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A new report doesn’t mince words about the state of the residential investment market in Panama.
“Flipping is dead,” concludes the analysis by Alternative Latin Investor.
There is “unanimous consensus” that the market has “fundamentally changed,” the report says.
“The market is acutely aware that foreign investors are no longer able to raise capital against their assets to fund these property investments and during the last two years, with demand disintegrating, the market has corrected 15 percent to 30 percent accordingly,” the report says.
While that may not be breaking news for anyone familiar with the market, the report does offer some nuances. For example, there is “some evidence” that older apartments in Panama City towers have remained “more resilient” to the market slowdown because they tend to be larger and can be upgraded.
Panama is also making strides in improving the country’s road system, in particular a new highway under construction along the Caribbean coast, which should make it easier to reach resort destinations.
And, the report notes, Panama’s commercial property market remains strong. “Commercial units are still being completed and absorbed at a stable rate with a good majority of preconstruction buyers also committed end users, whether that be to occupy or lease,” the report says.
The full report can be found here (free registration required).
