Make no mistake, the last six months in Panama have seen a noticeable rise in property values, especially along waterfront districts like Balboa Avenue, Punta Pacifica, and Costa del Este. Strong demand from the US and Canada, Venezuela and Colombia, along with an uptick in the economy of European countries like the Spain and the UK in 2013, and a decreased supply of new apartments for sale have driven up prices by as much as 10% in certain areas.
Because developers were not building new high rises between 2009 and 2012, the next 12-24 months supply of brand new apartments will be limited to a handful of projects; this as opposed to the roughly 4,000 new apartments that hit the market over the last three years.
This slackening of new inventory, combined with steady/rising demand will continue to drive prices up.
Now is the right time to take a serious look at the market, which after being flat for over three years is once again trending upwards. In real estate, its not just about location, it’s about timing.
2014 is going to be a game changer for Panama. The Metro will open and the road reorganization projects throughout the city will be completed, plus the historic renovations in old town and the Cinta Costera 3 will also all be completed, breathing new life into a city that’s felt like it has been under construction for the last five years.