Typical beachfront developments that include an ocean view range in price from $300K well into the millions. These are beautiful developments that overlook the tropical oceans of Panama. However, these developments are priced out of range to a sizable majority of potential residents looking for a place on the beach either in Panama or elsewhere in the Caribbean. The units that are affordable are second tier units without ocean views or are set off of the beach.

Buying affordable beachfront condos with ocean views doesn’t have to be this way. People can have a world class beachfront community with all the amenities and ocean views for an affordable price. Bala Beach delivers beachfront for under $99K! A full 60% of the units offered are under $150K and even the 2 story penthouse lofts with rooftop terraces are priced in the low $300k.

Nay-sayers will protest “Well Bala Beach has to cut back on the amenities to sell at that price.” Not true. Bala Beach is raising the bar for standard amenities here in Panama and this is how:

Floor to ceiling glass windows with views instead of only small viewing windows.

Open American style kitchens and floor plans instead of closed-in Latin style.

Large balconies overlooking the Caribbean instead of cherry picker sized ones.

Hardwood flooring instead of tile flooring.

Natural stone countertops instead of Formica.

Basin style sinks instead of sunk steel sinks.

2 story world class health and wellness center with onsite nutritionist, personal trainers, machine and free weights, yoga and other exercise classes instead of unused condos with a couple of medicine balls.

Our philosophy is to get people from around the world onto the Caribbean for an affordable price. This philosophy does not only try to serve a high minded purpose, it has a business practicality component to it as well.

We know from market research what the average John and Jane Doe getting off the tarmac are able and willing to spend. These people want to live or have a second home/rental property on the beach but do not want sell a member of their family to afford it. With our prices now and even after the forecasted property appreciation, we will offer affordable units to 80% of the John and Jane Does of the world.

To the Panama and/or real estate investor, you are able to buy into a development, receive property appreciation, and still be able to resell or rent to the masses thus vastly increasing your number of potential customers. Where as having a million dollar unit, you have a lot of property appreciation on paper, but you have a very small market of people to sell for.

Bala Beach has brought beachfront back.

($1Billion investment going to Panama’s Caribbean coast)

This surge of capital being poured into the coastline stretching from Maria Chiquita to Isla Grande stems from the government’s efforts to spice up the once sleepy Caribbean getaway. The Panamanian government has enacted two major initiatives that are attracting both Panamanian and foreigners alike.

One of the main components fueling this is the new Panama – Colon Highway. This highway is going to uncover this whole area to weekenders and tourists. Currently, the drive is more than an hour and a half and is extremely frustrating for commuters. However, with the completion of the next highway coming in less than 9 months (April 2009), this commute is going to be dramatically reduced to 45 minutes.

The second part of the government initiative is to reclassify the entire region from Maria Chiquita to Isla Grande as a tourist zone. As a result, investors, developers, and entrepreneurs have been given the proper financial incentives in the form of tax breaks and other measures to encourage the commitment of their capital.

The combination of a much reduced commute and rezoning has resulted in approximately $1 billion dollars being poured into the area. There are residential developers from Spain, Holland, and other countries building at least 4 new developments that will have the capacity to host more than 20,000 residents and tourists annually, which is 5 times the current capacity.

(Beachfront cafes and resturants)

What does this mean for Bala Beach?

In addition to the millions of dollars we are spending to develop our tropical beachfront community, the area is seeing hundreds of millions more in other residential, commercial, and entertainment ventures. In Bala Beach, you have the opportunity to invest in a place that is on the cusp, with the combination of infrastructure and financial fundamentals to create something unique.

In addition to the $1 billion dollars of initial investment, the second wave of investment is coming down the road. These later changes will be in the form of commercial strips, beachfront restaurants and cafes, tour companies and sailing expeditions, and other secondary entrepreneurs who will round out the community.

(Sailing expeditions)

Bala Beach and the incoming investment around it, is not a “someday it will happen” pipedream that never comes to fruition. On the contrary, the construction of the highway has commenced and the rezoning has already taken place, making this investment not a matter of “if,” but “when?”

