Most likely, you have got word of the recent real Estate BOOM currently occurring in Panama. Perhaps, there are several internet sites you have read or visited hunting for further information on the topic. Or maybe you are one of those persons which have taken the decision already of buying an apartment or a beach house hold, but you don’t know where to start or wish to start your own property project in Panama, yet still need more information. Well, I had prepared this article in a practical and simple way to guide you in our real estate market. You will find this paper helpful, if it’ll be for the direct buying of a property or to start off your own real estate project in Panama or simply to have a further complete notion of this rising real estate BOOM.

What is encountering in the Panamanian Real Estate market?

What is going on in Panama is with very little sort of precedent. The market is growing rapidly and such housing development has never been experienced before in our country. Regular monthly, we are visited for hundreds of foreigners interested in buying authentic estates in Panama, in the City, the coasts and then the mountains. The constant rising of the value per pillow meter is almost in a monthly rate. For example: in Jan, 2006 it was possible to find apartments in Panama Place for around US$ 1, 000. 00 per square meter, which is nearly impossible nowadays (US$ 1, 200 - US$1, 400 and rising). This has generated the value per sq meter to triplicate in the city and even to quadruplicate in the rest of the country. The main real estate broker associations currently have foreseen that the general value of the land in Compact country of panama could rise up to 30% to 40% in the next four years, due to this price increasing flow.

Extreme luxury towers for over 100 stories, residential houses of over a zillion dollars, yachts and marine clubs, huge luxury hotel rooms, golf camps designed by well-known international specialists, as well as top grade malls, are currently under construction or in process of presenting in the next couple of years; renovating the face of the city into a major international and cosmopolitan metropolis. Promoters, private investors and abroad real estate companies, from United States, South America and even Europe, contain started the construction of real estate projects of amazing impact. Also, a great number of international real estate broker companies are setting up businesses in our country per month. Specifically we could tell you that seven of the highest towers under construction for Latin America are being built in Panama City, within the locations known as “Avenida Balboa” (this area is projected because skyscraper in front of the sea in the city). We could mention, a few: Aqualina, Aquamare, Vitri, Ocean Two and One, Los Faros de Panama and Ice Tower, ready to be supplied for the year 2009; besides the hundreds of apartment towers produce developed around the city. Great beach lot projects, remote island resorts, as much as in the Caribbean Sea (Bocas del Toro) as in the Pacific Ocean (Pearl Islands); as well as enjoyable retirement mountains (Boquete, Altos del Maria) are part of the avalanche of real estate projects that seems just to possibly be starting.

Which are the real factors that caused this real estate property boost?

We all know that after the hostilities occurred in Panama in 1989, the Panamanian real estate market remained hesitant as well as small amount of inversions in this sector were led in the nation’s majority into commercial projects. Eleven years had to jog by after this event (year 2000) for the leaders in your tourist sector of the Panamanian government (led by the well-known Panamanian singer Ruben Blades) to take action initiating a serious marketing for the enhancement of the country’s image. Panama was found as “the path less traveled”, stressing not only from the advantages of being and international banking services and ocean going center, but also in the social, tourist, ecological and geographic elements that until then were unknown to the other countries in the world. This successful campaign was promoted worldwide generally international television chains, in Europe as well as in the United States. Included to this, something that has to be acknowledged, for the year 2003 Compact country of panama comes back to the international field with the announcement that a younger Panamanian lady (Justin Pasek) won the Miss Whole world contest, situation that allowed by extension the range in advantages of our country as a tourist and commercial destiny. Between the years 2003 and 2005, little by little the number of prospects increased as a consequence of these two important catalysts.

