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Insurers are forecasting a 30% growth in insurance premiums in Panama by the end of 2008. This will include both personal and business insurance. Growth of the insurance industry in Panama as measured by premiums grew 22% in 2007. According to government figures in 2007 $607 million USD was paid in insurance premiums in Panama. The fact that Panama made car insurance mandatory has helped raise total premiums in 2008.

Panama’s economy is growing at about ten percent a year. Even with a world wide recession looming Panama will likely see its growth rate drop only to around 6% in 2009. Tourism is strong with 1.8 million visitors expected by the end of 2008. Panama’s real estate investment boom has matured a bit but the high rises are still going up and the cost of cement and structural steel is going down. All of those big investments need insurance.

As of mid year there had been a 30.9% increase in insurance premiums over the first half of 2007 and that growth is not expected to slow.

Successful real estate investment includes the ability to read signs throughout the economy. In Panama’s case the signs are good. Panama’s Canal Expansion is going forward with the awarding of $2.3 Billion USD in loans and bidding for the new Panama Canal Locks will be completed in March of 2009. The interoceanic highway between Panama City and Colon is progressing well and will turn the current drive into a commute of less than an hour. Panama is looking to add another international airport mid country between David and Panama City to make connections to tourist destinations easier.

The Enchantment of the Seas cruise line is starting Caribbean Cruises in December of 2008 and will attract Latin Americans to Panama instead of Miami where typically Caribbean cruises start.

Despite the credit problems besetting the rest of the world Panama’s banks did not go in for sub prime mortgages and still have money. Panama’s conservative banks seem to have a good hold on their money, doling it out a bit at a time as real estate projects progress. Panama continues to have the highest rate of foreign investment in Latin America.

Panama commercial real estate investment will pay rewards as Panama’s megaprojects progress and, more importantly, as Panama’s small business community prospers. From barrios in Panama City like Marbella with its mixture of commercial and residential real estate to the new Pacific Panama Economic Area there are commercial real estate investment opportunities for all price ranges.

Come to talk to us at ABPanama. We have over 23 years experience managing real estate portfolios and can get you profitable in and of the Panama real estate market, allowing you collect your lease payments in between while you watch the sunset from your home in Boquete.