OverviewPanama's northern neighbor Costa Rica has grown increasingly popular with tourists, retirees and investors alike in recent years. Now Panama is poised to attain similar popularity.
Panama has a variety of investment opportunities, including high rise downtown condos, miles of unspoiled beaches on the Caribbean coast and everything in between. While some markets are poised to become overbuilt, others are still full of long term promise.
Panama is easily accessible for Americans, both in terms of its proximity to the US and its dollar economy. It is served by daily nonstop flights from Los Angeles, Houston, Miami, Orlando, Atlanta, Washington D.C. and Newark. Many of these flights are less than four hours. Panama's infrastructure bests much of the rest of Central America, and its great weather, beaches and attractions are bringing increasing numbers of tourists and retirees to the country. For all of these reasons, it is also attracting a lot of foreign investors, who can benefit from the tax deferrals and exemptions offered to them.
Because of the hype, Panama has increased in popularity with investors. There is a boom going on, and, as the US housing market proves, those do not last forever. As a result, there are some markets within the country that are at risk of overbuilding. These markets will likely face corrections in the coming years. Investors might be wise to wait to purchase property during the correction, when prices will have dropped.
The cost of living in Panama is affordable, the climate is attractive, the country is internationally accessible, the people are welcoming, the capital city has a wealth of job opportunities particularly in the financial, banking and insurance industries, the country has been in the top ten retirement destination list for the last several years and as a direct result of all of these facts the numbers of those considering expatriating to Panama, retiring to Panama or buying a second home in the country are increasing.
At present the availability of high quality villa based or retirement property is falling behind the demand which naturally produces an instant investment possibility. Over the long run the Panamanian authorities are dedicated to creating their country more inviting, their folks more rich in addition to their economy more stable
Still, this is a great opportunity and time to be investing in Panama, or to be looking at that possibility.
Investing in Panamanian PropertyPanama's dollar economy assures monetary and price stability. It also makes it a simpler country than many for Americans to explore because there is no need to exchange currency or keep track of exchange rates. With the fastest growing, most stable economy in Latin America built on tourism, real estate, financial services and of course the canal, the excellent economic stability of the nation is pretty much assured giving investors great confidence in the market.
There are many tax benefits available to property investors and mortgages are readily available for international buyers.
However, construction costs are rising quickly and inflating property prices significantly. There's also a concern that many in the market are speculative investors who will all attempt to pull out at the same point on the profitability scale and destabilize the market.
Where to buyPanama City has become a modern cosmopolitan metropolis. There are many high rise buildings overlooking the ocean and the Bay of Panama. Exclusive residential areas like Marbella, Paitilla, Coco del Mar, Punta Pacifica and San Francisco offer a good range of apartments and condominiums for sale. Suburban residential areas in the former Canal Zone like Amador Heights, Balboa, Albrook and Clayton offer large and attractive single-family homes and condominiums.
Casco Viejo, the oldest city on the Pacific Coast of the Americas, has become a desirable place for real estate investment, encouraged by the Panamanian government Casco Viejo investment incentives for the restoration of the historic Casco Viejo district.
Outside Panama City, there are beautiful real estate properties located in popular destinations including, Penonome, Chiriqui, El Valle and Altos de Maria. Known mostly for their cooler climates, incredible flora and quiet peaceful atmosphere, real estate in the highlands of Panama are ideal for those interested in retiring abroad.
Bocas del Toro is another popular destination for Panama real estate. Most known for its crystal clear waters, rich Antillean culture, unique over-the-water architecture and laidback tropical atmosphere. In recent times, Bocas del Toro has become a booming center for European and American Expats, as well as an impressive number of tourists.