Meanwhile, small categories of professionals (lawyers, brokers, and independent professionals) were supplying seminars about the Panama’s advantages or organized small properties tours to foreigners. Several articles published in intercontinental retirement magazines (generation known as “Baby Boomers”) and subsequently residences abroad, started to acknowledged Panama as one of the best nations around the world in the world to live at high standard levels, but through low costs; all of this caused due to excellent projects resolved to this market, as “El Valle Escondido” in Boquete - Chiriqui or “Altos del Maria” in Panama. One of the main triggering factors of this real estate boost in Compact country of panama occurred last April 24th, 2006, when Donald Trump announced in New York City the construction in “Punta Pacifica” area in Panama City of a 65-story tower recognized as “Trump Ocean Club International Hotel”, with a price tag of 220 million dollars. Further more, on October from the same year, the national acceptance for the enlargement of your Panama Canal was given, initiating construction works in the time 2009. Starting from this point, there is no doubt that Panama would certainly become the centre and role model of real estate investments in your community, situation that has been increasing exponentially.

Which are then Panama’s added benefits as a real estate destiny?

Well, let’s get into the subject. Let me study those advantages that Panama offers and that will allow you, effectively, to take the decision to buy a property in our country, plenty of foreigners have done. From the real estate point of view, we could mention:

-*- Panama offers the best banking center in the region, with the use of the actual American dollar as legal currency and with top of the line banking institutions (HSBC, CITIBANK, BBVA, etc . ) which will facilitate doing this of obtaining mortgages for foreigners, offering a fast foreign bank transaction process for deposits and reservation regarding properties.

-*- Panamanian immigration law has one of the best golden age programs in the world, which will allow you to become a “resident” in less than 8 weeks. This program offers several incentives as the possibility to signific goods and personal values into your new properties clear of import duties, as well as motor vehicles also free of import chores.

-*- An outstanding service, utilities and infrastructure system intended for properties, such as: high speed Internet (there are your five of the main Internet interconnection Networks crossing through Panama), Cable and Satellite TV, public potable water, wide range of telephony offer, fixed and cellular.

-*- The opportunity to obtain extreme luxury apartments with ample spaces to a rate amazingly low compare with apartments of the same quality during USA and Europe.

-*- The opportunity to acquire properties exempt to the 0% of property taxes for a period of 5, 10, 15 and even 20 years (depending on the date with construction’s commencement).

-*- A vast variety of companies and bilingual professionals involved in the real estate market.

-*- If you are a businessman, Panamanian law has fiscal benefits to constructors and promoters that start real estate projects in the country.

Additionally , there are other sorts of advantages to take into consideration that even when you are not directly involved in the realty business, they can become helpful at the moment of taking the choice of buying a property:

-*- Panama has been acknowledge for providers as Pinkerton Intelligence Agency as a high standard safety country in contrast with the current situation in neighboring states.

-*- You can hire house keeping services for a lower price (around US$ 150. 00 per month)

-*- Up-to-date high standard technology available.
-*- The opportunity to acquire goods from all over the world in the Colon Free Zone, due to the apparent position of the Panama Canal and the transit of in excess of 14, 000 ships per year.

-*- The conditions involving Panamanian taxation law allow the tax payer not to spend taxes on bank interests or even income taxes when the services and/or business are performed abroad.

-*- An exceptional geographic position to perform international commercial transactions, with fast admittance to the Pacific Ocean as well as to the Atlantic.

-*- Panama has a low-risk profile in regards to natural disasters, such as earthquakes and hurricanes.

These are some of the many advantages that Panama generally offer if you decide to acquire a property in our country, whether it is to invest or perhaps to relocate and enjoy life.

Which are the most attractive websites to buy properties?

To better answer this question, we have to break down our answer in four groups: Panama City, any mountains, the Pacific shore and the Atlantic shore.

