Real Estate In Panama Provides A Safe Haven For Global Investors.}

Real estate in Panama provides a safe haven for global investors.

by

Offplanworld

Whilst the past few years have seen destinations such as Dubai, Spain, Cyprus and Thailand steal the limelight in the international property investment market, Panama has gradually developed a real estate market which is now proving to be of global interest, as investors seek to capitalise on the considerable prospects which reside in this new property market.

The most southerly country of Central America, Panama is bordered by both Costa Rica and Columbia, and offers beautiful coastal scenery along both its Caribbean (north) and Pacific (south) coastlines. Widely recognised as an international trading centre, Panama has now the large largest economy in Central America, and this growth is only showing signs of increasing in the years to come.

The relative strength of the economy in Panama tends to be focused around two key elements, both of which have been major contributors to the countrys fiscal well-being in recent years. First is Panamas participation within the Colon Free Trade Zone, the largest free trade zone in the western hemisphere, and which last year contributed to over 92% of all Panamas exports and 64% of all imports. As well as the benefits of the CFTZ, Panama has now bilateral trading agreements with over 20 countries throughout the world, providing increased revenue and stability to this emerging economy.

These strong trading relations within and outside of the Colon Free Trade Zone has resulted in Panamas economy growing at a steady 4% per year in recent times (Source: International Monetary Fund). With inflation averaging around 1.4% over the past thirty years, Panamas economy has benefited from a sustained period of growth, resulting in the inevitable increase in interest from international property investors.

The second key element to Panama is the wealth generated for the economy by the famous Panama Canal, without doubt one of the worlds most famous trading routes. Over 15,000 ships go through the Panama Canal each year, generating over $600 million for the Panama economy and providing over 9,500 jobs. Today, a number of key development initiatives are underway which are designed to increase the amount of trade passing through the Panama Canal. Once online, it is likely that the increased trade will ensure the canal is a major contributor to the Panama economy for many years to come.

On the back of the improved levels of trade and investment, an increasing number of property developers have chosen to build new property developments in Panama. From major apartment style city projects, through to the high end eco-resorts which can be found adorning the coastal regions of this beautiful country, Panama has something to offer everyone. In fact, it is this wide appeal, which has really caught the eye of the international property investor. This cross market appeal has resulted in a strong demand for property in Panama, and rental yields are typically in the 6-7% region throughout the country.

The government of Panama is keen to capitalise on this increased level of investment in the country, and to date has ensured that legislation provides a welcoming fiscal environment for the property investor. It seems likely that this pro-foreign direct investment strategy will continue to provide positive news for the Panama property market in the years to come.

Mark Burns works for Offplanworld.tv, a real estate consultancy specialising in investment

property in Panama

and who offer a wide portfolio of

off-plan property

throughout the worlds new and emerging real estate markets.

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Real estate in Panama provides a safe haven for global investors.
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