The Panama real estate market suffered a lot during the pandemic. People anxiously rushed to sell their properties, fearing a crash. And just as many people had quickly switched away from renting, causing massive losses to landlords. However, what is the state of the market now? Let us take a look at Panama Real Estate – report update after the pandemic!
The rent situation
Those who keep an eye on Panama news concerning properties for rent will easily notice an uptick in rent prices. Now, this isn’t to say that the prices are high. In fact, the pandemic had brought them to an all-time low—to the point that it was pretty much unprofitable to invest in property upkeep. Not to mention that, even with rents so low, there were plenty of properties lavishing without renters. So, even though the prices are starting to increase again with the renewed interest in travel and living in Panama, they’re not even back to what they were pre-pandemic yet. Still, this does provide some incentive to get into property ownership if you are planning to try and make some money off of renting condos or homes out. And those who want to rent a place of their own may want to get their rent locked in now.
Purchasing a home
Interestingly enough, Panama real estate prices haven’t yet changed much. Certainly, there’s a very slow, gradual increase. But compared to the changes in the cost of rent, the difference is noticeable. This is, of course, good news for prospective homeowners. And it even makes it easier to add value to your home through the upgrades you can make since you still don’t need to pay too much for the properties themselves. But, if you are looking to turn a profit through reselling the properties or want to invest in new construction projects, then you may want to wait. This does mean that you stand to turn a nice profit if you can afford to purchase now and then hang onto the property until its price matures. The price growth is a bit quicker in popular areas such as Panama City and Playa Coronado, making them a good investment choice.
Effects of crypto
Recently, Panama has been considering different approaches to cryptocurrency laws. Right now, there is a strong tendency to encourage the use of crypto. To the point that the proposed laws even allowed for its use in place of actual currencies when paying taxes, doing business, or purchasing a property. It has been decided that the laws will need to be more carefully considered due to worries that they may open up several avenues for money laundering and seriously damage Panama’s reputation. But, despite that, officials have spoken out in favor of crypto and are generally in agreement that a different iteration of the law will definitely pass. All of this has made Panama’s real estate a much better prospect for investment. So, we can expect a large influx of people willing to further the quality of the real estate market once the bill passes.
The desirability of Panama
Panama is definitely considered one of the more desirable destinations to move to. In fact, Panama is even rated the top retirement destination in 2022. The large number of expats that make Panama their home every year do wonders for the economy and the competitiveness of the Panama real estate market. A large number of them even like to go off the beaten track. Instead of making their home in Playa Coronado or Panama City, they tend to look for hidden gems where they can hide away from constant tourists and enjoy their new lives. This means that the major population and tourist centers are not the only ones benefiting from this trend.
The state of tourism
Speaking of tourism, the good news for everyone is that things are slowly going back to normal! Once more, large numbers of tourists are visiting Panama and providing some much-needed cash injections into the service industry. As proof of this, Tocumen International Airport was even named one of the top 10 busiest hubs in the world post-pandemic. Naturally, tourists need places to stay. And quite a number of them choose to rent homes of their own so they can enjoy the beauty of Panama at their leisure. Lots of them even decide to move here after experiencing our lifestyle! This does mean, however, that if you want to move here, you will need to plan well in advance. The experts from promoversmiami.com suggest hiring movers up to three months in advance!
Fear of inflation
Thankfully, Panama is actually dodging the worst effects of the global inflation trend. This has a lot to do with just how active tourism here is. As well as with the previously mentioned large numbers of expats. However, some of it just comes down to the good reputation of Panama and our investment potential. We will not be untouched by further inflation. But the good economic foundation of Panama has, for the most part, spared us from the ridiculous price spikes some countries are suffering from. Naturally, this also covers the Panama real estate market and explains why the prices are only increasing slowly.
Current future predictions
Panamanians have recently been declared the happiest people in the world. However, will the residents of Panama be able to hang onto the title? As we’ve hinted at before, things are very much hopeful right now. There are positive trends, and it looks like the investment potential of Panama will only grow. However, there are some clouds on the horizon. The modern world is wholly connected, so not even Panama will be able to escape the consequences if housing markets and economies around the world start crashing.
Final Comment on Panama real estate
We hope that you’ve found our Panama real estate report update after the pandemic comprehensive and informative. It should have answered some of your most urgent questions. Overall, we can definitely say that the situation in Panama is definitely improving. And the housing market is slowly regaining its vigor and vitality from before the pandemic struck.