The Truth About Cerro Azul Real Estate


The Truth About Cerro Azul Real Estate

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Written by Matt Landau

Friday, April 13 2007

We've gotten lots of inquiries regarding the suburb of Cerro Azul. After sorting out our own feelings, we consulted a real estate agency in Panama and got there honest opinions. Does Cerro Azul have potential for development? Will it ever come out of the rut it seems to be indeterminably stuck in?

There have been petitions to make the road there a 4-lane instead of a 2-lane which obviously reflects people's interest and the governments enthusiasm. The developers of Altos de Maria (popular expat retirement community in mountains 1.5 hours outside Panama City) developed Altos de Cerro Azul decades ago for locals. Local residents would go, whether they had a home already built or not, and enjoy the common areas and cooler temperature. Meaning, that many people today have small lots and homes that they'd probably be interested in selling. Granted, most of these are Panamanian style ‘tipico' houses which are not exactly a gringo retiree's cup of retire-tea.

So I could see it becoming a weekend getaway for those who just want to drive an hour and play golf, play in a big yard w/ the kids and jump in a pool...something not everyone can afford to do in Panama City. It's also close enough to Costa del Este that some people may even choose to live there and commute to work. I think the city has no choice but to grow east, so that will make Cerro Azul closer every year. But then again, we're talking years here. Same as we are in Azuero Peninsula. The area obviously needs a serious facelift and new marketing campaign. With these, it'd do a lot better.

When the developers made the place, they neglected to put a hotel there which may have been the wrong move. Without a hotel, the place just lacked activity and attention to upgrade. Then again, I'm no developer so I don't know. I can tell you that the few times I have pretended to be a buyer, none of the agents from several agencies wanted to take me there: bad news.

The foreigner movement there really hasn't started yet other than a handful of people trying to snatch up bargain basement properties, so it's just as risky as investing in other new areas. At the top, there is some gorgeous land which is really cheap, so gringos have started looking at it in a new light. But ask any local—which is usually the best way to get a feel for a place—and they'll tell you it's kinda run-down and abandoned. The place may have been hip over 10 years ago, but now it's pretty boring and dilapidated. Barbed wire is everywhere: not exactly the most inviting thing for a retiree. Add on the fact that you have to drive through some sketchy neighborhoods to get there. (See gringo in Hawaiian shirt driving through the hood.) Then again, they never said pioneering development would be easy.

Upshots:

1. Costa del Este is growing super fast and will most likely become Panama's first upscale suburb
2. It's inevitable that lots of businesses are going to put offices near the airport and Costa del Este as development increases so this'd be the perfect spot for people to rest their legs, or whatever that saying is.
3. Traffic over the Bridge of Americas is horrid and if you are a new immigrant to Panama and live in Costa del Este, you'd have no problem driving east for your weekend home
4. There are big hunks of land over there that could be developed as golf communities
5. There's still some primary rainforest there (rivers, green areas, lakes)
6. Pretty decent climate for hot city folk and older crowd who do things like use inhalers

Downsides:

1. Near some very bad neighborhoods
2. Too close to the city to be a "real getaway"
3. Just far enough from the city to not be an ideal commute (for now)
4. Years away from development
5. Mostly deforested
6. Out of fashion: Panamanians don't really like it out there and consider it passé. It was originally conceived for Panamanian weekend homes 25 years ago, but now is pretty rundown.
7. Stigma: It needs commercial areas desperately. Even though the 24deDiciembre has a big grocery store and some other services, the area is renowned for its poor-lower middle class Panamanians. Not something that's easy to renovate.

Thanks to the team at http://www.panamarealestatepros.com for their honest opinion on this subject. Many will benefit.

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Last Updated ( Saturday, April 21 2007 )

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