The new expansion of the real estate market of Panama

The new expansion of the real estate market of Panama

2011 has seen a new increase in sales volume

 

The real estate market of Panama experienced a very positive trend between 2005 and 2008 attracting plenty of overseas investors. Since 2008, instead, the volume of sales has fallen by 50%. 2011 has seen a new increase in sales volume while prices have remained stable.

Prices start around $ 325,000 in the Pacific Coast Beach Resort. High-end properties can cost up to $ 2.5 million. In Panama City prices of luxury homes range between $ 600,000 and $ 1 million.

Property buyers come from around the world: the number of investors coming from North America has decreased, but the number of purchasers coming from South and Central America has increased. Panama attracts above all investors from Argentina, Colombia, Peru, Ecuador and Chile. Panama is an appealing investment destination for buyers coming from Western Europe – particularly from France, Italy and Britain.

But, what should a foreign buyer know before purchasing a real estate property in Panama? First of all, an overseas investor should hire a lawyer to handle the transaction and conduct negotiations. Legal fees amount to 1% of the purchase price. The buyer will also have to pay a 1%-fee  for the registration of the deed.

Foreign buyers can also obtain a mortgage up to 75% of the purchase price for a 0.5%-1.5% origination fee. The loan term depends on the age of the subscriber: the older the buyer, the shorter terms will be. Overseas buyers will not have to pay for broker commissions, since they are paid by the seller who pays a 5% tax on the sale price, too.

The government has introduced new tax exemption rules. Tax exemption periods depend on the property sale price, at the moment. Once the exemption period has expired, the owner will be obliged to pay a 1% annual tax calculated on the registered value of the property.

Read also:

·         Northern Africa and Latin America offer real estate growth opportunities

·         The countries where buy-to-let properties grant the highest returns in Latin America

Property for sale America:

Real Estate Listings

New European style house House new lot of 800 m2 and 230 m2 of construction N ° 5 bedroom,s s° 1 living room,s s° 1 kitchen,s s° 3 bathroom...
Cod. 31886

For sale House, Panam, Panama, Panama City, Altos de Cerro Azul El Vigia

110,000.00USD
For sale
House

200 m²
Great opportunity For sale land 2.050m2 with a good sized house containing 2 bedrooms 2 bathrooms. Located in Altos de Cerro Azul, El Vigia. Close ...
Cod. 31669

For sale Hotel, Panam, Bocas del Toro, Isla Colon, Big Creek

600,000.00USD
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Hotel

3000 m²
Magnificent house of new construcciópn finished in 2017. House built with first quality materials of 260 square meters on plot of 3,000 square meters...
Cod. 31369

For sale 3 Bedrooms, Panam, Cocle, Penonome, PENONOME Street 3

Reserved negotiation
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3 Bedrooms

374.780 m²
House near the beaches and exclusive SECTOR Penonome Residential Paseo Del Rio. Hamplia house with French windows, doors of luxury Security and furni...
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