Panama Real Estate
Because of the increased interest in
Panama as a retirement and second home destination over the past two
years, analysts have predicted Panama to be the next hot-spot for
increased property value.
Increases in
tourism and Panama as a destination for trade and commerce will also
lead to increasing tenancy rates and rental values. What makes real
estate in Panama so interesting at the moment is that it has yet to
reach mass market appeal, making this the ideal time to invest while
prices are low. The construction industry is just at the beginning of a
long boom, as Panama expands its skyline with some of the most
architecturally interesting buildings in the world with luxurious
amenities. These residences are located in prime locations with ocean
front views or surrounded by acres of parkland. Part of the reason why
prices are so good at the moment is because building has happened so
fast and the international market has yet to catch up.
Investing in Panama now practically guarantees a substantial capital
gain on property investment, especially considering everything that the
Panamanian government is doing to improve infrastructure and attract
the foreign market. You can purchase prime property from as little as
$100/ft2 and from $170/ft2 for the ultimate bay-front properties in the
City. In other second-home markets, such as Florida, similar properties
are in the range of $500-$1,000/ft2!
Those who are interested in investing outside Panama City have an array
of breath-taking highland real estate in the region of Chiriqui to
choose from. The highlands experience fresh cooler climates than the
rest of Panama, offering magnificent mountain views, exciting nature
trails and a slower paced lifestyle – altogether creating an ideal
retirement hotspot.
Additionally, one cannot ignore the beautiful beachfront and waterfront
real estate properties available on the Pacific and Caribbean coasts of
Panama. World-class architects are building many master-planned
communities such as Coronado and Punta Barco with European-style
beach-side villas and condominiums. These and similar paradise beach
resorts come equipped with 18-hole golf courses, elegant beach and
equestrian clubs ready to offer something special for everyone.
But it’s not only the low costs that make Panama’s real estate market
attractive. Panama is a banking metropolis with a solid economy, modern
skyscrapers, a good night life and great shopping. The government is
planning to invest $5.25 billion into the expansion of the Panama Canal
to allow for supertanker access and Panama’s currency is the US dollar,
eliminating any currency risk. Over 100 international banks allow for a
great number of borrowing options. Most banks offer up to 30 year
maximum mortgages and up to 80% financing to foreigners while interest
rates are currently hovering at around 6.5%.
There are also numerous tax incentives for real estate investment, such
as a maximum of 20 year property tax exoneration on all newly purchased
properties. Foreign income is not taxable in Panama and capital gains
tax is very low at only 10%.
Whether you want to be surrounded by the peaceful countryside,
breathtaking ocean views or the bustling city life, there is a
something for everyone looking to invest in Panama’s real estate. The
suburbs are also increasing in popularity due to their even more
reasonable prices.