Panamainfo’s Blog

Why Buy Real Estate in Panama?


Why Buy Real Estate in Panama?

Because Panama a Safe Haven in Uncertain Times

 

Who is investing in Panama these days? Smart money. Panama has seen an increase of wealthy investors looking for a both a safe place for their investments and a place of secondary residence.

In an April 2009 article in New York Times, Sam Taliaferro, an American developer in Panama  said

 

“We’ve certainly seen a slow down in for homes in the $200,000 range.  But we’ve seen a pickup in another market. The market we’re seeing now is a market of wealthy individuals who are looking for safety. They’re looking for a safe haven. They want to park their assets somewhere else because they see a train coming down the tracks.

They’re also looking for what would be a second home that will become a primary home. They’ll make this their primary home and be a resident outside the country and maybe keep a home in the United States or wherever they’re from.” 

 

Real estate investments in Panama carry risk but not in comparison to the risks of the US stock market. US stock market returns averaged just 3% in the last decade- before this current market meltdown when most gains were wiped out. 

 

One cautionary note is the Panama City condo market which everyone agrees is way overbuilt and in a major slump. But that means it is close to time to begin picking up some bargains.

 

Panama is attractive for investment because while it is an emerging market it is also a proven market. It has has the highest growth rate in Latin America in the last 5 years. Today it is one of the few economies that is still growing- most experts say it will grow at least 3% in 2009.

Why is Panama doing well and will continue to do well?  To start there are  numerous major infrastructure projects in the works including the 5 billion dollar expansion of the Panama Canal, oil pipelines, a major special economic zone, port expansions and hydroelectric plants. Panama is also fast becoming the business capital of the Latin American and Caribbean  region. 17 major international corporations have recently made their regional headquarters in Panama including, Proctor and Gamble, Caterpillar, Dell, Hewitt Packard and 3M. ( Miami  was the defacto capital until 9-11 which means companies can longer get US visas with any consistency.

The strong Panamanian business sector including an international banking sector of over 100 banks, is solid having not made the mistakes of its of the banks up North.

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