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There is talk of a real estate housing bubble in Panama. Prices have steadily climbed for ten years as North Americans and other have made Panama a second home or taken advantage of Panama's easy Panama residency requirements and retired in this tropical paradise. There is more to Panama than pretty scenery and white sandy beaches. Panama is growing and prospering as a trade and transportation center for the world. Panama is pursuing free trade agreements and plowing investment into its infrastructure. This promises to keep Panama's economic boom and investment opportunities going for years to come.

Panama

Most people outside of Panama are aware that it is the site of the Panama Canal and many are aware that Panama has become a tourist and retireedestination in the last decade. What many foreigners are not aware of is that Panama is developing into a long term investment opportunity.

Current Panama Investments

Panama real estate is hot. Not only is there a boom in high rises in Panama City catering to the needs of wealthy North Americans, Europeans, and Latin Americans but there is a housing boom that is touching every level income in Panama.

Panama subsidizes mortgages on first time home purchases of $80,000 or less. New construction is free of property taxes for 20 years.

Real estate in Panama has been steadily climbing for ten years and the mid and low levels of the Panama real estate market are likely to keep climbing for years to come. The high end of the Panama real estate market has been subject to some speculation, especially with "pre construction" contracts on high rises. There is talk of a burst in the Panama real estate bubble. We at ABPanama believe that the market may indeed flatten out or correct. However, with over 23 years of experience handling real estate portfolios we have seen it all before. There is money to be made in the real estate market in Panama whether prices go up or down. You just need the right advice from someone familiar with local conditions and your needs at heart.

Real Estate Investment in Panama and Free Trade Agreements

Canada has invited Panama into discussions for a free trade agreement with itself and countries in Latin America. Canada already has free trade agreements with Mexico and the USA (NAFTA), as well as Chile and Costa Rica. Canada is talking to Honduras, Nicaragua, Guatemala and El Salvador as well as Colombia, the Dominican Republic and Peru.

Forty percent of Latin American trade passes through the Panama Canal according to Reuters (September 12, 2008). Shipping has doubled through the Panama Canal in the last two years. With the Panama Canal Expansion capacity will double again. Panama's economy and real estate values are more strongly tied to its growing economy than to foreign retirees. Container shipping is one example.

According to Reuters again Panama expects to handle 5.6 million twenty foot long shipping containers in 2009 versus 4.1 million in 2007. To handle this increased volume Panama needs investment in infrastructure. That means more cranes, more dock and port facilities, and more storage facilities. Investment in container shipping facilities in Panama is a logical move to avoid the danger of a Panama housing real estate bubble. Investment in Panama infrastructure, leasing warehouses, loading and unloading facilities also allows you to stay away from the investment problem of rental controls on middle and low market apartments in Panama.

For questions about economic development and real estate investment in Panama contact ABPanama.