and shops, exclusive office lofts, an elite hotel sky lobby, a state-of-the-art business center, concierge service, valet parking, and bellmen.

The Plaza Costa del Este has officially announced the first proud owner of the Penthouse unit in The Plaza Costa Del Este is International Superstar and Grammy award-winning artist, Enrique Iglesias.

The Plaza, which is set to break ground in January 2008, will overlook Panama’s breathtaking landscape as a gleaming tower of air and light nestled on Panama City’s jeweled waterfront. Featuring the clean, sleek lines of architect MusAsvat, this mixed-use project integrates function with the pleasure of the senses and provides residents and guests with unparalleled luxury and elegance in one of the world’s most up and coming cities. The building, which will combine luxury two-story lofts, condominium apartments, and 150 lavish five-star boutique hotel quarters, will be an awe-inspiring structure of air, light, and the world’s most innovative architecture and aesthetics. 

A true retreat, The Plaza Costa Del Este will offer all the amenities and services that the world’s tastemakers could ever want.  Conveniently located within minutes from the lifestyle and bustle of downtown Panama, and the Toumen International Airport, The Plaza Costa Del Este will allow their guests and residents to enjoy an unprecedented fusion of the urban lifestyle and a tranquil escape. The Plaza Costa Del Este will boast a roof-top swimming pool and lounge with breathtaking city views, a full service day spa, fully equipped fitness center, business center and conference room, cinema, maid services, and its own premiere restaurant and bar. In addition, all residents and guests will have access to the exclusive Beach Club on Contadora Island, the jewel of the Pearl Islands.

Here is a new press release by our partner media company, Americas Media Group:

Homes Real Estate is proud to announce the upcoming launch of the Plaza Costa del Este located in the heart of Panama City, Panama, an exciting mixed-use tower combining the talents of Latin America’s most renowned designers, architects and developers.   The exclusive and over the top September 8th launch gala in Miami, Florida will feature a performance by Grammy award-winning Salsa sensation, Gilberto Santarosa and a special appearance by the former Miss Panama and the title winner of Miss Universe 2003, Justine Pasek.