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US news sources note that home foreclosures rose by over 30 percent in the United States in February of 2009 over the year before and up 6 percent over January. The little country of Panama, on the other hand, did not go in for sub prime mortgages and is not experiencing a rash of foreclosures. The news in Panama has to do with the multibillion dollar Panama Canal Expansion project going forward and the jobs and prosperity it will bring to Panama.

Panama Banks

As the world’s great economies struggle with recession and credit problems, Panama’s banks will still be writing loans in 2009. In fact, Panama will be writing more loans in 2009 than in 2008. However, the steady expansion in credit in Panama will slow down to about five percent versus the roughly eighteen percent increase in loans between 2007 and 2008.

Panama Business and Economy

Panama added jobs in 2008 while the rest of world was sinking into recession. Panama’s economy grew by 9 percent in 2008 too. While the decrease in world trade is expected to affect Panama it will only decrease Panama’s growth rate down to 5 percent in 2009. Panamanians are still working.

Panama Residential Real Estate

Despite a temporary pause in the high end of Panama’s residential real estate market the Panama real estate market is steadily appreciating. With Panama’s easy residency requirements and the ability of foreigners to own property here North Americans have made Panama their premier choice for retirement. Panama City’s skyline is filling with high-rises and Panama real estate investment is prospering as North Americans flee the cold for a condo in a warm country with a first world infrastructure.

In fact the temporary pause at the high end of the market presents a golden opportunity for those with cash to buy at last year’s prices before the market resumes its upward climb.

Panama is diversifying and as more Venezuelans flee Chavez’s regime, bringing their money with them, more and more Latinos are entering Panama’s housing market.

Panama Commercial Real Estate

The tropical country of Panama offers opportunity for investment in real estate. Panama is in the midst of an economic boom. Panama commercial real estate investment has been paying off for several years and promises to do so for many years to come. With the highest per capita investment from the USA of any Latin American country Panama is improving its already first world infrastructure.

Multinational firms are relocating to Panama because of its central location in the Americas and because it is a transportation hub. The Panama Canal Expansion is bringing jobs and the promise of more employment for years to come. A recent improvement in Panama’s credit laws has invigorated Panama’s small business community.

ABPanama’s continuing recommendation is commercial real estate. There are no rent controls and the thriving business community here pays its rent. You can open a business in Panama but, better, you can buy a building, lease to the business community and cash your checks between trips to the beach.

If you are interested in commercial real estate investment in Panama or looking for a home here come to see us at ABPanama. We are bilingual, do business throughout Panama, and we have over 23 years experience managing real estate portfolios.