The real estate market in Panama for luxury properties in 2014, has witnessed a number of high profile closures at the top end of the price spectrum. Similarly, the interest of local and international buyers remained, and a high activity by the developers introducing new products to serve the luxury market was reported. In our article today, which is the first of a number of multiple items, we will look on how the market is behaving real estate in Panama and who are the main buyers, among other things.
* The majority of luxury real estate in Panama is in the city, so that the properties located in beaches or mountain communities are not taken into account.
* Increased demand, coupled with the decline in new supply, has raised prices in certain areas in the past 8 months, and this report is to identify where the buyers are coming from and what is driving their motivation to acquire property.
* There are many factors that lead buyers to purchase luxury real estate in Panama: The security of the country, the stability of its economy (which is based on the dollar) and geographical advantages of the country, among others.
The real estate market in Panama, has shown a significant movement for over a decade. Many people interested in investing in property in the country. But it is worth asking how we know who is actually buying properties, and which is the building lists they are basing they purchase. More importantly, you need to know to identify market trends and make predictions about the future of the real estate market in Panama luxury.
The stable economy based on the financial sector and the dollar has allowed Panama during the past eight years, give guarantees to international and local investors that an real estate investment should, over time, show profit.
The relative security of the country, added to the fact that Panama has one of the best private schools in the region, force families to consider moving to this city of just under 1.5 million habitants. Moreover, companies continue establishing presence in the Republic, in part because of tax incentives, geographical advantages and a favorable overall environment in which to do business.
90% of top-level real estate Panama City focuses on one of five areas: Punta Pacifica, Costa del Este, Avenida Balboa, the former Canal Zone (Albrook and Clayton) and the area surrounding the Parque Omar, called Altos del Golf. Second level neighborhoods such as Paitilla, San Francisco, and El Dorado comprise the rest of the high end inventory.
The sources taken for this study, including developer interviews and published price sheets, surveys to realtors, public record data, and local closed transactions. According to a 2014 report prepared by Christies Great Estates, “the desire to move from turbulent equity markets to stable currency-favorable places, has led many high net worth individuals to invest in trophy houses outside their country of residence. “
The inventory of apartments over 500 meters, and large houses, is significantly lower than it was in 2013.
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