Panama Real Estate Market Trends 2021
Panama has always positioned itself as an attractive destination for expats, businessmen, retirees and foreign investors. Forty percent of real estate assets in Panama above USD$140,000 are purchased by foreigners. Despite the pandemic we can see that the Panamanian real estate market is going through a boom by international buyers.
Work from Anywhere
Both commercial and residential real estate market trends are changing due to COVID-19. Before the pandemic, digital nomads were a phenomenon of the digital revolution. Traveling and seeing the world with a flexible job working online was a unique way of life for a small group of freelancers, innovative entrepreneurs or highly digitized specialists. But in 2020 an emerging trend became a mass movement. Large, traditional companies that previously demanded a work culture from their employees where the team must be physically "present" in one place, suddenly felt compelled to jump into the 21st century, and all within a few days.
Home Office - The New Normal
But the home office lifestyle has not only created new fashion trends, sudden shortage of office supplies such as home printers, change of laws, and strange and sometimes even comical situations due to the use of new means of communication such as Zoom, Google Meet, Skype among others, for team and client meetings. People are waking up to new possibilities: Why do I live in an apartment whose rent eats up most of my income, if work can be done after a morning run on a Caribbean beach, while saving a lot of money living in a warm place? Because of the COVID-19 crisis, millions of people are starting to work from anywhere. Even big hotel chains are remodeling their rooms in order to convert them into small, temporary, beach-side home offices for holidaying remote workers.
Something for Everyone
The type of real estate available in Panama is very varied. The isthmus of Panama boasts mountains and beaches, and allows you to wake up in the Caribbean and have lunch overlooking the Pacific. Although Panama City is a dynamic and modern city, much of inland Panama remains quiet and remote. This geographical diversity converts Panama into an interesting market for buyers who prefer the city, as well as those who do not. In recent months we can observe two trends of real estate buyers in Panama, the purchase of unique spaces located in the interior of the country and the investment in centrally located apartments in Panama City with the aim to put them up for rent and thus create an additional source of income in the long term.
Foreign Real Estate Investment in Panama
Alberto Grajales, commercial director of encuentra24, a digital portal specialized in classified ads, indicates that 250,000 visitors are registered monthly in the English version of the portal, of which the vast majority are looking for information about real estate properties in Panama.
Unlike other tourist destinations, foreigners and nationals can buy almost any type of property in Panama. It is also possible to own and sell property titles in your own name (although it is not recommended) or through corporations or foundations, even without being a resident, only with tourist status. Panama has a fully dollarized economy, with the US dollar being the legal currency in the country, which allows diversification out of the Euro zone. And the current exchange rate between the dollar and the euro favors European investors even more. New demand and opportunities arise from changing lifestyle circumstances due to the new way of remote working, global economy and financial and personal priorities.
Photo: Pixabay // Nicolas Weschta