News

Foreign buyers are jumping on real estate opportunities in Panama, according to a new report. In the first half of 2023, sales to foreign buyers in the first half of 2023 jumped 20% from three-year-ago levels, financial consultancy Indesa found.

Indesa managing partner Luis Navarro concluded that “this is the time to buy” property in Panama, with price increases likely in the “not too distant future,” according to coverage in La Prensa. A variety of factors in place will continue to make Panama attractive to foreign buyers, including attractive dollar-based mortgages, he said.

“Real estate investment prices in Panama are highly competitive compared to other markets,” Navarro told La Prensa. “Inventories of homes and real estate that existed before the pandemic have been absorbed, which allows prices to be very attractive for buyers in the United States.”

At Punta Pacifica Realty, we’ve been talking about this phenomenon for the past year. New construction ground to a halt during the pandemic. It will be years before the market catches up. With sales strong, the inventory of quality apartments is going to grow smaller and smaller, which will increase competition and likely drive up prices.

We’ve also seen a steady increase in sales reported by Indesa. As Panama emerged from the pandemic, there was a real sense of FMO — fear of missing out — which has helped drive sales in the top properties.

The report from Indesa was released as real estate agents from the United States are in Panama City for a conference organized by the Panamanian Association of Real Estate Brokers and Promoters (Acobir) and the United States-Panama Business Council (USPA), in conjunction with ProPanama. The event is promoting Panama to the U.S. market, where interest remains high in Panama property.

Ocean Reef Islands in Punta Pacifica Panama

“They have clients in the United States who are interested in having a second residence in countries like Panama, which has a great affinity with that market,” Carmen Gisela Vergara, administrator of ProPanamá, told the paper.

The largest group of foreign buyers of homes priced over $120,000 in the first half of the year was from Colombia, Indesa found. Colombian buyers spent $73 million on property, accounting for 19% of sales; Venezuela was next with a 14% share. U.S. buyers represented 10% of sales in the first half, with $56 million in home purchases.

Moving down the list, Spain accounted for 7% of foreign purchases, followed by citizens of China, who represented 6% of sales.

The average price of homes purchased by Colombians in Panama in the period was $324,778 for properties measuring 143 square meters, while Venezuelans paid an average price of $264,253 and Americans $315,919 per housing unit. The average price per square meter ranged from $2,109 to $2,339, Indesa reports.

“There is a great opportunity for more people, for example from the United States, to come and invest in the Panamanian real estate market, be it as an investment, to live, or as a second country of residence upon retirement,” Navarro said.