2022 Panama Real Estate Trends

Are you planning to invest in Panama real estate? It’s one of the fastest-growing markets right now, so it’s even more important to be prudent. Before you go search for properties, here are some of the things you must know about the current state of the Panama real estate market.

Like most countries, Panama experienced a slight setback during the peak of the COVID-19 pandemic. Businesses shut down, people became unemployed, and the economy suffered. But luckily, things are slowly going back to normal.

For instance, the country’s real estate industry is on the rise, affected by numerous trends and opportunities:

·                             A profitable alternative

Panama is a popular destination for immigrants and retirees, especially from the United States. As a result, the market has grown exponentially and is expected to boost only in the coming years.

·                            Rental rebound

The pandemic has led to an alarming vacancy rate in rental properties. But by 2021, this number slowly decreased, bringing occupancy rates to over 95%. This is forecasted to increase further as apartments attract more potential investors.

·                          The rise of cryptocurrency

Cryptocurrency is no longer restricted to the depths of the internet. Even property buyers have started accepting payments in Bitcoin. As more people invest in crypto, you can expect it to become an integral part of Panama’s future real estate market.

As you can see, investing in Panama’s properties can still be profitable in 2022. However, you’ll also need to consider other factors, including:

·                           Location

Panama is a huger country than you might think. To ensure profitability consider a property’s proximity to amenities, green space, transportation, and medical services.

In Panama, you can look at properties located in Panama City, Bocas del Toro, and Pedasi!

·                           Investment purpose

Why are you investing in Panama real estate in the first place? Your investment purpose can ultimately affect the property’s profitability, so make sure you plan accordingly. Talk to a realtor to explore your options.

Don’t Make A Mistake Like the Millions Out There – Find A Good Real Estate Agent Before You Buy or Sell Property in Panama

You may be a strong believer of self-reliance, but when it comes to major financial decisions, like buying or selling Panama real estate, it is best to proceed with a partner who has your best interest. It means working with a trustworthy real estate agent. That way, you can avoid the guesswork and avoid many problems down the line. A good agent will boost your confidence and guide you as you buy or sell property, while ensuring a smooth and stress-free experience.

 

It’s for your own good!

A certified and trustworthy real estate agent will save you money and time, and steer you from encountering hassles when purchasing or selling property in Panama. Without them, you are at a higher risk of being scammed. You could end up not getting your money’s worth or find out that the property is non-existent among other scams.

Cons are everywhere, and Panama real estate is no exception. They could involve buyers and sellers alike, as well as real estate agents. So, it is crucial to do your homework, examine the agent’s background, history, and reputation, and explore their experience in helping foreigners buy and sell property in Panama.

 

The real estate agent is your representative

You need a trustworthy real estate agent to advocate for you at all times to ensure a smooth and faster transactions. Without them, a transaction could drag on and result in a breach of contract. They can also help you find the best deals in Panama real estate, as there may be special offers that are available only through them.

 

Their service is worth your time and money

It may be tempting to do things yourself in an effort to save money, but it will be better to work with a Panama real estate agent to avoid wasting time and putting your finances in ruin. Make sure they are licensed and capable of representing properties in all 10 provinces.

A Guide to Buying a Land in Panama

Many foreign investors and expats are choosing Panama as the location of their second home, vacation house, or business venture. If you are interested in buying land in Panama but don’t know where to start, here are some practical tips.

1. Find for a property you like.

The first step that most buyers do is to search for a vacant residential or commercial land in Panama that suits your requirements. It's prudent to can hire a real estate agent to help find properties and help you navigate the process. Real estate professionals not only know how the property market works, but can also provide useful resources and contacts for everyday living.. They have connections and networks that they can use to fast-track the search.

2. Title search and Due Dilligence

The seller should provide all necessary documents showing that he or she is the legitimate owner of the property. The seller must present the title or the public deed and the Ownership and Encumbrances Certificate from the Public Registry. If they cannot present the documents, just ask for the assigned property number or finca number, then ask your lawyer to manage and cross check the title search.

3. Do a survey of the land.

Before buying land in Panama, make sure to have it surveyed by a licensed surveyor. This is needed to determine the exact land size and measurement, which will then help your future engineers and architects build a structure on it. Surveying the land is especially necessary if the property has never been surveyed before. You may hire a licensed surveyor yourself and get it done prior to buying land in Panama.

4. Figure out the structure of your sale and enter into contract

Speak with your attorney and figure out the best way to acquire your property. It's possible to own real estate in Panama in your own personal name, a corporation or foundation... each of these options have pros and cons, and depending on your wants and needs, an attorney can help you determine the best structure for your purchase. An attorney can also help prepare the contract and documents needed to make your dream a reality. Both the buyer and the seller should agree on the price and all the terms before signing the contract and with the signing of the agreement a down payment is issued.