Thread: The optimal price per meter

If you're looking to invest in Panama, here's one of the most important factors you should know: what is a bad, good and great price per meter.

Every apartment's price is determined by the price per meter. That's how the Panamanian real estate market works.

Here's my opinion after living here for 3 years: DON'T PAY MORE THAN $1500 A METER NO MATTER UNLESS YOU DON'T CARE ABOUT RECOUPING YOUR MONEY.

The banks are only lending $1200 a meter to developers and also to people who want to borrow to buy. That means the banks think that the REAL VALUE is: $1200 a meter.

Going against the banks is like going to Las Vegas and thinking you're going to win. It's JUST DUMB.

A good price per meter is: $1200 to $1500.
A great price per meter is: $1000 to $1500.
A super deal is: below $1000 a meter.

Of course, there are several factors that influence the price: location, height of condo, how old it is, what are the details inside and extras (like air conditioning etc...)

A VERY, VERY smart real estate investor once told me: "Real estate is simple: You don't buy high and hope it goes higher. You buy low and you sell high."

Anything above $1500 a meter is HIGH. Above $2000 a meter is VERY HIGH. Above $3000 a meter is TOTAL NON-SENSE.

I know FOR A FACT (I have friends who own real estate companies) that Punta Pacifica and Costa Del Este is barely moving units for the last year. People have already stopped buying in those areas. Even the Trump project has had a LOT of trouble moving the inventory.

There is ONE EXCEPTION to the above: If you LOVE Panama... and you LOVE a certain area... and you have the money... and you don't care if you ever recoup your investment: then GO FOR IT.

However, if you want to resell at a profit in this lifetime -- pay very close attention to the price per meter.

Hope this makes sense,
Matt

Very interesting analysis and comments. Thank you for this very focussed and practical information!

... that everybody seems to want to live in the city!
in the more rural areas of panama, close to some of the most beautiful beaches, you easily can find lots with beautiful ocean/hill views, for only around 5 $ the square meter!
one hectar (10000 sqm) 50 g. for 600$ the sqm you can build a fancy, fully equipped house here.
we love to live on the countryside, no noise, no stress and lots of space.
we`ve been living in a city for all our life, now we are enjoying the freedom of open spaces.
the house we are building right now- you should see it. i would never ever give it away for a condo!
grretings from lagartero
mick
www.hibiscusgarden.com

Hey Mick,

I'm actually a "country boy" so I'm still enjoying the city (most of the time).

However, in a few years I'll probably be moving to quieter spaces. I think I would enjoy living in the Pedasi area. Beautiful place, incredible beaches and very nice people.

Matt

Hey Matt, thank you for the informations, it is very helpful. We are looking into buying an apartment there eventually but I don't think the market is very good right now and would probably make more sense to wait at least another year or so while the price will keep going down so we get a better deal.

First of all, thanks for the great guide Matt.

I'm sure such information would have not been disclosed by any real estate agent. It will definitely come in handy if I decide to buy any property over there. I'll see if I can find any $1000 per meter bargains

Ask any real estate agent and they'll tell you that "$2000 a meter is normal."
NON SENSE!

The price per meter was for the BEST PLACES for $1500 a meter 2.5 years ago before the Trump project was announced. You could get a NICE place for $750 to $1000 a meter.

Speculation was the main driver on the way up... It will be the main reason it goes down as well.

Matt

Originally Posted by No-Non-Sense-Matt

Speculation was the main driver on the way up... It will be the main reason it goes down as well.

Matt

I agree, that's exactly what happened with all the investments in new buildings in Florida, it went higher and higher until it was so ridiculous expensive that people couldn't afford them anymore. Land became a mean of investment, like currency but it can never work like that, not for long anyway.

Any recommendations on price per meter for "raw land"?

I'm sure it varies depending on where you looking to buy. Where is the most reasonably priced raw land in Panama . . . mountains, Carribean side, Pacific side, North, South, East, West ???

Thanx