Join Matt Marx and Kent Davis as they explore Panama’s luxury real estate market. They cover the latest trends, price changes, and shifts since the start of the year. Get tips on conducting research, insights into key developers, and a comparison to the market three years ago. Matt and Kent address unrealistic pricing and explain why brand-new properties are in high demand. Learn who is buying million-dollar homes and why Panama is becoming a top choice for luxury real estate investment. Finally, Matt and Kent explain what defines a luxurious property in Panama. If you’re considering investing in Panama make sure you check out this Panama luxury Real Estate Market Update with Matt and Kent!
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Current Pricing Trends in the Luxury Market
In the luxury real estate market of Panama, sellers have been adjusting their prices throughout the year. Matt attributes this increased market activity to a more honest approach with sellers, providing them with sales comparisons that reflect current market conditions. The first quarter of the year experienced a slower pace, but as sellers become more negotiable, the market has seen more movement.Not all properties are moving as quickly as sellers might hope, particularly in the first quarter. However, sellers who are realistic and responsive to market feedback are seeing better results. As the year progresses, this trend of smart pricing adjustments is likely to continue.
Resources for Research
For those starting their research into Panama’s luxury real estate market, Matt and Kent recommend several resources including third party websites:
E24: While platforms like E24 offer a wide database, caution is advised as the same property might be listed multiple times.
MLS Acobir: This is a more reliable source as listings are exclusive to one brokerage and must be shared by licensed agents.
Insights on Key Developers
Developers in Panama play a crucial role in shaping the real estate landscape. There has been a noticeable shift from larger luxury projects to smaller investment properties, often equipped with Airbnb licensing, to cater to the evolving market demand. Noteworthy developers include:
Grupo Los Pueblos: Known for expanding beyond the city, with projects like Margaritaville offering luxury options at the beach.
Bern: Renowned for timely project completion and high-quality construction.
What Sets Grupo Los Pueblos and Bern Apart?
Both developers have a proven track record of delivering projects on time without compromising on quality.
Matthew highlights the importance of not cutting corners, pointing to features like smooth cabinets and high-quality elevators. Kent mentions that good parking solutions can really improve the living experience in their buildings. Matthew also stresses the need to work with estate agents who pay attention to these details.
Market Comparison: Today vs. Three Years Ago
Three years ago, the pandemic caused a drop in prices, sparking increased interest and subsequently reducing inventory, which drove prices up. Currently, prices have stabilized slightly lower. Additionally, Panama’s new president appears to be fostering a more investment-friendly environment.
The Luxury Market in Santa Maria
In Santa Maria, a prime luxury market, properties priced over $4,000 per square meter tend to take longer to sell. This price threshold indicates the upper limit for quicker transactions in the area.
Why Brand-New Properties Are in Demand
Brand-new properties offer several advantages, making them particularly appealing to buyers:
Customization: Buyers can tailor the property to their tastes.
Fewer Unknowns: New constructions come with fewer surprises compared to older homes.
Flexible Payments: Buyers can often make payments in installments, easing the financial burden.
Bridging the Price Gap with South Florida
To align prices with South Florida, Panama needs greater market transparency. Many sellers are reluctant to commit exclusively to brokers, but new initiatives like Pana Comps, which provides real data from the public registry, are helping to ensure buyers receive fair value.
Who’s Buying Million-Dollar Properties?
Luxury properties in Panama are mainly bought by Americans and Canadians, with some Europeans, especially Germans, also showing interest. There’s been a recent increase in buyers from Colombia and Argentina. Canadians are attracted to Panama’s favorable tax policies, which exempt foreign-earned income from taxes, making it a popular choice due to high tax rates in Canada.
Explore Panama’s booming luxury real estate market with Matt and Kent to understand why it’s a top choice for investors!
