AMCHAM Panama hosts its 4th Real Estate Forum on Panama City Urban Zoning

At least once each year the AMCHAM Panama Real Estate Committee holds its Forum which addresses timely issues within the sector and offers information and solutions to attendees

The American Chamber of Commerce and Industry of Panama is pleased to announce the Fourth Annual Real Estate Forum to be held on October 16, 2013 from 11:30 am – 3:00 pm at the Miramar Inter-Continental Hotel.  The forum “Urban Zoning:  The Metro and the Streets.  Where do I park?”  will focus on urban planning in Panama City and how the new Metro and road infrastructure projects affect real estate in Panama City.  The speakers include  Henry Kardonski, General Manager , London and Regional Panama; Juan Manuel Vasquez, Director of Municipal Works and Construction , Panama City Mayor's Office ; Roberto Roy, Executive Secretary, Panama Metro Authority; and Jaime Ford, Minister of Public Works of the Republic of Panama.

Pamela Oakes, Chair of the AMCHAM Panama Real Estate Committee and event planner, said “we are very pleased to bring together these speakers whose projects affect our daily lives and will have a profound effect on real estate.  Panama is undertaking  major infrastructure projects such as building the country’s first metro  system and redesigning the city’s  roads and highways.  Proper planning is required to ensure that upon their conclusion the traffic  in Panama City improves and commuters will have better options.”

AMCHAM Panama’s Real Estate Committee has created and adopted an industry Code of Ethics to which all member real estate service providers must adhere in order to be part of an exclusive referral network. The Committee has become a good source of business for real estate service providers who have sworn to abide by AMCHAM’s Real Estate Committee’s Code of Ethics.

One of the Committee’s primary goals is to disseminate accurate information to the public about the Real Estate industry, so that investors may meet the challenges and avoid many of the problems involved in purchasing real estate and relocating to Panama.  At least once each year the Committee holds its Real Estate Forum with the valuable support of corporate sponsors, which addresses timely issues within the sector and offers information and solutions to attendees.

About The American Chamber of Commerce & Industry of Panama (AmCham Panama)

Founded in 1979, AMCHAM Panama http://www.panamcham.com is a non-profit, non-political, independent, voluntary association supported primarily by its members. Much of the organization's work is accomplished through the efforts of volunteer member committees which collaborate to help AMCHAM promote free enterprise in Panama. AmCham Panama has over 450 active members, from small local companies to major multinational companies based in the United States.

For additional information contact Maria Florencia Suarez +507 301-3881, email realestate @panamcham.com or go to http://www.panamcham.com/en/events/view/730

Panama: Real estate on solid foundations

Panama: Real estate on solid foundations

Latin America | 7 Aug 2013

The real estate market in Panama is edging towards maturity, buoyed by the booming economy, a major national spend on infrastructure and ample liquidity in the financial system.

Initial estimates from the national statistics agency (Instituto Nacional de Estadística y Censo) suggest the sector expanded by 9% year-on-year in the first quarter of 2013, having notched up average growth of 7.8% in 2012 and 9% in 2011.

 

Panama City, home to nearly a third of the population, has been the centre of real estate activity over the past decade, with high-end residential, retail and commercial development combining to produce strong growth. New shopping malls and residential complexes have reshaped the skyline, alongside several hotels, evidence of the evolving tourism sector.

The city’s market for office space has been supported by strong macroeconomic growth and new business-friendly legislation, including the setting up of an incentive regime for multinational companies using Panama as a base for regional operations.

Vacancy rates for Class A office projects dropped to 7% from 12% in the second half of 2012, with the average monthly lease rate edging up from $23.30 per sq metre to $24.41, according to a study conducted by CB Richard Ellis (CBRE). New construction of Class A office space eased to pre-2009 levels in the same period, however, suggesting demand could now be levelling off.

CBRE’s study found Panama City’s residential market to be relatively stable. New unit construction eased, in keeping with a rising 76% absorption rate and falling sale prices for Class A real estate. The gross absorption rate across the wider market stood at 77%, with a total of 3346 units reserved from 4330 under construction.

However, there are signs that the retail market in Panama City could be edging towards occupancy saturation. Monthly lease rates fell from $41.31 per sq metre to $40.16 in the second half of last year, while vacancy levels in shopping centres rose from 6.1% to 9.1%. An additional 97,325 sq metres of new retail space was under construction as of late 2012.

Despite its overall impressive growth levels, Panama’s real estate market faces a number of challenges. The country ranked 75 out of 97 nations in the 2012 Global Real Estate Transparency Rankings, behind Mexico (43), Argentina (58) and Costa Rica (70). Jones Lang LaSalle, which publishes the list, described Panama’s transparency level as “low”, adding that a lack of both sophisticated investment vehicles and general market fundamentals were instrumental in determining the country’s position.

