Panama’s Property Market Progress

Panama is an emerging nation rapidly progressing; the canal is expanding, international tourism appeal is increasing, the mortgage and financial markets are maturing, public safety is improving and activity in Panama’s property market is escalating.

There are however a number of negative factors that are restricting the ongoing enhancement of appeal in the property market in Panama and in this article we look at the positive and negative sides of Panama from a property investor’s perspective…

Factors Positively Affecting Panama’s Property Market Progress

Firstly, the communication and transportation backbone in Panama is exceptionally well developed. 

For example, mobile phone coverage is surprisingly good, internet access is practically universally available, the road network combined with air access and the construction of many bridges means that all areas of Panama are accessible and as a result the entire country simply ‘works’ – it functions! 

It’s not possible to feel isolated in Panama and all of these positive infrastructure features make the nation far more appealing to both tourists and also those seeking property in Panama. 

You know, it’s all very well wanting to live in the wilds – but most of us, if honest, want to have the accessibility and availability of a certain amount of sophistication within easy reach and in Panama that’s perfectly possible.

Secondly, because Panama has been an offshore centre of note for a considerable amount of time it now has a mature banking industry and off the back of this it has a good lending policy with mortgages readily and affordably available.

The next positive factor is that unlike Costa Rica which has yet to make a lasting and positive impression on expatriates, international retirees and also foreign property investors in terms of the action it is taking to stamp out rising crime, Panama feels far safer - maybe it’s just the impression it gives - but the Panamanian approach to fighting all types of crime from petty thievery to drug related offences is tough and this makes Panama feel a lot more robust and secure.

Finally, the tourism market in Panama is developing apace – there is a long way to go to promote all of the positive features of this stunning and diverse nation and yet progress is certainly being made in the right direction.  Tourism numbers are increasing and if a little more concerted effort is focused on improving the tourism experience (think customer service guys!) then the economy in Panama will receive a welcome and sustainable boost from tourism.

Factors Negatively Affecting Panama’s Property Market Progress

There’s one factor that continues to negatively affect Panama that it can do nothing about but wait – and that’s the perception that Panama is still a corrupt and unstable nation under the influence of a dictator.  Of course, Noriega was overthrown in 1989 and currently resides in a federal prison in Florida and so this perception is not only out of date but totally incorrect.  Yet it will take a few more years and a lot more positive publicity of Panama for the effects of a previous generation to be washed totally clean.

Next up there’s the issue of Panama not learning from the mistakes of other nations that have totally destroyed their coastlines with the building of hideous, ridiculous and monstrous skyscrapers.  We say Panama should restrict the building of tower blocks to Panama City and protect the coastline and interior from the destructive construction of hulking buildings – such architecture NEVER enhances the natural landscape it can only detract from it, and if Panama doesn’t act very, very rapidly it could make a huge mistake.

Going hand in hand with this issue is the fact that the availability of relatively low cost loan capital means that there is the potential for the property market in Panama to develop rapidly.  Naturally this could be construed by some as a positive feature – but without a long term approach applied to planning and the ongoing development of Panama mistakes that are difficult to rectify could be made.

Special Reports: Property News for Panama

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Panama Real Estate Purchase Process
Purchasing titled real estate in Panama is simple but an investor will require the assistance of a reputable property lawyer