News

As we enter 2023, it appears Panama’s property market will continue experiencing an upward trajectory of both demand and price appreciation. We saw significant upward trends in 2022, which now appears to be the start of a long-term trend in the market.

At PPR, our teams are on the ground, dealing with buyers, sellers, renters, investors, and developers on a daily basis. We see firsthand the forces shaping the market. Our business is identifying opportunities for our clients.

As we look forward to 2023, there are several trends that will serve as important drivers in the real estate market.

International Growth

Panama has become a positive recipient of continued foreign investment from the United State and Canada, as well as South American countries such as Peru, Chile, and most recently Colombia. Political shifts are prompting an exodus of capital and Panama has been the beneficiary. All signs indicate continued turmoil around the world, and Panama will be an attractive alternative, in terms of lifestyle and investment portfolios.

Popular Visa Programs

Panama was recently featured as one of the top residency application locations in the world, and the number of applications continues to grow. The Red Carpet Visa, Panama’s version of a Golden Visa, offers a quick path to residency for foreign citizens making an investment in the country, such as real estate. The minimum $300,000 investment level was recently extended for another 24 months. Based on our inquiries, we expect to see more “visa buyers” in the year ahead.

Booming Beach Destinations

In recent months, we’ve also seen an uptick in inquiries in sales and rentals in Panama’s beach areas. The up-and-coming Chame, a fast-growing beach community 90 minutes from Panama City, is getting a lot of buzz. Improved infrastructure and a new bridge over the Panama Canal will make outlying beach areas more accessible in the years ahead, which will fuel more interest in property buyers. 

Economic Expansion

While many global economies are teetering on the edge of recession, Panama’s economy is expected to continue to grow in the year ahead. After a 9% GDP jump in 2022, the Fitch Ratings expects Panama’s economy to grow by 4.5% in 2023, which would be among the top performances in the region. As the “Hub of the Americas,” Panama is demonstrating its almost recession-proof, and its stability will stand out in 2023, more than ever. The economy will provide a strong foundation for growth in property sales and rentals, as multinationals continue to grow their Panama operations.

Tourism Boost

Panama’s government is expected to make a major push in 2023 to grow the tourism sector, which is still underdeveloped. Campaigns are targeting European travelers and eco-tourists, spotlighting Panama’s rich culture and unparalleled ecosystems. Luxury markets will also benefit from a wide variety of new hotels and resorts opening. Increased flights from Europe and the Middle East will introduce Panama to a new generation of travelers.  

Tightening Supply

In many of Panama’s top buildings, we’re seeing the supply of quality apartments for sale and rental starting to dry up. While there will be a few notable new projects completing in the years ahead, the pandemic put the brakes on new construction. Moving forward, we expect the availability of units in the most desirable buildings to shrink. Competition will increase and prices will rise, once the slim number of new apartments is absorbed.

All in all, all signs point to a healthy and vibrant real estate business in the years ahead. There are opportunities and challenges, in a stable, rapidly maturing market.

Want to learn more? Send us a quick email at sales@puntapacificarealty.com