Click Here To See Listings Map Click Here For Recent Listings Panama real estate
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Panama City’s soaring skyline of glass and steel rarely fails to impress first-time visitors driving into town from the international airport. This is a metropolitan city and a world-class banking center. There’s little to challenge Panama City’s position as the region’s most important financial, logistics and business hub.
The list of factors that bolster the confidence of real estate investors looking to invest in Panama, is a long one. You’ll hear Panama real estate promoters raving about the dollarized economy, one of the most dynamic in the region; the US$5.25 billion project to expand the Panama Canal; the attractive and far-reaching tourism and investment laws; the presence of heavyweight real estate brands such as Donald Trump and Nikki Beach and a fantastic retirement program with discounts of up to 50% on items such as movies, restaurants, airline tickets and prescription medication.
Panama’s GDP rose rapidly during the boom years reaching a staggering 11.7% (annualized) in 2007. This fell to 2.4% in 2009 but has since recovered nicely. Panama continues to surpass regional averages across a range of economic indicators and many remain optimistic about the country’s future, particularly with business friendly President Martinelli at the helm. The Heritage Foundation and Wall Street Journal rank Panama on an equal footing with Costa Rica in their Index of Economic Freedom, with both countries scoring well above Belize and Nicaragua.
The attractiveness of Panama as an investment destination in the run up to 2008 led to a construction frenzy with hundreds of new high-rise condo towers in Panama City and real estate developments across the country. Celebrity purchases by Mel Gilson, Angelina Jolie and Brad Pitt in Panama received much press attention. But it wasn’t just North Americans driving the real estate market, a large number of Venezuelans, Colombians and Europeans also purchased.
Impact of the economic downturn on international real estate in Panama
You just have to look at the fall in GDP growth since 2007 to see that things have slowed. Our data shows that list prices for real estate in resort communities, condo towers and gated developments in Panama fell year-on-year to September 2009, for the first time since the boom. Sellers, used to riding the long boom years, were forced to recognize the new market in Panama real estate – one with buyers firmly in the driving seat. Areas where a high level of real estate sales were made pre-construction (such as Panama City) saw project delays and closures with buyers defaulting on their payments.
But now as we enter the second quarter of 2012 local commentators are becoming more optimistic about the market outlook. Following a flat period between 2009-2010, property transactions have picked up significantly. We are still unlikely to see large price hikes in the coming months but the positive trend in sales activity looks set to continue.
Where are the Panama real estate hotspots?
Not surprisingly Panama City far out-ranks other regions for the number of real estate projects underway with over 50% of the total. The beach area within 90 minutes drive of the capital, encompassing Coronado real estate and surrounding areas accounts for 15% of Panama real estate projects in our database, followed by the highland area of Boquete with 11% and then real estate in Bocas del Toro, a cluster of islands on the Caribbean coast with 6%.Types of property ownership
There are two main ways in which real estate in Panama can be held: (1) Titled property (fee simple) and (2) Purchase rights of possession (derecho posesorio). Rights of possession are not the same as fee simple title. It may be possible to ‘perfect’ a right of possession and convert this to titled property but this is not always the case. In some areas of Panama, property is owned by the Government, defined as ‘non-adjudicable’ and for the most part this form of real estate cannot be purchased privately.
Purchasing and registering property
Panama real estate transactions require the services of an attorney and notary. (In Panama attorneys can also be notaries.) Once the price and terms have been negotiated a sales contract is signed and generally a good faith deposit is made by the buyer. This is a conditional contract allowing time for due diligence before a full commitment to buy is established.
For the legal due diligence process the buyer’s attorney reviews the property documents, obtains a certificate of good standing from the Catastral office and a non-encumbrance certificate from the Public Registry. If a technical due diligence is required, this runs as a parallel process.
When all conditions for the sale have been met, a sale agreement is signed and notarized, a public deed is drawn up, and funds transferred. The attorney co-ordinates the payment of transfer taxes and files the deed at the Public Registry under the name of the buyer. A copy of the registered deed is also filed at the Catastral office.
What’s special about Panama real estate?
- A dolarized, dynamic and ‘globalized’ economy.
