Panama Real Estate - Where Next?
(dobusinessinpanama.com) There’s a big question on the minds of all expats in Panama at the moment. In fact, it’s hard to find expats here in Panama who are not directly involved in the real estate business. And that question, of course, is will be Panama real estate be hit as hard as other markets, or is it somehow protected by its status as an offshore investment, business and banking center (tax haven). ???
Our main business of course is not real estate but offshore services, formation of Panama Corporations and so on. But like all expats in Panama we do have a few apartments and pieces of land for sale if anyone asks.
Our view is that the higher end of the market WILL soon be hit hard by the recession and falling real estate prices. We already see expatriate owners of luxury apartments in Panama looking to sell out at big discounts.
The lower end of the market - that is, affordable housing aimed mainly at Panamanians - is likely to be far more resilient. Indeed, we have some clients investing in that market right now. This morning we were looking at a portfolio of apartments about ten minutes drive from Calle 50 (Financial District) that are selling for an average of $15,000 to $20,000 each. These are realistic, affordable prices. We would expect the new owners to invest perhaps another $5,000 in remodeling these cheap Panama apartments. Then they can be rented out on stable, long term rental contracts for around $250 per month. Actually a very good rental return on these apartments if you do the math!
Likewise, affordable lots of land will not go down in value, and we expect Land in Panama to rise over the medium term - let’s say the next few years, as Panama’s financial serviced based economy tries to ride out the recession.
If you are coming down to Panama and looking to buy or rent apartments for investment, let us know. Although it’s not our business as such, we will be happy to introduce you to reliable and honest on the ground Panama real estate contacts.
