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