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Like a recurring echo out of the past the travails of Manuel Noriega keep showing up in the news. Mr. Noriega just lost an appeal to avoid extradition to France for money laundering charges. Panama is a different world without Noriega. Panama real estate investment has been strong and Panama’s economy has grown steadily.

The Former Military Strongman of Panama

Manuel Noriega was the last of a series of military strongmen who ruled Panama in the 20th century. He was deposed and arrested in the US invasion in 1989. Mr. Noriega has finished his drug trafficking sentence in Florida but France convicted him of money laundering charges in 1999 and wants to extradite him to serve a prison sentence in France. Mr. Noriega’s defeat in court is the last in a series of failed efforts to allow him to return to Panama.

After Noriega

In the last twenty years Panama has abolished its military, instituted a number of laws encouraging foreign investment, seen increasing prosperity and practiced a boisterous democracy. Panama has the highest per capita foreign investment in Latin America and what the business publications call a “first world infrastructure.” Despite the global recession Panama created jobs in 2008 and grew its economy by 9 percent.

Real estate in Panama was essentially being given away in upscale neighborhoods such as San Francisco in the 1980’s as some individuals fled to Miami in fear of their lives. Today San Francisco, Panama real estate is sought after and likely to keep appreciating over the years.

Elections

National elections are in May. The campaigning is fierce. Someone threw a bottle and hit one of the candidates. Everyone was shocked. Nothing of the sort had happened since Noriega’s goon squads broke up political rallies in the 1980’s.

With a rise in crime in some barrios there is a bit of nostalgia about the “good old days” when everyone was so afraid of the police (Noriega) that petty crime was almost non existent. However, a repeated local comment is that if Noriega is set free and returns to Panama he will face vigilante justice from any of a number of families in retribution for killing one of their kin twenty or more years ago. By in large when you ask about Noriega the response is, “basura!” That means garbage.

Business, Investment, and Real Estate in Panama

The world wide recession has affected Panama. There has been a dip in the high end of the housing market. Mostly speculators have been caught up short in their attempts to “flip” pre construction contracts. Anyone who planned to move here, retire here, live here, is doing just fine, thank you very much.

Commercial real estate in Panama has become and remains a prime investment. Commercial real estate is linked to Panama’s growing economy and is less dependent upon whether or not North Americans have the cash for a second home in the tropics.

If you are interested in Panama’s current real estate investment market come to see us at ABPanama. We are bilingual, have over 23 years experience managing real estate portfolios, and do business throughout the country.