Will Prices Jump 50% in Sleepy Volcan, Too?

Enjoy the beautiful scenery and pleasant climate in Volcan.

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Wednesday, Dec. 26, 2007
Volcan, Panama

Few places rival Volcan for picture-perfect mountain scenery coupled with a low cost of living. The climate is cool (temperatures are usually 10-15 degrees Fahrenheit cooler here than in Panama City…at night, it can get as low as 60 degrees). You can get dinner for $4, breakfast for $2, or splurge at one of the good ethnic restaurants and spend $12 ($16 with wine).

Volcan does not offer the developed infrastructure and amenities of Panama City, however, or even Boquete. All the services, including satellite television and communications, are available. But outages and breaks in service are common and issues can take a full day to resolve. Local transportation is reliable, although not structured. Buses cost nickels and taxis in town are about $1. You can take a taxi all the way to the provincial capital of David, just an hour away, for $30.

Volcan residents periodically make this hour-long drive to David. There are small "mini-supers" in Volcan where you can get lots of basics, but a trip to David is a must for imported U.S. comforts. Many expats travel to David for medical appointments in the modern hospital. While in David, they may stay late or even spend the night so as to enjoy the movie theater, casinos, or night spots.

But improved infrastructure is on the horizon. A new road called the Ruta Sur (south route) that will link Volcan to Boquete is slowly but surely being completed. Some worry that greater accessibility will ruin Volcan's small-town feel, while others are looking forward to the increased convenience and accessibility the road will bring.

Almost all agree the road will help property appreciation. Plus, Boquete is one of Panama’s top retirement destinations and has a booming real estate industry. Houses that cost less than $100,000 five years ago are now selling 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.

For now, prices in the center of Volcan start at $10 to $20 per square meter--that's 92 cents to $1.86 per square foot. Compared with prices in nearby Boquete, which start from $50 per square meter (about $4.65 per square foot), Volcan's prices are a steal...but not for long.

One wooden house is blocks away from the town center. The lot is 15,370 square feet and the asking price is $62,000. The three-bedroom home is slightly shabby and could do with some fixing up. A better-maintained three-bedroom, two-bath house is for sale by its elderly owner. The home sits on a half-acre lot and is on offer for $145,000.

Lots for sale are plentiful in Volcan. A 12,916-square-foot lot in town is priced $22,500. In the Cuesta la Piedra neighborhood, a (nearly) 2-acre lot is going for $80,000. Another finca boasts natural freshwater springs, a nearby creek, and over 50 acres for $630,000...perfect for a hotel or small residential development.

Jessica Ramesch
The Panama Insider, International Living

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