Panama’s next retirement haven—where property prices start at $62,000

Some expats are impatient for a new road called the Ruta Sur (south route) to be completed, while others worry that greater accessibility will change their sleepy mountain town for the worse. The road will link Volcan to Boquete, one of Panama’s top retirement destinations.

If you’re looking to buy in Volcan, this road is of the utmost importance. Large tracts of land that were inaccessible will become easy to reach and, in many cases, property prices will rise. The real estate industry is booming in Boquete and houses that cost less than $100,000 five years ago, now sell for $150,000 and up, with some asking prices in the $300,000 to $400,000 range. With a new direct route from Volcan to Boquete, the same will begin to happen in Volcan. The road should be completed by March 2009.

Volcan is in the highland area of the Chiriqui province. The town is deemed “the next Boquete”, which is quite a moniker considering Boquete’s immense popularity as a retirement destination. Volcan offers the same scenery, cooler weather, and lower real estate prices.

In Volcan, prices in the center of town start at 92 cents to $1.86 a square foot, compared to prices in nearby Boquete, which start from $4.65 a square foot.

As for Western-standard gated communities, several are planned but only a few are truly progressing. The furthest along seems to be Volcan Springs Ranch Estates, where amenities will include a clubhouse, meeting room, swimming pool, spa and sauna, café and bar, exercise room, Internet café, sundecks, and game room with billiard table. The development houses 129 home sites and luxury condominiums, a rarity in these parts. Prices start at around $80 a square foot (or $154,960 for the smallest home model). Lots range in size from 2,960 to 3,767 square feet. For more information, tel. (507)6775-3087; website: www.volcanspringsranch.com.

Across from the spacious central park, on a shady lot, one wooden house for sale right now is blocks away from the town center. It features three small bedrooms and needs to be inspected for termites and spruced up a bit. The lot is 15,370 square feet and the asking price is $62,000. For more information, contact Ruth at tel. (507)224-1993.

Another property with better finishes is for sale by its elderly owner. The three-bedroom, two-bathroom house has been well maintained and sits on a 21,527-square-foot lot. Price: $145,000. Tel. (507)6673-4075.

If you’d like to build here, there are lots aplenty. Take for example a small 12,916-square-foot lot in town, for sale for $22,500. The lot has a view of the mountains and water and electricity lines are already installed.

A 861,120-square-foot lot in the Cuesta la Piedra neighborhood has a paved access road and water lines. Price: $80,000. Another finca boasts natural freshwater springs, a nearby creek, and more than 50 acres for $630,000.

Rentals are harder to come by, but with a bit of legwork we found some good options. A home with ample garden space is for rent along the main road. It’s well maintained and spacious, with three bedrooms and two bathrooms…and it comes fully furnished for $500 a month. For more information, call Carolina at tel. (507)6499-5030.

Looking for something smaller? The bottom floor of a house has been made into a separate apartment with bathroom and kitchen. The space is divided into four rooms but the dividing “walls” don’t rise to the roof. It would do for offices or for a single occupant. Price: $175 a month (tel. (507)6621-2933).

If you’re visiting and want to get a short-term rental before you commit to buying, consider La Providencia. Here cabins start at $450 a month. Prices in the high season (November through January) go up to $300 a week or $1,200 a month. Call to negotiate at tel. (507)6651-4777.

The climate in Volcan is spring-like year-round. During the summer months, temperatures range from 70˚ F to 80º F during the day and as low as 60º F in the evenings. October and November are the peak of the wet season, but even at this time of year, mornings tend to be clear. Light, misty rains called bajareques are common year-round.

The cost of living is enviable here, too. Stop in at the 24-hour Romero’s “mini-super” and buy a Chilean Merlot for less than $4—take it to Polineth, the only Thai restaurant in Panama, and you won’t get charged a corkage fee…plus a full meal is less than $12. And Polineth is one of Volcan’s most expensive dining options—there are places where you can have a full Panamanian-style meal for less than $2.

Few places rival Volcan for picture-perfect attractiveness and, most importantly, low cost of living. Prices are rising in Panama City, on the Pacific Coast, and in Boquete. Not so in Volcan…but there are tradeoffs. The quiet town of Volcan does not score perfect points. But the expats here have a pioneering spirit. They are easygoing and make their own entertainment, getting together or simply enjoying the natural surroundings. Here, basic infrastructure fails and it’s an hour-long drive to the nearest city of David for grocery shopping or to visit a doctor.

Basic infrastructure is adequate. Local transportation works well—you can get buses to either Cerro Punta or David. Taxis will take you to David for around $30. Most people have a cell phone and there are several Internet cafés. Direct TV provides satellite television. For more information, see: www.internationalliving.com/volcannow.

 

Beware of border land here

When checking out real estate here, remember that some of the land advertised might be too close to the Costa Rican border; foreign property owners in Panama have essentially the same rights as locals, but border land is off limits. Likewise, land inside the national park areas may be available but can be tricky to buy or develop in any way. You and your lawyer will have to do a bit of homework to ensure that the land is titled in the Public Registry and not restricted by the Environment Authority (ANAM). There is so much land available in Volcan that it is easy to avoid restricted lands.

How to get to Volcan

You can drive, but most get here by flying from Panama City to David on one of two domestic airlines, Aeroperlas (website: www.aeroperlas.com) and Air Panama (website: www.flyairpanama.com). Flight time is close to 45 minutes and the cost is about $70 one way plus tax (you pay only $55 plus tax if you’re a pensioner). From David, it’s an hour drive to Volcan. There are no direct flights from the U.S. to David. Air Panama has flights from San Jose, Costa Rica to David that cost nearly $100 (or $75 with the pensionado discount). If traveling here from the U.S. or any other country, check flights into both San Jose and Panama City. There are rumors in Panama that American Airlines and Continental have expressed an interest in offering international flights from the U.S. to David, but these have yet to be substantiated with concrete details.