Compact country of panama City

The main seaside view luxury condos are found throughout Panama City, distributed as follows: Balboa Avenue, Punta Pacifica and Costa del Este. The region known as “Avenida Balboa” has become the icon of real estate development in Panama. The reason behind this is due to the current construction of luxury residential studio towers with an outstanding architecture with a height of through 100 stories, to be concluded in the year 2009. Balboa Avenue offers quick access to the whole city, the banks and loans area, as well as to the main avenues, given that it is the sea-coast boulevard. One hundred meters away from this area you will find places to eat, bars, hotels and several facilities. European promoters, American as well as South Americans have foreseen the real estate potential in this region, equivalent to condos phenomenon occurred in Miami during the eighties. “Punta Pacifica” area was developed over the old City terminal (for the reason that it was next to the pacific shoreline and inside the city). This region was designed exclusively to provide an answer to the upcoming real estate demand. The area presents beautiful projects and high standard apartment towers. Additionally, you will find in “Punta Pacifica” malls (Multiplaza Pacific), Hospitals (John Hopkins Hospital), corporate buildings and access to tracks (Corredor Sur) which will grant you fast access to the particular international airport in 15 minutes. Is also in this sector where the Trump Organization and K Group will raise their touted real estate project. Another of the desired areas for visitors is Costa del Este.

The “other city” because is referred to was also conceived and designed for typically the development of apartment buildings and closed residential residential areas. It is the perfect place for a foreigner to completely relocate through Panama. This region has it all schools, malls, big avenues; this sector offers several real estates along with a gorgeous view to the sea or to the city, located all 5 minutes away from the city and only ten from the international airport. What’s more , important to stress out that this luxury tower’s development seriously isn’t circumscribed to these few areas. There are also urban ventures in the region of Punta Paitilla, Coco del Mar and Bay area (all of them in front of the sea), as well as beautiful developed personal areas in the surroundings of the Panama Canal, such as Albrook, Clayton and Quarry Heights.

The Mountains

Gorgeous high altitude projects with cool, fresh weather from 18Cº for you to 20Cº (64ºF to 68ºF) have been developed in the provinces of Panama, Cocle and Chiriqui. In the province associated with Panama, the most representative mountain project is found in the region from Sora, 75 minutes away from the City and known as “Altos del Maria”. This project consists of a well-organized foreigner’s group with utilities and spectacular landscapes. Another region about urban development can be found in what is known as “Tierras Altas” (High Lands) located in the province of Chiriqui (Volcan, Boquete and Cerro Punta). Among these places, Boquete is actually one of the most relevant real estate centres in the whole country, considering it counts with a wide supply of real estate projects, readily available houses in the mountains with amazing landscapes. Boquete has long been recognized by specialist in the subject as one of the best places for the purpose of retirement in the world, fact that has generated in this region the highest focus of retired foreigners in the country. Finally, in the province connected with Cocle, you will find the region known as “El Valle”. Located in the extinguished volcano, El Valle offers the perfect weather, waterways, waterfalls and tourist attractions. El Valle is at present bringing measures to become one of the most wanted regions in the field of mountain properties, owing to its facilities and infrastructure, as well as to the proximity to Panama City (1hr. 45 mins. )

The Pacific Shore

The supply of lots in front of the beach starts in the pacific coast line of the Province for Panama, and it goes all the way until the mid-country provinces. Almost all Panamanian high-class families have their beach houses for this sector; due to its proximity to the City (45 minutes). The coast line offers residential areas such as Came, Coronado, Punta Barco, San Carlos, Gorgona, among others. Within all these beach residential areas we have to remark the region known as “Coronado”, region which counts with one of the best professional Golf camps in Latin America, pools, beach clubs, equestrian golf equipment, several restaurants and great supply of houses and flat buildings in front of the sea. Additionally , further on in the ocean coast line, we can find the region of Playa Blanca. Since the development of the macro hotel project known as “Royal Decameron” in the area, the infrastructure and general surroundings experience grow significantly. In Playa Blanca, you will be able to find casinos, swimming pools, restaurants, bars and discotheques, beach clubs along with a great variety of real estate projects just right next to the beachfront. Finally, we should also mention the recent development veteran in the seaside areas the provinces of Los Santos (Pedasi) and Veraguas, such as Playa Arenal, Punta Mala and Playa Venao, among others; which have become the new lives for many foreigners (mostly Europeans) that are searching for great extension cords of lands in front of the sea.

