Investment in Panama Real Estate

Foreign investment in Panama as a percentage ofthe United Nation's Economic Committee for Latin
Gross National Product continues to top other LatinAmerica and the Caribbean (ECLAC).
American countries. La Prensa, quotes figures from"The $1.8 billion USD Panama received in foreign
the United Nations' Economic Committee for Latininvestment in 2007 represents 10.5 percent of the
America and the Caribbean in a May 5, 2008 article.country's GDP. That figure puts Panama ahead of
The country does well for a small country in foreignsuch countries as Brazil, Mexico and Chile, although
investment. This high level of foreign investment is anthose [larger] nations lead the rankings in absolute
indication of Panama's economy and growth potential.terms.
Potential real estate investors can take notice of the"The important thing is to see where that investment is
continuing growth and development.going. If it's in new businesses, it's going to generate
Panama is a tropical country of 3.3 million connectingmore work and greater use of our natural resources,
North and South America. Panama has a uniquewhich is good news," said Rolando Gordon, a
combination of untouched natural resources and aprofessor on the economics faculty at the Universidad
developed infrastructure. It is in the midst of ande Panama. "We need a transfer of technology, which
economic boom. As the site of the Panama Canal, thecreates jobs and makes use of national inputs for
isthmus sits astride a major world trade route.production," Gordon added. If those elements are in
Panama's strong service sector includes the operationplace, they "support the economic development of the
of the Canal, many international and local banks, thecountry."
Colon Free Zone, a strong insurance industry, containerPanamanian Real Estate Investment
ports, flagship registry, and tourism.Investment in Panama real estate, especially
Panama Real Estatecommercial property, has paid handsome returns over
Over the last ten years a flood of North American'sthe last ten years. With financial difficulties throughout
has come to Panama to visit, buy second homes, andthe world Panama remains a growth opportunity. The
or retire. The low cost of real estate in Panama asbanking community is Panama has and remains fairly
well as Panama's mature service sector, andconservative so there is no "sub prime" crisis in this
Panama's great natural beauty have attractedrepublic.
property buyers and investors. Panama's easyIn addition, Panama's thriving economy is not upon
residency requirements have encouraged many to liveNorth American retirees. A much large portion of the
in Panama full time.housing boom is based upon Panama's increasing
The large number of North Americans, wealthy byprosperity and a farsighted government approach of
Panamanian standards, has helped fuel Panama'ssubsidizing low cost mortgages getting more and more
housing boom, including the many high rises that line thePanamanians into their own homes.
Bay of Panama in Panama City. For those interestedCommercial real estate is especially attractive as
in investing in Panama, especially real estate, a look atcommercial property does not have rent controls such
foreign investment figures is encouraging.as low cost apartments do. Also, commercial real
A May 5, 2008 article in La Prensa, Panama, statesestate ties more closely into Panama's thriving
that, "Foreign investment as percentage of GDP [ineconomy than does the "retirement" housing market.
Panama] is high. For the second consecutive year,Panama's ranking in foreign investment is a good clue
Panama ranked first in foreign investment in Latinthat the country will continue to grow and that real
America in relation to its gross domestic productestate investment will continue to prosper.
(GDP), according to a report published yesterday by