(Royal Caribbean coming to Colon)

Royal Caribbean is beginning to switch their point of embarkation more and more to cruise liners to Colon, Panama for two main reasons.

First, Colon has a strategic location. 1. Colon has a deep enough water port able to accommodate a cruise ship the size of the “Enchantment of the Sea”. 2. Colon is situated on the Panama Canal, as a result, cruise ships have the possibility of traveling to both the Caribbean and the Pacific. 3. Colon is right next to the up-and-coming tourist destination of Colombia. Colombia is quickly shedding its violent reputation and places on the Caribbean like Cartagena and Santa Marta are becoming international destinations.

Second, Royal Caribbean is attempting to expand its business operations into the rapidly expanding middle classes of Brazil, Argentina, Chile, Peru, Colombia, etc… These Latin American countries represent the best opportunity to diversify out of the recession affected economy of the United States. But persuading Latinos to depart from Florida which requires a visa to enter is not an easy task. Panamalaw.org article offers great insight into the complications for a Latin citizen trying to obtain a US tourist visa.

“The visa process involves waking up early in the morning to go stand online at the USA Embassy waiting to go in for an interview. Numerous documents are required, reasons for the trip, why you are not a risk for overstaying the visa etc. There are fees involved, which are about $165 a person. Many people do not wish to go through this process. Many others are willing to go through the process but are unable to get the visa for various reasons. “

(long lines at US embassies)

These overburdensome requirements turn a vast majority of Latinos off from cruises. In addition to the difficulties acquiring a US visa, Latin American citizens do not want to endure the 10 plus flight to the north of Florida to take a trip to the southern Caribbean.

What does this mean for Bala Beach community? It will offer our Caribbean beachfront community some direct benefits:

First, 2500 passengers four times a month will be passing by Colon. Colon is not the most attractive of Panamanian cities and people will be looking for accommodations before their ship departs the following day. Bala Beach is less than 20 minutes from Royal Caribbean’s terminal and we are the closest beachfront community and hotel. Therefore, Bala Beach has the potential pool of 10,000 vacationers monthly seeking accommodations close to the Colon departure and a place to stay on their way back.

(beaches around Portobello)

In addition to wanting a place to stay, a large portion of these vacationers will be introduced for the first time to Panama’s beautiful and scenic Caribbean coast. In both cases, Bala Beach beachfront community is going to have direct exposure… Thanks to Royal Caribbean!!!

http://www.panamalaw.org/cruise_port_colon.html

1. The new highway from Panama City to Colon.

Currently, Panama is constructing a new 4 lane highway from Panama City to Colon that will drastically reduce the commute to Bala Beach from 1 hour and 15 minutes to 45 minutes. This is not a just a slab of asphalt with 4 lines painted on it, the new highway will be a first world, center divided, with a state-of-the-art drainage system and will be complete April 2009.

Panama City-Colon Highway on youtube

What does this mean for Bala Beach? Well, if you were to look at property values worldwide you would notice that property values located in areas with a high quality infrastructure are worth A LOT more money, typically 2-10 times more. This trend is especially more pronounced in developing world countries because of the shortage of high quality infrastructure or infrastructure at all.

(usual developing world infrastructure)

To the Panama investor, there are a lot of articles and sales people touting their projects as located on the most beautiful beaches, in the most authentic towns, having the best views of the mountains or ocean, coolest climate, cleanest air etc… These are all great reasons and we all have an assortment of them because Panama is so well endowed with beautiful landscape and vibrant culture. However, when it comes to being less than 45 minutes away from Tocumen International Airport, no other project has it.

To reach these other projects, visitor and residents have two exhausting options to choice from. First, get in a car or bus from the Airport for another 2-10 hours. Second, wait in Tocumen to take another plane to a regional airport and take another car ride to the area. These might not sound appealing to someone who had just got off international flight.

With Bala Beach, these inconveniences do not exist. The new Colon-Panama City highway will make our beachfront community the closest such community that Panama Real Estate has to offer. Bala Beach will be 45 minutes from Panama City and International Airport. If the global trend continues pertaining to real estate values with high quality infrastructure, when the new highway is complete Bala Beach units will have gained and continue to gain a significant amount of property appreciation.

