Panama is located at the south of the Central American isthmus tucked under Costa Rica. Approximately 25,000 US expats call Panama their home. That’s a little less than Costa Rica but for decades Panama has flown beneath the radar of US investors and retirees and was only known for its canal. That’s changed significantly since 2002 when the boom in Panama real estate began to take hold.
The market cooled considerably during the recent financial crisis, especially for Panama apartments in the capital city, given the over-supply and retreat of the speculator buying (mainly) off-plan for quick flip profits. But as we enter the second half of 2010, market signals that indicate that Panama is emerging from the downturn faster that its regional neighbors and is probably the most popular destination in Central America right now for international real estate investors. According to the Latin Business Chronicle Panama is the number one ‘growth champion’ in the region when looking at 2010–2015 GDP growth forecasts.
Every where you look infrastructure upgrades are taking place. The international airport at Tocuman is being expanded and soon the David airport in the west of the country will be equipped to receive international flights. The roads connecting the Pacific coast and Caribbean coasts between Panama City and Colon and also between David and Bocas del Toro have been improved considerably. Panama City’s $189-million Cinta Costera project involving a new city park running oceanside along Balboa avenue has recently been completed and the Panama City bay is undergoing a significant clean up operation. Those are just a few examples, and we haven’t even mentioned the massive Panama Canal expansion project.
Panama City is the most modern and cosmopolitan city in Central America and the regions most important financial hub with the one of the world’s largest banking sectors. But the capital also manages to retain some old world charm, especially in the Casa Viejo colonial area.
Real estate in Panama, although not as low in prices as (say) Nicaragua is still well below Costa Rican prices for most categories and comes below Belize for some property types. Check out the Peninsula de Azuero for ground floor real estate opportunities for example.
Affordable real estate when combined with a low cost of living, a retirement program packed with benefits, a dollarized economy and cheap good quality health ends up pressing all the right buttons for investors and retirees alike. It also doesn’t hurt that Panama’s current President, Ricardo Martinelli, is also winning praise in many business and investment circles.
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