Caribbean Commercial Real Estate, Investment on the Caribbean Coast of Panama

The economy in Panama is booming. Commercial real estate in Panama is at a premium on the Pacific coast around Panama City and the Caribbean coast from Colon to Bocas del Toro is ready for the next wave. Major roads are under construction to improve travel between Panama City and Colon at each end of the Panama Canal. With much improved travel, business will boom and land values will escalate on the Caribbean coast. Expect to see appreciation of up to ten fold for Caribbean Commercial Real Estate with an investment now in property in Panama around Colon.

Commercial Real Estate Values on the Caribbean Coast of Panama

The Bala Beach project near Maria Chiquita on the Caribbean coast is a good example of a good investment in commercial real estate in Panama. Maria Chiquita is on the new main road from Panama City to Colon. Bala Beach is an American style housing development which will need infrastructure support in the form of retail stores, shopping center development, and any number of specialized services. Current land prices do not reflect the value that Caribbean commercial real estate will have when the main road is completed and it will take less than an hour to drive from Panama City to Colon.

Currently, a 17,000 sq meter, three story office in Colon is offered for $370,000. The Caribbean commercial real estate in Panama is substantially less expensive than comparable US property or similar property in Panama City.

Panama commercial real estate on the Caribbean in a modern mall in Colon is for sale for $323,310 for 2320 sq. ft. The mall has parking for 700 cars in a 41,000 sq meter area. This Caribbean commercial real estate offers a recreational area, a casino, restaurants, a theater, and numerous business offices. The property is close the Duty Free Zone in Colon.

In Bocas del Toro an operating hotel is for sale for $1,200,000 for a 300 sq m building on a 400 sq m lot. This Caribbean commercial real estate is located only two blocks from the beach in a world famous tourist destination.

Investment in Panama Real Estate, Growth at the Crossroads of North and South America

Panama has the largest foreign investment and the highest per capita income in Central America. Panama commercial real estate benefits from a first world economic structure and stable democratic government.

New construction is free of property taxes for up to twenty years. Investment in Panamanian commercial real estate for eco tourism projects is free of income taxes on profits for 15 years.

Caribbean commercial real estate benefits from the well developed banking system in Panama and the fact that the Panamanian Balboa is tied 1:1 to the US dollar.

With recent weakness of the US dollar exportation of products from Panama has gained strength. This fact is especially important as industrial development proceeds around both ends of the Panama Canal. Commercial real estate on the Caribbean as well as the Pacific is booming and investments are expected to appreciate for years to come.

The Panama Canal will more than double its capacity in the next few years with the $10B (USD) expansion project to add another set of locks to the canal. The local business news is full of reports of a pipeline to carry crude oil across the Isthmus of Panama and a refinery on the Pacific Coast in Chiriqui. All of these projects need workers and immigration from all over Latin America has increased with skilled workers finding employment on the many construction and infrastructure projects in Panama. The housing market is booming as more and more Panamanians are making more money on better jobs. Commercial real estate as well as housing on both the Caribbean and Pacific coasts will increase in value year by year.