The Caribbean Shore

In this region, we can find a similar supply of real estate properties to the one located in the pacific coastline of the mid-country provinces. There are several real estate in front of the sea, as well as vast extensions of hectares together with the beach. This region is located two hours beyond Panama City and it offers the option to buy in the well-known Colon Free Zone. On the west side of the place, you will find in the Caribbean coastline, the spectacular region in Bocas del Toro, where properties next of the underwater or in the middle of an island are simply astounding. A great many types of international real estate companies have started projects in the crystal clear waters of Bocas del Toro. Bocas is one of the almost all known tourist destinies in Panama, located only 1hr and 45 minutes away by plane. It offers an excellent night life, restaurant, hotels and tours around the unique islands of the area. Bocas del Toro coastline has become the most wanted real estate choice for retired or pensioned foreigners in the Caribbean. Among the best areas of Bocas del Toro you can find Isla Colon, Boca del Drago, Red Frog Beach and Playa Larga. The residential project often called Red Frog is of renowned reputation in the world-wide spheres, given that it offers an incredible exclusively designed development pertaining to foreigners in one of the most beautiful islands in Bocas delete Toro, Bastimento’s Island. The project has marine night clubs, restaurants, houses and a dazzling infrastructure.

Islands

The most infamous group of islands is found in Bocas del Toro, given that, once we already mentioned it offers a wide variety of real estate projects in the Caribbean, predicament of several TV series broadcasted around the world. The most important of the islands of the archipelago are: Isla Colon, Isla Bastimentos, Isla Solarte, Isla Cristobal, Isla Popa and Isla Zapatilla. Likewise, we can found several small independent islands just for private projects. Bocas’ islands counts with an astonishing environment for scuba diving, marine activities and bird watching. A second group of islands that is raising popularity is the real estate market seen in the archipelago of Mosquito’s Gulf, in front of the pacific shore of the province of Chiriqui. This Gulf has been allowed by the Panamanian government the title of Ecological Wildlife reserve, as a consequence of the great diversity of marine fauna found in the region. Most of the islands have registered real estate titles, which help its prompt buying. The surroundings of these islands will be famous for being one of the best places in the world for Black Marlin fishing. The Pearl Islands are located within the Gulf regarding Panama, three hours away from the city in the open sea, selling a group of more than 35 beautiful islands with spectacular panoramas, surrounded by coral reefs and vast vegetation. The beauty of this area attracted the production team of the trendy reality show “Survivor”, who has filmed several times in this region. Last but not least, you will find the island of “Coiba” in the Pacific Ocean, formerly a prison already abolished and currently the National Park. The main island and its small islands which includes Isla Iguana have become in top destinies for diving scuba and water sports.

What should I and should not achieve when buying a property in Panama?

As a final suggestion, we will recommend you some practical advises when you decide to buy a property in Panama:

Recommendation # 1: You can travel to the projects on your own, but it is advisable to be made it easier for by a professional who could properly introduce you to the causes, avoiding the pointless increase on the price.

Recommendation # 2: If you are not fluent in Spanish, you should consult the promoter to get you the contract both, on Spanish and in your native language, for all legal ventures to be performed.

Recommendation # 3: Once you reserve your house, immediately ask for a receipt and the signature of the Promissory Purchase-Sale agreement.

Recommendation # 4: Once you have signed the agreement, double-check the deadlines for the subsequent down installments of your property. If you miss one of these, you are exposed to reduce the money already paid to the promoter.

Recommendation # 5: Try to take a quick decision on acquiring the property; seeing as once you reserve it, the price is then frozen. A result of current demand in the market, prices on apartments rise from a monthly rate.

Recommendation # 6: Once you reserve your possessions, look for the professional advice of lawyers or real estate agents, in order to verify all documentation and contracts are a result of procedure of registration.

Recommendation # 7: Think about the chance of acquiring your property through a Panamanian corporation. They are of swift incorporation, considerably cheap and easy to manage. Using a enterprise to acquire a property in Panama will ease a future transport of it, if that’s the case.