A few weeks ago, ground was broken on one of Panama’s most ambitious residential projects to date. But unlike much of the new luxury construction in the city, this project is decidedly different. City of Hope will be classified as affordable housing; something that new Panamanian development is sorely lacking. Known as “Ciudad de Esperanza” in Spanish, the project will be built as a mass-scale affordable housing community in one of the city’s most underdeveloped, but densely populated areas known as Vista Alegre, in the area of Arraiján. This area, despite being largely ignored by property developers in the past, has a strategic location near the west bank of the Canal, and serves as a residential community for many of Panama City’s commuting workforce.
What “City of Hope” plans to add, and contribute to Panama’s western suburbs
The City of Hope development will house just over 11,000 people in condominium-style apartments with five levels to each building, and two apartment model types. There will be 2,250 individual housing units spread over 36 hectares of land. But the City of Hope project goes far beyond just affordable housing. The project will also include two schools, a community center, sports complex, and new roads connecting to the outside area, essentially creating a more agreeable, productive space for Arraijan residents who are in need of it.
Creating a model for Panama as a whole
The idea, which has the sponsorship and backing from President Juan Carlos Varela, is to help transform Panama’s western suburbs into a self-sufficient, safe community for families who can’t afford to live in the city center. And while this isn’t a new idea necessarily, it’s the first project of its kind at this large of a scale. Ultimately, the president hopes this can serve as a model for similar future projects in other parts of Panama.
Why affordable housing and sustainable communities are critical to Panama’s growth
Real estate in Panama has been a major growth sector over the past ten years, and Panama has been building new properties and projects at an almost unprecedented rate. The problem is, most of these new properties have been built to fill a luxury demand, both in the residential and commercial sector. The results have been mixed. While Panama has been able to grow its overall real estate value in the capital, the new luxury growth has driven up prices for middle class and low-income wage earners. And that can have serious consequences down the road when it comes to sustainable economic development.
Transforming neglected economies through opportunity and quality of life upgrades
City of Hope is in a way, an experiment to see how transformative a quality affordable housing community can be. And it didn’t come cheap. Cost estimates for the development are around $137 million, meaning that it’s a sizeable investment for the developers. But the ancillary benefits of building a vibrant economic community in Arraijan and its surroundings are immeasurable. And that’s what City of Hope’s backers are banking on the most.
If there is an economically sustainable community in Panama’s western suburbs, the hopes are that it will draw more investors and people to start a business in Panama. This will help diversify the economy, drive future investment into the area, and give more jobs to locals. Currently, with the volume of commuters coming from the western suburbs into the city, your average Arraijan worker spends about 15 hours per week just traveling to work. This is a serious problem for productivity and quality of life, and one that City of Hope plans to alleviate.
With the ground just broken on the massive project, there will still be a significant wait before we see any measurable results. But by all means, like the name says, the project has already inspired hope for people in the community, and that in itself holds great value.
