It is obvious that Panama is one of the most beautiful paradises. Panama until recently was largely undiscovered by many vacationers and retirees. With a low cost of living and a stable political environment, Panama is fast becoming a popular retirement destination. It is no wonder then that people are getting more interested in the country. Celebrities, travelers and tourists alike simply can’t get enough of staying for a vacation so they are getting more and more convinced to buy their own property instead of checking into expensive hotels.
On the other hand, the real estate market can be very tricky and quite unstable in this place, and prices can go up overnight as the demand for commercial space rises. Developers are now taking advantage of the recent growth in Panama’s tourism so there are some key points to consider before investing in your own property.
Panama’s Real Estate Explosion
The continuing boom in real estate property in the country is unfortunately not a guarantee that it will be maintained in the years to come or increase more. Prices have soared from the original $900-$1000 per square meter to $3,000 property deals that may not be up to par with the original properties constructed two years ago. Certainly buyers would want to get a great deal out of their investment but even though they profess interest in the said property, it is not a guarantee that they will actually buy it and occupy the space when construction gets finished. The real estate market is practicing a concept called “flipping” to test how much they could increase the prices in a short period of time, that’s why prices have overwhelmingly sky rocketed.
Panama as a Refuge for Retirement
Panama was a haven for retired civilians when the prices for a real estate property ranged from $900 to $1000 per square meter. Retiring in Panama is not quite so attractive now as some of the nicer properties now cost up to $3000 per square meter. Other prices have also increased as merchants and service-based businesses take advantage of the continuing popularity and growing tourist population of the country. Restaurants have noticeably increased their prices up to 15% and services for a maid also increased to up to 20%. Maid agencies used to charge about $160 per month and now charge $200-$250 a month.
Panama and Its Attractions
There is no doubt however, about the fact that Panama is a Paradise, the weather and accessibility of its beaches makes it a desirable location to visit and live. It is likely prices will continue to rise as billions of dollars are infused into such a tiny population of about 3 million people. Unfortunately it is also inevitable that such an infusion that the cost of living will also increase.