Past, Present & Future

Panama began to flourish in the 70s as a financial hub, attracting various offshore companies assisting with the initial growth of the market. Political issues lead to a downturn in the market followed by the American invasion in the late 80s. Political reforms were established and a new, cosmopolitan society began to emerge.

The last five years have seen impressive growth within the market due to its stability, attracting thousands of Americans retiring, and relocating for business purposes. Early investors have seen impressive capital appreciation growth and a high demand for rental opportunities. This growth has been especially predominant in the Panama City and beachfront locations, preferred by many overseas property investors.

The taxation benefits of living in Panama have assisted with increasing the attraction of the market. The government has also designed additional benefits to help attract foreign investors and expand the tourism market. Many high profile investors have also began to establish their presence in Panama, assisting with the impressive growth rate leading to Panama being predicted to become this year’s fastest growing Latin American economy.

The growth of the economy is being assisted with various plans for reforms in the country’s infrastructure. This growth will increase work possibilities and lead to further stability in the nation’s long term economic outlook. These plans include the expansion of the Panama Canal, along with the expansion of the Balboa port to become the largest port in Latin America. Plans for another large scale port along the Pacific Coast are underway by Chinese investors, while agreements have been signed with Qatar for a large scale oil refinery to be constructed.

Trading agreements are being arranged with the US, and the national airline has intentions to turn Panama into an alternative air-hub. The future possibilities for the country’s economy appear to be endless, attracting ever growing numbers of real estate investors keen to benefit from the growth of the market. Many speculators are viewing the property market in Panama similar to the growth, demand and future potential to neighbouring markets in the Caribbean and Costa Rica.

In an effort to reduce the possibilities of the real estate market in Panama being affected by any potential downturns, tighter controls are starting to be placed on the financing options. The market has been attractive to many investors in recent years due to the ease of financing property purchases. While these options will still remain available, the criteria for obtaining financing will be tightened to avoid an over expansion of the property market that will unsustainable. Due to the restrictions that are beginning to take place with regards to financing real estate purchases, the market is being viewed as an ideal mid to long term investment.

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