Panama’s Real Estate Market in 2020: What to Expect

While the last years the real estate market has been slower than the average, in the year 2020 is expected to be more dynamic for Panama’s economy.

Update: We recommend you to see the newer article of Panama Real Estate Market in 2020 during Coronavirus. 

On 1^st of July of 2019, the new government in Panama took office. The president Laurentino Cortizo started his term and came with an interesting proposal both for the construction and the real estate industry. He affirmed that during the rest of 2019, he will be implementing a reactivation plan for both industries by extending the preferential interest rate for homes values up to US$180,000.

The preferential interest in Panama is a law that helps buyers to acquire the first home with a subsidized mortgage interest rate, and up until few months ago, the buyers who can get this benefit were the ones purchasing homes up to US$120,000. With the new extension to $180,000, the country expects to maintain active the construction sector in the economy, as well as the related goods and services of it, (such as real estate industry) generating more direct and indirect jobs.

How this is important for the real estate market? Well, there is an interesting statistic presented by the Panamanian Association of Real Estate Brokers and Promoters (in Spanish, known as ACOBIR) that states that over the years, an approximate of 78% of the property’s consumers are buying homes with preferential interest up until $120,000. This clearly shows how this law can really impact a good portion of the real estate market, besides the increasing home prices and delays in tramits/paperwork that also have lately affected many of the buyers. So indeed, the extension of the preferential interest is a great benefit for many consumers, and it will hopefully increase the demand in the real estate market.

After the government’s approval of this extension, ACOBIR’s vision of 2020 is more optimistic. The association anticipates transactions up to US$ 150 millions during the new edition of their Real Estate Expo in 2020, taking place at the beginning of next year, since they expect the assistance of more than 30000 persons to meet and see new and ongoing real estate projects, meet with banks, insurance companies and other institutions.

The new year will come with a quite more favorable picture in Panama’s real estate market with new projects (both residential and commercial) and a decent demand. As for the overall economy, specialists states that Panama in 2020 will maintain itself as one of the more dynamic economies in the region, sustaining a higher GDP growth rate than most countries in Latin America, and internal factors such as the expansion of the mining industry and the continuous foreign direct investment will keep the economy moving strongly.

There are other countries that have a higher growth rate recently, however, Panama is characteristic of having a consistency and stability over time. While other countries enjoy a substantial growth in some years, it usually doesn’t last long due to their political, social and economic instability. This is the reason why Panama is still one of the most popular destination for many investors, professionals and retirees looking to settle for long term.

If you are searching for a business, commercial or residential property in Panama, either for investment or for your own use, don’t miss the opportunity to visit our properties listing section where we have multiple choices of real estate offers, or get in contact with us so we can support you in finding the best real estate deals in the country, and help you during the acquisition process.