Keep your finger on the pulse of Panama’s real estate market by staying on top of the trends, shifts and game-changers that are shaping the real estate market across the Isthmus.

Check out Panama Equity’s reports that dive deep into individual geographic regions and specific market segments. Or delve deeper into others that take stock of broader trends nationally, and explore how geopolitics on the other side of the globe may reverberate and cause shock waves in the Panamanian market.

If you’re serious about Panama real estate, these reports can help you keep an ear to the ground -- you’ll be in for an eye-opening ride in a market that doesn’t sleep.

 

Report 1: Panama City, Panama Property Report

Explore the trends and game-changers that shaped the Panama real estate market and discover what to keep an eye out for as we look ahead.

 

This year, total sales of Panama properties in pre-sale and in construction were down by 11%. Check out which segments were most affected and the reasons behind the year-on-year drop. The drop shouldn’t come as a surprise hough to anyone following Panama’s pre-construction market in particular.

 

And, despite the lackluster headlines, read about the few points of optimism we would like to highlight. The short term forecast for appreciation and absorption will depend on how Panama fares in terms of executing infrastructure projects and how trends in the global economy shape up in general.

 

A few questions to consider:

  • How will the 50% reduction in the property tax, which is now law and will take effect in 2019, affect the market in terms of liquidity?

  • How will the market react to improved sidewalks, new parks, better lighting, and eased traffic conditions in neighborhoods like El Cangrejo, Marbella and Bella Vista?

  • What will the impact on the rental and sales market be once Panama City’s mega projects (Amador Cruise Ship Terminal, Metro Line 3 and the 4th Bridge over the Canal) start and are ultimately delivered?

  • How will the Ministry of Transport’s initiatives (new buses, Metro Line 2, new traffic routing patterns and parking enforcement) affect quality of life in Panama City?

In general, the pre-construction market has always been of interest to far-sighted investors and those looking to leverage capital, so it’s a good indicator of overall interest in Panama’s property market.  But given a 2+ year supply, it’s hard to count on appreciation over the construction stage, which is one reason we’ve seen sales in that segment slowing down this year.

 

Read on for more about trends we can count on, insights into the rest of the market and more, including:

  • Year on year sales figures
  • Observations and trends across sub-sectors including pre-construction, investment properties and the resale market
  • Market absorption and inventory
  • Threats, game-changers, and opportunities
  • Trends we are following for the next 12 months

Panama Property Market Update- Panama City, Panama 2017 - Panama Equity

Panama Property Market Update 2017

Explore the shifts, trends and real game-changers underway in the Panama real estate market.

Report 2: The Pedasi Real Estate Market April 2018

Building on the momentum that was already underway last year, Pedasí is having a great start to 2018 in terms of both government infrastructure spending and community support and organization.  The Panamanian property tax law reforms also take effect this January 1st, 2019. The new law has important implications for current as well as future property owners.

 

Panama Equity has spent the last ten years right here in Pedasi developing local market knowledge and helping both buyers and sellers do business safely and effectively.  Our wide variety of listings runs the gamut from $18k home lots to $20MM development parcels; from $89k homes to multi-million dollar estates. Simply put, we have our finger on the pulse of the market and we know the inventory inside and out.  We welcome the chance to help you join our great community.

 

Download the full report for further insights into:

  • What’s new in Pedasi
  • Municipal government projects underway
  • Federal spending on infrastructure, utilities and more
  • Community news and happenings
  • Real estate trends in 2018

Pedasi Real Estate Market Update

Pedasi Market Update Report

Explore the trends shaping Pedasi’s real estate market and what 2018 brought so far in terms of infrastructure projects, community organization and other goings on around town.

Report 3: The Panama Luxury Property Report

Panama’s luxury property market has changed dramatically over the last several years. The Panama luxury property report details market activity, pricing trends, and our outlook for the years ahead. 

 

According to the Luxury Defined Whitepaper Global Property Markets from Christie’s International, geographic diversification of equity is more important than ever to the world’s ultra-affluent population.  Buyers seeking to acquire dollar-based assets outside the U.S. have always been drawn to Panama's U.S.-dollar-based property market -- so why the caution?

