Investing in the Panama real estate market has never been easier. With frequent seminars and workshops on how to go about buying properties in Panama, and the myriad opportunities to visit the country, Panama is quickly becoming a popular place to invest in real estate. These days there are always ongoing building developments and resort projects that can be used for residential and commercial purposes, a clear indication that the Panama real estate market is flourishing.
Panama is a country located in Central America as an isthmus, a transcontinental location that connects the south and north of America. The northern side of Panama is the Caribbean Sea while the southern part is the Pacific Ocean. It lies on the borders of Costa Rica at the north western part and Colombia at the south eastern part. In Central America, Panama is considered to have the 3rd largest economy after Costa Rica and Guatemala but is the most industrialized one. Its economy is mostly service-based such as banking, tourism, trading and commerce.
There are several advantages to investing in Panamanian real estate.
- One of the advantages of investing in Panama real estate, aside from affordability of properties, is that it is a good business investment. Because properties in Panama easily appreciate because of both foreign and domestic interest, an investor can sell the property a few months after buying at a higher selling price than the purchase price, which would provide a considerable amount of profit.
- Because of the rising popularity of the Panama real estate market, and as a vacation spot, a property can be developed into something that would generate passive income from surging rentals.
- Panama has a favorable tax incentive on properties. There are plenty of tax breaks when buying properties in Panama, which really make investing in Panama real estate attractive to foreign buyers
Because of the recent developments in the Panama real estate market, competition for affordability, construction and location of buildings is rising. The majority of good investment properties are near the beaches or within cities that all have conducive and attractive building features because of the rising demands from foreign investors. Retirees, investors and individuals alike are seeking a good deal on properties, and are the driving forces behind the Panama real estate market. The rising demand has also helped to determine average property cost. Here are some examples of average costs for real estate that you may find:
- Within the city, studio type properties starts at less than $55,000 USD
- Condominiums by the bay at $140,000 USD
- Apartments with two bedrooms located in the high-end district at $160,000 USD
- Rentals are at $800 minimum for monthly long-term stay and $500 weekly for short-term stay
If you are interested in the Panama real estate market, you need to get hold of a local real estate agent who can give you the best service and value for your investment. Your broker should also be familiar to Panama enough to assist you in touring properties, which you can choose for your investment needs, and assist in legal and banking procedures.