Puerto Armuelles: A Second Chance for a Special Panamanian City

Puerto Armuelles is not as well-known as most areas of the isthmus, mostly due to its slow decline years ago. Once a vibrant, bustling little city, mainly due to the driving force of the United Fruit Company, which began in 1927, it fell on hard times when the fruit company withdrew. By then, the company, known as Chiquita Banana, had moved on in 2003 due to serious labor disputes. Sadly, the population declined significantly, leading to business and retail closures and general disrepair.

But they have returned, repaired, and are better than ever. New and exciting progress in every facet of this beautiful beach town is full steam ahead thanks to another fruit company, Banapina, a subsidiary of Del Monte. New plantations have been planted and are already producing bananas. Chiriqui then purchases the bananas and is in charge of exporting them. Thousands of jobs are being created once more.

Where is Puerto Armuelles?

Serene beachfront view framed by palm trees in Puerto Armuelles.|©Larke Newell

Puerto Armuelles is located in Chiriqui province on the Pacific side of the country, thirty minutes from the border with Costa Rica. It is the second-largest city in the province, one hour's drive from David, the largest city with an airport and amenities, and seven hours' drive from Panama City.

To get there from other parts of Chiriqui by car, bus, or taxi, go to Paso Canoas, which is immediately before the Costa Rican border. Turn south (left) and follow the road. You will arrive in approximately thirty minutes. Puerto, as it is affectionately called by the residents, now boasts a well-maintained paved road that connects to the rest of Chiriqui and beyond.

From other countries, it would be necessary to fly into Tocumen International Airport in Panama City. Following that, you would have the choice of taking a Copa or Air Panama flight to David. This is approximately 530 kilometers. Rental cars, buses, and taxis are available at the David airport. Panamanian buses are comfortable, air-conditioned, and reasonably priced.

Infrastructure and Development

Due to its seaside location, Puerto Armuelles provides everything that tourists would require, including stunning scenery, perfect weather, numerous activities for the sports-minded, and affordability. Restaurants, bars, and oceanfront boutique resorts are plentiful. Nearby Punta Burica boasts beautiful beaches and verdant jungles, making eco-tourism viable and imminent.

There is a growing expat community and opportunities for digital nomads. Almost every necessity can be purchased here. Business opportunities abound due to all the improvements and ongoing projects. The cost of living has increased due to the COVID years but very minimally. As in all of Panama, however, it remains considerably more affordable than countries such as Canada and the US.

The transformation of this city is nothing short of amazing and is ongoing. Close to the coast, the water is very deep, and the ocean drops off to 250 feet, enabling large ships to dock here. To that end, a state-of-the-art cruise ship dock, pier, and cargo port are being developed as we speak. The Cinta Costera project is full steam ahead; the extensive and aesthetically pleasing boardwalk is already half completed. Included will be bike paths, tourist shops, parks, and a seafood market. Once this giant undertaking has been completed, there are additional plans to install a public plaza and artisanal mercado. Hints of an upscale hotel are floating about, but nothing concrete (no pun intended) has been announced yet.

Residents of this area have been awaiting this project for 25 years, and it is finally coming to fruition. It will attract tourism, create business opportunities, and create jobs. It will also impact the fishing sector and auxiliary maritime industries.

Climate

The climate in Puerto Armuelles is close to perfect. Temperatures usually range from 75°F to 90°F during the day and 65°F to 72°F at night. Of course, there are ocean breezes in most areas of town for those who prefer cooler climes. The yearly rainy season also produces milder temperatures.

Real Estate and Living Conditions

Spacious homes in Puerto Armuelles' Las Palmas.|©Larke Newell

Housing in Puerto Armuelles differs from any other Panamanian town because it began as a “company town.” Dubbed the “classic tropical colonial look,” the houses were built with broad overhangs and wooden ventilated window openings. Another unique feature is that most of them are raised above the ground on wooden stilts, thereby avoiding dampness and tropical bugs. Curiously, all the dwellings were built of North American red cedar wood, which is resistant to rot and insect infestation, unlike the more common concrete Panamanian homes in all other areas of the country.

Not only is it obvious by the size of the houses and surrounding land but also by the distinct neighborhoods that Chiquita built whole areas to house the different classes of workers. For example, the Las Palmas area homes were built for the North American executives of the company. They are nestled in a quiet, exclusive neighborhood and are larger with larger yards. Some of these homes are huge and boast ten-foot ceilings and open floor plans of 3,000 square feet per floor. These homes are currently very popular with expats.