 

We’ve had two years of mixed signals in the luxury market coupled with some roadblocks -- and yet surprising signs of life for a Panama luxury property market that has just started to come into its own despite local and international headwinds.  But while the future may be promising, the growing pains experienced by Panama's luxury market serve as a reminder that the market, with less than 10 years on the international buyer's radar, is still in its infancy.

 

Read on for insights about where demand is coming from today and where we expect it in the future (read our take on prospective buyers from China following Panama Equity’s trip to the Shanghai Luxury Property Show), new supply, and other market dynamics that are putting pressure on pricing and will lead to lower transaction prices.  

 

We’ve seen buyers encountering a large selection of million-dollar properties concentrated in a very small area of Panama City and therefore have been apt to place bids significantly below asking. Sellers, enjoying low holding costs and a rosy economic outlook, have been hesitant to give in to aggressive offers, causing a significant downtick in transaction volume that will remain until that expectation gap is closed.

 

We have reasons to be optimistic that the luxury market will continue to develop and solidify in Panama.

  • Panama remains safe — and attractive to buyers. Panama remains a very safe city to invest in by international standards. During his term in office, President Varela has managed to decrease the crime rate significantly, including reducing the  the homicide rate by more than 25%.  Unlike what we are seeing in many European countries, security threats at public spaces and public events continue to be a non-issue. 
     
  • A strong economy continues to attract high-end buyers. Safety, combined with a very good private school system, the stability of a U.S. dollar economy, wide availability of consumer goods and a growing restaurant scene are all factors which continue to attract the buyer of high-end real estate, most notably the buyer who intends to actually use the property.

  • The local economy is still facing headwinds, creating opportunities for buyers.  Business slowdowns and subsequent cash flow issues may force luxury property owners to liquidate real estate holdings, creating opportunity for buyers waiting on the fringes.

  • Timing is key. A historic run-up of prices, combined with a global slowdown caused the tide to shift to the buyer’s favor in Panama.  

  • Long term growth is in the cards.  The world bank, IMF, and Fitch Ratings all agree that Panama’s 5 year perspectives remain bright, with GDP growth estimated at between 5-8% per year for the next five years.  Given healthy debt to GDP ratios, an expanding middle class, and a city that’s undergoing radical quality-of-life improvements, look for Panama to become an even more attractive destination for well heeled property buyers in the future. 

In this report you will find:

  • How a strong dollar has been good (and bad) for Panama’s luxury property market
  • Who is buying, what they are buying, and why they are buying in Panama
  • Pricing trends and up-and-coming areas in Panama City
  • Inventory
  • What to expect from sellers and the marketplace

dao-brocher

The Panama Luxury Property Report

Panama’s luxury property market has changed dramatically over the last several years. The Panama luxury property report details market activity, pricing trends, and our outlook for the years ahead.

Report 4: The Coronado Real Estate Market Update

Coronado has consistently topped popularity contests for the best beach destination along Panama’s Pacific Coast, and for good reason: it offers great amenities, a vibrant community and a host of social activities for locals and expats alike. The question is how long the current buyer’s market -- with its wealth of inventory and historically low pricing -- will run, particularly given the new property tax rates that kick in in January 2019.

 

This report helps you dive into the reasons why the Coronado and Panama’s beaches real estate market took a downturn in recent years. After a few years of record prices, a drop in developer inventory in some of the largest projects converged with a new supply of resale properties (both homes and condos). The same happened in the luxury market, in new construction and in the rental market, even. Across the various market segments, as a more competitive environment has emerged, savvy buyers started coming in demanding (and in many cases achieving) deep discounts.  

Read on for insights on the pre-construction market, new construction inventory and some of the highest profile projects that are underway. And explore the trends shaping the secondary market, as we take the guesswork out of the recent fall in prices for you.

 

Download the report to explore the shifts in depth, including:

  • Trends in a nutshell: who’s buying and what?
  • Why the sell-off is continuing
  • What’s the story in the luxury market?
  • What’s going on in the rental market?
  • The view from new-construction
  • Pricing: pre-construction, land and more
  • Amenities and community news
  • Getting there (read: the decade’s biggest infrastructure project in the works)
  • Looking ahead

Coronado-Real-Estate-Market-Update

The Coronado Real Estate Market Update

What does the future hold? Read the latest Coronado Real Estate Market Update to find out more.