In many ways Panama is now a mature market with activity and pricing which looks as a growing interest to Panama real estate. As the global economic crisis gradually fading away the market was reaching stability.
Here are a few main stories and trends that defined the last year and naturally will be the main influencing factors for property market of Panama City in 2017:
Trump Ocean Club Apartments Sell Out
The last developer-owned units in the iconic Trump Ocean Club went on the market, in the end of the last year the developer offered some 30 apartments in the portfolio. Tropical Realty Panama has followed the story all year long, as buyers bought apartments for prices that are unlikely to be seen again. The sales marked the end of the era for Panama City’s best-known building, as attention now turns to the market for resales in the Trump.
Surge in Rental Market
Demand for quality rentals in Panama City continued to grow in 2016, with the rising rental rates and the potential for attractive yields capturing the eye of more and more investors. In Tropical Realty Panama we have witnessed the growing maturity in both supply and demand, which was fueled by the increase in multinational corporations opening headquarters in Panama City. A steady stream of relocating executives is making it harder to find suitable rentals and driving up rates for the best apartments.
The Future of Amador Causeway
The Panama government started to implement its plan to turn Amador into the next big recreational and tourism destination for Panama City. Work restarted on a down-sized convention center on the causeway, which will eventually turn into a cultural center for Panama City. And a new site was identified for a cruise port on Amador, which is now moving full speed ahead. The government is investing millions into Amador and the results are starting to pay off. Amador continues to thrive as touristic, real estate and gourmet and cultural center of Panama City.
Expansion of Tocumen Airport and Copa Airlines
Copa Airlines continues to expand in its quest to make Panama City the air hub of the region. With new routes (Istanbul, Paris, Frankfurt and Dubai...) around the world and new partners, it is expanding access to Panama City for both tourists and business travelers. At the same time, Tocumen airport is in the midst of an expansion that will make it easier for visitors to get in and out of the city. With air travel a key driver of the real estate market, the growth in 2016 was an important step forward in expanding Panama City’s global links.
Panama’s Continued Economic Growth
The opening of the Panama Canal expansion and the controversy over the release of the so-called Panama Papers generated global headlines. But the real news was the continued growth of Panama’s economy, which is expanding at a healthy 4 to 6 percent annual rate. Instead of speculators or a cyclical fluctuations, Panama’s boom is fueled by a surging, diversified economy, which provides a solid foundation for the real estate industry going forward.
