Commercial Real Estate and Prosperity in Panama

The Panama economy is strong, prosperity is spreading throughout Panama society and investment in commercial real estate is reaping benefits. Since the United States handed over the Panama Canal in 1999 Panama has been developing the old Canal Zone. New ports and material handling facilities are being built and on the drawing boards. As the perception of Panama as a colony of the United States dissipates commercial real estate investment flourishes.

Panama is the small tropical country at the bottom of Central America. It is the site of the Panama Canal. Because of the Panama’s position as a transit point for world trade it has always been prosperous by Central American standards. With a first world infrastructure and great natural beauty Panama has attracted tourists. With its easy residency requirements Panama has become a haven for North American retirees.

Panama’s Strong Economy and Resulting Prosperity

As the Panama economy has flourished so has the real estate market in Panama. Commercial real estate investment in Panama’s coastal regions has resulted in marinas, upscale, gated communities on pristine beaches, and an increasing number of high-rises in Panama City.

Panama’s real estate has risen in price but still beats the USA, even with a depressed US housing market. Construction labor and material prices are lower than in the USA and with Panama’s tropical climate, sea breezes, and absence of hurricanes construction is simpler and thus less expensive.

Many North Americans come to Panama to retire making their home their sole investment here. Others, including younger expatriates, come to Panama to latch on its growing prosperity and pro-business climate. As Panama’s economy grows and as prosperity reaches deeper into Panama society business opportunities increase. Increasing numbers of Panamanians visit malls that are virtually indistinguishable from those in the USA. Products on the shelves are familiar to North Americans even if the Spanish printing is different.

Commercial Real Estate in Panama

With more jobs and better pay Panamanians are buying more. There is a housing boom as the government subsidizes mortgages on the lower part of the home market. Business is booming and always looking for rental or lease space. We at ABPanama are partial to commercial real estate in Panama. Commercial real estate is not subject to the rent controls seen in the lower part of the rental market.

Panama has a number of needs as it develops it infrastructure. Latin American training centers are popping up as it gets harder to bring workers to the USA for training. Many US companies are locating their Latin American headquarters in Panama. Development of assembly facilities along the Panama Canal is the next step to taking advantage of Panama’s unique position astride a world trade route.

All of this business needs office, factory, warehouse, and classroom space. There is still much property in the old Panama Canal Zone for development. From contain shipping facilities to communications hubs Panama needs and is developing it all. We suggest that investors in Panama look into developing and leasing commercial real estate space to businesses integral to Panama’s strengths in container shipping, receiving and shipping, and allied businesses.

Tourist Related Commercial Real Estate in Panama

There is still relatively cheap property on the Caribbean coast of Panama in Colon Province. As Panama improves its road network there are previously remote areas now less than an hour by road from Colon and/or Panama City. These areas have pristine beaches or untouched tropical rain forest within an easy commute from first world shopping, entertainment, and transportation.

Come and look at commercial real estate opportunities in Panama and take advantage of the prosperity in Panama’s economy. If you have Panama commercial real estate investment questions come see us at ABPanama . We have over 23 years experience in managing real estate portfolios and would be pleased to help you prosper in Panama.