Panama also faces a major national housing shortage. The most recent estimates from the Ministry of Housing (Ministerio de Vivienda y Ordenamiento Territorial, MIV), published in 2010, put the shortfall at 136,665 units, against total national supply of 896,050.

The MIV launched a series of social housing programmes in 2010 as part of a target to reduce the shortfall to 30% and increase supply by 4.6%. Once completed, the five-year programme, backed by a $576m investment package, is expected to have benefitted an estimated 344,000 Panamanians. With $268.8m still to be spent, work is expected to accelerate during the second half of 2013 and through 2014.

The real estate sector is expected to continue maturing, with both the private and public sector helping to drive it forward. The government took a small, but significant step forward in May 2012, when it amended its regulations to create a new tax and financial framework covering the purchase and sale of real estate property. The legal changes paved the way for the introduction of key incentives aimed at supporting the housing market, including more favourable interest rates for first-time buyers and tax exemptions for residential home improvements. Ongoing support from the government, together with sustained growth in the private sector, will set the real estate market on course for further expansion in the medium to long term.

For full text see http://www.oxfordbus inessgroup.com/

More information is available in http://www.oxfordbusinessgroup.com/product/report/report-panama-2013

Retiring Way, Way South of the Border in Panama

REAL ESTATE

• July 25, 2013, 7:21 p.m. ET

Retiring Way, Way South of the Border

Americans are starting to head into Central America for retirement, lured by luxury real estate and eased residency requirements.

By KATY MCLAUGHLIN
   

When Steven and Robin Fine started searching for a place in Latin America to spend their early retirement, they looked at spots in Mexico and Costa Rica, both popular destinations for American retirees. On a trip two years ago, they decided to stop by Panama, too.

"We thought we would like Panama the least," Mr. Fine, 51 years old, a former communications executive said, "but we liked it the best."

The combination of luxury apartment buildings, good restaurants and modern hospitals drew the couple to Panama City, where 1½ years ago they spent $1.1 million, plus about $250,000 on renovations, on a 48th-floor penthouse with a view of the Pacific. It is now their full-time home.

The Central American nations of Panama, Belize and Nicaragua are increasingly competing with Costa Rica and Mexico for North American retirees and second-home buyers. New luxury developments, outfitted with spas, restaurants, marinas and golf courses, are on the rise. Builders say they are using more high-end materials and adding upscale amenities designed to appeal to affluent American buyers.

Bobby Pereira for The Wall Street Journal

Steven and Robin Fine renovated a $1.1 million, 48th-floor penthouse in Panama City.

These countries offer packages of residency and breaks on taxes and fees that imitate Costa Rica's pensionado program, which was introduced in 1971 and helped set the groundwork for a boom in retiree emigration from North America. Nicaragua added such a law in 2009, offering foreigners with retirement incomes tax breaks on everything from cars to construction materials. Last year, Panama, which has a long-established retiree program, created a path to citizenship for retirement residents and introduced a new residency program for people under retirement age that has lowered requirements for investment in property, business and other ventures.
Despite their inroads with American retirees, these countries still don't attract the same numbers as more established destinations, such as Mexico and Costa Rica. In 2011, more than 50,000 Americans collected Social Security in Mexico and more than 5,000 in Costa Rica. But Mexico's well-publicized drug war and escalating violence are starting to push Americans to look at new places for retirement. Central America, however, has its own problems with crime. 
The U.S. Department of State labeled the crime rate in Nicaragua "critical" and the murder rate in Belize "extremely high," though concentrated in Belize City and not in tourist areas. In Costa Rica, petty crime such as theft and "smash and grab" muggings have increased in the past couple of years, along with home invasions. In Panama, murders and gun violence have decreased in recent years, but reported rape and theft have increased. 
"Panama remains relatively safe when compared with other Central American countries, yet crime rates are higher than one would encounter in most of the United States," says the State Department's 2013 report.
...

For the full text, see http://online.wsj.com/article/SB10001424127887324879504578599770182918926.html

Property Investing in Panama

View a database of carefully selected investment property in Panama

SUMMARY : Panama City is one of the world's least expensive first-world cities. It is also among the most modern and prosperous cities in Latin America with over 3 million people. The city's array of tall skyscrapers is reminiscent of Miami. It boasts incredible shopping where almost any product from the U.S. may be easily found. During the past several years Panama has been consistently rated in the top ten for the best retirement locations worldwide. A welcoming community, safe environment, low crime statistics, excellent incentives for retirees, together with the natural beauty and ethnic diversity that is Panama, all appeal to the increasing number of baby boomers from North America and Europe who are looking for a different option for retirement.

Currency:   (USD) Dollar

US Dollar: A global benchmark currency. Little or no exchange rate parity fluctuation against Middle East currencies. The cost of living is significantly lower than that of Western Europe.

