Buying real estate in Panama is considered an appealing investment idea, especially with its location in mind. Whether it is true about Panamanian property and investing in the Panama real estate market in 2022-2023, is the question that needs careful study. In the article below, the International Wealth real estate professionals will answer it, with a detailed analysis of the Panama real estate market, development trends thereon, and prospects of investing in Panama to follow.
Feel free to contact the International Wealth real estate experts to purchase residential property in Panama and obtain permanent residency in the jurisdiction. Assisted by the International Wealth expert team, you’ll manage to expedite all related procedures and handle things with ease. To make investing in Panama real estate fast, easy, and efficient, you are welcome to contact us at the email below.
Post-COVID development trends on Panama real estate market
The COVID-19 pandemic was a universal factor that influenced both the nation’s economy and the Panama real estate market. As reported by the World Bank, after the 2020 economic slowdown of 17% in Panama, the country’s economy managed to recover in 2021, with a nearly 10% growth. Based on the YE 2022 results, the above tendency will continue, with the economic growth remaining at 7.8%. According to the World Bank, this is what turns Panama into the fastest-growing economy in both Central and South America in 2021 and 2022, and why investing in Panama real estate is a profitable option.
In 2020, unemployment in Panama went up to 18%. Although expected to go below 10% in 2022, it still remains high. Panama Canal, known to be the country’s main revenue source, cracked another record. In 2021, revenues therefrom were 8.7% higher compared to 2020, and 10% above the pre-COVID figures. Alongside with Panama copper mines, these sectors were the drivers behind the Panama economic stabilization.
With beach housing in Panama in high demand with domestic buyers currently, many of them are eager to purchase second housing in Panama, preferring apartments on the Pacific Coast.
During COVID-19 pandemic, the International Wealth real estate pros sold over a half of all apartments for sale in the new Royal Palm residential complex in the Playa Gorgona neighborhood by Coronado beach. For more information about purchasing Panamanian property in the Royal Palm residential complex and investing in Panama property, please follow the link below.
Over 35% of all Panama property deals are made to obtain Panama permanent residency or a residence permit in the jurisdiction. To make it possible, a person investing in Panama real estate shall buy housing in Panama totaling upwards of USD 300,000. Where you meet the above requirement, all dependants and family members will acquire permanent residency in the country via your investing in housing in Panama.
At International Wealth, we consider Casco Viejo (it stands for Old Quarter in Spanish), Avenida Balboa, Punta Pacifica, and Costa del Este to be top choices for investing in Panama City residential real estate in 2022 and 2023 as they offer superb housing in Panama for you to purchase.
Panama property rents
Following the COVID-19 pandemic, rents for prestigious property in Panama City top neighborhoods dropped by 10-15%. With the ongoing economic recovery, easing of restrictions, and major multinationals returning to the Panama market, rental demand went back up in top Panama City neighborhoods, with vacancy rates going down at the same time. According to a major property management company in Panama City, vacancies in some of its Panama properties amounted to 15-20% in 2020. The figure has currently plummeted to 5%. With next to none rental deals for high-quality residential housing in Panama, Panamanian property rents are returning to the pre-crisis level.
It was in Costa del Este that the rents for Panamanian property have restored the fastest, the reason therefor being high rental demand due to abundance of multinational headquarters in the neighborhood. Costa del Este still offers many vacant building plots. This means, the supply and resulting Panama property competition will remain high, with investing in Panama real estate on the rise.
The International Wealth analysts record rent restoration in case of the Avenida Balboa residential property in Panama. FYI: only 3 or 4 building plots remain vacant at present. The same trend occurs with high-quality Punta Pacifica housing in Panama. To enjoy breathtaking unobstructed sea views, consider the idea of investing in Panama City prime quality apartments on the Pacific coast. The International Wealth real estate consultants recommend you study Panama property in the Matisse residential real estate and apartments for sale in the Arcadia del Este apart-hotel.
To lease out their Panama property short-term, i.e., for up to 45 calendar days, a Panamanian developer shall be duly licensed to do it, with a proper short-term license for the Panamanian property in question in place. The Ben Panama Panamanian property developer that International Wealth partners with has it issued for the Royal Palm and the Arcadia del Este residential real estate complexes.
You will pay approximately USD 12 to USD 14 per square meter to rent high-end Panama City apartments in the above neighborhoods. Therein, 2-bedroom apartments enjoy the highest demand as a second bedroom can be used as a home office.
The fact that most property tours to Panama city for those eager to move to the jurisdiction are fully booked now is an excellent indicator the trends on the Panama real estate market are positive for rentals. We can’t but mention negative market developments in many Latin America jurisdictions. With elections, COVID-19 crisis and effects thereof oftentimes triggering such negative developments, including, inter alia, in Chile, Peru, and Columbia), local HNWIs from the above jurisdictions are seeking Panamanian property and residence in Panama. All of that makes a positive impact on the Panama real estate market.
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Buying real estate in Panama – apartment prices in Panama City
Housing in Panama City is most affordable in the Avenida Balboa, Punta Pacifica, and Costa del Este neighborhoods, where Panama property prices remain 10-15% below the pre-crisis level and vary depending on the Panamanian property quality and location. As of now, they average USD 2,300 – USD 2,500 per square meter and even more in the Punta Pacifica neighborhood.
Speaking of residential property in Panama City old districts, the San Felipe neighborhood boasts new avenues with high-end apartment blocks. Prices for Panamanian property in new projects range from USD 4,500 to USD 6,000 per square meter depending on the Panama property location. Selling prices for high-quality apartments on the local secondary market go as high as USD 3,000 – USD 3,500 per square meter. Pay attention to the property location, if you have eyes for Panamanian property in Casco Viejo. Known as the Old Quarter, Casco Viejo is extremely noisy with multiple bars and street sounds around. Remember that parking spaces are hard to find in the area. When purchasing secondary housing in Panama, you should carefully inspect your potential residence for technical and/or construction defects or bring an expert to do it, as buildings therein are indeed old. Although constantly growing previously, prices and rents for Panamanian property in Casco Viejo went down after the COVID-19 pandemic and this is a favorable opportunity for investing in Panama real estate.
With multiple installment programs in place, buying real estate in Panama to reside therein is relatively easy. Over 50% of all Panama property sale and purchase deals are made thereunder. The Ben Panama development company has its own installment scheme providing for 5-year installment plans with interest rates of 4% per annum, if the initial installment makes 20% of the Panamanian property price.
Buying real estate in Panama is best while apartment prices in Panama City remain low. It is high time to cherry-pick and purchase your dream apartment on the Pacific coast in Panama. You are welcome to take expert advice from the International Wealth seasoned team of industry experts to find the best housing in Panama to invest in.
To book a free initial consultation as to buying real estate in Panama, you are welcome to contact the International Wealth team at email@example.com. Assisted by them, you’ll manage to find your perfect Panama property and move into it in no time.