During the second trimester of 2020, demand for real estate in Panama and other global destinations suffered due to COVID-19. Limitations on movement, flights, and economic uncertainty caused by the global pandemic put many home purchases on hold. Panama’s real estate market was no exception. Not only did closed transactions drop, but online real estate portals in Panama saw a significant decline in monthly searches starting in April.
While the challenges are ongoing, and will continue to be so through the end of 2020, Panama’s real estate market is also proving resilient. In fact, monthly online searches for real estate opportunities in Panama are already back to pre-pandemic levels, and there has actually been an increase in activity and pricing in some segments of the market as many buyers look for larger homes and living arrangements with outdoor space.
Insights from internet traffic show that interest in Panama is strongest from the USA, Brasil, Canada, Colombia and Mexico, as well as various parts of Europe. Panama is still viewed as a safe, desirable destination with strong long term prospects for economic growth.
This confidence extends to the real estate market. For many investors, now is the best time in years to find long term value in Panama real estate. In fact, many developers and individual owners are offering attractive pricing and incentives such as developer financing and rent to own options that were previously difficult to come across. These incentives can be particularly attractive to foreign buyers who may not want to go through the process of obtaining local bank financing or immediately commit to purchasing in a new country. And these opportunities are being found in both the pre-construction and re-sale markets. Contact us to learn more about more about these unique opportunities.
New Multinationals To Invest in Panama
Not only are individual investors still showing strong interest in Panama – multinationals continue to have Panama on their radar. In July 2020, 5 new multinationals announced the establishment of new offices in Panama, adding to an ever-growing list of companies that have determined Panama’s stability, business friendly environment, and myriad economic incentives and benefits provide the right opportunities to meet their business needs.
Among the new arrivals in Panama is ABB Centroamérica y el Caribe – the Central-American branch of the Swiss giant ABB, which is a Fortune 500 Company that focuses mainly in robotics, power, heavy electrical equipment, and automation technology. Joining ABB shall be EY Latam North Holding, S.A, Spectrum Biomedical Latam (a Canadian company that specializes in biomedical research), Alórica Panamá, and Inceca Regional Services, Inc. Panama is proving that in can attract sophisticated players not only in service industries and consumer goods, but also in advance science and technology dominant industries, even during tough times.
The arrival of these companies will continue to boost Panama’s economy and create new job opportunities. A total of 162 multinational enterprises are now registered in Panama’s SEM (Sedes de Empresas Multinacionales), and the list continues to grow.
SEMs are Multinational Company Headquarters and they are and have been for many years an integral part of Panama’s economy. The country created a law especially for enterprises across the world who want to establish regional offices within Panama and provide services to the Americas and beyond to their subsidiaries or associated offices or companies. By offering great tax incentives and allowing the companies to benefit from the country’s privileged geographical location and dollarized economy, Panama has become a booming hub for world-renowned businesses.