Panama Real Estate Market 2022: Opportunities ahead

2021 in Panama was a year in which, while learning to navigate with the difficulties of the pandemic, certain economic recovery was noticed in the local commercial sector that, of course, substantially improved the scenario we experienced in the previous year.

The real estate market was not far behind, seeing the difficulties that arose in the last two years, the sector adjusts and reinvents itself to the new needs of buyers, the year 2021 presented greater amounts of offers and dynamism both in sale as in rentals of residential properties.

As usual, below we present a summary of the overview for the real estate market and the economy of Panama in 2022, in 4 key takeaways:

1. In 2002, real estate sales will return to the volume prior to the pandemic

The president of the Association of Real Estate Brokers and Promoters (ACOBIR), Francisco Cheng, affirms that a significant recovery in the real estate sector is expected by 2022.

In an interview with local newspapers, he mentioned that in 2020 real estate sales decreased by 52% compared to 2019. However, 2021 was a year of economic recovery, where a significant recovery was already observed in the real estate market.

The projections that the ACOBIR has for 2022 are optimistic, continuing in a recovery phase until the middle of 2022, therefore, says Cheng, that by the second half of the year, it could be returning to the rate of sales prior to the pandemic.

2. Important opportunities in second-hand apartments and foreclosure properties

Because there is a significant inventory of second-hand apartments, both in the city and in beach areas, there are a wide variety of apartment types and prices on the market, as well as repossessed properties.

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The variety and competitive prices, in parallel with the economic recovery in 2022, can be an investment opportunity with high return on investment (ROI) in the medium term.

It is worth mentioning that the experience of confinements due to the COVID-10 pandemic revalued the importance of having an open space for health and mental health reasons, therefore, apartments with large terraces and balconies or houses with large patios will be more interesting to the market.

3. Panama’s economy shows a good forecast

By 2022, according to the Ministry of Economy and Finance, the Gross Domestic Product of Panama will grow by at least 5%, mainly in the sectors of construction, mining, wholesale, and retail trade, as well as the Panama Canal, which already in 2021 broke a record in the number of containers (TEU) transited.

Unemployment, despite remaining higher than before the pandemic, is projected to be on a downward trend by 2022, thanks to the economic reactivation.

The prices of houses and apartments in Panama are still offered at very competitive prices for international buyers, a contrast that is high when compared to the real estate market in the United States, a country where the price of real estate has risen significantly in 2021. Zillow, a pioneering real estate platform in the US, estimated that property prices in 2021 rose on average 19.5% compared to 2020.

This makes Panama an interesting country to invest in since it is on the right track to economic recovery, but there are opportunities for real estate units at competitive prices.

4. Tourism in Panama: a valuable offer

Other relevant information mentioned by the Ministry of Economy and Finance is that there are very good expectations for the tourism sector, projecting that in the next few years it could be one of the main growth engines in the country.

Panama is open to vaccinating tourists, and they are using this strategy to increase tourism during the economic reactivation. It is an interesting initiative that of course generates greater income to the commercial sector in the country and improves the overall economy.

Additionally, the new Cruise Terminal in Amador plans to be ready and operational by this yea, this will further boost tourism and trade in the country.

The special situation of Panama, due to the projection of its aggressive economic recovery and its epidemiological success, mitigate the risks of an investment compared to other countries. Panama is one of the countries that has been highly receptive to vaccination, with close to 80% of the population vaccinated and with a low incidence of COVID-19 in hospitals at the beginning of 2022.

Get in touch with us if you are looking for good real estate offers in Panama!