This post is also available in: Spanish
More Europeans are coming to Panama partly due to the multi-national corporations that use the country as their regional base, according to Jeff Barton, managing director of Punta Pacifica Realty, in an article published by the digital magazine NuWire Investor.
Barton said that for the first time, “we’re starting to see a significant increase in the number of buyers from Europe, part of the growing globalization of Panama City’s property market.”
European buyers have always been part of the property scene in Panama City, in large part due to the multi-national corporations that use Panama as the regional base. But Euro buyers traditionally represented a smaller part of the market than North America and Latin America, the largest buying groups.
The realtor observed that in recent months agents have been reporting a large increase in the number of European buyers, primarily from Italy, Spain and Switzerland, and they have clearly different interests than past buyers. Most of the European buyers are acquiring property in Panama City as an investment for the short term, with plans to use the apartment as a second home in the coming years.
Unlike the United State buyers, who were buying properties as investments looking for a quick flip, Europeans are purchasing properties that can generate rental income, until the time come to move to Panama permanently, explained Barton in his article.
The rise in Euro buyers can also be attributed to several factors:
- Instability and rising prices in traditional European second home markets. Post-crash, Spain and Dubai no longer look very attractive to property investors.
- Increased air support. More flights across the Atlantic have made Panama City a much easier commute for Europeans.
- Investment security: Panama is seen as a safe haven with more opportunities than aging markets.
- Panama’s economy continues to grow. Investors want to invest in a growth market. Fitch Ratings predicts the economy will still grow at a rate of 6 percent in the next few years, the fastest growth rate in the region.
All these factors look very attractive to the long-term European buyer, especially as corporations continue to move personnel into the city. Mixing with buyers from North America and Latin America, they will continue to grow Panama City into a vibrant international center, concluded Barton.