Thread: Land

Is it just me or are land prices way overpriced in Panama? I've looked at a number of farmland or raw land listings and they seem more expensive than the US. What's a reasonable price per hectare for a farm if you actually want to make a profit?

All depends where you want to purchase. Raw land can go from a couple hundred dollars a square meter to mere change (25-35 cents) depending upon location, view, amenities, etc.

i also believe the locals are a few years behind the curve , i think lots have no read up on what is going on in the world , some have as i have heard of good prices , but lots have not , a friend was just in bocas and boquete and said there were tons of for sale signs on everything , up there they have seen that tourism has all but stopped , other parts of the country will catch up , just give it some time and keep looking for the deals ,and you ask how much is it worth to make a profit? for farm use or to flip? my belief is if you want to flip then you are a few years behind the curve , if it is farm land profit i have no idea ,

We know farmland for $ 2000 or $ 3000 the hectare. But then you have to buy the whole land (52 and 63 hectare).
Smaller farmlands like for example 10 hectare are much mor expensive, of course.

Greetings
Dirk and Simone

Right now, the market is pretty dead but people are not lowering prices - so future decreases should occur and it is a bad time to buy. I agree with you that it is always good to do a sanity check by comparing to the best deals you can find in the US. Other things being equal (size, neighborhood, view, distance from cities, waterfront, etc), Panama real-estate should be significantly less.

I do not understand the large price differential between small lots and large ones - I keep seeing things that are too big, but the owner doesn't want to split it (at any price).

Splitting land cost also some money and work. The owner needs to pay a topographer, attorney and the registration fees.
Many owners do not like doing it.
And if the owner split it in small lotes, he needs to fulfill the urbanization laws of Panama.
And to fulfill those you need to invest into the land infrastructure first.

I agree, but one would think that a 25% premium would cover those expenses.

Also beware that the prices you see advertised on the Internet are usually much higher than the actual prices that a local to local sale would occur at. I've often had conversations along the lines of:

Me: I found a good deal at $xx/sq meter.
Local: That's crazy, nothing around here has sold at that high a price.

Originally Posted by panamaproperties24

We know farmland for $ 2000 or $ 3000 the hectare. But then you have to buy the whole land (52 and 63 hectare).
Smaller farmlands like for example 10 hectare are much mor expensive, of course.

Greetings
Dirk and Simone

dirk and simone? u must be dutch right?

Hi Janl,
we are not dutch we are from Germany.
But your guess was close ;-)

Dirk and Simone, what is the situation with non-Panamanians owning and building on island property? I though that the law did not allow this except in specially designated tourist zones. Are you seeing people get titles on untitled land yet?

"Average U.S. farm real estate prices — including the value of land and buildings — have nearly doubled in the last decade to $2,140 an acre, according to the U.S. Department of Agriculture's National Agricultural Statistics Service."

So why are sellers asking 10k an acre in Panama?

The only reason the price is that high is the US is due to government subsidies on corn production and more.

Originally Posted by skynet21

"Average U.S. farm real estate prices — including the value of land and buildings — have nearly doubled in the last decade to $2,140 an acre, according to the U.S. Department of Agriculture's National Agricultural Statistics Service."

So why are sellers asking 10k an acre in Panama?

You can find land in Panama for less than $1K/acre. For example:

Lots and Land for Sale in Santa Fe , Veraguas $60,000


Even so, I tend to agree - the prices you see advertised for land in Panama are too high.

Anyone here a farmer or have contacts with farmers? Do any farmers lease land in operate it or would I have to hire one to operate a farm?

I don't know, but I would guess that if you owned good farm land, the adjacent farmers would be willing to lease the land from you for some low price.

Originally Posted by skynet21

Anyone here a farmer or have contacts with farmers? Do any farmers lease land in operate it or would I have to hire one to operate a farm?

Yep

Originally Posted by jonr

I don't know, but I would guess that if you owned good farm land, the adjacent farmers would be willing to lease the land from you for some low price.

i do know if they lease land from you to run cattle on , they pay $6 per month , per head .

So perhaps $10/month/hectare as a sustainable rate? Maybe $2000/hec is a reasonable minimum for cleared land.

There is plenty of cleared land in Panama. If there is one thing people really know how to do here and that is chop down vegetation.

as long as there is a tree still standing the paper work in goverment offices wont be finished ,