- Panama City as a world class banking center and off-shore haven offering privacy and taxation advantages.
- The Panama real estate market attracts large numbers of Venezuelan, Colombian and European investors in addition to the expected North American trend.
- Better infrastructure than elsewhere in the region.
- Huge incentives offered for retirees and attractive tourism incentive laws.
Listings MapRecent Listings
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Beachfront on the Pacific For Sale : $189,000
A rare opportunity to purchase 1 to 4 hectares of prime Pacific oceanfront property affordably priced at $19 M2. Each hectare (2.5 acres) has approximately 244 feet of beach frontage - priced at $189,000 ($75,000 per acre). The property is more...Country : Panama
Location : David
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Grand Oceanfront Villa For Sale : $849,000
One of Panama's unique estates. A rare opportunity to purchase this magnificent oceanfront estate. 4,000 sf of living area with top quality upgrades throughout. Features 3 bedrooms, 4 bathrooms, private studio, fabuluous terrace and pool overlooking the ocean, plus an more...Country : Panama
Location : David
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Valle Escondido For Sale : $175,000-$650,000
With constructions having started in 2001, Valle Escondido is one of the first master-planned communities in Panama. The resort is a ten minute walk from the center of Boquete and has approximately 200 planned residences of which 160 are completed more...Country : Panama
Location : Boquete
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The Villas at Contadora For Sale : $199,000-$289,000
An established master-planned community on Isla Contadora, Panama. The masterplan offers elevated ocean view and green view townhomes for sale with quick access to the beach. Access is by domestic flight from Panama City's Allbrook airport.Country : Panama
Location : Panama City
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The Resort at Isla Palenque
The Resort at Isla Palenque is an award-winning development that promises to tread lightly upon the island while still providing owners with a lifestyle in the tropical jungle. Development will be concentrated on the coasts of the island property. Approximately more...Country : Panama
Location : David
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Yoopanama by Stark For Sale : $430,000-$1,600,000
Located on Balboa Avenue, Yoopamana consists of a 56-story high-rise luxury tower with 234 condos with interior designs by Phillipe Stark.Country : Panama
Location : Panama City
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Yacht Club Tower Panama For Sale : $470,000-$2,300,000
Yacht Club Tower Panama offers 210 condos in a 57 floor postmodern style tower, one of the tallest in the city. Condo units range in size from 1,259 to 2,346 sq.ft. Boating services are provided.Country : Panama
Location : Panama City
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Windsor Townhouses Albrook. For Sale : $325,000
Townhouses available in the residential area of Allbrook, 5 minutes from Allbrook Mall and approximately 15 minutes to downtown Panama City. The 12 Windsor Townhouses are built in 3 separate buildings, each with 2 floors.Country : Panama
Location : Panama City
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White Tower, Panama City For Sale : $460,000-$1,506,525
A 62 floor condo tower on Balboa Avenue with ocean view units ranging in size from 1,367 to 4,079 sq.ft. White Tower is the 10 tallest tower in Panama City.Country : Panama
Location : Panama City
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Waters on the Bay For Sale : $280,000-$1,000,000
A 69 floor condo tower located on Balboa Avenue, Panama City. Condos range in size from 1,337 to 2,938 sq.ft.Country : Panama
Location : Panama City
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Volcan Springs Ranch Estates For Sale : $77,000-$140,000
Volcan Springs Ranch Estates is located just over 2 miles from the town of Volcan in the highlands of Western Panama. The masterplan calls for over a 100 estate sized homesites and condos. The project offers views of Mount Baru more...Country : Panama
Location : Boquete
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Vista Mar Golf and Beach Resort For Sale : $420,000-$3,000,000
An oceanside residential community with a 700 acre masterplan that includes an 18-hole J. Micheal Poellot golf course. Ocean (and golf) view condos are available in two 15 storey towers as well as ocean view homes. The project is located more...Country : Panama
Location : Coronado & San Carlos
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Kent Davis
Feb 25, 2012
Good afternoon,
Could someone contact me regarding listing on your site?
Cheers,
Kent Davis
Panama Equity Real Estate
Jane
Feb 26, 2012
Hi Kent, Thanks for the note. Will be in touch.