The Panama real estate market
The boom years for Panama real estate saw hundreds of real estate developments launch across the country. Nowhere more than in Panama City - the country's vibrant capital city and financial hub. The market in overseas properties slowed considerably during the financial crisis, but all signs indicate that the market is coming back strongly.
Now may be the perfect time to pick up some real estate bargains. Here are the reasons why:
It’s a buyer’s market. Buyers are firmly in the driving seat and have more negotiating power than they have had in years. During the run up to 2008, developers held very firm on their prices and it was hard to get discounts. Times have changed. It's a new market in Panama and owners are now going to great lengths to woo buyers with discounts, incentives, financing deals, 'founders' programs and so on.
Resale opportunities are plentiful, especially in Panama City. There are literally hundreds of buyers holding purchase contracts on pre-construction condos in Panama City. Many of these buyers planned on financing their purchases in the US or Panama. Some may no longer be able to. Others will have seen their wealth reduce drastically or their priorities shift. The upshot of the recent upheavals is that many are looking for a way out. If you search hard enough, you may be able to get in at 30-50% below 2008 prices.
The economy is sound, the President is well respected in investment circles and major infrastructure projects (including the expansion of the canal) are underway. Panama's GDP growth rate is well above its regional neighbors. In fact check any economic indicator and compare it with other Central America countries and you'll find Panama is sitting very comfortably.
So what's the next step? Book a plane ticket and visit. Link up with the best local real estate agents, explain your needs carefully and set up some property viewings. But don't spend all your time searching for real estate. Spend some of the time having a vacation, try and meet the locals and check out the top attractions. That way you'll really get a feel for the place and be able to decide if you want to get into the property market.
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