With massive political investment into the tourist industry, 'Special Tourist Zone' incentives for overseas property investors, discounts for retirees and leisure activities aplenty the countries are now an attractive option for property buyers looking for their next big investment.

Panama
Often referred to as the central American 'banking capital of Latin America', Panama City is increasingly appearing alongside emerging Eastern European destinations in property developers' investment hotspot predictions. The rise in Panama's prominence on the central American property investment map has been brought on, in part, by the growth of the country's economy, which grew by 7.4 per cent in 2004 and 6 per cent. in 2005 A recent vote in favour of widening the Panama Canal at a cost of some $8 billion is also expected to generate more jobs and provide a massive boost for the economy. In addition, tourism is making a huge contribution to the country's economy, topping the Panama Canal and Free Trade Zones as Panama's top revenue earner in 2003. "Now is a great time for UK buyers to invest, as the City is moving rapidly forward price-wise," says Andrew Richardson, managing director of Property 4 Wealth. "Employment rates are rising, more and more overseas people are moving to the area, it's one of the safest places in the world to live, has excellent retiree benefits, is a tax haven and has strong rentals."

Indeed, the country's low costs of living, coupled with retiree incentives – including one of the world's best discount programmes offering up to 50 per cent off everything from doctors rates to airfares, Panama has become the most popular choice for Americans looking to buy homes outside of their own country.

For the European buyer, the country has become a popular alternative to Florida. Its similar tropical climate – minus the hurricanes – beaches, golf-courses and leisure opportunities such as diving and rainforest trekking make the country an attractive destination for tourists and investors.

As well as its range of leisure activities, Panama also offers a wide variety of property. The city itself offers high-rise condos and gated single-family home communities with the majority of newer properties priced from $175,000, including amenities such as a pool, social areas and covered garage parking. There are also security-gated villa communities in surrounding neighbourhoods for those requiring more space. Panama is home to some of the finest central American golf courses and many gated communities are being developed for members only just outside Panama Cit. Prices for houses and plots start in the high $200,000s. New beach homes and apartments are also currently being developed, as well as communities including amenities such as hotels, clubhouses, shopping and restaurants. Homes and lots in these coastal areas start from approximately $112,000. A more upscale coastal area on the market is the Amador Causeway. Consisting of three islands, the Panamanian government is trying to make the area a cruise ship port and as a result a world-class marina and several restaurants and shopping complexes are being developed. Apartments and condo hotel units are currently under construction and prices start in the mid $300,000 region.

Venezuela
With the re-election of President Chavez, Venezuela looks set to become increasingly popular with overseas investors in 2007. Chavez's commitment to the development of tourism and outside investment, coupled with the comparatively low cost of entering the Venezuelan property market and of living in the country, is due to create an increased amount of investor interest. "The re-election of Chavez will only fuel growth in the development of tourism and outside investment in Venezuela," says Phil Winstanley, managing director of Best Beach Escapes. "The moment you enter the main arrivals terminal in Caracas, you will see that the country is taking tourism seriously, and international tourism at that! Winstanley continues: "The airport has all the modern facilities of any international airport, together with large plasma screens previewing numerous tourism destinations, a national tourism display stand, and international restaurants such as TGI Fridays and Subway. Any tourism-based initiative in the country is greeted with low interest loans, 12-month payment holidays and free governmental marketing assistance."

Property prices on the Venezuelan mainland have risen by 45 per cent in the last year and with hundreds of miles of land available for further development this rise is likely to continue. However, compared to Caribbean destinations, the country still has relatively low property prices to offer  investors. Many companies have already started to push the adventure sports market in Venezuela and skydiving operations, kite surfing resorts and surf schools are springing up along the coast and on islands such as Isle Margarita.

Current figures show that capital growth in Isle Margarita, off the north-eastern coast of the country, is around 35 per cent. With 320 days of sunshine, duty-free shopping and a $350 million Formula One Circuit to begin construction shortly, the Isle is likely to become a major  tourist destination. "Being an emerging market and bearing in mind the current low prices, this could be just the tip of the iceberg," said Carley Todd, GEM Estates Isle Margarita expert. "Rental incomes are approximately 6-8 per cent per annum, and with the increased Venezuelan tourism drive, your property will also pay its way."

New apartment resorts on the Isles start from approximately 67,000 euros (£45,000) for two-bedroom, two-bathroom apartments. 

Mexico
Home to one of the busiest tourist airports in the world, with direct connections to destinations all over North America and Europe, Mexico offers cultural attractions such as Mayan ruins, Mummification museums, golf courses and vibrant nightlife.

The Riviera Maya is where some of the best investment opportunities lie. Designated a prime tourist development zone 35 years ago and with Cancun as its then epicentre, the area is the fastest-growing development zone on the American Continent and  offers modern services and
communications, shopping plazas and medical facilities.

"This area has grown rapidly in the last five to seven years, driven by the tourist market buying the prime properties," says Darren Milne, chief executive officer of Caribbean Dreams Limited. "The population of the Riviera Maya will be over a million in the next 20 years. Playa del Carmen itself has increased from 25,000 to over 140,000 inhabitants. The last five years has seen the majority of property – especially ocean-front properties – double in value. This trend is expected to continue as the area gains in credibility."

As well as the tourist market, other future investment opportunities in Mexico include the retirement market, with half a million Americans alone expected to retire in the country over the next 20 years, the exclusive housing market, catering for the growing professional sector, and the business and industrial sector, taking advantage of a well-educated young working population. 

Ocean-front condos in Mexico range from $500,000 to $5 million, marina frontage homes from $200,000 to $400,000 and golf course and private marina homes start at $80,000 and rise to $150,000.

Belize
The English-speaking country of Belize – in the Yucatan Peninsula of Central America is characteristic of many  Central American countries emerging in the global property investment market. With a stable political situation and parliamentary democracy, foreign land ownership, favourable taxation laws and an esteemed banking industry, the country joins the aforementioned on the list of investment hotspots.

Belize (formerly British Honduras) has evolved into a world-renowned ecotourism and adventure destination with some of the best marine reserves in the world, the largest cave system in the Americas and three of the four coral atolls in the Caribbean.

Direct flights from Europe will soon replace one-stop flights currently available from Britain and are sure to increase the yearly influx of tourists from across the Atlantic its close proximity to North America already making it a top tourist and retirement destination. "Belize is currently experiencing an exceptional tourism and development boom and an excellent investment opportunity exists today," says Lea Snyder from Caribbean Properties Consultants. "Land and condominium prices have experienced significant appreciation and prices are still 50 per cent below prices of similar properties in the Bahamas."

Belize also offers extensive financial incentives for overseas property investors, such as zero income tax, zero capital gains tax and off-shore banking. As the government has set aside 46 per cent of the land under environmental preservation policies, with over 50 per cent of the original forest remaining, property prices in Belize are likely to rise dramatically due to lack of property development land, so overseas investors are urged to investigate the market sooner rather than later.

Luxury beach-front lots in Belize area available from approximately $50,000 and condos from $247,000. Larger in-land homes are on the market for approximately $575,000 and river-front properties with land from $249,000.

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For further information about central American property:
Property4Wealth
Best Beach Escapes
Gem Estates
Caribbean Dreams Property
Belize Property
Cloud Nine Realty

Article published on 5 February 2007