Real Estate Key Opportunities, Medium to Long Term Investment Strategy
The real estate sector in Panama keeps growing in tandem with phenomenal economic growth. With GDP figures surpassing those in the rest of Latin America, investors researching Panama’s potential cannot fail to be impressed by the country’s ongoing activity in construction, transportation, Canal-related business and, of course, tourism.
Panama offers a plethora of tax incentives and exemptions, not only to international businesses, but also to retirees who wish to establish themselves in Panama. By virtue of this fact, Panama ranks second only to Hong Kong both as a Freeport and as a provider of foreign company registrations. Panama City is also the second largest banking center in the world. Related financial institutions, along with an ever-growing presence of multinational corporations in the City all require top notch real estate, fuelling a surging demand for residential and commercial real estate in Panama.
Panama City Real Estate
Panama’s real estate market growth is clearly visible with one look at the city skyline. From the top of a city building you can easily count as many as 30+ cranes on top of buildings. The city is currently flush with apartments for rent and condos for sale, and as more projects are completed these numbers are going to surely increase.
The Panama City real estate market has settled enough since the boom period that it is now possible for buyers to find discounted and distress sales. Foreign investors who have been hit hard by the global recession are looking for quick liquidation, and the savvy buyer can find some great deals.
However, to find a good deal in Panama City you definitely have to put in time and do your due diligence. Canvassing your neighbourhoods of interest , contacting a well-known local market real estate agent or using online sites, , are probably the best approach to finding a good deal.
The sheer number of condo projects yet to be completed, plus the amount of condos already on the market today will ensure a steady market in the city for the time being.
Panama country side Real Estate Opportunities
The real estate market outside of Panama City offers many opportunities, from ocean front lots and mountain homes to small homes within quaint towns or even empty land in total seclusion. Some of the more popular areas posting significant real estate growth are Bocas del Toro, Boquete, Coronado, and on the Azuero Peninsula near Pedasi.
Currently, the government is working hard to make the country side easily accessible beyond Panama City. Currently large projects are underway in effort to improve infrastructure and accessibility, including plans for a new international airport in Rio Hato near Coranado, and highway and road improvements, especially in the Azuero peninsula.
The tourism industry dressed elegantly for 2012. Growth in the first two months of the year reached 5.7%.
The Department of Statistics of the Panama Tourism Authority (ATP) registered that 429,073 visitors have arrived in the country, which represents 23,145 more passengers than during the same period last year. Tocumen Airport continues to be the front door for tourism. Through that air terminal 265,999 visitors entered during January and February, achieving a growth rate of 18.9%.
The money generated by tourism activity in January and February increased by 15.8%. Total spending by visitors who entered the country in January and February was $380 million, a total increase of $51.9 million compared to results obtained in the same period in 2011.
These dynamic results, captured in Panama tourism during January and February, had a cascading effect on hotel occupancy.
The overall occupancy reached 63% during the first two months of the year, as a result of 294,039 of the total 466,355 rooms available being occupied.