Panama Investment: Economy
Potential investors in Panama property will need to consider the Panama economy and when they do so, will discover that the news is good. The IMF noted that Panama was one of the fastest growing economies in the world in 2007 with real growth rising to over 11%, following an average growth rate of nearly 8% from 2004 to 2006. Moreover, the potential for future growth is high due to the Panama Canal expansion, which is expected to have a profound effect on the Panama economy making Panama property investment a wise option.
The Panama economy has a well-developed services sector, which accounts for around 80% of GDP. In addition, the country is enjoying unprecedented low unemployment levels, which stood at 6.4% in 2007. What is even better for property investors in Panama is that the government has recently extended its 20-year property tax exemption for foreign property investors. All these factors combine to give the Panama property market great potential.
Panama Investment: Tourism Potential
Alongside a healthy Panama economy is an ever-growing Panama tourist industry, with visitor figures exceeding 1 million during the first 9 months of 2008. Panama is a perennial favourite with visitors from the US but in addition, the government is investing hugely in a tourism development plan and has been negotiating with European airlines for more direct flights to Panama from European destinations in a bid to diversify their tourism market. Increasing Panama tourism potential along with a healthy economy are two of the main positive factors important for potential Panama property investment.
Panama Investment: Property Market
The Panama property market has been enjoying a boom since 2003. This is mainly due to increased interest from foreign investors in Panama, particularly retirees from the US. In addition, low entry costs, high rental yields and high capital appreciation make Panama property investment a must for the wise investor. During 2007, price rise averaged around 20%, particularly on new investment projects in Panama and beach properties. Panama has become an increasingly attractive retirement destination making it a healthy market for Panama second homes and buy-to-let Panama property. For more information, click here for the Panama Land and Property Investment Guide.
