Latest news

Panama has been one of the bright stars in an otherwise less-than-stellar global real estate market and the Panamanian government recently announced its intention to keep things moving in the right direction.  President Ricardo Martinelli recently announced that the 20-year property tax exoneration would be reinstated.  This exoneration applies to construction improvements on your property, freeing your cash up to build or improve your residence to a much higher level.  Property in Panama is still in high demand, but with the exoneration back in place, your money will go much farther.

One way to maximise not only cash flow but also future equity is to buy real estate in Panama that can be used as a holiday rental until you are ready to move or retire there.  A small “matchbox” house, a condominium, or even an apartment, if located in a prime tourist area, will generate income for years to come.  Of course, you can manage the rentals and maintenance of the unit yourself, or hire a management company, but those rentals will help pay down any mortgage you require, as well as cover the minimal fees and taxes you might have on the property.

Panama City is a prime example of an opportunity to invest for the future and create positive current cash flow at the same time.  Full-service apartments in Panama City are in high demand, and in some neighbourhoods, the demand exceeds the supply.  Because of the turnover of the Panama Canal to the country, thousands of new jobs were created when Panama decided to improve and widen the Canal.  Thousands of people flocked to Panama City for these good jobs, and housing construction was unable to keep up.  The building project itself still has several years to go, and even once the Canal is completed to its new specifications there will be plenty of jobs available in both maintenance and ongoing operations.

Investing in Panama property now, especially a property that can generate income, should prove an exceptional investment.  With billions of dollars in infrastructure projects underway, the demand for housing does not appear to be abating any time in the near future.  Larger investors may want to consider the purchase of a multi-unit building, such as a small apartment complex or condominium building.  Of course, the more units you have the more protection you are afforded, as the rented units will protect you from any that are vacant.

However, with vacancy rates as low as they are right now, buying Panama properties as an investment is a solid choice.  Roads and telecommunications are improving at a dizzying rate as multinational firms open or expand into Panama and demand 21st-Century amenities.  The outlook for Panama is excellent, with Panama City headlining the market push.  Panama’s growth, its economic stability, and the government’s obvious interest in maintaining this level of economic growth all point to continued positive returns from investment in this Central American country.