Economic climate: The trend towards an open economy and possible trade pacts with such nations as the U.S. and Mexico are conducive to investment in Panama. There are also no government expropriation or interference as in many Latin American countries. A business-oriented government encourages foreign investment. A government that realizes the value of private business to a developing country backs all investment. In 1946 Panama's business-oriented mentality led to the creation of the Colon Duty Free Zone, considered to be the second largest free trade center in the world, after Hong Kong. In addition, the Panamanian government offers foreigners who invest in Panama many attractive incentives such as legal residency and tax privileges.

Capital Gains tax: Since the enactment of Law 8 of 1956, successive legislation has been passed offering tax benefits to developers. It has been widely accepted that, as a result of these incentives purchasers of real property have also benefitted. This tax is applicable if there is a capital gain. This tax is also regulated by Article 701 and applied at a flat 10% rate, whether a corporation or an individual is acting as a seller, on the gain resulting from the price of the sale minus the price of the acquisition by seller, as well as registration, notary and real estate agent expenses. If there is no capital gain on the transfer of a property, the 2% transfer tax, is also paid in advance for the sale, levied on the difference between the price of the sale or an appraised value increased at a 5% yearly rate (whichever is higher) and the price of acquisition by the seller.

Popular investment areas: Panama City has become a cosmopolitan modern metropolis - there are many raise buildings overlooking the ocean and the Bay of Panama. Exclusive residential areas like Marbella, Paitilla, Coco del Mar, Punta Pacifica and San Francisco offer a good range of apartments and condominiums for sale. Suburban residential areas in the former Canal Zone like Amador Heights, Balboa, Albrook and Clayton offer large and attractive single-family homes and condominiums. Casco Viejo -- the oldest city on the Pacific Coast of the Americas -- has become a desirable place for real estate investment, encouraged by the Panamanian government Casco Viejo investment incentives for the restoration of the historic Casco Viejo district. Outside Panama City, there are beautiful real estate properties located in popular destinations including, Chiriqui, El Valle, and Altos de Maria. Known mostly for their cooler climates, incredible flora and quiet peaceful atmosphere, real estate in the highlands of Panama are ideal for those interested in retiring abroad. Bocas del Toro is another popular destination for Panama real estate. Most known for its crystal clear waters, rich Antillean culture, unique over-the-water architecture and laidback tropical atmosphere. In recent times, Bocas del Toro has become a booming center for European and American Expats, as well as an impressive number of tourists. Several of these destinations are also considered Tourism Development Zones, where additional tax benefits are granted to investors in hotel projects. Real Estate Values in Panama and primarily in these Pacific Coast Beach areas has been appreciating very steadily, and as interest and growth increases so to do the real estate values.

Price ranges: The Panamanian government incentives for the restoration of the historic Casco Viejo district encourage investment here, this area reminiscent of New Orleans or SoHo years ago abounds with shells of graceful buildings that are crying out for renovation. Outside of Panama City excellent real estate properties are available for developers and individuals. The more remote the location the more reasonable the cost but be aware that you may be far from utilities or roads. The real estate in Bocas del Toro offers beautiful Caribbean beach property. Here palm-fringed golden sands surround the islands and turquoise waters where the rain forest meets the ocean. Here families shop by boat, enjoy water sports and the natural beauty of this wonderful location - better yet it is still affordable.

Budgetary guide: Prices  per square meter in Panama vary according to the location (city, mountain, beach).  In the city, you may find prices starting 1000$ per square meter in a new condominium.  In the mountain, the price may drop down to 20$...yes this is not typo however in those cases you might want to research the access possibilities to this property.  Many areas in the mountains have no road of access and local transportation might not be available.  In the beach, prices depend on the zone.  An hour away from the capital prices start at 600$ per square meter depending on the quality of the beach and neighborhood.

Service Fees: Fees charged by the Public Notary and the Public Registry which total in the range of $200 to $300 for registering a buy/sell contract for the sale of real estate in Panama.The closing costs vary depending on the particular transaction. For example, if the property is held in the sellers personal name, and the buyer is transferring the property title to a Panamanian corporation (most recommended), then the closing costs would include; (1) the legal property transaction fee of US$1200 (includes; title search, buy/sell contract, closing, & property title transfer service), (2) public registry title transfer fees of approx. US$2.50 per every US$1,000 of the sales price and – if applicable - the mortgage amount, (3) escrow fees from 0.5% to 1% of the transaction amount (vary depending on amount of transaction), and (4) incorporation fee of US$1000 to setup the Panama corporation. However, if the property is held by a Panama corporation already, and the buyer is purchasing the shares of the corporation, then the transaction is relatively simple because there is no registration of title transfer, meaning that there is no title transfer tax, and no public registry title transfer fees. In this case, the closing costs would include; (1) the legal property transaction fee (includes; title search, review of tax liabilities, purchase of shares contract, and closing for US$800), (2) change of directors / resident agent of the corporation (approx. $350), and (3) escrow fees from 0.5% to 1% of the transaction amount (vary depending on amount of transaction).The notary and public registry costs total up to approximately $200 to $300 depending on the particular transaction. Title transfer taxes are by law paid by the seller. Escrow fees (if an escrow company is used), are normally paid by the buyer, and range from one half of one percent (0.5%) up to one percent (1%) of the transaction.

