One of the things that I think speaks volumes to this idea is the consistent inflow of foreign investment capital. In another of my articles, I discuss the details of how and why foreign capital flows into Panama. I think an investment of $6.2B (US) by U.S. companies alone in 2007 is strong proof of credibility.

Mercer Multinational Consultants reported on quality of life and personal safety in 215 cities worldwide. Panama City, the national capital, was ranked 96th, which places it above all other Central American cities. Mercer created these ranking by analyzing social, political and economic environment, health, education and transportation factors for each city.

A major consideration in making the choice to do business in Panama is quality of life. Panama City is cosmopolitan and offers excellent living conditions. Office, commercial, industrial and housing spaces are available, as are skilled, multilingual employees. Panama City is 5th in Latin America behind San Juan, Montevideo, Buenos Aires and Santiago de Chile. Panama City is first in Central America, 12 places above San Jose, Costa Rica.

With an index of 91.4, Panama City is the third safest city in Latin America, only behind San Juan, Puerto Rico and Santo Domingo, Dominican Republic according to a report by International Scope.

With an 8% increase in GDP, Panama was the leader in economic growth in Latin America during 2008. Much of this due to the fact that Panama has a US dollar-based economy, low inflation and little foreign exchange risk, an absence of exchange controls, favorable and equal tax treatment of foreign and local citizens.

Panama has a stable Constitutional government with a keen understanding of its reliance on international trade. The Economic Freedom Index for 2009, a joint publication of The Heritage Foundation and the Wall Street Journal, ranked Panama 55th of 157 countries. Citizens and expatriates alike have freedom to make their own decisions for their benefit and for the benefit of their families.

You may argue that some of these are not indications of ‘credibility’ per se, but they are certainly evidence that something special is going on here in Panama; something worthy of international attention. Something worthy of your attention.

Related posts:

1. Access to Capital The Republic of Panama is consistently near the top of...
2. Why Do Business in Panama? When someone thinks of Panama, the first two things that...
3. Why Multi-National Corporations are Choosing Panama Corporations are always searching for great opportunities. Panama has been...

Our main business of course is not real estate but offshore services, formation of Panama Corporations and so on. But like all expats in Panama we do have a few apartments and pieces of land for sale if anyone asks

Our view is that the higher end of the market WILL soon be hit hard by the recession and falling real estate prices. We already see expatriate owners of luxury apartments in Panama looking to sell out at big discounts.

The lower end of the market – that is, affordable housing aimed mainly at Panamanians – is likely to be far more resilient. Indeed, we have some clients investing in that market right now. This morning we were looking at a portfolio of apartments about ten minutes drive from Calle 50 (Financial District) that are selling for an average of $15,000 to $20,000 each. These are realistic, affordable prices. We would expect the new owners to invest perhaps another $5,000 in remodeling these cheap Panama apartments. Then they can be rented out on stable, long term rental contracts for around $250 per month. Actually a very good rental return on these apartments if you do the math!

Likewise, affordable lots of land will not go down in value, and we expect Land in Panama to rise over the medium term – let’s say the next few years, as Panama’s financial serviced based economy tries to ride out the recession.

If you are coming down to Panama and looking to buy or rent apartments for investment, let us know. Although it’s not our business as such, we will be happy to introduce you to reliable and honest on the ground Panama real estate contacts.

No related posts.