How Does the Costa Rica Real Estate Crisis Effect Panama Real Estate?
There is talk in Panama of a real estate bubble. Although many foreign real estate buyers in Panama can and do get local bank financing the same situation could apply if there is a rush to liquidate property here to cover debts in the USA. Panama investment has slowed but still continues, and panama credit is still available to many. If the Panama real estate bubble bursts here developers will be stuck with finished projects and no buyers. Many have made money in the Panama real estate market purchasing at “pre construction.” Typically a condo buyer or investor puts 10% down with the remainder due at completion. As the Panama real estate market has gone up buyers have been able to leverage their initial investment into handsome profits. If the value of condos at completion is less than then pre construction contract buyers will take their ten percent loss and walk away. This will leave developers, like in Costa Rica, with financed debt and no buyers.