Next on the list is Bella Vista, formerly called Spanish Town, where the homes were built for the higher-level Panamanian managers. A very pleasant neighborhood with generously-sized homes and lots, it borders Las Palmas.

The best in-city community is San Vicente due to its casual feel and large lots. It is not a Chiquita-built area and consists of the typical concrete homes mentioned above. The close proximity to downtown and its long beachfront containing two of the most popular boutique hotels make it another desirable area.

After these neighborhoods and on into the main town area is the San Jose area, which contains two-story row houses built by Chiquita for mid-level managers.

Close to the city is a more modest area that was built for dock workers.

North of the downtown core is the retail area and the hospital. A $64 million state-of-the-art hospital is in its final stages. Healthcare here is very affordable, available, and excellent. Expats are welcome. There is a kidney dialysis clinic that charges a small fraction of what would be charged in Canada or the US.

Retail stores of every description can be found in this vicinity. West of downtown is another retail area, as well as government offices, baseball fields, and fire stations.

An example of a vibrant boutique hotel in Puerto Armuelles. |©Larke Newell

Cost of Living

The cost of living here is much less than in other countries or even many areas in Panama. Most homes are affordable, and property taxes, as in all of Panama, are exceptionally reasonable. They are paid on a sliding scale. For houses valued at $120,000-$250,000, the tax rate is 0.5%, while values of $250,000 and above are taxed at 0.7%.

Due to the increased activity in Puerto, there are more places for rent than ever before. Yes, many company employees require rental units, but more and more expats and Panamanians are interested in rentals in the area. It is always wise to rent a home initially to decide your preference in neighborhood. Then perhaps purchase a home to provide rental income once you have chosen your area and your forever home.

Home prices are still affordable but will rise as word gets out! Average three-bedroom homes range from $80,000 to $175,000. Of course, larger homes with beachfront or large lots can go as high as $349,000. Right now, several beachfront lots are for sale for $50,000 and up. Build your dream home beside the pristine beach where the ocean waves will lull you to sleep each and every night.

One quick word of caution, but nothing to be overly concerned about: since Puerto Armuelles is situated so close to the border, it is good to know that foreigners cannot purchase property within ten kilometers of that border.

Monthly expenses such as food, gas, utilities, internet, household help, and transportation are already well below expenses in the US or Canada. Never forget the very special, best-in-the-world pensionado program offered here, where 10% to 50% discounts are available for everything from pharmaceuticals to entertainment to flights to restaurant meals and much, much more.

Activities and Lifestyle

Enjoy a stroll along the scenic boardwalk outside Big Daddy's Beach Club & Hotel. |©Larke Newell

Now for the fun part. There is no way that anyone, whether tourist or resident, should be bored in this busy city. Panama does revere its baseball, and a few former major league players call it home. Recently, a $7 million baseball and sports stadium was completed, so soon “batter up” will reverberate to the fans.

Some of the very best fishing in the world takes place just off the coast here. Marlin, snapper, tuna, and mahi-mahi are there for the taking. Spear fishing is also popular here.

If you love riding the waves or just enjoy watching the surfers, this place is for you. It is one of the best surfing areas in Panama. Other water sports include sailing, scuba diving, and snorkeling.

Mountain bike and horseback riding trails are plentiful, as well as interesting hiking areas.

Along with a wide variety of shops and services in the downtown area, it also has four parks for more casual enjoyment. The waterfront park is lovely and relaxing. Right across the street is another park with a central gazebo hosting community events. Close by is a playground for the little ones (or maybe some not-so-little fun lovers). For restful contemplation or visiting, the fourth park contains shade trees complete with benches nestled beneath them.

On the first Saturday of every month, you can enjoy an artisan and flea market. Then perhaps wander over to one of the many good restaurants for a casual lunch with friends.

Final Thoughts

In conclusion, I would not hesitate to recommend this quiet yet diverse city for retirement or investment. Prices have not yet caught up with the huge potential, so the time is right for investors to do well here. One look around town proves that local business owners are now eager to invest in their no longer sleepy town. Whether it is the banana company, the government, new residents, or long-time locals, it is full steam ahead.

For retirees, Puerto Armuelles offers quiet living at its best. The pungent smell of the ocean nearby, the lush foliage and swaying palms, and the clean, orderly neighborhoods are calling. Check it out. You won’t be sorry.