Mortgages: Between 60% - 70% of the purchase price or appraised market value, whichever is the lesser. Interest Rate from 5.5% to 6.5%, plus FECI tax of 1% per year.

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For more information go to:
www.slampanama.com
www.pensionadovisa.com
www.strategicpointconsulting.com

Anthony Bourdain's Guide to Panama

Tony travels to Panama, which is rumored to have originated from an Amerindian word meaning "an abundance of fish." One of Tony's stops includes the Mercado de Mariscos, a swank new fish market to sample the national go-to dish: ceviche.

More behind-the-scene clips at
http://www.travelchannel.com/TV_Shows/Anthony_Bourdain/Episode_Panama_ Panama


Google Map meant to point to the eateries featured in the show (each point is off like 1 mile Northeast)

http://www.travelchannel.com/TV_Shows/Anthony_Bourdain/Episodes_Travel_Guides/ci.Episode_Panama.map

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Retirement: Why Panama Is the New Florida

Murdock and Johnson on the beach near their home in San Carlos Jeffrey Salter/Redux

Michelle Conlin

Prospective retirees: Panama wants you. The pitch? A plane ride just 21/2 hours from Miami enables the newly poor to swap a wretched retirement in the U.S. for one befitting a royal in the balmy Central American nation. Cash out! Emigrate! Feel rich! Panama—the new Florida.
Spin aside, Panama is increasingly popular among retirement-age types looking to hedge against—or skip out on—the recession. The Migration Policy Institute, a Washington-based think tank that studies the movement of people around the world, says the chief factors prodding professional-class Americans to flock to Panama include its First World health care available at Third World prices and the country's pensioner program, which offers some of the deepest retiree discounts in Latin America. Seniors get up to half off on nearly everything, including movies, motels, doctors' visits, plane tickets, professional services, and electric bills. Expats also pay no tax in Panama on foreign income. Nor are they required to pay property tax for the first 20 years.
The fact that a luxe beachfront manse can be had for the same price as a dump in Daytona doesn't hurt, either. "We would have been looking at $3 million in Miami," says Jon Nickel of his 3,000-square-foot oceanfront penthouse in Panama City. Nickel and his wife, Gretchen, bought the place in late 2007 for $250,000, right after Nickel retired from his corporate law job in Portland, Ore., and sold the family's mortgage-free home for $800,000.
The skinny isthmus—nearly all coastline, with a mountain range slicing through the middle—boasts some of the best weather and lowest crime rates in Latin America. Other draws include guilt-free conspicuous consumption, with laughably low prices—by gringo standards—on splurges such as a day of beauty ($10) and a maid ($15 a day).

...

That's not to say life there suits everyone. Things in Panama movereallyslowly. A repairman who says he will be right over might show up days later. Water and electricity service can be spotty. In Panama City, drivers treat stop signs as a mild suggestion. "It takes a little bit of balls to retire here," says Matt Landau, a New Jersey native who is the founder of Panama City-based online portal The Panama Report. "This is not for type As. It's not your turnkey Florida retirement."
Still, boomers who have recently relocated to Panama say they feel as if they have figured out a successful geographic arbitrage. When Stephen Johnson and Linda Murdock were living in Aromas, Calif., they used to moan half-jokingly about how they'd have to retire to Barstow—the armpit of the Mojave Desert, with summers in excess of 100 degrees and winters that can dip below freezing.
Stephen, 63, retired as an executive of the Salinas Valley Solid Waste Authority in June 2008. His wife, Linda, 57, owned a dog-food business.

