Areas of Juan Diaz Poised for Major Change
Date: 01/15/2008
This is the area that's captured the fancy of more than one developer—the part of Juan Diaz that sits on the Bay of Panama, next to Costa del Este…but much of this land is designated as a reserve area. Image courtesy of La Prensa.
January 15, 2008
Panama City, Panama
No wonder everyone is looking for "the next Costa del Este." The area is a success story unlike any Panama has ever seen. As soon as lots and homes came on the market in 1995-96, Costa del Este exploded, surpassing even the most optimistic estimates as projects sold out within months. Ten years before, none of Panama's elite would have considered living here, but the advent of the Corredor Sur, or south highway, increased accessibility, completely changing the area's appeal.
Today Costa del Este is hailed as Panama’s only American-style urban planning project…and it's one of the city's trendiest and most expensive neighborhoods. Just try finding something here for under $300,000 (in March of last year, we found just a few units for sale under $200,000…but this is no longer an easy task).
Now, a few companies have singled out a new area in the district of Juan Diaz as having massive potential—it's between Costa del Este and the Tocumen International Airport, on the Bay of Panama. The Housing Ministry has designated a part of this area as a reserve, due to the mangroves that populate its shores. Outside of the reserve, development is allowed, but it must meet low-impact "Green Urban Area" standards set by the government in 1980.
Local environmentalists fear that even low-impact development will harm the mangroves. Among others, Alianza Pro Ciudad (Pro-City Alliance) and Audubon of Panama have expressed concerns, saying that the mangroves act like sponges to protect the bay from the trash and pollution on land. The 1971 Convention on Wetlands (also known as the Ramsar Convention) calls for protection of the bay wetlands because the mangroves support and provide food for a variety of local and migratory bird species.
According to La Prensa, the region is nonetheless poised for major change…and we think it may soon be one of the best places to invest. Keep in mind, Panama City's growth is limited to the south by the Pacific Ocean, and to the north and west by the Metropolitan Park, the Panama Canal, and the Panama Canal Basin Protected Areas. The easiest thing is to expand toward the east/northeast.
No development yet, but studies are underway…
Environmental impact studies (EIS) have been submitted for several developments near Costa del Este, including luxury housing communities, golf courses, and new malls. Three of the proposed projects are Santa Maria Golf & Country Club, Costa del Sol, and Panama Bay. Not many details have been released, but it seems the EIS for the first is being approved. The latter two had their initial EIS rejected by the local department of protected areas, and will most likely reapply with modified proposals.
Jose Batista, director of urban development at the Housing Ministry, says the government is funding workshops to determine how best to capitalize on the ocean-front land here while preserving the environment. According to Batista, the government must invest in additional infrastructure for the area, including a road to parallel the Corredor Sur.
If the government does this in the near future, developing and investing here could be even more lucrative. The area already has a lot going for it, as it's centrally located between the airport and Panama City's popular San Francisco neighborhood, just off a major highway, and on the water. And don’t forget that the government has already pledged to keep it as "green" as possible—a rarity in Panama. These are many of the same factors that made Costa del Este such a success.
Best regards,
Jessica Ramesch
Editor, Panama Insider
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