Panama is not only booming economically, but the real estate market is following suit and now offers strong potential for early investors.
Unlike many of the emerging markets, Panama already comes complete with a well-established infrastructure and a modern business environment. However, Panama is still undergoing changes, so just what would it mean to purchase property in Panama today?
Growing demand for property both in the City and in prime tourist locations means the market is buoyant, offering potential for strong capital appreciation and rental yields.
Panama City is well known as a major Central American and world banking metropolis and it is here that 80% of foreigners stay. In fact, the nation is the second largest financial centre in the world, behind Switzerland, with no less than 150 different banks from 35 countries. Panama is also second only to Hong Kong both as a Freeport and as a provider of foreign registration of the world’s corporations and foundations.
Increasingly, large multinational corporations are establishing themselves in Panama to take advantage of the wide range of tax incentives that the country offers. A resultant demand for high quality office and residential real estate is creating a ready market for property investors in Panama. They are buying up in the City, as well as other well-known areas like San Francisco, El Cangrejo, Bella Vista and Paitilla, not to mention in all the real estate projects and communities underway around the Bridge of Panama.
As Panama’s fastest growing industry, tourism has increased at an average rate of 10.7% from 1997 to 2006. Visitor numbers are growing at such an extent that the airport of Tocumen is currently being reformed to better meet the needs of the increased number of visitors – yet another good sign for today’s property buyers in Panama.