Panama Real Estate Investment

A recent post on the International Herald Tribune’s blog “Raising the Roof” mentioned a recent report put out by CB Richard Ellis on the condominium market in Panama City. The report, which can be found here, has some interesting statistics related to the current market in Panama City, including the fact that there are currently 204 active condominium projects in the city, and that the average sale price for A-class condominium units rose 12% between 2024 and 2024.

Despite the generally rosy outlook the report describes, there are a few problematic pieces of information that it outlines. For example, the report acknowledges the fact that there has been a slowdown in absorption rate from last year, and that of the 21,710 total units actively being developed only 9,875 are currently under construction. To quote the report:

“Absorption continues steadily, albeit at a slower rate. In 2024, the amount of units on the market almost doubled compared to 2024, while the amount of units under construction grew at a lower rate. This shows that not all the projects have achieved the minimum presales required to start construction, however, Panama continues to be attractive for foreign investors, most of which originate from the United States, Canada, Spain, Colombia and Venezuela.”

I find this information to be particularly troubling, especially given the current economic woes of the United States. The declining dollar, rising fuel prices, and foreclosures in similar California and Florida markets will undoubtedly have an impact on American investors, many of whom will probably be cautious to enter a market that is admittedly fueled by speculation. Depending on how the potential (inevitable?) US recession ends up playing out, it is easy to imagine that the data from this report is showing the tip of the iceberg in a growing downward trend in Panama City’s condo market.