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The Key Trends Impacting Global Property Buyers

International real estate is a competitive business. Second home buyers and investors can shop from Bali to Dubai, looking for great views and good yields on their money.

Here in Punta Pacifica, buyers are coming from around the world, including Asia and Europe. They buy for a variety of reasons – sometimes they simply fall in love with an apartment.

But we recognize buying property is a complicated decision for the international buyer. That’s why I was particularly interested in recent statements by Bill Endsley, the secretary general of FIABCI, the international property group.

Mr. Endsley identified nine trends that are impacting international property markets, according to FIABCI research. And it’s easy to see why Panama City is attracting so many buyers, based on the findings.

Among the factors he cited, buyers are increasingly looking for urban properties where they can live and work in the same place, according to a report by Inman columnist Bernice Ross, an author and chief executive of RealEstateCoach.com. That’s certainly something we see here in Punta Pacifica, as buyers embrace a skyscraper neighborhood with the waterfront and all the conveniences within walking distance.

Mr. Endsley comments were largely focused on the United States, but his insights on international buyers also apply to Panama. For example, he noted Asia investors are increasingly moving money out of Asia and high tax rates in Europe are encouraging EU investors to look outside Europe.

He also noted that instability in other nations is a key trend, leading to wealthy investors in countries like the Venezuela to look outside their country for secure investments. We’ve certainly seen that here in Punta Pacifica, with buyers from throughout Latin America viewing Punta Pacifica as a safe and stable area to place their money.

Another big trend identified by FIABCI, according to Ms. Ross’s list on Inman, was the growing influence of wealthy buyers from the Middle East. “The current Arab influx in the investment market is huge,” she writes.

But that is one trend that we are only now starting to see in Panama City, as Middle East buyers move beyond their traditional favorite markets. Even a slight increase in Middle East investors could have a profound impact on the Panama City market.

One more item on the FIABCI list caught my eye. International clients “come armed with information,” Ms. Ross reports. “They will expect you to be an expert on the market conditions, current rates of return for various types of investments, as well as how values are trending in the market you represent.”

Here at Punta Pacifica Realty, we know that’s true. International clients demand information and expertise. We’re ready for them.

Duncan McGowan is president of Punta Pacifica Realty, a Panama real estate agency focused on Punta Pacifica, the exclusive neighborhood of 18 towers perched on the edge of the Pacific Ocean.

 

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