As everyone knows flipping a condo before completion was a world wide sport and Panama was a hot spot as other places quickly cooled when money became tight. But as this article in International Property Journal points out, the party is over here in Panama too. I posted many times about the speculative bubble I saw building back in 2007-8. I am not Nostradamus, but it was obvious to anyone who looks at the world from a conservative standpoint that it was just unsustainable.
There will be a great deal of mostly mediocre product coming on the market in the next two years and deals will be had. The good news is that Panama is not depending on construction as an economic engine as in the past. The many infrastructure projects although creating loads of debt, will help drive demand for apartments as more and more multinationals come here seeking opportunity where few exits in the rest of this crazy world.
Excerpt from IPJ: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.
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.
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