Panama Real Estate 2009 Predictions

The global recession has without doubt hit everyone,now had been out of their reach and exclusively for
Panama is not an exception however the full impact offoreign investors. This possible surplus in condo units
the recession has not been felt hard in Panama as ofcan create a shift to lowering pricing strategies and
yet. During the Christmas shopping season, malls inmany developers may have to re-consider their pricing
Panama City are swarmed with thousands andstrategies to compete, this may bring about the
thousands of people shopping; the economy feltcancelling of several residential developments in the
vibrant, good times are still rolling. A layer below whatcity.
seems like a booming economy still in full force upThis negative spin offset by several phenomenons.
swing of the good times a breeze of the comingNew buyers coming into the market deriving from
storm can be felt as businesses begin to prepare forpolitical instability in countries like Venezuela and
what could be one of the toughest years in the lastEcuador, seeking shelter and a plan B in Panama.
decade. The highs and booming growths in the last 6- Companies coming into Panama to set up their global
years have been steep and steady so now theoperations.
pendulum will swing downward with this upward- A new wave of new-found investors coming into
impulse -Panama seeking to invest in this warm tropical
The Panama real estate market is preparing for theparadise.
shock of first wave of hundreds of new CityPanama stands out as one of the most globalized
condominiums units that will be coming into the market.countries in Latin America and a leader in attracting
Occupancy permits to be issued and the buyersforeign investment and several key projects
mostly, speculators that purchased two years agoguaranteed to be moving forward in 2009. The
with as little as 10% down are now responsible forPanama Canal expansion, the Howard- London
meeting the full impact of the remainder of their debtRegional residential and commercial development zone,
on these units. The economic outlook for most ofand the cinta costera road expansion, along with
these buyers has changed; they face a differentsustained growth in tourism, business travel,
economic reality than they expected 2 years ago.telecommunications, and other key sectors and
Now, they do not have many options and the clock iscommercial activities will serve to absorb some of the
running, their options are either to re-sell those unitseconomic impact, allowing Panama to deliver a solid
quickly at cost with little or no capital gains, or losing the3% to 4% economic growth in 2009
units back to the developer for defaulting on theI am confident that in 2009 Panama blessed with its
promise to purchase agreement.prime location, two oceans (Pacific and Atlantic
These “distressed Sellers” - and this scenariooceans), beautiful nature and landscapes, and the
are likely to be abundant in 2009. This scenario willglobalized city ideal for international business will
affect the economies of supply and demand mostlycompensate the slowdown of a few sectors,
the City condo market will shift from what has beenconstruction, real estate, transportation, and offset with
up to now a seller’s market with prices risingsmall-sustained growth in others to deliver balanced
steadily in period of months to by up to 100% withoutgrowth in 2009. Panama is still a very HOT place to
rhyme or reason to a BUYERS MARKET. This willinvest in 2009- Now more than ever with prices going
create a price adjustment that will bring another wavedown the market conditions are favorable for finding
of buyers seeking deals in Panama City. This priceExcellent DEALS & Great BUYS in oceanfront
adjustment will also allow for younger local buyers toreal estate property. Check out PANAMA properties
be able to afford the price of City condos that up tolistings at ThinkPanama.