Has the crisis in the US spread to the Panama real estate market?
(thinkpanama.com) The US crisis has hit economies worldwide, Panama is no exception, and the Panama real estate market has slowed down but by no means is “crashing“. Panama has advantages that have allowed for cushion to offset the downward spin of U.S. investors, like location, the expansion of the Panama Canal which is underway and has guaranteed financing till completion, huge foreign investments like London Regional’s real estate development in Howard, the Free trade zone in Colon, a financial sector that despite global recession has demonstrated stable performance this year, and Tourism which is still showing double digit gains for 2008. Panama’s economy reports stable growth of 9% YTD in 2008.
Has the Panama Real Estate market shown any sign of slow down?
Yes, most definitely! However, Panama has a very strong influx of Investors from Spain, Russia, Ecuador, Venezuela, Colombia, Canada, and other countries that are off setting the U.S. investor market. There are many investors in the U.S. that have access to capital and are still finding Panama as an attractive option offshore.
Obviously, buyers are more cautious than ever, the baby boomers looking for retirement vacation homes are missing in action. We are seeing some of the U.S. investors that were speculating buying properties like eggs, by the dozens two years ago are now facing a harsh reality - “that their situation has changed” and they cannot afford to pay the banks and the occupation permits are coming DUE which means its time to PAY UP.
This however represents a New phase of opportunity in Panama-
Some of these speculators are now letting these units go as “RESALES” at the pre-sale prices they negotiated almost 3 years ago, which in some cases I am seeing is even $100,000- $200,000 below the current developers December 2008 listed retail price. I am also seeing that these units are becoming available on Prime Oceanfront and Ocean-view condo units in luxury buildings that are very desirable properties and mostly SOLD OUT.
This is by no means is to be understood as the Panama real estate market crashing, but more like a second wind of Opportunity for savvy real estate investors that are in the right place, at the right time, and lucky enough to have access to these deals today. They are not easy to find, If you do have access to these LIQUIDATION deals, they represent excellent investment options because their value or worth (Appraisal Value) is higher than price that you would be buying them at now, and their Oceanfront location is perfect for condo rentals income generating investment.
