Panama's New Real Estate Boom

-- End Ad Box --->The Panama Canal recorded its third consecutive year
DONALD TRUMP can't be wrong, can he? Trump hasof double-digit growth in toll revenues. Tourism and
fallen so much in love with Panama that he is building afinancial services also made impressive growth gains.
$220 Million, 65 story (2.4 Million square foot) hotelAmericans came back to Panama because of the
condo monoliths called the Trump Ocean Clubexcellent infrastructure built by the Americans, low
International Hotel & Tower in a posh Panama Citycrime, numerous English-speaking natives, great
neighborhood. Trump will build 500 luxury condominiumImmigration Visa programs; the currency has always
units along with a 312-room hotel. This complex willbeen the U.S. Dollar, and great Tax incentives.
include a casino, private beach club and a marina.The Best Reason is that Panama is so cheap to live!
Groundbreaking is scheduled around this ChristmasLand, housing, local foods, transportation, leather goods,
with a completion date in 2009.clothing, and local artisan wares are all far cheaper
Why is Trump doing this in Panama of all places? In anthan anywhere in North America or Europe.
April 24, 2006 press conference in New York, DonaldDon't Take My Word for it. Read what leading experts
Trump said his interest in Panama was sparked threehave to say about Panama's real estate opportunities.
years ago when his "Miss Universe" pageant was heldThe NY Times recently wrote: "Panama is increasingly
in Panama. He saw that Panama city was "beautiful"lighting up the radar screens of those searching for an
and vowed he would develop there if the rightaffordable alternative to the more traditional
opportunity came up. His project was "easily funded",south-of-the-border retreats in Mexico, Costa Rica and
noting that as many as seven "major financialthe Caribbean, where escalating prices increasingly
institutions were fighting to put up money." He agreedrival those along America's own beach fronts."
that "Americans are coming in droves to Panama," dueForbes Magazine (July 11, 2005) praised Panama as a
to it's political stability, low cost of living, low interestrecommended "PARADISE FOUND: WHERE TO
rates, and being located outside of any hurricane path.RETIRE ABROAD" where a U.S. couple "purchased a
"It's great for baby boomers." Trump said, although thelot on a hill overlooking a golf course and have built a
project will be marketed worldwide. The condominiumthree-bedroom white-stucco house with a red-tile roof
units will start at $180,000 with unobstructed ocean(total cost: about $250,000)." in Boquete. "You can hear
views.the sound of rivers here," says Janet. "It's very
Panama is just beginning to realize a real estate boom!peaceful."
Besides Trump, many international real estateNational Association of Realtors: Tom Stevens, who is
investors are also discovering Panama.their current President, recently visited Panama and
For example:explained: "We're seriously thinking of investing here. It's
Bigger Than Trump: An even taller skyscraper will bea great opportunity. Prices are what it was like in the
built near Trump's Tower. The Ice Tower will haveU.S. 20 to 25 years ago."
over 100 floors making it the tallest building in all of LatinThe London Financial Times wrote in its April 14, 2005
America, tied with the Empire State Building as theissue that Panama is now passing Costa Rica as the
second-tallest in the Western hemisphere and 9th inplace to invest. "Like Costa Rica, Panama is loaded
the world when it is completed in 2010.with exquisite beach towns, has inviting tax and
And Another! Even before Trump's Tower and Theownership policies for foreigners and a long history of
Ice Tower are completed, another skyscraper (93political stability. Moreover, Panama City is an urbane,
floors) called El Palacio de la Bahia will be completed insafe city that has long had a military and civilian US
2009 costing over $160 Million. They've already soldpresence because of the canal. A gated-community,
several dozen condos mostly to Europeans becausethree-bedroom luxury home on a golf course in the
this is a totally European investor project.mountains can be had for $250,000 to $350,000, real
I asked a Panama City real estate brokerage owner,estate experts say... Chuck Bedsole, who oversees
Daniel Hanna (Panama Real Estate Group what heLatin American real estate for
thought about how the Ice Tower and Trump's OceanPriceWaterhouseCoopers, thinks Panama is at an
Club will affect Panama's Real Estate prices? Hisearlier stage in the real estate boom."
response echoes most real estate agents in Panama:Conde Nast Traveler's October 2004 issue declared:
"As Panama continues to grow in many different"Panama is the new Central American bargain where
industries, these projects will definitely set a newthe U.S. dollar - the market currency - goes a long
standard of living in Panama, thus increasing the pricesway."
around the entire country."Is it Safe to Buy real estate in Panama? Buying Real
So, why are all of these real estate investors comingEstate in Panama is safe and secure for foreigners.
to Panama?The U.S. State Dept. verifies this by stating: "Titled land,
A little History will help explain these phenomena.and the process of buying this, is similar in concept to
Panama has always had a close relationship with thethat of the U.S., and land deeds are duly recorded with
United States, which helped Panama to secede fromthe Public Registry..."
Colombia in 1903 and was the first country toHow Long Will this Boom Last? It's just starting. Donald
recognize the new Republic of Panama. The U.S.Trump hasn't even broken ground yet.
government built the Panama Canal starting in 1904.Daniel Hanna, the Panama City real estate broker,
Only until the year 2000 did Panama actually takereiterates: "Invest in Panama real estate now before
control of its Canal after the U.S. closed all of itsthe Towers are completed. Panama will become a hot
military bases and left. People used to jokingly refer toreal estate market because it has so many attractions
Panama as the "United States of Panama" due to itsthan just real estate construction. Soon, the world will
close ties to the U.S. After the U.S. left, Panama'sknow Panama for its natural beauty, healthy climates,
economy slumped. Then American retireesand charismatic people. Living in this beautiful country is
re-discovered Panama as a peaceful, safe, and cheapjust a benefit!"
place to retire.The National Geographic Traveler predicted in
Economical Growth: In 2004, real estate constructionDecember of 2004: "Panama is now where Costa
activity sprang up in different parts of the country.Rica was 10 years ago. Panama is getting ready to
Mostly retirement communities nestled amongst theexplode."
many beautiful unoccupied beaches and mountain"Boom" I can hear the distant rumbling of a Big Boom
valleys. In 2005, construction permits rose by 90%yet to come!
while Panama's economy grew by a respectful 6.4%.