Panama & Caribbean Investment: #1 Panama to Colon highway

I have compiled a 10 point list of why the Investor in Panama, or an individual just looking to have a high return on their money, should buy at Bala Beach. Bala Beach community has a number of unique features that sets itself from any other project here in Panama and here is why:

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.

Direct flights from Canada to Panama ready for takeoff

June 19^th:

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 optionsâ€¦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, itâ€™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

Panama’s real estate and economic boom puts it on the path towards first world status

LA TIMES June 16^th.

The LA Times recently wrote an optimistic article about Panama’s economic outlook. The article highlighted a number of different economic steps that Panama is taking to pursue first world status. Among Panama’s economic and real estate projects:

- The expansion of the Panama Canal. “economic activity is only going to intensify starting next year,â€¦ 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 hereâ€¦ 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