The world is becoming increasingly aware that Panama is an exciting new emerging real estate market. More and more publications are starting to dedicate column inches Panama and the phenomenal returns to be had in the real estate market.
Located in Central America, bordering both the Caribbean Sea and the North Pacific Ocean, between Colombia and Costa Rica Panama is the land bridging the North American and South American continents.
Panama City is one of the top three metropolitan cities of the world where a good standard of life is still affordable. It has world-class restaurants and casinos, five star hotels, international banks and hundreds of multinational businesses. Luxury ocean front condos with roof top swimming pools, health centres and 24 hour concierge start around $200,000 where a similar property in Miami, which is only a 2 hours flight away, would cost upwards of $800,000.
Investments in Panama
Business opportunities and investments in Panama are increasing as the potential for lucrative returns are starting to be appreciated. Panama has always stood apart from Central and Southern America, with its dollar based economy and stable political situation, sustained by its Canal, Free Trade Zone, and international banking. Many Fortune 500 companies are based in Panama City and with over 140 banks, the city is fast becoming an important financial centre. Panama has a positive 1.4% GDP and low inflation. All these factors together with the government initiative in the tourism sector are encouraging all types of investment in Panama.
For the first time in 2003, tourism was a larger revenue earner than the Canal and the Free Trade Zone. Panama is expecting it's millionth tourist this year and the number of cruise ships is increasing. The growth in tourism leads to increasing investor interest in this sector and there are incredible opportunities for tourist related services and accommodation, all encouraged by government incentives in a number of designated areas, called Special Tourism Zones.
The dream of owning a second home, retiring or making an investment in a tropical paradise can become a reality in Panama. Whatever your preference there is a something for everyone.
There are currently some excellent real estate investment opportunities with Panama City currently offering the best property investment opportunities. However development isn't only limited to the city, there are now new beach and tourist resorts developing which are also offering great capital appreciation with the prospects of good rental yields. The Panamanian government is offering incentives on new construction and property for the tourism industry.
However, there are other factors that are also stimulating real estate investment in Panama. During the past several years Panama has been consistently rated in the top ten for the best retirement locations worldwide. A welcoming community, safe environment, low crime statistics, excellent incentives for retirees, together with the natural beauty and ethnic diversity that is Panama, all appeal to the increasing number of retirees from North America and Europe who are looking for a different option for retirement. Panama fits their requirements. Retirement in Panama is definitely fuelling increased interest in real estate in Panama.
Real Estate Investment in Panama
Panama currently offers some of the best real estate at affordable prices but prices are rising as demand is increasing. Tax incentives and a government that encourages investment contribute to a propitious business climate. The arrival of large multinational corporations and business is producing a high demand for quality rental property fuelled by investors from other Latin American countries who see the potential and understand the market place.
With Donald Trump announcing his Trump Ocean Club and International Hotel, with 300 hotel rooms, 500 apartments, casino, private beach and yacht club and other big names announcing plans for major developments in Panama, the prospects of large rewards to early investors is looking very encouraging.
Why Real Estate in Panama is a good investment
Direct foreign investment into Panama for the 5 years ended 2001 was approximately $3.5 billion.
Low inflation.
New free trade agreement signed with the US.
Excellent tax benefits.
Banking secrecy laws strictly enforced.
Established offshore banking facilities.
Favourable incorporation laws.
Large bi-lingual labour force.
Equal treatment of foreigners and local citizens.
Stable political system.
No restrictions on foreigners owning property.
80% long term mortgages readily available from Panamanian banks.
Property taxes for newly constructed homes have been exonerated for 15-20 years - this applies only to qualifying developments.
Poised for tremendous growth over the next decade.
Excellent infrastructure.
Growing demand for quality rental property.
Tourism now becoming the biggest earner for Panama.
Huge potential for capital growth.
Easy access with frequent flights from the five main hubs of the US.
With real estate prices start at such a low base and now beginning to rise, you also have an opportunity to make a considerable return on your investment if you buy now.
General Facts on Panama Real Estate
Located in Central America, bordering both the Caribbean Sea and the North Pacific Ocean, between Colombia and Costa Rica.
Area is slightly smaller than Scotland.
Strategic location, land bridge connects North and South America; controls Panama Canal that links North Atlantic Ocean via Caribbean Sea with North Pacific Ocean.
Population ~ 3,030,000.
Religion: 85% Roman Catholic, 15% Protestant.
Spanish is the official language although English widely spoken in most places.The currency is the "Balboa" and is fixed to the U.S. Dollar in value, however more often than not the U.S. Dollar is used.
Panama enjoys one of the most agreeable tropical climates with average temperatures in the high 20's during the day and low 20's at night.
With real estate prices beginning to rise, you have an opportunity to make a considerable return on your investment if you buy now.
Please contact us if you wish to receive further information about purchasing an investment property in Panama or wish to attend our next information seminar.
