{"id":913,"date":"2010-05-19T16:04:37","date_gmt":"2010-05-19T21:04:37","guid":{"rendered":"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/?p=913"},"modified":"2010-06-01T14:15:31","modified_gmt":"2010-06-01T19:15:31","slug":"panama-market-report","status":"publish","type":"post","link":"https:\/\/panamaadvisoryinternationalgroup.com\/blog\/panama-market-report\/","title":{"rendered":"Panama Market Report"},"content":{"rendered":"<h2><a href=\"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2010\/05\/panama-skyline.jpg\"><\/a>Investment and Housing<\/h2>\n<p><a href=\"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2010\/05\/panama-skyline.jpg\"><img loading=\"lazy\" decoding=\"async\" title=\"panama-skyline\" src=\"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2010\/05\/panama-skyline-300x199.jpg\" alt=\"\" width=\"300\" height=\"199\" \/><\/a><\/p>\n<p style=\"text-align: justify;\">Panama City continues to see a\u00a0softening in values and sales in the overbuilt condominium sector. However, there is a silver lining in the grey clouds above. \u00a0 To digress a moment, I would like to share a recent study with you\u00a0of Miami&#8217;s overbuilt condominium market sector for a comparison of the healing cycle that is occurring there and what Panama City has in it&#8217;s future for a several more years to come.\u00a0 See <a title=\"Miami Condo Market\" href=\"http:\/\/nreionline.com\/finance\/news\/miami_gradually_absorbs_condo_supply_overhang_0519\/\" target=\"_blank\">After the Condo Crash, Miami market Rebounds<\/a> .<\/p>\n<p style=\"text-align: justify;\"><a href=\"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2010\/05\/miami_skyline2.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-916\" title=\"miami_skyline2\" src=\"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2010\/05\/miami_skyline2-300x225.jpg\" alt=\"\" width=\"300\" height=\"225\" srcset=\"https:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2010\/05\/miami_skyline2-300x225.jpg 300w, https:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2010\/05\/miami_skyline2.jpg 500w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><\/p>\n<p style=\"text-align: justify;\">While I have sought out investments in South Florida for over 30 years, I find that \u00a0it still does not pay to invest in the condominium market there as\u00a0the rent will not justify the investment based upon maintenance costs and real estate taxes.\u00a0 As the pricing continues to soften in any market, so follows rents\u00a0and the spiral continues downward. This will hold true for investors who remain hopeful in buying condominiums in Panama City when the market hits bottom.\u00a0 It may never make a great deal of sense to invest in a condominium unless you are going to live in it.\u00a0 \u00a0The\u00a0 real beneficiary of this market cycle will be the renter and homeowner who finds a lower cost of living now possible in an otherwise high priced market. Yes, there\u00a0will be\u00a0&#8220;affordable housing&#8221; where one can live and walk or have a short commute to work.\u00a0 The other beneficiary which is good for all of us, is the City in which the market exists.\u00a0\u00a0\u00a0The vibrant downtown market goes 24\/7 and the &#8220;Manhattanization&#8221; allows in this case, Panama City to blossom into a world class metropolitan city\u00a0that attracts new business from around the globe who want and need to be in <a title=\"Panama City, Capital of the Americas\" href=\"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/news-from-panama\/panama-city-capital-of-the-americas\/\"><span style=\"color: #0000ff;\">Panama City, Capital of the Americas<\/span><\/a>.<\/p>\n<p style=\"text-align: justify;\">As\u00a0\u00a0foreign investment in residential development and\u00a0housing in Panama City has waned, at the same time we have seen an increase in the number of investors and home buyers in the interior.\u00a0 Market areas such as Pedasi and Boquete, traditional markets that attract foreigners, are reporting both an increase in\u00a0investment land sales as well as housing sales.\u00a0\u00a0\u00a0Maybe not as good as\u00a0 the boom days but better than it has been in a long while, albeit at new market pricing.