These infrastructure and location factors are one of the 10 reasons that Bala Beach community stands apart from any other residential project in Panama today. People who invest in Bala Beach are going to be making a very profitable decision.

The Canadian and Panamanian governments formally came to an agreement that will establish the initial framework for direct flights between the two countries. Currently, there exist no direct flights from Canada to Panama and all flights bound for the two countries are routed through the US. Being routed through the US, with its prison type cavity search and long flight layovers, causes headaches and is time consuming for passengers.

Minister Cannon speaking to reports said. “The new agreement will benefit passengers, businesses, air carriers and airports through a greater range of travel options…I am pleased to announce the conclusion of a new air transport agreement with the Republic of Panama, a close bilateral partner of Canada.”

Canadians and Panamanians can now rejoice at the fact that they can now fly directly into each others countries with not first getting routed through 2,3, or even 4 airports and that they can now carry on their valuable 6 oz shampoo and lotion bottles. Probably future direct flights to Tocumen International Airport in Panama City will include; Toronto, Calgary, Vancouver B.C., and other Canadian international hubs.

Furthermore, this trade agreement is very symbolic for both countries.

For Canada, it’s an opportunity to expand its economic presence in the region. According to the article, trade between the two countries totaled $115 million with Canada exporting $86.4 million of their products and services to the Panamanian market. In addition, Canada is looking to strengthen their relationship with Panama because of its strategic transportation location with the Panama Canal.

For Panama, it is a chance to establish itself in the minds of Canadian business, retirees, and tourists. At this time, Canada has direct flights to Latin and Caribbean countries such as Costa Rica and the Dominican Republic thus giving those counties a competitive advantage over Panama. But Panama is striving to become the Dubai of Latin America and sees these direct flights as a means to attract multi-national business to relocate or expand, retirees to live, and tourist to visit.

In the near future, both countries are pursuing a bilateral free trade agreement that will further strength their relation and will create more direct flights.

Link to full article:

http://www.tc.gc.ca/mediaroom/releases/nat/2008/08-h148e.htm

- The expansion of the Panama Canal. “economic activity is only going to intensify starting next year,… the $3.5-billion deal to design and build new canal locks, is awarded.”. The Panama Canal expansion is going to require housing for all the workers and their families. “(the construction company) will need 500 apartments for its employees, housing that will have to be built.”. This has many property holders in Panama excited about the potential pool of upcoming renters and an economy that is ready to take advantage of an influx of foreign dollars that is already on its way.

- Panama’s flock of foreigners: Wealthy Latinos from Venezuela, Colombia, Ecuador, and Bolivia seeking to protect their assests from left-wing governments as well as retirees from the US, Canada, and Europe searching for a cheap place to retire, is transforming Panama into a cultural melting pot that reminds people of Miami 15 years ago.

- Multi-national companies are relocating to Panama and adding jobs. “This month, 3M joined other corporate giants Hewlett-Packard, Sinopec and Singapore Aerospace in announcing that it was opening an operation here… Panama added 51,000 jobs last year, double the number in 2006″.

- Lastly, in Panama a true real estate boom has been taking place turning Panama into the hottest real estate market in the Americas. There is not a place in Panama City where you cannot see construction all around you. “The skyline increasingly resembles a mini-Sao Paulo”. The skyline is constantly adding more and more buildings and the people here say that the Panamanian national bird is a construction crane. Anyone who has toured or spent time in Panama would have to agree.

The article does point out that this economic and real estate boom is causing a few growing pains. Among them are issues regarding sanitation, electricity, and the awful traffic congestion. These are all major problems that the government has to overcome, but these growing pains are to be expected when a country, and more specifically a city, is undergoing the development jolt that Panama is experiencing. However, it is undeniable that the city is pulsating with a certain vibe that looks ahead to the future. We’ll just have to wait and see if it all goes well and Panama City can achieve first world status.

To read the full article:

http://www.latimes.com/news/printedition/asection/la-fg-canal16-2008jun16,0,7847226.story