WHY IS 2018 THE MAKE-OR-BREAK YEAR FOR PANAMA REAL ESTATE?
The real estate market can be one of the most volatile in a country's economy. There are seasons when prices go down and others when they go up. At present, the pendulum of the balance is tilted downward in terms of the price of real estate.
In the specific case of Panama, there are many reasons why there has been a decrease in property prices, although they are still not far from the effects that the last economic crash has had on the world economy and whose remnants permeated, to a greater or lesser extent, the main world markets of the real estate sector.
PROSPECTS AND OPPORTUNITIES FOR THE REAL ESTATE SECTOR IN PANAMA
The second decade of the present century, in the Panamanian real estate market, originated a type of economy that made prices fluctuate constantly in the sector, due to its nature. Consequently, immediately, a reduction in real estate prices was evidenced, partly because there was a greater supply of properties that exceeded the demand.
The drop in prices has brought a new behavior in the local real estate market on the part of its agents, having as the most obvious distinguishing factor a greater demand for real estate by new buyers who understand that Panama is a safe city to make investments of this type.
It would be necessary to add other elements that would come into play so that the prospects of the Panamanian real estate market currently look ideal for the acquisition of properties: its economy based on the dollar, as well as its solid institutional banking structure, which contributes to strengthen the confidence on the part of the plaintiffs and bidders that transact their interests.
PURCHASE AND LEASE OF CORPORATE PROPERTIES
A particular case that deserves mentioning, as it has presented an interesting deceleration of prices, clearly leaning downwards, is the rental of corporate buildings. Studies estimate that there has been a 30% decrease in rentals of infrastructure in this category.
In general terms, it can be said that it is a good time to invest in the Panamanian real estate market, either to buy properties to later rent them or to sell them in view of the growing demand of new buyers, which continues to grow and is expected to continue in 2019.