\u00a0 This should continue as both land owners and home owners address the realities of the market place.\u00a0\u00a0The\u00a0shifting demographic is playing a huge role in the new wave of buyers as well.\u00a0\u00a0Foreigners moving to Panama\u00a0are looking for value, not only in the real estate, but in the cost of living and the overall availability of a good lifestyle.\u00a0\u00a0\u00a0Both Boquete and Pedasi have this to offer.\u00a0 Don&#8217;t get me wrong, when the time is right I too will buy an apartment in the City as\u00a0I go there often\u00a0 for both\u00a0business and pleasure.<\/p>\n<p style=\"text-align: justify;\"><a href=\"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2010\/05\/costa-pedasi.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-917\" title=\"costa pedasi\" src=\"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2010\/05\/costa-pedasi-300x200.jpg\" alt=\"\" width=\"279\" height=\"197\" \/><\/a> New oceanfront\u00a0homes under construction in Pedasi.<\/p>\n<p style=\"text-align: justify;\"><a href=\"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2010\/05\/127.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-919\" title=\"127\" src=\"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2010\/05\/127.jpg\" alt=\"\" width=\"281\" height=\"195\" \/><\/a> Villas in Valle Escondido, now sold out in our community of\u00a0 135 homes in the Hidden Valle.<\/p>\n<p style=\"text-align: justify;\">As a friend of mine Paul McBride told me, the\u00a0local developers\u00a0were slow jumping on the Boquete bandwagon (and the overall interior as well) \u00a0and they\u2019ll be slow getting back on.\u00a0 The market is changing here and is definitely on the upswing.\u00a0 Unlike Panama City there was never any real speculative building going on here.<\/p>\n<p>We also have seen some larger land deals being made in the interior once again and the foreign investor has stepped back into the market.\u00a0 I believe it has\u00a0in part\u00a0to do with astute investors diversifying portfolios\u00a0and those\u00a0who are hedging their bets by buying outside the US.\u00a0 There are some good buys now and we are seeing a few developments come on the market that are attractive opportunities for the investor\/builder as well.\u00a0\u00a0Some land owners and developers\u00a0have come to the realization that they must\u00a0adjust their pricing expectations.\u00a0 This is normal in any market cycle.\u00a0 \u00a0The ones that don&#8217;t adjust their thinking will get left behind and as\u00a0\u00a0the cycle goes from boom to\u00a0overbuilt again.\u00a0 Never fails, like the sun\u00a0rising and setting.\u00a0\u00a0 So to sum it up, \u00a0look for good solid markets with proven track records and try to get in on the new wave by investing in a development where the owner has a change in business plan and wants to move on.\u00a0 There are also some good boutique hotel buys and investments in small boutique resorts that are being developed in the right markets\u00a0as well.\u00a0\u00a0 We can help you find such an\u00a0investment if you want to move quickly while the opportunities still exist in the upswing in the market.\u00a0 See some our listings and call us to discuss off market opportunities as well.\u00a0 <a href=\"http:\/\/www.panamaadvisorygroup.com\" target=\"_blank\">Panama Advisory International Group<\/a><\/p>\n<h2 style=\"text-align: justify;\">Other news from Panama<\/h2>\n<p><strong>Panama to Invest $250 Million in Financial Tower<\/strong><\/p>\n<p><a href=\"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2010\/05\/finacial-tower.jpg\"><img loading=\"lazy\" decoding=\"async\" title=\"finacial tower\" src=\"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2010\/05\/finacial-tower-300x211.jpg\" alt=\"\" width=\"300\" height=\"211\" \/><\/a><\/p>\n<p style=\"text-align: justify;\">Architecture studio Skidmore, Owings &amp; Merril presented their initial design for the proposed building \u201cTorre Financiera\u201d (Financial Tower).\u00a0 The government will build it in the location of the former U.S. embassy in Balboa Avenue, and it will house all the State\u2019s economic and financial institutions.