Panama’s real estate market is synonymous with opportunity and progress in the region. It has been growing since 2005 despite the ups and downs experienced by the global economy since then.
Panama boasts one of the most robust economies in Latin America, thanks to its privileged geographical position and political stability. Additionally, the Central American country has capitalized on its status as a gateway between the Atlantic and Pacific Oceans, showcasing its beautiful tourist landscapes and pleasant climate. It’s worth mentioning that even before the construction of the canal and during pre-Hispanic times, this territory was already a meeting point for different indigenous peoples and cultures.
Moreover, Panamanian laws are quite favorable for this sector as well as for foreign investment. Throughout this article, we will explore all the opportunities that the Panamanian real estate market offers to investors.
The real estate sector in Panama is growing
The current growth of the real estate sector is an opportunity in the country. Despite the economic contraction experienced during the recent pandemic, Panama’s real estate market has managed to recover between 70% and 80% of the growth it had before the global health crisis (as stated by the president of ACOBIR, the Panamanian Association of Realtors and Promoters).
ACOBIR has also expressed that residential real estate demand grew sustainably during the year 2022, which could actually lead to price increases in the coming years, particularly in new projects.
The potential of Panama’s real estate market can also be seen in the construction sector. It’s undeniable that this sector is highly dynamic in the economy, and according to the aforementioned entity, it represented between 5% and 6.3% of the Gross Domestic Product (GDP) during the five-year period between 2007 and 2011. By 2017, this share even reached 17%. In terms of employment, a similar but more gradual and consistent trend is observed. Panama has experienced progressive growth in the construction and sale of homes in recent years.
Moving to the present, we see how inflation in this interoceanic country decreases with a wide advantage compared to other Latin American countries, with only 2.9% annual inflation at the time of writing this article.
Panama’s real estate market is friendly to foreign investment
Panama already has several legal factors that make it an opportunity for foreign investment:
- First and foremost, trade is the activity that has received the most investment in recent years. This is due, in part, to its solid financial system and parity with the US dollar, providing stability and confidence.
- The way this country has leveraged its status as an interoceanic nation has positioned it as an important commercial center. This has been a determining factor in the development of its economy and trade.
- In addition to its ports, Panama has great potential in air transportation, facilitating regional and international connectivity.
- A significant attraction for foreign investors is the special regime for foreign investment, offering significant tax, labor, and migratory incentives.
- In terms of investment protection, Panama has solid regulations and laws that promote a favorable environment for real estate investors. These measures include legal protection mechanisms, clarity in property buying and selling processes, and a transparent system of records and titling.
- It’s also worth noting that in Panama, free trade zones play a significant role in boosting the economy and international trade. These zones offer a conducive environment for conducting commercial activities such as importation, exportation, storage, processing, assembly, and distribution of goods.
- Lastly, Panama’s immigration laws are considered some of the most friendly in Latin America, offering more than 15 immigration visas and programs for permanent residency aimed at attracting foreigners to settle in the country.
Another article that will interest you: Why is Panama a Real Estate Haven for Investors?
Panama as a tourist destination and an exceptional place to live
Panama’s real estate market has another great potential thanks to the strength of its tourism sector. We must mention that Panama has great natural, historical, and cultural beauty, encompassing beautiful beaches and paradisiacal landscapes, as well as tropical forests with great biodiversity and archaeological and historical sites.
Of course, the Panama Canal and the urban progress around it have resulted in attractive and developed cities.
On the other hand, other reasons that make Panama attractive for tourism investment are its world-class logistics platform and infrastructure, privileged geographical position, international banking and financial center, open trade policies and market access, stability in the investment regime, and the use of the US dollar as legal currency.
Furthermore, Panama has a wealth of natural, historical, and cultural resources that offer unique opportunities for developing hotel and real estate projects in different destinations.
In terms of being an ideal country to live in, it’s worth highlighting that beyond good communications, infrastructure, and commerce, Panama ranks among the top 5 Latin American countries in terms of quality of life.
To conclude this article, remember that at Unconver Panama, we can help you access all the opportunities in Panama’s real estate market. If you wish, contact us and we will assist you with that!