Report: The Real Estate Market In Panama

Author:Mr Emilio José Cornejo Vernaza
Profession:M & E Abogados
 
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Most likely, you have heard of the recent real estate BOOM currently occurring in the Republic of Panama. Perhaps, there are several internet sites you have read or visited searching for further information on this topic. Or maybe you are one of those persons that have taken already the decision of buying an apartment or a beach house, but you don't know where to start or wish to start your own real estate project in Panama, yet still need more information.

Well, I have prepared this article in a practical and simple way in order to guide you in our real estate market. You will find this paper helpful, whether it'll be for the direct buying of a property or to start your own real estate project in Panama or simply to have a more complete notion of this rising real estate BOOM.

What is happening on in the Panamanian Real Estate market?

What is going on in Panama is without any sort of precedent. The market is growing rapidly and such real estate development has never been experienced before in our country. Monthly, we are visited by hundreds of foreigners interested in buying real estates in Panama, in the City, the coasts and the mountains.

The constant rising of the value per square meter is almost in a monthly rate. For example: in January, 2006 it was possible to find apartments in Panama City for around US$ 1,000 per square meter, which is nearly impossible nowadays (US$ 2,000 - US$2,400 and rising). This has generated the value per square meter to triplicate in the city and even to quadruplicate in the rest of the country. The main real estate broker associations have foreseen that the general value of the land in Panama could rise up to 30% to 40% in the next three years, due to this price increasing flow.

Extreme luxury towers of over 100 stories, residential houses of over a million dollars, yachts and marine clubs, huge luxury hotels, golf camps designed by well-known international specialists, as well as top of the line malls, are currently under construction or in process of delivering in the next couple of years; renovating the face of the city into an international and cosmopolitan metropolis.

Promoters, private investors and international real estate companies, from United States, South America and even Europe, have started the construction of real estate projects of great impact. Also, a great number of international real estate broker companies are currently setting up businesses in our country per month.

Specifically we could say that six of the highest towers under construction in Latin America are being built in Panama City, within the areas known as "Avenida Balboa" (this area is projected as the skyscraper in front of the sea in the city). We could mention, among others: Aqualina, Aquamare, Vitri, Ocean Two and One and Los Faros de Panama, ready to be delivered for the year 2009; besides the hundreds of apartment towers bring developed around the city.

Great beach lot projects, island resorts, as much as in the Caribbean Sea (Bocas del Toro) as in the Pacific Ocean (Pearl Islands); as well as delightful retirement mountains (Boquete, Altos del Maria) are part of the avalanche of real estate projects that seems just to be starting.

Which are the real factors that caused this real estate boost?

We all know that after the hostilities occurred in Panama in 1989, the Panamanian real estate market remained hesitant and the small amount of inversions in this sector were led in its majority into commercial projects. Fifteen years had to run by after this event (year 2004) for the leaders in the tourist sector of the Panamanian government (led by the well-known Panamanian singer Ruben Blades) to take action initiating a serious campaign for the enhancement of the country's image. Panama was shown as "the path less travelled", stressing not only in the advantages of being and international banking services and offshore centre, but also in the social, tourist, ecological and geographic elements that until then were unknown to the rest of the world. This successful campaign was promoted worldwide in the main international television chains, in Europe as well as in the United States.

Added to this, something that has to be acknowledged, for the year 2003 Panama comes back to the international field with the...

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