When we look for areas that promise growth in the future, we look for anomalies. An anomaly is something very unusual, irregular, outside the normal. Often, when you first see an anomaly, you wonder, why? It does not seem to make any sense. In looking at it more carefully, you will slowly understand why it's different. Once in awhile, that will offer you an opportunity not yet noticed by others.
Real estate development in Panama is following a logical path, geographically. It reflects the availability of infrastructure and proximity to urban centers, including the smaller cities. This is very understandable and makes sense. There are no substantial anomalies that do not have an obvious explanation.
Except one. This is the area along the Pacific coast and east of Panama City. East? Who goes east? Very few people and not very far.
95% of my Panamanian friends have never been any further than Chepo and the majority have not even seen Chepo! It's only 45 minutes from the city, but they have never been there! Why?
Many Panamanians, probably the majority, see the area to the east of Panama City as "dangerous". They think in terms of drug runners, Colombian rebels, violence, and lawlessness in the jungle. This comes from their history. It makes no difference that you have to go a couple hundred miles and more to get to the area they're worried about, they simply do not go east, period. It is an emotional block and it's surprisingly effective. A couple short stories will illustrate this.
A year or so ago, when I was about to visit Lake Bayano. I mentioned the trip to a young, college-educated Panamanian friend. He exploded! "No! Bob, you cannot go there! It's very dangerous! You could be robbed or killed! Please, Bob, promise me you will not go there!" I was astonished! I assured him that my friends would not be taking me to any dangerous place, but he was very disturbed.
A few weeks ago, I was sitting with an older, experienced real estate agent who specializes in areas east of the city, like Cerro Azul. In passing, I mentioned that I had been to Lake Bayano and was very much impressed. He replied, "I've been there. I was not impressed. It's just another lake." I was surprised. Just another lake? After a couple minutes, I realized he was talking about Lake Alajuela (also known as Lake Madden), a small lake much closer to the city. He had never seen Lake Bayano and did not even recognize the name. He lives less than 30 minutes from the lake.
I could tell you two dozen stories like this, but you get the idea. The area east of Chepo might as well be on the moon, as far as many people in Panama are concerned.
What's it like there? The one word that best describes the area is "tranquil". It's rural, peaceful, and very lightly populated. An hour from Panama City and you're driving on a paved road (the Inter-American highway) through teak forests, rice fields, cattle ranches, and farmland. The villages are small and the people are like country people everywhere in Panama, friendly. It is really a beautiful area. I fell in love with it immediately.
The lake is an environmental jewel. The variety of local wildlife from macaws to howler monkeys and more is wonderful. The silence of the countryside is profound. The lake has been stocked with fish, specifically tilapia, although other varieties are found there too in smaller numbers. Many in the Native American population make their living from fishing and huge quantities are shipped out daily for use here and for export. Despite that, the lake remains packed with tilapia. If you like fish, you will not go hungry here. There is plenty of rainforest, but also a lot of open farmland suitable for construction without harming the rainforest. The Native Americans who live around much of the lake benefit everyone. Their homes, their crafts, and their culture are a great attraction to tourists.
There are many reasons to be interested in the economic potential of Lake Bayano. Here are three:
Permits have been granted for the construction of an "eco-resort", Laguna Park, on the shores of the Lake. The project is funded by Venezuelan investors and is primarily marketed to Venezuelans, as you can see at their website. This is already bringing interest to the Lake region and, as construction begins, it will have a profound affect on local land prices, as well as be a major positive factor for the area's future.
The government has begun work on a road from the Inter-American highway that runs north, over the mountains, to the province of San Blas (Kuna Yala), one of Panama's premier tourist areas. The preparation of the road for paving has been underway during the last year's dry season. Paving is planned to begin later this year as the next dry season begins. This will greatly improve access to San Blas and the Caribbean coast from Panama City and, obviously, from Lake Bayano.
The government is extending the four-lane section of the Inter-American highway from the "December 24" shopping area to Pakora and it plans to continue to expand to four lanes all the way to the Lake. This will have a dramatic impact on local development.
We have great confidence in the future of Lake Bayano area. Although most Panamanians, even those in real estate, may give it little or no attention now, that will change as a result of activities already underway. A year from now, it will be a different story. If you are interested in investing in properties, let us know. We can help you.
We hope you at least get the chance to visit. You can easily reach Chepo and even the lake in substantially less time than it takes to drive to Coronado and the drive is much more picturesque. So come on out and see for yourself!
Bob Adams
President and CEO
Panama Wave S.A.
