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5 European Investment Reasons for Panama |
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Written by Matt Landau
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Sunday, 23 March 2008 |
With various crises in the US
set to stifle the Panama
real estate boom, Europeans are holding up the proverbial rear, crowding real
estate offices around the country with their Capri pants, Spanish dictionaries,
and crusty loaves of bread.
I remember vividly a time when real estate in Europe was hot. I was studying economics in Madrid and my professor,
a young German guy named Knut, described houses and condos as amazing like toilet paper. But since
then, many of those great investments have disappeared like an elephant in a
Houdini act, and today, Europe's investors are looking to Panama for
answers.
1.
A strong currency: With the Euro
recently flirting around record highs against the US dollar, Europeans are
clearly more inclined to invest abroad. Using online agencies and a
plethora of international banks, investing in Panama is even being done from
the luxury of home, with several PR firms and satellite companies opening
up shop in several major European cities.
2.
The descent of traditional tax havens:
Places like Lichtenstein and Luxemburg, once notable tax havens in Europe are now under fire and with the EU demanding
bank secrecy laws to be changed concerning tax evasion, residents are
looking desperately for new, safe locales to position their money. Panama, as
an offshore refuge, shows up as a gleaming blip on these radars.
3.
The softening of European real estate
markets: Once-booming investment markets, specifically in Eastern Europe have now leveled off, to the point
that in some cases, real estate earns less than a bank deposit. A region,
not but five years ago, deemed to be one of the hottest real estate
prospects in the world, is now overheated; these investors are looking for
a new spot on the map to get in early, and are turning to Panama.
4.
Familiarity: While rural regions
like Las Tablas (Los Santos) may not have too many similarities to your
everyday village in Brugge, certain coastal areas do have a tendency to
remind Europeans of home. And when it comes to city living, many flock to
Casco Viejo where open plazas and Spanish/French architecture seem to echo
the Europe of yesterday; before prices
rose through the roof. Whereas living in the center of the old city might
not be financially viable any more in Europe,
Casco contrastingly provides these investors with tremendous upside.
5.
Increased direct flights: With KLM
soon to be offering their new services and IPAT encouraging the tapping of
such niche European markets, more and more direct flights into Tocumen Airport are destined to be
announced in the near future. This means one, sometimes several less legs
on the journey that so many Europeans are already making to the Republic.
When I first moved to Europe, it was pouring outside so I
bought a pint of beer in a London
pub for $11. Bad weather and high costs of living are also reasons that countries
like England
have seen more people leaving than ever before. Citizens are simply looking
elsewhere for a cheaper real estate and a more affordable standard of living.
While one might assume this European interest is limited to
the investments mentioned above, that is not the case. Pre-construction condo
sales in Panama City
are seeing a revival thanks to Europeans, webmasters are registering increased web
traffic from European soil, and tourism businesses are booked thanks to
European travel agencies reservations for large groups. And while some may have
predicted this influx, I doubt anyone would have expected it this heavy and this
soon.
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Last Updated ( Sunday, 23 March 2008 )
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