Real estate, like many other types of industry during 2020, have all been affected by the Covid-19 pandemic, and has seen a large drop in demand over the past 6 months or so.
With the uncertainty that surrounds us at the moment, with the coronavirus and the restrictions and lockdowns being placed on cities throughout the world, it’s no wonder that many of the world top markets and industries have ground to a halt.
With many industries such as airlines, cruises and other entertainment markets suffering their worst year ever, many investors around the world have buckled down and are waiting for things to return back to as close to normal as possible.
The real estate market
Real estate is a market that is affected by many factors, just like other industries, but one advantage that the industry has is that there will always be demand for it. Whether someone is simply looking for a new home to buy, or a project to invest in, the real estate market is one where there is a constant flow of demand, even if at times this year it’s been flowing in small trickles, rather than the usual waves of interest.
There are a number of destinations around the world where, despite the Covid-19 pandemic, a number of excellent investment opportunities can be found, and Panama is one such place. In this article we will take a look at why investing in Panama real estate is still a top choice for investors, even during these difficult times we are currently living through.
Welcome to Panama
Panama is one of the countries that makes up Central America, and is located on the isthmus of Panama, which is a narrow strip of land that connects North and South America, and borders in the west with Costa Rica and in the southeast with Colombia.
The capital city is Panama City, which is home to close to half of the 4 million population of the country. The official language of Panama is Spanish, but many of the population are bilingual, with English being the most spoken language among the residents. This alone makes it a great option for investment and business opportunities in the region.
Panama is a democratic republic and elections are held every 5 years, with the last one having taken place in May 2019, which was won by President Laurentino Cortizo of the Democratic Revolutionary Party.
Real Estate opportunities in Panama
South America is home to a number of countries where you can find some excellent real estate investment opportunities. At the moment, Panama is one of the top options for investment in the region, with Panama City being the top location for real estate in the country.
There are also opportunities around the rest of the country, with one of the main attractions being that there are properties available on the Caribbean and Pacific Ocean coasts, allowing one the chance to enjoy the fantastic beaches, as well as the stunning islands and Archipelagos.
Panama is a very diverse country, with mountains and beautiful coastlines. It provides a range of options for investors looking to purchase property in the country, and you can find great opportunities in the main cities, as well as in some of the more remote areas that are exceptionally beautiful.
The attraction of relocating to Panama
In addition to purchasing real estate in Panama for investment reasons, more and more people are upping their roots and relocating there. There are a number of reasons for this, which we will now take a look at.
Panama has a streamlined process for purchasing real estate, and there are a number of protective measures that have been enforced by law to protect foreign investors. Properties can be titled, and traditional mortgages are available in Panama, just the same way that you can find them in other countries around the world.
It’s a very popular location for retirees, and in addition to the beautiful climate and great weather, there are also many other factors that make it an attractive decision such as the low crime rates, low cost of living and some great tax advantages. Some people may look to purchase a property before they reach the age of retirement, and use it for summer vacations or breaks throughout the year, leading up to the eventual relocation.
The current property market in Panama City
Panama City is probably the most popular part of Panama for real estate opportunities, and there are a number of prime locations in the city that are extremely desirable for buyers. Over the past few years, the supply of living space in the city has grown, which has led to prices for some properties dropping in certain areas.
There have been a number of major work projects being undertaken in the city of the past few years, and these look like they will have a very positive effect on the real estate market. One such project is the construction over the Panama Canal of the fourth bridge. There is also a third metro line that is being constructed to connect with other areas on the other side of the canal.
All of these projects are due to be completed in 2020, but with the outbreak of Covid-19 and the subsequent lockdowns, as well as social distancing restrictions, it remains to be seen if they will be completed on schedule, or if their work will continue sometime into 2021. The completion date should have too much of an impact on the real estate market in the city, as with many things this year, people have come to expect that not everything is going to go to plan.
Some final thoughts
Panama is a truly unique and special country, and if you are looking for investment opportunities, then the real estate market there is one you need to take a closer look at.
Hopefully by this time in 2021, things would have gradually begun getting back to what we know as normal, and restrictions on various aspects of our lives, such as travel and entertainment, will be removed, so that we can once again enjoy travelling and experience some new places that we one day might call home.