The pair had watched several friends retire on depleted cash cushions. Many weren't fully eligible for Medicare and wound up spending 50% of their income on health care. The couple's retirement agita was worsened by the fact that they got a late start building equity. "We bought our first house when I was 40 and Steve was 46," says Linda. "We knew we would never have our house paid for by retirement."
Over late-night pinot noir on their patio, they started talking about moving to a developing nation to stretch their money further. They had discovered Panama on a trip there in 2004 and saw it as a bargain-basement paradise. The low cost of living appealed to Steve, whose pension amounted to 40% of his pre-retirement income of $150,000. The surf-perfect weather lured Linda, who took up the sport on her 50th birthday.
CRACKS IN PARADISE
Johnson and Murdock are now known as the gringos who live in the house with the red door. They bought their newly remodeled 1890 hacienda near the beach in San Carlos for $100,000 cash. They moved in last year and rented out their California ranch house. The rent covers the carrying costs on that house.
But Panama isn't only about the beach. The Boquete region in the mountains—Panama's answer to Boulder, Colo.—boasts loads of U.S.-style gated retirement compounds. The big draws of the area are tennis and golf. For those who are more interested in urban amenities, Panama City, which is by the sea, is sprouting yoga studios, bohemian boutiques, health-food stores, and artsy coffee houses.
Still, there are tradeoffs in this seemingly easy life. "Paradise is just a place you visit," says Johnson. "If you live here, you begin to see the cracks." Those include the three months it took them to get their driver's licenses—a process that involved blood tests, a hearing exam, and lines that make a U.S. Motor Vehicles Dept. seem like a fast-food joint.
But Johnson and Murdock have no major complaints, and Panama is certainly better than the Mojave. Murdock surfs—every single day—and says Johnson looks 20 years younger since retiring. They both love the way their dog can run on the beach without a leash and the fact that their doctors, many of them schooled in the U.S., happily give out their cell-phone numbers and actually answer when called. And their social life is far more active than it was in Aromas. They go out with new friends, a blend of expats and natives, almost daily, often for evenings of fish tacos and endless margaritas—for $20. "We have more time," says Johnson. "And apparently we have more money."

Conlin is the editor of the Working Life Dept. at BusinessWeek.
Full text at businessweek.com ...

Between the Rainforest and the City

Single home from € 963,000. Camino de Cruces, Friendship Road, close to El Dorado and new US Embassy. 2 levels, 3 bedrooms, 3 bathrooms, maid r/b, large backyard with pool, surrounded by vegetation. In gated community with 24hr guard. Sold only with furniture.

Land: 1,022.44 sq m / 11005.452 ft². Santa Monica model home 397.27 sq m / 4276 ft. Built in 2005.

Call +507 270-0864 or +507 6617-3321.

Features: Roofed Parking, Maids Quarters, 24 hour Security, Laundry, Storage, Garden or Park, Kids Park, Air Conditioner, Patio, Central Air Conditioner, Corner Property, Roofed Garage, Living room & Dinning room
Appliances: Refrigerator, Microwave, Stove, Dishwasher, Instant Hot Water Dispenser, Washer, Dryer
More pictures downloadable here
Google Earth coordinates 9.011289648163606,-79.54334242864977

