Mantra in Punta Pacifica: project review for investors and future residents

Mantra and the Punta Pacifica district

This article introduces one of the currently most elite and well-located projects in our portfolio: Mantra. Through projects like Mantra, Panama once again demonstrates to be a clear example of convenient and cost-effective real estate opportunities in Central America. 

The project will be in Punta Pacífica, a waterfront district in Panama City, mostly residential and fancy-living-focused, with prestigious clinics, a marina, and the vibrant feel that glassy skyscrapers bring to any urban environment. With studios, 1-bedroom, and lock-off options, some of Mantra’s units are eligible for obtaining permanent residency in Panama through Qualified Investor. Also, their outstanding location makes the units ideal for short-term rental activities, especially in the medical tourism industry. 

Key facts about Mantra, Panama

• Premium location in one of Panama's elite neighborhoods, Punta Pacifica
• Partial ocean view, ocean view, and city view
• Units range from 157,000 to 440,000, making it eligible for Qualified Investor
• 1-bedroom, studios, and lock-offs (2 bedrooms) available 
• State-of-the-art clinics nearby make it ideal to leverage the medical tourism sector
• Short-term rental license in place

Exact location and what is within walking distance

Surrounded by high-end real estate, Mantra is 10 minutes from the city center, 35 minutes from El Dorado, a bustling commercial center, and 25 minutes from the Aeropuerto Internacional de Tocumen (Tocumen International Airport) Via Corredor Sur. On the same block, there is an organic product store, a yoga center, the Pacific Center, the Marriott Residence Inn, and the Pacific Theater. Right across the street, there’s the prestigious Panama Clinic, one of the best medical centers in the city. 

Within walking distance, you'll find Club Union, and Pacífica Salud, a Johns Hopkins-affiliated clinic, and the ever-popular Multiplaza mall (Panama’s most high-end mall) is 10 minutes by car. In Multiplaza, there are international restaurants, plenty of entertainment options and stores on par with Tiffany’s, Louis Vuitton, and Chanel.

Why Punta Pacifica commands a premium within Panama City

Punta Pacifica is characterized by impressive skyscrapers and reflects the most elite side of Panama City, a feature that is reinforced by the above-mentioned marina and its ocean-front restaurants.

Since it's home to two important clinics, Pacifica Salud and Panama Clinic, it is an excellent medical tourism destination for those whose primary goal is obtaining rental yield.

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Who the format suits: investor, resident, relocating family

Investors can benefit from the short-term rental market in the area, this being a popular zone for foreigners who come for medical treatment. Across the street from Panama Clinic, guests couldn’t be better located.

The interior is designed with comfort as main priority and with a luxury feel so that their stay is most pleasant, and the sizes are ideal: studios, one-bedroom units, or lock-off (apartment plus studio. The latter is ideal to accommodate more guests or to use a combination so that the owner can use and rent at the same time. 

Lastly, the investor can rest assured that he is entering into a foreign-friendly framework in which overseas investors hold property title, i.e., freehold ownership.

About the development 

Floor plans, sizes and price per square meter

The typical floor plan is composed of 11 apartments, with the largest ones being the corner 1-bedroom units. The row from apartment C to H has ocean views and city views, while apartments H and I have full ocean view; the other frontages have either full city views or a lateral ocean view plus city views. To sum up, most of the units have sea views, even if partially.

Apartment distribution and sizes in Mantra, Panama:

• Apartment type D – 68.17–75.12 m2 – 1 bedroom 
• Apartment type I – 68.17–75.12 m2 – 1 bedroom 
• Apartment type J – 68.17–75.12 m2 – 1 bedroom 
• Apartment type C - 45.01 m2 – 1 bedroom 
• Apartment type G F - 48.27 m2 – 1 bedroom 
• Apartment type F - 48.27 m2 – 1 bedroom 
• Apartment type A - 24.46–31.73 m2 – studio 
• Apartment type B - 24.46–31.73 m2 – studio 
• Apartment type E - 24.46–31.73 m2 – studio 
• Apartment type H - 24.46–31.73 m2 – studio 
• Apartment type K - 24.46–31.73 m2 - studio 
• Apartment type L - 24.46–31.73 m2 - studio 

Building amenities and service level

One of the best things about buying real estate in projects like Mantra is that it comes with a short-term rental license. This means it's designed and built under the most demanding standards and has world-class amenities. This is not only an investment advantage, but also allows the owner or the family to access a supreme resort-like lifestyle whenever they want.

Editor’s note: Buyers who want to apply for the Qualified Investor Visa must pay the lump sum of USD300,000, which is the minimum investment required for the said visa. If the unit is more expensive, they can pay the remainder through a bank loan or a developer's financing plan. 

Residents can exercise at the gym without leaving the complex, practice yoga at the lovely open studio, and visit the spa for a full relaxing session. The yoga studio has a harmonious feel, with ample windows and a full sensation of well-being, while other rooms are just as tasteful and designed for every occasion: the movie room, the residence lounge with a pool table, the outdoor kitchen, the poolside lounge, and the co-working space.