\u00a0 Its proposed elliptical design is not the first of its kind. The Agbar tower, inaugurated in 2005 in Spain, is very similar.\u00a0 Alberto Vallarino told newspaper Pa-digital.com.pa that \u201cthe tower\u2019s conceptual design was entrusted to Skidmore Owings &amp; Merril, and required an investment of $300.000\u201d.<\/p>\n<p style=\"text-align: justify;\"><strong>EU-Latin America summit opens with trade deal<\/strong><\/p>\n<p><strong><a href=\"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2010\/05\/842-352Spain_EU_Latam_Summit.sff_.embedded.prod_affiliate.79.jpg\"><img loading=\"lazy\" decoding=\"async\" title=\"842-352Spain_EU_Latam_Summit.sff.embedded.prod_affiliate.79\" src=\"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2010\/05\/842-352Spain_EU_Latam_Summit.sff_.embedded.prod_affiliate.79.jpg\" alt=\"\" width=\"232\" height=\"158\" \/><\/a><\/strong><\/p>\n<p>The European Union and Central American nations reached their first free trade deal on Tuesday as the EU opened a summit with Latin American leaders focused on expanding economic ties.\u00a0\u00a0 &#8220;In an increasingly globalized world where the source of prosperity lies in uniting efforts, the capacity for economic growth lies in openness and liberalisation&#8221; and not in protectionism and closed borders, Spanish Prime Minister Jose Luis Rodriguez Zapatero told the Madrid summit.\u00a0 EU president Herman van Rompuy told the heads of state and government that the two regions have seen an &#8220;increasing convergence of interests and values.\u00a0 &#8220;EU and Latin America are natural partners and allies. Our countries are linked by strong historical, cultural and economic ties.&#8221;\u00a0 Spain, which has close ties with its former colonies in Latin America, hopes the summit will be a high point of its six-month presidency of the European Union, which it holds through June.\u00a0 Hours before the conference formally opened, the EU reached the first ever free trade deal with the Central American nations of Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and <strong>Panama<\/strong>.<\/p>\n<p style=\"text-align: justify;\">\n<p><strong>Canada-Panama free trade deal to eliminate tariffs, improve access: Minister <\/strong><\/p>\n<p><strong><a href=\"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2010\/05\/panama-canada.jpg\"><img loading=\"lazy\" decoding=\"async\" title=\"panama canada\" src=\"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2010\/05\/panama-canada-300x197.jpg\" alt=\"\" width=\"240\" height=\"157\" \/><\/a><\/strong><\/p>\n<p>Canada signed a free trade deal with the small Central American economy of Panama on Friday, continuing the country&#8217;s trade liberalizing efforts in the hemisphere.\u00a0 Trade Minister Peter Van Loan said the deal will give Canadian businesses opportunities in construction, education, manufacturing, logistics, human resources, distribution, energy and tourism.\u00a0 &#8220;This agreement will eliminate tariffs on a range of Canadian products and provide better access for Canadian services providers to Panama&#8217;s market,&#8221; he said.\u00a0 &#8220;It will also secure market access in the area of government procurement, opening more doors for Canadian businesses looking to participate in the Panama Canal expansion and other infrastructure projects.&#8221;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Investment and Housing Panama City continues to see a\u00a0softening in values and sales in the overbuilt condominium sector.<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[8,10,12,16,18,22,19,14,11,6,7,15,17],"class_list":["post-913","post","type-post","status-publish","format-standard","hentry","category-news-articles-panama-perpsective","tag-azuero-penninsula","tag-bocas-del-toro","tag-boquete","tag-estate-planning","tag-foundations","tag-hydro-electric","tag-investments-in-panama","tag-legal-issues","tag-offshore-real-estate","tag-panama","tag-panama-real-estate","tag-tax-issues","tag-trusts"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.7 (Yoast SEO v27.7) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Panama Market Report - Blog and Newsletter<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link 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