While the pandemic of 2020 continues to linger, investors are exploring their options for 2021. Everybody knows that it will be an exciting year as economies open up around the world and people begin traveling again.
At Punta Pacifica Realty, we’ve been through tumultuous markets before and we have a good sense of what’s ahead, as markets start to rebound and buyers look for new opportunities. In the drawn-out slowdown of 2020, we saw many signs of market interest, as sales and rentals continued, despite the obstacles.
As we move forward into the new year, we’ve identified several trends to watch, which will help guide the market in the months ahead.
Buying the Dip
The pandemic has created one of those rare generational shake-ups in the mark. Some people are selling at prices that haven’t been seen in years. At the end of last summer, when Panama started to see signs of reopening, we saw a surge in buyers gobbling up top properties. That phenomenon is likely to occur again in 2021 as buyers jump into action when they start to see the opportunity disappear.
International Investment Money Flowing into Property
In this type of crisis, fundamental shifts occur in how and where people invest. We’ve seen it before. When the stock market rally starts to fizzle out, investors will look to move their profits into safer, high-yield investments. Real Estate Property always is an attractive investment, and Panama is an appealing target compared to overbought markets in other regions.
Red Carpet Visa
Panama’s new Red Carpet Visa, a form of Golden Visa, brings a tantalizing new benefit for international property investors. Property buyers can get a permanent Panama visa with a $500,000 purchase. Even better, for the next two years, they are lowering the threshold to $300,000 for property purchases. This will make Panama even more attractive to many international buyers.
Healthy Lifestyle a Priority
In our work with Seascape, the health and wellness-focused residential community on Ocean Reef, we’ve seen how important lifestyle and health are to buyers these days. The waterfront lifestyle and health-focused amenities are really resonating with buyers. We expect the trend to continue, with more buyers valuing amenities that will improve their mind, body, and spirit.
Flight to Quality
Even before the pandemic, we saw buyers focusing on top-quality apartments in the best buildings. A clear separation was forming between the performance of top buildings compared to mediocre buildings. We expect that division to increase as the market starts to reopen. There will likely be an ample supply of apartments on the market, but few in the best buildings at the right price.
In this type of market, investors will be looking for yield. Apartments with established renters and steady income will be in demand. As Panama City’s largest property management and rental firm, we have a unique insight into what rents–and what doesn’t. In a competitive market, a premium will be placed on finding the best units, as well as the ability to keep those units producing a steady income.
Work from Anywhere
The work from home movement is going to continue long after the pandemic. And it’s going to expand as people realize they can actually work from anywhere. We already see buyers and renters who are simply shifting their business to their Panama home. Some current owners are upgrading for more space. Larger apartments in buildings with an array of business-friendly amenities will be in demand.
We are here to help.