Panama is experiencing its great boom in the real estate industry. As of last July, more than 380 skyscrapers or in different stages of construction had been announced, representing more than 40,000 condominiums and apartments. Just a year ago, 11,000 residential units were built. Many developers say the boom in Panama's real estate market is because retirees from Florida, California, New York, Texas, Canada, and other foreign investors are looking for what Miami offered until a couple of years ago: climate, comfortable urban living and affordable prices.
"Panama, as a result of the expansion of the Canal and the collateral activities that this means, has a very solid economic future that is reflected in the real estate sector," explained Sergio Pintos, specialist in the real estate industry and Director of the International Sales Group (ISG) International Department. Miami-based firm specializes in the commercialization of luxury projects. "The Trump Ocean Club project has been a resounding success being Donald Trump's first project in terms of high-rise buildings in Latin America."
According to Pintos, the price per square foot in exclusive buildings in Miami is between $700 and $2,000, depending on the project and area. While in Panama luxury projects are for $ 200 and $ 300 square feet.
Residential units for retirees are considerably cheaper in Panama than in Florida, and the weather is the same or better. The currency is the dollar. And while Medicare doesn't cover Americans abroad, health care is considerably less expensive than in the United States.
"Right now the real estate sector in the United States is going through a logical period of re-accommodation. In the stages after a real estate boom, always the moments of re-accommodation are moments where those who invested without having sufficient support will suffer, "says the director of ISG.
Pintos explained that the profile of the buyer in the real estate market in Panama is very varied, from retirees, to people over 30 years old; of North American, Latin American, European or Asian origin. "Panama is behaving in the logical way that a growing market would behave if there are a number of factors that present this real estate boom," said the ISG executive.
"The countries that from my point of view are today the most attractive for foreign investors are Panama, Argentina, Brazil, Colombia and Mexico," Pintos said. "While in Nicaragua, El Salvador or Guatemala I don't see a short-term boom. These are countries where there is still a high percentage of insecurity at all levels, which makes it very difficult to attract foreign investors."
Currently, ISG, with 150 employees and offices in Miami, markets 17 luxury projects in Florida and one in Las Vegas. In Panama, trump sells Khafif and Essenza Of the Malca Group in Costa del Este, both to be completed in 2010.
