From 2000 to 2008 the real estate market in Panama has benefited from an expansion with an increasing demand and therefore continuously rising prices.
The economy was productive and growing, individuals as well as big investors were launching large scale projects, sometimes perhaps motivated by an advantageous exchange rate of euro to dollar.
During 2007-2008, Panama had to deal with the global economic recession and it slowed down Panama’s economic growth. Since that time the real estate market has remained sluggish. Even though there have been only very small fluctuations, the selling price kept relatively stable over the period so that a property acquired before 2007-2008 can be resold for the same price ten years later or eventually less. It’s important to take into consideration this fact in order to adjust the selling prices, from which we can certainly not expect for so much as it was in these times.
However with the current COVID-19 pandemic situation it seems that many residents of the most affected areas wish to emigrate to safer, welcoming regions, it is particularly the case in some countries where the way they address the health crisis seems very questionable. Situation seems being quite quick and changes often, that’s why you can track the recent pandemic situation on the U.S. Embassy in Panama web site)
That is why these last months the demand seems to rise significantly which may revive real estate market in Panama activity especially the housing sector. The commercial and tourism sector should depend on the ability of traveling under normal circumstances.
Hospitality and tourism sector risks to suffer the following months if the activity does not pick up quickly. Next season is impatiently awaited and will be decisive. Everybody is looking forward when the situation comes back to normal.
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