Is it a good moment to invest in Panama?
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by Olga
- September 28, 2020
- Real Estate
- 0
2020 is being a turbulent year for the entire Latin American region, economic expectations for the current year and the next foresees uncertainty, but many governments also prioritize activities that allow a rapid recovery.
Panama is currently on a path of gradual economic reopening that, although many do not consider it perfect, points to a rapid reactivation of several sectors, with the aim of reaching normality, this of course, includes the real estate and construction sectors.
On September 7th, all construction (public and private) and its related activities resumed operations, as well as other economic areas of the country. The mobility restriction by gender has already been eliminated and by mid-October, the government plans to eliminate the rest of mobility restrictions currently effective.
A challenging economic reactivation
Even with the opening of the real estate and construction sectors, there are still several challenges, COVID-19 is still present and this can hinder and delay real estate projects, being less attractive for those looking to buy, in addition to the current contraction of the market due to economic and employment crisis that many families may be going through presently.
Despite the uncertainty and the challenges, Panama continues to be a country that shows a better business environment than the rest of the region. In mid-April, Moody’s mentioned Panama as the richest country in Latin America for 2021 in terms of purchasing power per capita, and despite the uncertainty and projections changes from April to the present day, as the economy is gradually opening, it aims to reach a certain stabilization during the rest of the year, looking to a recovering path by 2021.
Investing in the real estate market in Panama
The real estate market in September has more movement than in the previous months, thanks to the economic opening and the lifting of mobility restrictions. There are numerous offers with reduced rental prices both in the capital and in the interior region of the country.
Some listings of houses and apartments for sale are being offered with substantial discounts, however, the duration of the moratorium on mortgage payments, currently until January 2021, can be an important factor in the supply of properties in the market for the year coming. This scenario, despite being complicated for the owners, is surely a unique investment opportunity for those who wish to acquire a property to live or for long-term investment.
There are still new projects in the capital and in the interior that continue their work to promote and deliver more residential units, increasing the inventory of apartments and houses for the coming months. New real estate developments look for differentiation factors, such as location, amenities, view, and quality, to maintain a competitive and profitable offer.
In addition to the real estate sector, investing in Panama brings other benefits, as it continues to be a safer and more stable country than others in the region, the government’s constant effort in improving its infrastructure, a very favorable weather and attractive tax incentives related to direct foreign investment.
