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Investment in Panama is going strong despite financial problems in most of the world. A prime example is Panama’s new cell phone company, Digicel. Digicel is all over the place in Panama selling cellular phones for $10 along with phone plans. According to the Irish news Digicel is looking to raise $435 million through private bond placement with most of the money going to Central American operations including Panama. As business elsewhere is in the doldrums Panama is still attracting commercial investment.

According to an article in the Irish Times, “Denis O'Brien intends to raise USD435 million (EUR345.8 million) through a private placement of bonds for his Caribbean mobile operator Digicel, with most of the funds to be diverted to the operator's fledgling operations in Central America.”

Digicel was founded in 2001. It operates in 31 countries throughout the Caribbean as well as Central America. Digicel also operates on several Pacific Islands. Digicel currently has a million and a half subscribers throughout its territory.

Investment in Panama Commercial Real Estate

ABPanama has continually promoted commercial real estate in Panama. The entry of another international phone company into Panama is evidence of the ongoing ability of Panama’s thriving economy to attract investment. Digicel, just like every other multinational or local business, needs office space, retail space, warehouse space, and more.

Panama’s economy grew last year while the rest of the world sunk into recession. Panama added jobs last year and those workers are buying cell phones and paying for air time. Those workers are also buying groceries, clothes, and all other types of consumer goods. Someone needs to buy the property to lease to all of businesses that provide these services. It might as well be you.

Targeted commercial real estate investment has done well in Panama for over a decade and continues to do well even as the high end of the residential real estate market is in pause mode. North Americans may be staying home for now so the condos on Avenida Balboa are selling for the same price or lower than last year. However, the vast bulk of the Panamanian population is employed, getting paychecks, and buying. The vast bulk of Panama’s business community is doing well and paying their office, retail space, and warehouse rent. Those folks are probably all buying cell phones too.

Multinationals such as Caterpillar, Dell, and others have and are expanding a presence in Panama. Digicel makes the news as its ads are everywhere. Pricesmart is a favorite middle class shopping spot. However, the large majority of new and old businesses in Panama do not show up in the news. They just employ people and pay their rent.

It is possible for a foreigner to set up business in Panama and make money. It is also possible for anyone in a new business to get bogged down in paperwork and details. For those with the ready cash and or credit we still suggest commercial real estate investment in the right areas, such as Obario, guided by a trustworthy and competent realtor.

If you are interested in commercial real estate investment in Panama come to see us at ABPanama. We have over 23 years experience managing real estate portfolios and do business throughout Panama.