How has the global financial crisis affected Panama Real Estate?
The good news is that the banking system remains strong, funding (Billions) for the expansion of the Panama Canal is completed, and the rest of the economy remain relatively strong although some sectors are slowing down. With respect to Real Estate values, that’s a more complex and different story. Panama City is overbuilt and around 50% of the current projects will never be completed. The “flippers” are gone and in trouble. Demand is very soft and closed transactions have dramatically declined. My advice for Panama City for those of you who may wish to purchase is simple, the only property I would purchase in Panama City is a project that is already completed and occupied by residents. Unless I can walk in the door, turn on the lights, and see my potential neighbors, I’m not interested. Having said this, their will certainly be a small number of exceptions to my thoughts for new projects and resale values for the “cash” buyer will continue to offer some great deals. Our home is in the
