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HSBC’s Latin American profits grew to 22 percent of its operations in 2008. The international banking giant HSBC just released its 2008 figures. In a year when recession stalked the world HSBC’s profits dropped across the board. Latin American operations returned a $400 million profit providing 22 percent of HSBC’s pre tax profit. In general HSBC expects to see Latin America continue to outperform North America and Europe in the coming years.  HSBC’s Panama operations gained $121 million in 2008. HSBC does business in Costa Rica, Honduras, Colombia, Nicaragua, and El Salvador through its Panama operation.

Panama’s economy grew in 2008 and Panama added jobs. Thus it is no surprise that HSBC’s Panama operations made money in 2008. HSBC’s numbers provide insight into the economic strength and promise of investment in Latin America in general and Panama specifically.

Latin America has a number of free trade zones and Panama deals with all of them. Panama’s Colon Free Zone takes delivery of container shipping from throughout the world and reroutes much of it to Latin America. Panama itself has a number of free trade deals including Costa Rica and Singapore. On the horizon are free trade pacts with the United States and Canada. As Panama’s businesses thrive so will Panama commercial real estate investment.

At ABPanama our continuing preference for real estate investment in Panama is commercial property. We have championed this approach because commercial property in Panama has no rent controls, profitable tenants who pay on time, and appreciates with the growth and strength of Panama’s growing economy.

Neighborhoods in Panama City such as Obario are ideal locations for purchase and leasing of commercial property.

The heart of Panama’s banking and business lies in the Obarrio neighborhood, Panama’s bancaria or banking district. With financing from international giants like Citigroup and HSBC to Panama’s Banco Nacional Panama to smaller local institutions such as Tower Bank Panama City’s Obarrio is busy doing business while much of the rest of the world is looking for credit.

In Obarrio rentals go for $20 or so a square meter. Commercial real estate in Obarrio sells for around $1,800 a square meter. Twenty dollars a month per square meter is $240 for the year. Thus your return on investment for commercial real estate in Obarrio will run about 13% a year on leased real estate. Because business in Panama is still strong commercial real estate continues to appreciate in value.

You can start with a 13% return on investment per year and see increasing lease returns as Panama’s economy continues to prosper. With a competent and trustworthy advisor such as ABPanama you can time your entry into and exit from the commercial real estate market in Obario to maximize your capital gains. While there is a temporary pause in Panama’s high end real estate market, talk to ABPanama about buying opportunities in Obario.

Panama is fast becoming the transportation and financial hub for Latin America. Investment in commercial property in Panama with the help of a competent and trustworthy realtor such as ABPanama will provide you with financial rewards for years to come.