The Explosion of Panama’s Property Market
sduford on Jan 07 2008 at 9:52 am | Filed under: Panama
Here’s an interesting article on the real estate market in Panama.
The Explosion of Panama’s Property Market - Who Lit the Fuse?
Written by LiamBaileyDSR
Published January 06, 2008
Simply incredible. That’s the only way to describe the property boom in Panama.
About 30,000 units were built between July 2006 and July 2007, another 40,000 announced and/or being built, and rental yields are going through the roof. Tourism and business are equally attracted. Global corporations like Hilton are building skyscraping hotel complexes and giving Panama City a skyline to rival any of the world’s greatest cities. This may go some of the way to explain the influx of American retirees chasing cheap living in the sun. But where has it all came from, and why now?
It could be the perfect storm that is driving up prices in Panama - i.e. major western nations’ folks are simply fed up with their governments and moving abroad (i.e. their govt’s deceit, the hijacking of western democracies by big business, their ever-worsening intrusion and control in our lives); the strength of the euro and pound against the dollar; and the potential bargains to be had in a very interesting new market.
Of course, there are some who fear that part of the boom has scarier elements….see:
Panama’s property development boom may be bubble ready to pop
January 6, 2008
http://www.busrep.co.za/index.php?fArticleId=4193495&fSectionId=552&fSetId=662
Yes I have seen that report before, and frankly, I disagree with most of its content. The Panama boom is being driven by many factors. Sure there is the influx of expats, and the influx of wealthy Colombians and Venzuelans, but more important is the huge construction boom that is fuelled by the expansion of the canal, the billions of dollars in infrastructure work, and the dozens of companies moving their Latin American headquarters to Panama City. These include some large corporations like HP, Procter & Gamble, and Caterpillar.
For a great rebuttal of that article, check out this one:
http://www.panama-guide.com/article.php/20071230205729628