Plans Lower Level




Backyard and pool


Living room and furniture

Panama Economy Stays Strong - Bucking World Trends

Panama Economy Stays Strong - Bucking World Trends
Date: 2008-09-18 Panama's economy will continue to grow, say analysts, resisting the global downturn led by US economic woes. "The strong economic performance of the last few years continues, despite the deteriorating global environment," said International Monetary Fund (IMF) officials last week in a public statement. "Panama was one of the fastest growing economies in the world in 2007 with real growth rising to 11.2 percent, following an average growth rate of nearly 8 percent in 2004-06 ... Growth in 2008-09 is projected to slow somewhat, to about 8 percent, with the Canal expansion and related investment activities partially offsetting the effects of higher oil prices and the slowdown in the U.S. and the global economy." The IMF has also upped predictions for Panama's economic growth to 8.3 per cent for this year, up from a more modest estimate of 7.7 per cent in April's World Economic Outlook report. "Despite a deteriorating external environment, economic prospects are favorable," concluded IMF board directors, "thanks to the Canal expansion project and associated investment, as well as improvements in competitiveness reflected in expanding export services such as tourism, communications, and transportation." IMF directors commented that Panama's financial sector has not been negatively affected by the global financial turmoil, noting the 'remarkable turnaround' in the non-financial public sector as well; these factors, combined with the strong economic growth, contributed to Panama's improved credit rating from Standard and Poors earlier this year, earning the country a BB+ (stable). Analysts at Deloitte Touche Tohmatsu, a global auditor, also estimate an increase of 8.5 to 9 per cent growth for Panama in 2008, in their Economic Perspectives 2008 report, "marking the sixth consecutive year of strong growth". According to the latest report by Indesa, a Panamanian advisory and financial services firm, the economy is expected to grow 8.4 per cent in 2008 and nearly 10 per cent in 2009, putting Panama at the forefront of economic growth in Latin America , along with Uruguay and Peru, which posted first quarter growth results of 11 and 9.2 per cent respectively. Panama's 2007 gross domestic product (GDP) topped $19.7 billion in 2007, and is projected to surpass $24 billion this year. The driving sectors in Panama are construction, mining, financial services, transport and telecomnunications, and hospitality. Last year, both construction and mining grew by 19.6 per cent apiece according to Indesa, offsetting smaller gains in the manufacturing and agricultural sectors. In fact, it is Panama's service-based economy that has allowed it to weather rising oil prices, as well as its proximity to the US, where economic uncertainty has travelers opting for nearby leisure destinations. Panama is emerging as a significant business and tourism destination in the region for travelers from both North and South America, with the Tocumen airport acting as a regional hub between the continent's major cities. In a report issued by the Panamanian government, authorities estimate the tertiary or service sector accounted for nearly three-quarters of the country's GDP in 2006. "In the past three years (2004, 2005, and 2006), the tertiary sector has developed significantly, with growth rates of 6.8 per cent, 9.4 per cent, and 9.3 per cent," indicated the Panama Trade Policy Review to the World Trade Organization. "Mention should be made of the Colon Free Zone and of the hotel and restaurant subsector, which grew by more than 10 per cent. Other components of the sector also trended upwards significantly, such as financial intermediation, wholesale and retail commerce, and real estate. "The high percentage of GDP that this sector represents and has represented in the past, shows that Panama is a service-oriented economy. In 2006 the sector accounted for 74 per cent of GDP." The external sector has also been a strong economic driver, with the export of goods averaging five per cent annual growth between 1997 and 2006, reaching more than $1 billion USD. By 2006, the net export of goods and services represented one third of Panama GDP. Despite the fact this year's numbers are down from 2007, which saw record growth levels of about 11 per cent, the overall positive trend is in stark contrast to regional predictions. The Economist estimates the mid-term trend for Latin America to average out at 3.9 per cent in 2012, while the IMF predicts a much better performance for Panama. "The medium-term outlook is promising, supported by the canal expansion and other large construction projects," noted the IMF's board of directors last year in a public statement. "For 2007-10, staff projects average annual real GDP growth of about 6.5 per cent, [and] inflation of 2.25 -2.75 per cent." IMF officials commended Panamanian authorities on governmental spending 'restraint' and improved tax collection in reducing public debt and creating a sound basis for economic growth. Declining unemployment, plummeting from 13.6 per cent in 2003 to 7.3 in 2007, was also cited, as was the positive impact of the Panama Canal expansion, expected to be completed in 2013 at a cost of some $5.5 billion. "The project is expected to boost GDP growth and job creation, both directly and by stimulating related industries," noted IMF officials. The Latin Business Chronicle has also placed Panama at the top of its Latin Business Index, thanks to $1.8 billion in direct foreign investment (DFI) in 2007. Panama beat out Chile, which saw more than $14 billion in DFI in 2007, taking the top spot for the higher proportion of investment to its GDP. Inflation, which has typically been very low for Panama thanks to a currency pegged to the US dollar, has risen in step with the recent devaluation of the US dollar. While 2007 saw an increase over the previous year, going from 2.5 per cent to 4.2 cent, Panama's inflation remained well below all other Latin American countries, which averaged 7.75 per cent. However, inflation reached nearly nine per cent in May of 2008, which the IMF largely attributes to rising food and fuel costs

The Great Panama City Land Rush

Panama City land increases by more than 100%

Now you see it...

Now you don't ... Demolitions continue in the San Francisco neighborhood

during the Panama City real estate boom to give way to new condo buildings

Business weekly Capital Financiero of July 28 quotes the magazine Espacios which says that areas such as Bella Vista, Balboa Avenue, and San Francisco have seen their footage prices increase by more than 100% in only 3 years.
For example, for 2005 the square meter in Balboa Avenue was under $1,000 ($92/sq ft) but sales have been registered now for $5,000 ($464/sq ft).
While in the sector of Bella Vista the cost of square meter varied between $350 and $400, but currently have been sold at almost $1,000.
The magazine states that $300/square meter were paid for San Francisco several years ago but now they reach $700 to $800 ($74/sq ft), with some estimates running into $1000. In suburban Las Cumbres, where 50 years ago land could be bought for $7 / square meter, its price has risen to $40-$50 / square meter.
According to a report by real estate company CBRE, the square meter of condos in Marbella, Bella Vista and San Francisco South) rises to $1,847 ($171.65/sq ft), the oceanfront (Balboa Avenue, Paitilla and Punta Pacifica) is at $2,335 ($217/sq ft) and the central area (El Cangrejo, San Francisco North) is at $1,463 ($136/sq ft).
Single-family homes in the San Francisco and Bella Vista areas are being purchased by local speculators who later resell at a higher price to developers who rezone several plots of land for multiple-story condos. Demolition crews are sharing the streets with soil landscapers rushing to end their construction before the deadlines set by property tax holidays.

Oruga, Susana Gonzalez/Bloomberg News

The Trump Ocean Club, above, has been credited with boosting residential prices in Panama City.

