| Investment in real estate in Panama will benefit from | | | | are also some excellent deals in the city and in the |
| Panama’s strong economic growth. Both the World | | | | central highlands and on the coasts. Here is where you |
| Bank and the United Nation’s Economic | | | | need the services of a bilingual realtor who does |
| Commission for Latin America and the Caribbean | | | | business throughout the country, ABPanama. |
| predict that Panama will not only weather the current | | | | |
| economic crisis better than almost all other Latin | | | | The middle range of the market has not taken much |
| American nations but that its economy will grow in | | | | of a hit because it is populated by locals. Panama’s |
| 2009. | | | | economic stability keeps folks working here and paying |
| | | | | their mortgages. |
| Panama Real Estate in the Current Crisis | | | | |
| | | | | The commercial real estate market might be thought |
| As we have stated in our February real estate update, | | | | of as being in two parts also. The bank area in |
| “The world economic crisis has of course affected | | | | Panama City and areas that rent to multinational |
| Panama. The biggest affect we are seeing is that | | | | corporations are doing well as the banks here are |
| there are an increasing number of buyers (especially | | | | stable and multinationals are still moving to Panama. |
| speculators) who can no longer close on | | | | |
| pre-construction properties due to their personal | | | | Panama’s small business community is doing well. |
| situation. Generally, they have a 30% deposit already | | | | Rentals to this group are doing well and a source of |
| paid, so they are keen to recoup all or some of their | | | | income for a wise investor. |
| deposits if nothing else. Many of the buildings coming | | | | |
| online now have almost doubled in price, resulting is | | | | Investment in commercial real estate is best done on |
| some very good deals from people who are unable to | | | | more of a case by case basis than the current |
| close. This is particularly true of the high end condo | | | | residential real estate situation. |
| buildings in Panama City, especially around the Bay.” | | | | |
| | | | | The Future of Panama Real Estate |
| Where the Deals are in Real Estate in Panama | | | | |
| | | | | Going back to the beginning Panama is doing well |
| Real estate may be location, location, location but not | | | | despite the recession. Panama will see a dip in its |
| all Panama real estate is the same. | | | | growth rate this year down to what normal countries |
| | | | | see during good times. Panama growth and growth in |
| Real estate in Panama City, especially large condo | | | | the Panama real estate market can be expected to |
| projects, is where much of the speculation occurred | | | | return to a “Panama normal rate” of 9 percent |
| and where there are “distressed” properties | | | | in a year or so. |
| available. This is where the scenario we describe | | | | |
| above occurred. If you are looking for a bargain on a | | | | Investment now in Panama real estate will produce a |
| condo on the Bay of Panama this is the year. | | | | nice appreciation in the next year or so and over the |
| | | | | years to come. If you are interested in Panama real |
| High end individual properties throughout Panama have | | | | estate come to see us at ABPanama. We have over |
| been affected by the economic crisis because there | | | | 23 years experience managing real estate portfolios. |
| are fewer North American buyers right now so there | | | | |