Investing in Real Estate in Panama Pros and Cons

Did the Panamanian property boom seem too good to be true to you?  Have you been quietly taking a wait and see approach to this particular market as so much hype derived largely from North America has been focused on the serious dollars to be made from real estate in Panama? 

Well, at Amberlamb we really do like Panama and we can see the tangible foundations on which investors are building their empires…but we’re not blind to the downsides of Panamanian real estate!  If you’re still not sure about the market, let’s explore the investing in real estate in Panama pros and cons…

Pros of Investing in Panamanian Property

With the fastest growing, most stable economy in Latin America built on tourism, real estate, financial services and of course the canal, the excellent economic stability of the nation is pretty much assured giving investors great confidence in the market.

Monetary and price stability are assured as the local currency is linked to the US dollar.

Panama is a safe place to live and one with an attractive cost of living meaning it is very popular with expats and retirees.

There are many taxation benefits available to real estate investors and to those who choose to relocate to the nation…for example there are no exchange controls, any investment made and profit derived from real estate in Panama can be repatriated and can be done so without significant erosion from capital gains taxes as these are really low in Panama - and there is even up to 20 years amnesty on property taxes for certain construction projects in Panama.

Mortgages are readily available for international buyers.

The climate is fantastic, the landscape is stunning, the standard of living is high and the people are welcoming.

Properties have been going up in value consistently and rental yields have been improving and it is this positive landscape that’s attracting ever more interest in property in Panama.

Cons of Real Estate Investment in Panama

Construction costs are rising rapidly and inflating property prices significantly.

The infrastructure in Panama City is shot!  The roads are frequently jammed, generally speaking traffic is a nightmare, the sewerage system cannot cope and even the electric supply is creaking under the strain of major development and an increase in the population.

Construction projects are not coming in on time - even Donald Trump’s development is behind schedule.

There is talk of major oversupply – though if this is the case investors can still profit if they buy in to the best located or serviced developments.

There’s concern that many in the market are speculative investors who will all attempt to pull out at the same point on the profitability scale and destabilize the market.

So there we have it – a quick overview of the pros and cons of investing in real estate in Panama – now we leave it in your capable hands to determine whether the market is right for you or not.

Special Reports: Property News for Panama

Panama for Real Estate Investors
Investment into real estate in Panama is booming because Panama is growing in popularity as a tourist and retirement hotspot.

Panama Real Estate Investment Potential
The range of opportunity for real estate investors in Panama is broad with potential in the residential and commercial sectors

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