Condos in Panama City Panama – For Sale

A widely held idea for those doing their research on the internet is that the average price of a condo for sale in Panama is drastically cheaper than a similar condo for sale in other parts of the world, but this isn’t necessarily true. For example, compared to a city like Sao Paolo, London, or New York, the cost of a Panama condo will of course be significantly less, however for cities like Miami, Medellin, or Phoenix on the surface the pricing may not appear to be any great value.

Condos for Sale in Panama City

Focusing on strictly the city center of Panama, one can generally expect the price of a condo for sale in Panama City Panama that is between one and five years old to run anywhere from $1,100 per square meter all the way up to as much as $3,000 per square meter and in a few cases even higher. This equates to roughly $100-280 per square foot. With condos for sale in other markets going for half that much, Panama City condo pricing may not appear to be the bargain that it’s purported to be.

However, one has to consider the overall cost of condo ownership when trying to determine total value, meaning factors like property tax, building administration, and cost of labor for general maintenance as important considerations on the overall cost of owning a condo in Panama. All of the condos for sale in Panama that have been completed in the last six years have the benefit of a 20 year property tax exoneration that is 100% transferrable. That means that if an owner sells a condo to a new buyer and that condo is four years old, then the new buyer will have a 16 year Panama property tax exoneration that is associated with that specific condo for sale. This represents a significant savings when compared to other condos for sale in other parts of the world.

Condos in Panama

Another advantage of purchasing a condo in Panama is the monthly fees associated with the building administration. Typically, wages in Panama tend to be lower than a European or North American wage, meaning building employees such as security guards and general maintenance staff are receiving a standard Panama wage typically spread out amongst the owners. Other common area maintenance charges that make up the monthly administration fees are the cost of maintaining the social areas including any swimming pools or gyms, the lobby, elevator maintenance, and general landscaping costs.

Condos in Panama often need repainting every few years and if a building is properly administered then the cost of the repaint is low since there are already existing funds for the project. Because of the lower wages and generally lower cost of materials, condo administration charges (HOA fees or CAM charges) generally tend to be quite low in Panama compared to other parts of the world.

Ownership costs are an important consideration when choosing between any particular condo for sale in Panama. Typically an older condo will have a lower sale price compared to its newer equivalent, however the older Panama condos may not have the same tax advantages as the newer condos for sale in Panama. One must weigh that against the fact that the older condo may not have as many amenities and thus a lower monthly maintenance fee and purchase price.

If one is looking to purchase a condo for sale in Panama strictly for investment purposes, these unique characteristics of ownership are important factors to consider.