In the late 90s, I first began hearing about Panama while living in Costa Rica. There was a groundswell movement of expats who felt that the cost of living in Costa Rica was too high and sought greener pastures, quite literally. They found their lower cost lifestyle a few hundred miles south in Panama’s highlands.
The words “Chiriqui” and “Boquete” were a total mystery back then, but over the past years they have emerged clearly as affordable living options to many foreign retirees. Houses for $60,000? Farm land for under $900 an acre? “Impossible!” I thought. At the very least, I was skeptical about how good life could be at those costs. Numbers and stats weren’t enough for me, so after some investigation, I became pleasantly surprised by both the charming mountain town of Boquete and the cosmopolitan flair of Panama City. That was 2001. I fell in love with Panama instantly and began to spend as much time down there as I could.
Six years later, the contrarians who sang Panama’s praises are no longer a muted, limited chorus. They are a marching band. Thousands of retirees now call Panama home. Multinational businesses have opened shop here. The $5 BILLION (not a typo) expansion of The Canal was recently approved and opportunists are rushing to lap up the drippings. Dozens of cranes dot the Panama City skyline, a harbinger of the “new Panama” that is being re-created at a Dubai-esqe pace. The once-quaint town of Boquete that I remember is now bustling; new restaurants and small hotels seem to open monthly.
The BAD news? Panama isn’t a dirt cheap place to retire anymore. And Panama real estate isn’t for bargain hunters either. For those hoping to snatch up a former military house in the former Canal Zone for $50,000…apologies, that ship has sailed. Adam’s Smith’s “invisible hand” is in full play, with prices rising to meet the exponential increase in demand for real estate in Panama. The Europeans and Canadians who were the pioneers of Panama retirement are now being outpaced by the next wave of investors: Americans. Acting in line with the common assumption that all U.S. citizens inherit a money tree, local developers are building homes, condos and apartments that reflect “gringo” tastes and budgets. That means that finding a $50,000 house, dirt cheap ocean view lot or inexpensive luxury city apartment is becoming increasingly difficult. If the shroud of secrecy over Panama wasn’t already lifted, Hollywood power couple Brad and Angelina’s highly publicized New Year’s visit officially let the cat out of the bag.
The GOOD news? Some things are still VERY cheap in Panama. In general, the cost of living is very affordable. Healthcare is extremely reasonable and the quality of service is excellent. For example, at the fanciest new hospital in town (associated with Johns Hopkins) a thorough “executive health screening” will run you around $880. An entrée at a nice restaurant in Panama City ranges from $8 to $15. A beer in a country side watering hole can be found as cheap as $.50. And unlike other offshore retirement destinations, Panama boasts great selections and prices on imported electronics, furnishings and other consumables thanks to low taxes and The Canal.
No doubt those same expats who were grumbling about life in Costa Rica nearly a decade ago are now in a local cantina somewhere in Panama voicing similar concerns. Sadly, a secret this good doesn’t stay a secret very long.
About the Author
Casey Halloran is co-owner of a travel and real estate company in Costa Rica and in Panama.
Photo credit: Kathie M Ceballos L via Visual Hunt / CC BY-NC-ND
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