Real Estate in Panama
Real Estate in Panama: the Pearl of Latin
America
21-feb-2013
This city of Central America has become in recent years in a large Centre of attraction for foreigners, mainly for investors seeking new investment alternatives in developing countries.
This has been reflected in a major real estate development and the evolution of the prices of real estate, mainly since 2005.
Now well since 2009 this market changed the trend of prices until you find some stability in the last two years. Some
factors suggest it may be time to enter again for this market.
Growth period
To analyse developments in the sector, real estate prices are used as a reference in the area of the Av.
Balboa, one of the most important in the city.
Shown that in 2005 the price per square meter was about $800, while mid-2008 the average exceeded the $2500, where some properties came
to 3000 dollars per square meter. The following are several favorable characteristics that accompanied this development:
• High liquidity in global financial
markets.
• Average annual growth of the GDP of
Panama of 9%.
• Reducing the rate of unemployment in
half (5%).
• Stable interest rates
(8.5%).
• Controlled inflation (4%).
• Great revenue stream by tolls for the
country by using the channel.
• Substantial investments in
infrastructure.
• A new Government with a progressive
profile.
• Explosive growth of
tourism.
• Important tax benefits for foreign
investors.
• Easy to assemble offshore structures to
protect assets.
• Important financial center: more than
80 major banks around the world were established in the city.
Change of trend
In the last quarter of 2008 the global financial crisis and its aftermath had an impact on the real estate
market in the country. Prices first entered a plateau and then presented a change in trend, declining to an average of $2,000 per square
meter by the end of 2011. Last year 2012 prices have remained stable in those values in a market in which the main feature has been the
incorporation of 30% of supply in this sector, due to the completion of major projects.
Do you wait for the next years?
Most of the real estate operators in the country projected a positive trend in prices in the sector for the next few
years mainly based on the following aspects:
• Strong economic projections of
Panama.
• Incorporation of new locks to the
Panama Canal in the year 2014 (higher income by tolls).
• Important infrastructure investment
programme for the city.
• Inauguration of the metro of the city
(year 2014).
• Stable sector offer.
In conclusion, the Panama City resurfaces as an interesting alternative for investors of real estate with a medium-term
horizon. More infor and updates can be seen here
America
21-feb-2013
This city of Central America has become in recent years in a large Centre of attraction for foreigners, mainly for investors seeking new investment alternatives in developing countries.
This has been reflected in a major real estate development and the evolution of the prices of real estate, mainly since 2005.
Now well since 2009 this market changed the trend of prices until you find some stability in the last two years. Some
factors suggest it may be time to enter again for this market.
Growth period
To analyse developments in the sector, real estate prices are used as a reference in the area of the Av.
Balboa, one of the most important in the city.
Shown that in 2005 the price per square meter was about $800, while mid-2008 the average exceeded the $2500, where some properties came
to 3000 dollars per square meter. The following are several favorable characteristics that accompanied this development:
• High liquidity in global financial
markets.
• Average annual growth of the GDP of
Panama of 9%.
• Reducing the rate of unemployment in
half (5%).
• Stable interest rates
(8.5%).
• Controlled inflation (4%).
• Great revenue stream by tolls for the
country by using the channel.
• Substantial investments in
infrastructure.
• A new Government with a progressive
profile.
• Explosive growth of
tourism.
• Important tax benefits for foreign
investors.
• Easy to assemble offshore structures to
protect assets.
• Important financial center: more than
80 major banks around the world were established in the city.
Change of trend
In the last quarter of 2008 the global financial crisis and its aftermath had an impact on the real estate
market in the country. Prices first entered a plateau and then presented a change in trend, declining to an average of $2,000 per square
meter by the end of 2011. Last year 2012 prices have remained stable in those values in a market in which the main feature has been the
incorporation of 30% of supply in this sector, due to the completion of major projects.
Do you wait for the next years?
Most of the real estate operators in the country projected a positive trend in prices in the sector for the next few
years mainly based on the following aspects:
• Strong economic projections of
Panama.
• Incorporation of new locks to the
Panama Canal in the year 2014 (higher income by tolls).
• Important infrastructure investment
programme for the city.
• Inauguration of the metro of the city
(year 2014).
• Stable sector offer.
In conclusion, the Panama City resurfaces as an interesting alternative for investors of real estate with a medium-term
horizon. More infor and updates can be seen here