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Panamanian resistance

01.07.2010
Author: Marina Lebedeva
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Gears of Panama's real estate market in a whirl – although not as fast as a few years ago. The construction of skyscrapers in Panama city, begun in the boom years, goes according to plan. During the global economic downturn, this seems surprising – but it has a lot of good reasons.
The many advantages of Panama as a destination for buying real estate are outweighed for Russians by the only factor - the country's remoteness. The transatlantic flight also limits demand from Europeans, so that the bulk of foreign buyers of Panamanian housing are US citizens. If not long ago every eighth American pensioner moved to live in Florida, now elderly people are increasingly choosing Panama. They are attracted by the warm climate, excellent medicine, the dollar as the official currency, the absence of taxes on income earned abroad ... For Panama, these people are a significant factor in economic growth. A typical American pensioner brings about $ 250,000 into the country - this money is spent on land, house, furniture, car, payment of immigration contributions. He receives another $ 2,000 a month from his pension fund - and this money again settles in the country's economy. In recent years, Panama has become a big construction site and the state is doing everything to stimulate property buyers. Foreign homeowners whose building permits were obtained before the end of 2009 are exempted from paying taxes on real estate transactions until 2030, and when buying a residence for more than $ 300,000, a residence permit is issued, and after five years you can apply for citizenship. In addition to first-class residential complexes, the corresponding infrastructure is being created in Panama - yacht clubs, marinas, golf courses, luxury hotels. The most famous architects consider it prestigious to design a building in Panama. The rise or fall of Panama certainly has no immunity to the global crisis - if in 2007 the country's GDP growth was 11.5%, then in 2008 it has already dropped to 9.2%. In 2009, this indicator is projected to fall by 1.3%, and these data are confirmed by the real state of affairs: in the first quarter of 2009, GDP growth was only 2.5% compared to the same period last year. However, experts assure that the difficulties will be temporary - according to the forecasts of the Panama Economy Insight company, the country's GDP growth will again amount to more than 9% in 2011, and there are many reasons for this. The main one is the project to modernize the Panama Canal, which was officially launched in 2007 and should become the engine of the country's economy for many years to come. Experts also mention the further liberalization of the tax system, the development of agricultural programs, and public investment in education and infrastructure as positive factors. The main good news for the economy of Panama is that on July 1, Ricardo Martinelli became the president of the country, who in the past led the work of the Panama Canal and therefore, like no one else, understands the strategic importance of this sea route for the region as a whole. The first steps of the new government also add optimism. According to the Minister of Economy and Finance Alberto Vallarino, in 2010 it is planned to invest about $ 2 billion in the development of the country's infrastructure. This money will go primarily to the construction of a metro in Panama City and to maintain the ecology of the gulf. The budget also includes expenses for new roads, expansion of the existing Tocumen International Airport in Panama City. It is planned to reconstruct the airport of the former US Howard Air Force Base, which will receive direct flights from Europe. Square Meter - Facts and Figures According to the Internet portal Revealestate.com, the average offer price for frontline condominiums in Panama City in May was $ 625,000. While individual projects continue to rise in price, in the country as a whole in 2009. there was a slight decrease in prices - according to the same Revealrealestate.com, over the year, condominiums fell by an average of 2.02%. These calculations are quite consistent with the official statistics, according to which in the first quarter of 2009 the number of transactions in the real estate market (including rent) decreased by 1.1%. But realtors have no reason for pessimism. “In general, the trends in the real estate market of Panama can be characterized as follows: stability, recovery, slow growth in prices, - says Anastasia Vorotnikova, representing the company Tropical Realty Panama, SA - Not a single construction project in the capital has been suspended”. According to Anton Kharisov from the FreeDom company, during 2009 the prices are kept at the same level: “Growth has slowed down, but I have not noticed any decline in real estate prices either. Developers are now more likely to make concessions to the buyer. When they see that a person is interested in an object, they can offer a small discount - up to 10%. But this, you see, is not the 20% announced in advance in other markets. " Western experts are inclined to believe that before prices confidently go up, their correction is possible in some places - in particular, in the segment of new buildings in Panama City, which are being sold at the excavation stage. When it comes to off-plan home transactions, there is some risk for both buyers and sellers. Developers are concerned that buyers do not make mortgage payments on time, and for their clients the main issue is the reliability of the developer. Panama giants At the very beginning of the construction boom, in November 2006, Donald Trump announced that he was going to build a 70-storey complex Trump Ocean Club International with an area of 260,000 square meters in the prestigious Punta Pacifica area. m. The arrival of the construction magnate in Panama turned out to be a landmark for the national real estate market and made other developers think about investing in this country - after all, Trump's financial instinct usually does not fail. Today, work on the 70-story tower, in which it is planned to invest $ 400 million, is on schedule: in July, the 29th floor was built. Trump Tower apartments are the most expensive housing under construction in Panama. In May, the price was $ 5197 per sq. m. The most expensive completed project is, perhaps, Bella Mare, a 35-storey building in the Punta Pacifica area. Elite apartments with an area of 760 sq. m today are estimated at $ 1.91 million. Each floor has one apartment with a beautiful view of the Bay of Panama, three bedrooms, an office, spacious dressing rooms, two rooms for servants. Each apartment can be accessed by four elevators, two of which are panoramic. Punta Pacifica also has more affordable offers. For example, an apartment with an area of 112 sq. m in the finished 26-storey complex Pacific Wings is for sale for $ 237,000. Three bedrooms, two bathrooms, a spacious living room, precious wood trim and windows overlooking the ocean - all this awaits a potential buyer. In addition to Trump Ocean Club, the top ten most expensive real estate offers include condominiums in Los Faros de Panama (San Francisco area), Brisas de Amador (Amador area) and a number of projects on Avenida Balboa - Philippe Starck's YooPanama, White Tower, Waters on the Bay ... Outside the capital A 10-minute drive from Panama City, it is planned to build a 1400-hectare mega-project Panama Pacifico, in which the development company London & Regional plans to invest $ 705 million. In addition to luxury villas and townhouses, this "garden city" will be built championship golf course, office buildings, sports and entertainment complexes, schools, shopping centers. An hour and a half from Panama City, the Playa Blanca Resort villa complex is under construction. According to Anton Kharisov, the villas are 150 sq. m with three bedrooms in this resort are now offered for about $ 300,000. In addition, there are apartments and townhouses for sale. An hour's drive from the capital, in the Coronado Bay beach area, the construction of the apartment complex of the same name is nearing completion. According to Anastasia Vorotnikova, one-bedroom apartments ranging from 93 sq. m are sold here at a price of $ 227,000.
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