Developers press ahead in Panama City

By Kevin Brass

Published: January 31, 2008

PANAMA CITY, Panama: Showing a guest around his renovated apartment in Casco Viejo, this city's old district, the film director Luis Palomo shook his head over the sea of residential towers being built across Panama Bay.

"Are there really that many people who want to live here?" he asked.

It is a common question in Panama City these days. More than 35 towers, each of 20 stories or more, are under construction. Another 350 are in the planning stages, representing more than 40,000 units, according to local government estimates.

Fears that the market may be overheating were stoked last year by the abrupt cancellation of three of the largest announced projects, including the 104-story Ice Tower, which was to be the tallest development in the city.

"Right now, I believe the majority of the market is speculation," said Sam Taliaferro, a developer and consultant who writes the widely read Panama Investor Blog.

To José Manuel Bern of Empresas Bern, a local developer, the cancellations were a necessary "sobering up" for the market.

"We weren't ready for that," Bern said. "There is a ceiling for everybody. We're not Miami."

But some promoters are already calling Panama City the "Miami of Central America." Developers see Panama as a stable country, with an economy growing at a steady rate of 8 to 10 percent a year. Most Panamanians speak at least a little English and the U.S. dollar is the accepted currency.

"Panama is one of the safest countries in the world," said Julio Fernando Noval García, president of Spanish developer Grupo Mall, which is building Los Faros de Panama, a three-tower, mixed-use residential complex in the heart of the city.

Grupo Mall is not alone. Foreign investment in Panama grew almost 20 percent in the first six months of 2007, compared with the same period in 2006, according to government statistics. Construction activity increased by 17 percent, the data shows.

Developers are hoping a $5.25 billion plan moving forward to expand the Panama Canal will generate new buyers for the city's residential market. In addition, corporations like the computer maker Hewlett Packard and the construction equipment giant Caterpillar are moving their regional headquarters to the city.

Panama City also is increasingly popular with second-home buyers and retirees, like Frank and Maria Harrison of Chicago. Two years ago they abandoned plans to retire in Florida and bought a 4,500-square-foot, or 420-square-meter, condominium on the 11th floor of a waterfront tower.

"We really like city life," Frank Harrison said, adding that Panama's hurricane-free weather was another key factor in their decision.

But North Americans are only part of the equation. Venezuelans make up 60 percent of Empresas Bern's customers for residential towers in Costa del Este, a master-planned development being built on 300 hectares, or 740 acres, a few minutes outside the city center, Bern says.

Despite the much discussed concerns about overbuilding, the Panama-based developer Grupo Corcione is moving ahead with five tower projects in the city, including Ocean Sky, a 45-story tower with 106 units priced at $268,000 and $750,000.

Construction began in January 2007 and is expected to be completed by March 2009.

"We don't see a slowdown," said Ben Robinson, a consultant to Grupo Corcione. "There will always be speculators, but the long term prospects are very good."

In November, Newland International Properties sold $220 million in bonds to finance construction of the Trump Ocean Club, one of the most closely watched projects in the city. Scheduled for completion in 2010, the 69-story project, which is licensing the Trump name, will include more than 600 luxury residential condominiums priced from $500,000 to $12 million.

The Trump project is widely credited with boosting prices around the city. In the last two years, the average price for tower apartments has jumped from about $1,500 a square meter to $3,000 a square meter, or about $140 a square foot to $280 a square foot, in some projects, local experts say.

"It was as if the Donald Trump project lit dynamite under prices," said Paul McBride, chief executive of Prima Panama, Taliaferro's company.

Along with prices, complaints against developers have soared. More than 150 charges have been filed with the local consumer protection agency, according to Bill Schroff, a local consultant who runs a company called Panama Referral.

Two years ago, Schroff bought a tower apartment in the preconstruction phase, putting a 20 percent deposit on a unit priced at $157,000. Now that prices have soared, the developers are trying to get out of the contract.

"That happens a lot," Schroff said. The developer offered him $220,000 but he declined; similar units are now selling for $280,000.

Full text in http://www.iht.com/articles/2008/01/30/properties/repan.php

Upcoming: Jan 22 SLAM presents Panama and its Opportunities - in Chicago

Dr. Christopher Grande, Executive Director of Street Level Asset Management (SLAM) Panama, and Pamela Oakes, Managing Director, will deliver a presentation about its property management services before participants of the Latin American Investment Summit in Chicago. "Panama & its Opportunities" will be presented on Tuesday, January 22 at 2:15 pm at the Sheraton Chicago of 301 N. Water St. More information is listed at the Summit schedule.

