According to Panama Equity Real Estate, residential Panama property prices in rose as much as 10% in 2013.
The growth is thanks in large part to the country’s major infrastructure projects such as the expansion of the Panama Canal, the development of a state-of-the-art metro system, and planned upgrades for the port of Colon.
Global Property Guide reports that strong demand from Canada, Venezuela, Colombia, and the United States, as well as a tightening of supply of apartments helped the prices rise. This is in contrast with price drops from 2008 to 2012 (30% to 50% during the time, according to some estimates), especially in Panama City’s waterfront locations.
Furthermore, the share of foreign direct investment in Panama’s GDP was tops in Latin America, according to the International Monetary Fund. In 2013, US$4 billion of FDI was invested in Panama, a 24% spike from 2012. Tourism revenue also continued to increase, now matching the Panama Canal for revenue collected for the government. Construction spending and residential household spending increased as well, by 32% and 21% respectively.
While Panama’s annual GDP growth did slow in 2013 (from 10% in 2011 and 2012 to 8.3% in 2013) and continues to do so in 2014 (5.4% for first quarter 2014), the economic outlook for the country remains strong, with an annual GDP growth rate of 7% still expected by the government. With the continued positive economic outlook, Panama property appears to be on the up-and-up for 2014.