Lastly, the Infinity pool with coastal views and the rooftop bar are ideal for spending an afternoon of leisure in a tropical climate. 

Mantra (Panama) amenities:

• Outdoor yoga studio for optimal experience and balance of the mind and the body
• Fitness center with Pilates for more active exercise 
• Luxury spa
• Valet parking
• Infinity pool with coastal view
• Rooftop restaurant and bar
• Movie room, elegant, velvety upholstery, intimate atmosphere 
• Wellness Center
• Co-working space for networking and remote work
• Residence lounge for social gatherings and community connection 
• Poolside lounge for social gatherings and community connection

Analyzing the numbers: The economics of buying

Payment schedule: deposit, construction-stage installments, balance at handover

The possibility of buying during the pre-construction stage makes high-premium real estate available for a lower price. In Mantra, Panama, and through the Qualified Investor Visa, they can also obtain permanent residency.

Units can be held with a USD5000 deposit (USD10,000 if it's a lock-off option), which will be valid for 10 days after which the reservation will be lost, and the apartment will again become available.

The payment schedule is as follows: At the moment of signing the sales purchase contract, the buyer deposits 10% of the property value minus the USD 5,000 from the reservation.

These steps can be covered remotely through a power of attorney and through different payment methods, from international wires to credit cards. Most of the usual payment methods are accepted except for international checks. 

Once construction starts, buyers have to pay another 10%, then 10% more six months after construction begins, and 5% more after 12 months. The final payment is made one year before delivery, which is planned for 2027.

Developer financing is available at the market interest rate plus 1%, except that, unlike a bank, the developer doesn't charge you fines for early payments.

Annual ownership costs: maintenance, property tax, utilities, insurance

In Panama, all residents pay property tax whether it is a primary residence or a secondary residence, with thresholds and percentages varying in each case. To stipulate an estimate, we can see that the primary properties are exempted up to a USD120,000 value. On the other hand, for secondary residences the exemption is only up to a USD30,000 value. 

If the apartments acquired in Mantra, Panama, are the investor's secondary residence, then the second layer applies. Properties up to a value of USD250,000 are taxed at 0.6% a year, from USD250,000 to USD500,000, tax at 0.8%, and from USD500,000 and up, they pay 1%. Given the prices in Mantra, the owner can expect to pay either of the middle tiers (0.6% or 0.8% of the total value).

Annual cost of ownership

From the table above, we can infer how prices are relatively accessible, especially when compared to large capitals and cities like New York, London, Sydney, or Paris. Even paying the rental management fee, renting out the units in Mantra not only brings returns but it helps cover the monthly installments of the payment schedule. 

Mantra, Panama, and the Qualified Investor Visa

Whether the asset meets the threshold and documentation requirements

According to Executive Decree No. 193, the main requirements for Qualified Investor are complying with the minimum investment threshold of USD 300,000, and that the funds come from abroad and from legal sources. Therefore, any of the Mantra units within that price range qualify.

Structuring the purchase so the immigration file holds up

When combining real estate with Panama’s investor visa, acquiring pre-construction development is allowed as well as buying through banking loans and developer’s financing. As long as the lump sum of $300,000 is paid, the remainder can be covered through financing. When applying through a pre-construction deal, the law requires submitting the signed trust agreement for the said deal.

Qualified Investor Visa Eligibility 

*Prices are estimated and are provided for a general overview. Units may become unavailable and prices can be outdated at the time of reading and must be confirmed during a formal consultation.

How the construction stage affects the timing of an application

The good news is that the construction evolvement doesn't affect the Qualified Investor development. Presenting a trust contract is proof enough. The most important thing is that the applicant proves having made the required investment using money from abroad.

What can delay a residency application is waiting for the Registro Público de Panama (Panama’s entity that keeps records of legal ownership of property), Panama’s Public Registry, to issue the certificate. Nevertheless, this only applies to ready-made apartments, not construction projects.

It’s worth noting that, after approval, the resident will have to present the trust contract each year to prove that the investment is still viable and that the construction is following due course. Upon completion of the building, the apartments are registered, and the owner can obtain a certificate of ownership at the Panama Public Registry.

Disclaimer: The material provided in this article is published for general information only and does not constitute legal, tax, or investment advice. Prices for floor plans and payment terms described in this article may be outdated at the time of reading, and must be confirmed in a formal consultation.

How the engagement works: Why Buy Real Estate, through Mundo

Mundo is a company dedicated to providing financial, corporate banking, and migration services to clients from different backgrounds. Within our team, there's a consolidated group of real estate experts who have ample knowledge of Mantra and many other properties available for sale both in Panama City and the provinces. 

We are master brokers for the Mercan group projects and work only with trusted developers who have a proven track record and a solid history. Get in touch and find out what kind of apartment awaits you in Panama City.

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