Panama continues to be a strategic destination for real estate investors worldwide. With its strong economy, tax incentives, and attractive location as a global logistics hub, the country offers a conducive environment for real estate sector growth. In 2024, investment opportunities are more relevant than ever, but where can the best returns be found in the country?
Below, we analyze the areas of highest growth and provide a guide on how to capitalize on market trends to maximize your investment.
Key Factors for Real Estate Growth in Panama
Before delving into specific areas, it is important to understand some of the factors driving real estate market growth in Panama:
1. Economic Stability and GDP Growth: Despite global challenges, Panama continues to show a solid economic recovery, with sustained growth projections for 2024. This strengthens the demand for both residential and commercial real estate.
2. Tax Incentives for Foreigners: Foreign investors can benefit from multiple incentives, such as tax exemptions on new constructions and the possibility of obtaining permanent residency through real estate investment.
3. Infrastructure Development: New infrastructure projects, such as the expansion of the Panama City metro and the construction of more roads, are driving development in previously less accessible areas, creating opportunities for early investments.
Key Investment Areas in 2024
- Costa del Este
Expected Returns: Properties in Costa del Este tend to maintain a high value, with constant growth in sales and rental prices.
Ideal for: Investors interested in luxury properties or premium commercial spaces.
- Santa María Golf & Country Club
Expected Returns: Properties in Santa María tend to appreciate due to the constant demand from high-net-worth buyers.
Ideal for Investors interested in luxury properties with long-term potential.
- Casco Viejo
Expected Returns: High returns on vacation rentals through platforms like Airbnb and value appreciation in renovated properties.
Ideal for: Investors interested in vacation rentals or boutique properties in a high-profile tourist area.
- Avenida Balboa
Expected Returns: Good profitability in rentals and constant appreciation of properties, especially in modern developments.
Ideal for: Investors interested in sea-view residences or high-end commercial properties.
- El Cangrejo
Expected Returns: Sustained growth in residential rentals, with opportunities in new developments.
Ideal for: Investors looking for affordable properties with high demand for long-term rentals.
Key Trends in the Real Estate Market of 2024
1. Sustainability and Green Constructions
More developers are incorporating sustainable practices into their projects, attracting environmentally conscious buyers. Investing in properties with ecological certifications could offer higher long-term returns.
2. Vacation Rentals and Mixed-Use Properties
The demand for short-term rentals continues to rise, especially in tourist areas. Mixed-use properties, combining commercial and residential areas, are also gaining popularity among investors looking to diversify their portfolios.
3. Telecommuting and Flexible Offices
The pandemic changed the way office spaces are used. In 2024, the demand for flexible offices and coworking spaces continues to grow, especially in urban areas like Avenida Balboa and Costa del Este.
Investing in real estate in Panama in 2024 presents a great opportunity, especially in high-growth areas like Costa del Este, Casco Viejo, and Santa María. With a growing economy and constant demand for both residential and commercial properties, investors can expect solid returns by strategically choosing the areas and types of properties to invest in.
Interested in exploring these opportunities? Schedule a free consultation with one of our Investments Real Estate Advisors to learn more about maximizing your returns in Panama's real estate market.
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