You are here :: Panama Real Estate » Panama-real-estate » Real-estate-2009

Panama real estate, commercial real estate, and business are weathering the world financial storm. Recent published figures indicate that while only a small percentage of businesses are borrowing that only a tiny percent are selling assets to make do. Revised figures peg Panama’s GDP growth at closer to 4 percent than 6 percent this year.

Panama Banks and the Current World Economic Crisis

Unlike their counterparts elsewhere in the world Panama’s banks did not go in for sub prime mortgages and, thus, still have money. Credit is still available in Panama although the government had to push through a $1.11 Billion stimulus package to provide liquidity for local banks to lend to local businesses. The fact that $400 Million of that came for Banco Nacional Panama tells you that there is still money here.

Panama Conservatism

The same conservative business outlook that the banks have is seen in the business community. Most companies are not taking on more debt right now but also are not laying off workers. You see talk in the news media about increasing productivity. This is reminiscent of the United States from the sixties to the current time where productivity per worker and per dollar invested has risen.

Panama Real Estate

Panama real estate derives its value from the economy the country’s infrastructure more so than from the natural beauty of Panama. If Panama did not have first word services, a decent road system, and competent construction trades you would not have seen a flood of North American retirees making Panama one of the world’s premier retirement destinations in the first decade of the century.

The prices of real estate in Panama have dipped a bit, especially in the high end, as North Americans are licking their economic wounds and dealing with credit problems at home. However, there are still plenty of buyers looking for great deals in 2009. ABPanama is working to link up buyers with cash with sells caught in an economic squeeze that was not of their own making.

Panama real estate investment is especially attractive today considering the faltering of high end residential real estate prices and the underlying strength of Panama’s economy. ABPanama believes that with the mending of the recession over the next year or so that Panama will resume it economic and real estate booms. How long this window of opportunity will last remains to be seen.

The old adage for stock market investors is that the market starts to move half way through a recession. Thus the recent NYSE surges could predict better times in early 2010. However, we expect that a similar “half way” rule will apply here in Panama. The best properties at the lowest prices will go in the next few months.

If you are looking for great deals in Panama real estate investment or just better insight into the local market come to see us at ABPanama. We are bilingual, do business throughout Panama, and have over 23 years experience managing real estate portfolios.