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What do Panama real estate and a prisoner exchange have to do with each other? The winding down of the decades long civil war in Colombia will reduce drug traffic if rebel groups become political parties. Trade between Panama and Colombia will increase and so will real estate values in both nations.

Good News

Good news from Bogotá today. The main rebel group in Colombia’s decades long civil war and the government have agreed to an exchange of prisoners. It appears that the last of the civil wars that have plagued this region for too long may be winding down. Panama and Costa Rica are great examples of what happens when countries are able to get rid of their armies and devote themselves to growing their economies and taking care of their people.

Drug Passage through Panama

Every now and again the Panama news media report a drug bust, seizure of tons of cocaine, or the arrest of someone high in the chain of command of a Colombian or Mexican drug cartel doing business in Panama. The Darien on the border with Colombia has recently had more rebel activity as Colombian Special Forces chase rebels out of Colombia.

What Next?

A few more steps toward peace and Colombia can devote more resources to rebuilding itself and buying more from Panama’s Colon Free Zone where they are already the biggest buyer. Maybe a peaceful Colombia will speed up the proposed power grid connection between the two countries.

In general peace in the region will free up resources for every nation especially if rebel groups no longer needing financing are out of the drug trade. With Panama and Costa Rica as examples, one might imagine that Colombia would reduce its armed forces.

So, what does this have to do with Panama real estate? The old saying goes that a rising tide raises all ships. Panama trades extensively with Colombia. More trade brings more wealth. More trade requires more infrastructure and that is where Panama real estate comes in. Panama is investing heavily in its port facilities, container shipping yards, warehouses, and roads.

When the Panama Canal Expansion is done in five years there will be more and bigger ships passing and more need for investors in Panama commercial real estate. A peaceful Colombia will invigorate trade throughout the region and with Panama especially.

Panama receives a lot of investment from Colombia as it is. A healthier Colombia will become a bigger investor in Panama further driving Panama’s growth engine. The worldwide recession will not last forever. More trade will pass in and out of this region and those with the foresight to invest in real estate during this pause in Panama’s real estate market will do especially well.

ABPanama has always promoted commercial real estate. In the case of the recession improving along with an adjacent civil war winding down we reiterate our advice. If you are interested in a targeted commercial real estate investment in Panama come to see us. We are bilingual. We do business throughout Panama and we have over 23 years experience managing real estate portfolios.