Published on 24 November 2005 at 12:23 pm
Filed under: South/Central America:- Panama Property Guides » Panama Real Estate Investment Potential
The real estate investment potential in Panama has been growing directly in line with international interest in Panama; and the interest from tourists and retirees in this Caribbean country has surged in recent years with tourism taking over from the Panama Canal and Free Trade Zone in revenue generation terms for the first time in 2003.
The potential for real estate investment profits in Panama are bolstered by the country’s stable and strong political and economic situation and the majority of opportunities exist in the tourism or retirement market sectors with an emerging opportunity beginning to develop in Panama City for the restoration and development of old buildings and also through corporate lets.
Because the Panamanian economy is stable and enjoys healthy annual growth, international confidence in Panama is strong and inward direct investment is relatively free flowing. The government have in place a series of taxation breaks and incentives to continue encouraging this investment as well. Retirees and expatriates who up sticks and relocate to Panama can take advantage of the fact that overseas sourced income can be remitted tax free to Panama and this has increased the numbers of those seriously considering committing to Panama permanently.
A number of retirement developments have sprung up as a result and a real estate investor considering Panama could follow the same track and create secure and superior retirement developments for Western Europeans and Northern American retirees who favour Panama. Resorts that expatriates tend to favour are the likes of El Valle and Altos de Santa Maria and a property investor should remember that such developments need to be near decent infrastructure and facilities.
All too often those looking at Panama for investment opportunities realize that the further away from the major towns and resorts you go the cheaper the land...and indeed the better the views, scenery and access to the sea etc., but the further away you move the less likely you are to have access to power and water and the more costly any overall development will eventually be.
For those overseas real estate investors who would like to target the tourism market in Panama there are investment incentives in place for the development of tourist accommodation and recreational amenities. Alternatively it is possible to build, renovate or buy holiday homes in the forms of villas and apartment to let out to the tourism market. There are still a number of large properties available for sale and renovation on the former American army bases and a number have already been successfully turned into boutique type hotels or even large residential villas.
In Panama city as stated there is plenty of opportunity appearing to target wealthy professionals either with residential property to buy or let. There are also unique commercial property opportunities available for example in the Casco Viejo district where the government actually encourages investment through various incentives. The Casco Viejo district is an historic area of Panama City desperately in need of a revamp and that has incredible potential. Those who have already seen the potential and committed to renovation work have created some really trendy restaurants and music venues for example.
For investors seeking high end real estate opportunities the resorts of Punta Barco and Coronado have excellent beach access and are close to a golf course and are very popular with the more wealthy tourist or holiday home seeker.
All in all there is fantastic potential available from the real estate sector in Panama and property investors are already reaping solid returns in the form of capital appreciation and rental yields.
South/Central America:- Panama Property Reports
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