There are many who are planning to start a new life overseas, and Panama is certainly a strong contender among the countries under consideration with the many benefits it has on offer for those who wish to fully relocate or purchase a second property for vacations, retirement or simply as an investment. We explore the benefits and attraction of Panama in this, the first of our series of articles on buying property in Panama.
Why Panama for real estate investment?
Panama has been a very attractive location for foreign real estate investment for many years now. Here are just some of the reasons why:
- Price – Property prices in Panama, despite increasing over recent years, remain highly competitive in comparison to the US, Canada and Europe and real estate stock remains plentiful which has maintained a cap on prices.
- Variety – There are options to suit every taste, from luxury high-rise apartments in the centre of the city, to tropical beachfront properties, to mountain retreats in the cooler regions. We will explore the variety on offer in the next section.
- Quality of life – As with many other countries in the current economic climate, the cost of living in Panama has risen as a result and by more so than other countries in the local region. However, it is still considered to be cheaper than the US and Europe certainly in terms of groceries, entertainment and healthcare. Further, Panama´s tropical climate is perfect for those who wish to enjoy a warm and sunny climate all year round. Outdoor activities are abundant and the country has breathtaking scenery with a diverse range of landscapes that includes mountains, rainforests and beaches.
- Safety – Panama is a safe country and, by comparison to other central and Latin American countries, it has a relatively low crime rate. A significant use of resources has been applied by the government of Panama to ensure the safety of its citizens and police presence can easily be witnessed especially in urban areas. Panama, like many other countries, is not without its dangerous areas which should be avoided, but generally the country is very safe.
- Stable economy – The Panamanian Balboa (PAB) is the national currency of Panama, and it circulates with the US Dollar to which the Balboa is pegged at a rate of 1:1. Balboas are only issued in coin form and the only accepted bank notes are US Dollars. In the global economy Panama is considered as stable and reliable, one major factor being that its currency is pegged to the US Dollar which makes Panama unique in that it is an easy trading partner. The US Dollar has been the foundation of the Panamanian banking system since the country´s inception as a republic in 1903 when the dollar was the only currency used to carry out transactions with the Panama Canal Company, during the construction of the Panama Canal.
Where the economy is stable, it is now forecasted to see another boom with a $5.2 billion expansion to the canal which will bring a further influx of foreign investment. This expansion will see the canal´s contribution to the local economy almost triple, and it is highly likely that real estate values will appreciate, especially in the capital city.
The Variety in Panama
As mentioned earlier, Panama has a variety of locations that offers something to everyone whether you are a retiree seeking a relaxing and peaceful lifestyle, a digital nomad for professional reasons or an investor seeking an opportunity.
Below we explore the most popular locations for property investment.
Panama City
A lively, bustling and dynamic capital city, Panama offers everything for those seeking urban city life on the coast with a selection of differing neighborhoods and districts to cater for every taste. Here is a selection of the most popular neighborhoods for expats:
Casco Viejo
Filled with the local culture, it also has the city´s oldest architecture and is a UN heritage site. With its authenticity and lively expat social scene it is the number one tourist destination. However, property prices are very high.
San Francisco
A large, urbanized, up-and-coming district in the centre of Panama City with a variety of property options. It has abundant green spaces, including the largest park in the city, Parque Omar as well plenty of schools, malls, restaurants, sports grounds and more.
Costa del Este
Just outside the main capital to the east, Costa del Este is situated on one of the major highways (Corredor Sur) and the city and airport are both just a few minutes’ drive away. It is a recently developed community with modern infrastructure and shopping malls, large green spaces and leisure facilities. It has been specifically designed for families and individuals looking for a suburban lifestyle.
El Cangrejo
This area has been popular with expats for many years and offers a wide and buzzing social scene. It is centrally located and has many options for buying and renting at a price that is a little more reasonable than other locations in the city.
There are many other areas popular with expats including Punta Pacifico, Obarrio and Avenida Balboa. Just outside of the city, Clayton and Panama Pacifico are worth a mention if you are looking for a more suburban lifestyle in an expat community.
Panama´s beach communities
The most popular locations are situated on the Pacific coast and are about an hour and a half drive away from the city to the west.
Coronado & Gorgona
This beach community has been a draw for expats and retirees for many years and offers a wide range of options from modern condominiums to luxury beachfront properties. It is well established with many nearby amenities such as hospitals, malls and supermarkets. With its vibrant social scene and pleasant tropical climate, it is a great choice for those looking for an active beachside lifestyle.
Buenaventura
This area is considered more upmarket and offers upscale residential properties including beachfront villas and condos. The pace of life here is more relaxed and luxurious. There are plenty of leisure options nearby including a championship golf course, sports clubs, tennis courts, gourmet restaurants and more.
The Mountains
For those looking for a fresher and cooler climate, the towns of Boquete, Volcan and El Valle are situated a few more hours to the west of the city and are located at a higher altitude in the mountains. Boquete, just north of David, particularly has a wide and active expat community. The scenery is stunning and there are many leisure options available.
Summary
Where many are considering a fresh start with a new and improved quality of life elsewhere, Panama is a great option as a country that offers natural beauty, and modern amenities and properties that are cost effective. From tropical beaches, to mountainous scenery, to vibrant, buzzing urban city life.
In this series of articles on buying property in Panama, we aim to give you helpful guidance on the full process of buying real estate in Panama, as well as offer some useful advice on what you can do to avoid the potential pitfalls when making your purchase.
How we can help you with making your property purchase in Panama!
At Topaz Services, we can assist you with all of the services you need to buy your real estate in Panama including due diligence reviews and the drafting, negotiating, implementing and enforcing of real estate contracts. Additionally, we can assist with the transfer of the purchase funds, attend to registering the purchase with the local authorities and take care of all property tax obligations on your behalf.
By being your “boots on the ground,” we can provide you with the confidence and peace of mind as we take care of the process keeping you fully informed throughout the process. Our team of experts, with proficiency in Spanish and English, as well as our long-established local network of recommended service providers, can be of invaluable assistance.
Topaz Services has been providing quality advice and expertise for over forty years and our experience in Panama is accompanied by the reliability, understanding, personal approach and responsibility you could expect from a British-run professional company.