Panama is a country known for its exotic tourist destinations and breathtaking commercial progress. What proves it is the country’s real estate sector, which, for the first time since the war in 1989, is booming without breaking a sweat. Panama is now exposed to millions of dollars worth of real estate investments. Denizens from different countries, including the USA, UK, and Canada, are buying residential and commercial properties in this new “paradise”.
The bullish aspects of Panama’s real estate are evident by these numbers: In 2006, the average cost per square meter was near $1,000. By the end of 2015, the value rose to as high as $1,400, and it is still recording a 30-40% upside rally each year.
John Gilbert, the co-founder of Prime-Ex Perpetual, a Panama-based global real estate solutions company, illustrates the growing number of government projects that are assisting the country’s real estate industry as a whole. He states:
“The Panama real estate market continues to enjoy a shot in the arm thanks to the many infrastructure improvements that the government is making throughout Panama. Over the last three years, a four-lane highway has been completed from Panama City to the frontera at the Costa Rican border, and four lane highways have been completed from the Frontera to Puerto Armuelles, from Panama City to Colon, from Santiago nearly to Pedasi, and from David to Boquete.”
“The new Federal Mall located on the Boquete Highway just outside of David is a real game-changer for the Chiriqui province and would not have been possible without the four-lane highway. This is but one example of the countless projects that are going up across Panama that just would not have been possible without the infrastructure improvements.”
“That’s the great benefit of the Panama Canal. Monies are available to the government for infrastructure improvements that other countries simply can’t duplicate. Businesses are very fortunate in Panama whenever and wherever the government of Panama chooses to invest in infrastructure, and we’re in a sustained period of the Panamanian government doing exactly that.”
Diverse articles published in the main international magazines for retirees (“Baby Boomers”), and second residences abroad, have recognized Panama as one of the best countries to live at a high level, but with low cost of living; all this, motivated by excellent projects directed to this market.
From this point, there is no doubt that Panama would become the center and model of real estate investment in the region.
Blockchain to Further the Real Estate Growth?
As Gilbert believes, the growth of real estate sector can be accelerated even more if the sector transits to new-age technologies like blockchain. There is a lack of transparency in paperwork, loaning process, and a dozen similar issues in the traditional real estate process that need to be addressed and improved upon.
“Blockchain proposes to be a solution for resolving the issues related to security, compliance, transparency, and efficiency,” Gilbert states. “It is a public ledger that can automatically record and execute real estate transactions, settle contracts between two parties without a middleman, and most importantly, promises to bring transparency to the whole process. While these things won’t happen overnight, the momentum towards blockchain technology is unstoppable. At some point, you wake up and realize that you’re the last person riding a horse. Countries that miss this vital technology will fall well behind their peers in both production and consumer confidence.”
The entrepreneur’s comments come at a time when blockchain is being globally accepted by different sectors, ranging from finance to technology. Gilbert’s very own company is a blockchain-powered tokenized system which improves customers’ home buying experience by cutting unnecessary costs and simplifying financing.
By understanding the needs of new-age customers, and ensuring cutting-edge solutions, Panamese real estate sector can outdo its own growth in the near future. Startups like Prime-Ex Perpetual are an important step towards that direction.
Cover Image via Pixabay