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

  •  

Real Estate Listings

Cod. 36601

For sale Hotel, Panam, Veraguas, Santa Fé, Santa Fé

450,000.00USD
For sale
Hotel

400 m²
Hostal La Qhia in Santa Fe, Veraguas, Republic of Panama Santa Fe: authentic small village, nestled in the center of the country, nestled between ...
Cod. 36483

For sale Development Property, Panam, Chiriqu, Las Lajas, Las Lajas de San Felix

12.00USD
For sale
Development Property

2000 m²
Help finding, buying and building "your" property in Panama. Depending on the size of the property, it can be priced from US $ 12 .-- per square meter...
Cod. 36389

For sale Other (Land), Panam, Chiriqu, TOLE, TOLE

2,000,000.00USD
For sale
Other (Land)

850000 m²
Large 85 hectare plot of land located on the Pacific coast of the lake in CHIRIQUI For real estate development (possibility of 500 condos) or for agr...
Cod. 34764

For sale Villa, Panam, Panama, Arraijan, el palmar lote 80/b

600,000.00USD
For sale
Villa

450 m²
Villa near the Pacific Ocean, with beautiful garden of 200 square meters, new construction, arranged and protected! Far 12 Km from the center of Panam...
1 / 17
  1. Preferences

    For a better use of Realigro website, set your preferences for language, currency, square meters or sq ft.

    Set now Don't show again
BB