Panama has lack of luxury property for sale

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Although the domestic market is heating up in Panama it means that it is becoming increasingly difficult for overseas investors to buy into the country at the premium level.

There are several reasons for the current situation and one of them lies in the fact that Panamanians are increasingly using a ‘who you know’ approach to make sure they get the first chance to bag luxury properties.

With certain buildings and even entire neighbourhoods being controlled by a select group of families, those without personal connections can find themselves frozen out of deals and unable to make a purchase.

More and more people are using their own contacts in the government, legal system and other local affiliations to gain an advantage in the increasingly dog eat dog premium sector of the market.

However there is more to the situation than simply not knowing the right people, as Kent Davis of Panama Equity recently explained in his online blog.

"Many of my clients have commented on Panama's fragmented real estate listing environment, which makes things very difficult for an uninformed buyer to find top properties in upscale locations, because these properties rarely make it on the market," Mr Davis wrote.

He went on to explain that the top properties are being bought and sold through what he called an “elite and oftentimes closed network of real estate agents, attorneys, developers and private connections”.

The lack of supply is also making the situation difficult for foreign investors, even though total transaction costs are also low in the in country. Legal fees stand at around 2%, while registration and transfer tax are 0.25% and 2% respectively according to the Global Property Guide.

Panama also has no restriction on property ownership for foreigners, excluding property located less than ten kilometres from the frontiers.

If you want to transfer money to Panama, make sure to compare the currency exchange rates offered by specialist firms to those available from the banks to find the best way to send money abroad.

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Panama has lack of luxury property for sale

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