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

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...
Cod. 31241

For sale House, Panam, Chiriqu, Boquete, Lucero Homes Boquete, Panama

695,000.00USD
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House

364 m²
Newly completed construction. Surrounded by the beautiful Jaramillo mountains in the province of Chiriqui Panama, and situated close to the town of...
Cod. 30730

For sale 1 Bedroom, Panam, Panama, Panama City, Bella Vista

155,000.00USD
For sale
1 Bedroom

45 m²
**** For 10 or more properties similar to this Website access the Global Properties **** *** Without Intermediaries **** Colores de Bella Vista ...
Luxurious house located in the Old Residential located in the exclusive area of ​​Costa del Este, one of the most beautiful residential areas of Panam...
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