Dear Reader,

For decades, the world's interest in Panama was restricted to the country's trans-continental canal, the most efficient way to transverse the east and west coasts of the Americas. No more. Today, Panama is a country increasingly known for its banking services and retiree benefits programs. It's making a name for itself internationally not only as an offshore and a retirement haven...but also for its low cost of living, stable government, and sunny weather. Tourism numbers are up, discussions progress on expanding the canal to allow for 21st-century cargo carriers, and the economy is recovering from the exodus of the 50,000 Americans formerly based in the Canal Zone.

A complete renovation and expansion of the international airport is under way to accommodate the continued air traffic growth to this country. Panama is today not only the crossroads between the Atlantic and Pacific oceans, but it is also the major and most efficient air travel hub for all Latin America. In other words, Panama isn't relying on North Americans alone for future economic expansion.

As a result, interest in Panama's real estate market from not only North, but also South Americans seems to continue to grow at a remarkable pace.

There's a potential danger for Panama City's apartment market, however, which can be expressed by quoting a recent statistic: While there are currently 121 high-rise buildings in Panama City, more than 100 additional high-rises are either under construction or already have been granted planning permission to begin construction.

The Big Question

So, the question we've been asking each other here in the International Living offices is this: Can the market absorb all these new condo and apartment units? The answer depends on many related issues--including plans for the expansion of the canal and the growth of the local Panamanian market, as well as continued interest from investors and retirees abroad.

We don't have answers to all these questions...but we know some people who ought to be able to get us thinking in the right direction. We got our key Panama City contacts together, for a conference call on June 29 to talk through the issues and the implications.

I moderate a Teleconference addressing the subject "The Future of the Panama City Property Market" on June 29.

Listen In to What the Key Players Had to Say

On the line with me was Jose Bern, a leading player in this country's real estate industry, an executive with Empresas Bern, one of the biggest development companies in Panama City. Jose will specifically addressed the effects of all the new and ongoing construction on the Panama City property market, as well as the changes he is seeing in the types of products being created to meet new demand from foreigners and retirees.

Also on the call was our legal counsel in the country, Rainelda Mata-Kelly, who has helped many of us here at International Living personally, as well as, over the past six years, hundreds of International Living readers with real estate purchases, visas, and other Panama legal issues. Among other things, Rainelda spoke to Panama's current 20-year property tax exemption. How does it work...and will it be permanently repealed, as some talk suggests?

In addition, Panama’s Minister of Trade, Julio Fabrega, joined us to discuss the implications he foresees from the current construction boom both on the economy and the country's position as a foreign retirement haven. Julio also spoke to the impact the property boom is having on the city and its infrastructure.

Finally, we were joined by Hildebrando Lima and Jaime Figueroa, with Banistmo Bank, who addressed issues related to banking and mortgage financing in this country.

This was an insider conversation among serious players in this market. I felt privileged, as one already invested in the Panama City market and with ongoing business interests in the country, to be able to be on the line with these professionals, and I very much appreciated their making time in their schedules to participate. I realize that, ordinarily, I'd have to invest a considerable amount of both time and money to gain the kinds of behind-the-scenes insights this group shared during the hour we were on the phone together.

We Recorded The Call

As I mentioned, you're invited to join us. Our Events Team recorded the call to make it possible for you to listen while these key members of Panama's real estate market share their views on prospects for this market in the context of its current construction boom. The cost is a nominal $14.95.
You will be sent details of listening to the recording as often as you'd like.

Regards,

Lief Simon
Real Estate Editor, International Living

Disclaimer: International Living and any of its agents and speakers do not provide any individual, personalized investment advice. This teleconference provides only information to the general public, and at no time should any person acting as an agent or speaker at the conference be relied upon as rendering personalized investment advice. International Living may receive compensation from speakers and presenters selling their respective products at conferences. The compensation may be in the form of a sponsorship fee, flat fee or commission from sales. Advertising you may receive from their companies should not to be construed as originating from or connected in any way to International Living.
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