Panama mortgages reach the $4.85 billion mark

Panama financial weekly Martes Financiero http://www.martesfinanciero.com/

features a series of articles on real estate. Interesting numbers
tell us that:
* The first half of 2007 closed with $4.85 billion in mortgages, led by Banco General ($0.98), Continental ($0.59, later acquired by General), HSBC ($0.55), Banistmo (acquired by HSBC), and Banco Nacional ($0.51).
* They are followed by Caja de Ahorros ($0.45), Scotiabank ($0.20), BBVA ($0.18), Banvivienda ($0.17) and Credicorp ($0.09).
* Risk analysts point out that banks have increased their mortgage exposure from 15 0/0 in 2003 to 21 0/0 in 2007.
* Despite the real estate boom, Panamanians face a housing shortage of 160 thousand homes, down from 178 thousand in 2006.
* A square meter of Pacific beachfront costs $2,300.00.
* Investment by developers in Altos del Maria is of $20 million.
* Investment by developers in Malibu will be of $400 million for 1200 houses and 800 condos, with 80 o/o destined to the foreign market.
* In San Francisco, the price of a square meter of land ranges between $800 and $1500, while in next-door Parque Lefevre they range between $200 and $900. Middle-class Pueblo Nuevo has parcels between $80 and $120 a square meter.
* The 2004 Panama Structure Regulations increased the anti-seismic features - along with the cost - of high-rises.
* Monthly salaries of construction workers range from 2 times the $300 minimum wage to $1200.
* Inmobiliaria San Felipe has 83 shareholders and has restored 50 apartments and 13 commercial spaces in Casco Viejo, for $6 million since 1995.
* Inmobiliaria San Felipe has 30 proyects in the pipeline and is planning its IPO.
* The price of the square meter of land in Casco Viejo has increased from $1000 to $2400, due to the demand from foreigners.
* Foreign competitors entering the market are Shyreen Deer Company under Kurt Kisto with a $30 million investment in units of $50K and Adsum Group with an $18 million office building sold at $2,200-2,600/ square meter.
* Only properties with occupation permits registered before August 31, 2007, qualify for 20 year property tax exemptions. Others have lower tax holidays of 15 years or less.

The full text is available in

http://www.martesfinanciero.com/history/2007/09/04/index.shtml

Villa in Panama City - Camino de Cruces area

Single home from € 963,000. Camino de Cruces, Friendship Road, close to El Dorado and new US Embassy. 2 levels, 406 sq.mt., 3 bedrooms, 3 bathrooms, maid r/b, large backyard with pool, surrounded by vegetation. In gated community with 24hr guard. Sold only with furniture.
Call +507 270-0864 or +507 6617-3321.

Features: Roofed Parking, Maids Quarters, 24 hour Security, Laundry, Storage, Garden or Park, Kids Park, Air Conditioner, Patio, Central Air Conditioner, Corner Property, Roofed Garage, Living room & Dinning room
Appliances: Refrigerator, Microwave, Stove, Dishwasher, Instant Hot Water Dispenser, Washer, Dryer
More pictures downloadable here
Google Earth coordinates 9.011289648163606,-79.54334242864977

Plans Lower Level

Backyard and pool

Living room and furniture

Choosing property management services in Panama

If your investment in Panama is a
City condo

City home

Beach condo

Beach home

Mountain retreat

Our full service company can guarantee your investment is well taken care of without your having to fret or being involved on a day-to-day basis.

If your investment is for your permanent use, temporary use, or for leasing, we have the service you need.
For your investment we offer:
Service lots water and electrical connections (where available)

Surveying

Architectural plans

Building permits

Construction

Remodeling

Interior decorating

Landscaping

Our services are of the best available at prices that are truly the best you can find.

We also assist in seeking counsel for worker disputes and or compensation claims. Products are used as per your specifications.

Our premier program includes:

City properties
Key holding, Property management and administration, Rental management and marketing

Beach property (3 hour radius from Panama city)
Key holding, Property management and administration, Rental management and marketing

Mountain home (3 hour radius from Panama city)
Key holding, Property management and administration, Rental management and marketing

Additional services include:

Cleaning services
Laundry and cleaning

On a per need basis we also offer:
Home improvement, decoration, interior and exterior painting, swimming pool maintenance, gardening, handyman jobs, locksmith service, lamps and light fixture installation, wall fixture installation, electrical troubleshooting, air conditioning installation and maintenance.

If a service needed is not included in our list, feel free to ask for it.

Property Management by Street Level Asset Management (SLAM)

SLAM provides management, leasing and other services for investors with real estate in Panama and other countries.
For more information on how to get better returns from your properties abroad, contact Street Level Asset Management (Panama), S. de R.L.

Contact Information
Email : info @streetlevelassetmanagement.com
Tel:+507 66388707
Address : Ocean Plaza, 47th Street, Aptdo. 0831-01110
Fax +507 3406446
Panama City Panama
Google Earth coordinates 8.977084703054178,-79.52287043255014