Land-Reclamation Creates Panama’s Second Artificial Island

The Dutch Prime Minister Mark Rutte placed the foundation stone for a second artificial island set to provide high-end housing for Panama City’s rapidly expanding population.

The two artificial islands, located off the coast of the Punta Pacifica coastal residential area, are being developed by Dutch firm Royal Boskalis Westminster to meet rising demand for luxury homes.  Panama is experiencing rapid economic growth, buoyed by a booming financial sector and its population increasing in affluence and size at equal pace.

The second Boskalis island is to be constructed on nine hectares of land, created by laying 600,000m3 of rock to form a perimeter and filling with 1.3 million m3 of sand.  Boskalis are specialists in land-reclamation projects and have an extensive presence in the Netherlands.

Boskalis will use barges and tugboats to transport the rock to the site and excavators and a clamshell to install the perimeter ready to fill with sand from a large trailing suction dredger.

In a press release, the developer comments:  ‘Boskalis’ strategy is aimed at benefitting from key macro-economic factors which drive worldwide demand in our markets:  expansion of the global economy, increasing energy consumption, global population growth and the challenges presented by climate change.  This land reclamation project is driven by the necessity to create land to accommodate population growth in a densely populated region.’�

Panama is enjoying a significant increase in visitor numbers as more international travellers become aware of this beautiful tropical haven.  With everything in the tiny country that could possibly appeal to both business and leisure tourists alike, there are plenty of bargains to be had in its real estate market with excellent rental yield opportunities.

Panama also remains the number one destination for American retirees and is well-known for the benefits it extends its foreign residents.  More and more pensioners are looking at rental opportunities rather than purchase in the Central American country’s property market, creating another layer of demand for those invested in its real estate.