The only thing hotter than the nice weather in Panama, is its Real Estate market and that is a fact. After a huge decline of about 2.5% during the global crisis, the luxury Real Estate on Panama is back on the rise at a double-digit rate. In some of the downtown areas it has become the main wheel for this economic transformation, based on the re-sale of the amazing waterfront properties available.
The emerging market of this venue began back in 2014 with an astonishing rise of 14%. The average price of the square meter increased from US$ 2.200 to US$ 2.500 that same year.
The 20% of the next 80 construction projects are high-end, so it Is pretty much clear that the market is aiming to a very specific niche, with the five percent of the upcoming market over $1 million, 10% is in between US$ 500.000 and $1 million and 85% under US$ 500.000. The average cost of apartments starts at US$ 350.000.
There are many reasons for this behavior. The robust and solid economy of Panama is getting even stronger after the opening of the Panamax Project, the expansion of the Panama Canal with a whole new lane, doubling its current capacity. This venture inevitably will attract new companies and investors from all over the world, drawn by new business opportunities and corporate growth.
The tourism industry is another strong source of income to the GDP of Panama, with a total increasing of 83% in the number of visitors in the last 5 years. Of the total, 48% came from South America, 24.3% from North America, 12.7% from Central America, and 2.5% from the Antilles.
The main demand of Real Estate comes from foreign buyers from the U.S, Colombia, Venezuela and Canada. The majority are investors or people relocating their businesses in the American country. This responds to the Panamanian state policy of encouraging the foreign to invest in properties on Panama with incentives such as Real Estate tax exemptions. Nearly 80% of the property operations are made by cash, due to the difficulty to process a mortgage with a bank. With the US currency having the same value as the Panamanian Balboa, this market represents a huge opportunity to get some profit out of this rising industry.
Besides these valuable facts, Panamá has a lot to offer. Their beautiful beaches, exotic islands and majestic mountains are some of the reasons you should seriously think about investing in this titan of Central America.