Panama remains a very attractive place for both investors and end users of real estate. The New York Times just named Panama the #1 tourist destination to visit in 2012.
The Economist magazine compared Panama City to Singapore's past growth and suggested this could be "the" emerging city in Latin America in 2012/2013 … just image what that will mean for real estate values all over the country.
Who is investing in Panama currently? First we will focus on U.S. folks, starting with budget retirees, many of whom live outside of Panama City in such places as Las Tablas, Araijan, David, and Chitre. These buyers continue to come to Panama for the affordable cost of living, quality medical care, tropical climate, and for the adventure of living overseas. A number of the expats are also leaving the US to escape an unattractive political landscape and create a more favorable tax situation.
For city choices, the average property that this group is purchasing is going to be something under $200,000, most likely a condo less than 15 years old, in city neighborhoods like Paitilla, El Cangrejo, Obarrio, and El Dorado. In the beach areas, these types of buyers tend to gravitate to places like Gorgona, Coronado, and the Altos del Maria mountain community.
Much of the same can be said about the second group of buyers, which is a more affluent group of second homeowners and those that have made Panama their full time residence. These are folks who may have several homes around the world and choose to live in Panama either full or part time because of, more than anything, the proximity to the United States, the climate, and the fact that Panama is developing as an international hub from which they can travel.
This segment of the market has been in Panama since 2005, but the large majority has come over in the last 3 years. They tend to gravitate to areas like Albrook, Balboa Avenue, Punta Pacifica, and in some cases Costa del Este. Pedasi and the surrounding areas seems to be the hot spot for the affluent pioneers looking to get in to an area that remains relatively undiscovered.
The third group of Americans have come to Panama to purchased real estate - investors, both large and small. In 2011, we’ve seen large investors sourcing land banking and cash flow properties as well as the smaller investor looking to move money overseas and realize some appreciation and cash flow. The smaller investors generally gravitate towards the city market, which is more mature and more quickly sized-up than the mountain and beach markets where there are opened doors for foreign investment and more importantly real estate development.
The same three groups for Americans can also apply to the Canadians. In general, the Canadian economy and real estate markets fared much better than the mostly-deflated US market in 2011. Resource rich provinces like Alberta and service-heavy economies of Toronto helped fuel demand for Panama real estate by Canadian investors, expats, and retirees.
Despite the troubled European economy, 2011 also saw renewed interest in real estate from European countries like as Spain, UK, and France. In general, Panama Equity worked with both sellers and buyers from Europe in 2011 and we see continued interest from countries like the Netherlands, Germany, and the UK.
The Azuero Peninsula remains a hot market for both foreign and Panamanian home buyers. With the road expansion between Divisa and Las Tablas set for completion in 2012, access to towns like Chitre, Las Tablas and Pedasi will be easier than ever. Other improvements include a new modern shopping center in Chitre (completed) and new hospitals in La Villa de Los Santos and Pedasi (underway).
