"Panama is booming," says Arthur Rooney from Just Florida. "Since America handed the Panama Canal back to the country in 1999, Panama has seen a great amount of investment. In 1959 there were around ten banks in Panama City, now there are around 150. The expansion of the Panama Canal is attracting cruise companies to the area – in December Royal Caribbean confirmed they will start cruises in December 2008 – and the canal already sees around 13,000 ships pass through each year, with the average toll being around US$48,000."

This business investment, along with a stable currency – Panama uses American dollar notes – and tax benefits has seen Panama attract a rapidly growing number of foreign property buyers over the past few years. "In just the last three years, I've seen an amazing increase in demand for both residential and commercial properties," says Carla Rayman from Cloud Nine Realty. "Not only are people considering buying in Panama for investment purposes but I have a lot of clients looking to relocate for retirement property and for a better lifestyle."

Other attractions Panama holds for overseas property buyers, says Gail Geerling from Grupo Sol, are "a lower cost of living, warm weather, beaches, mountains, forests and a cosmopolitan city with all the amenities but not the high cost of European property." The city Geerling refers to is the aptly named Panama City, which is home to many high-rise condominiums featuring a range of leisure facilities such as hotels, casinos, shops and restaurants with residential accommodation above. "There are many new hotels and condominiums being built in Panama City," says Rooney. "Indeed, Donald Trump is building a 65-storey hotel with 800 rooms and condominiums, a yacht marina and a casino and rumour has it that these have already been sold out."

Outside of Panama City, Panama's 477 miles of Caribbean coastline, 757 miles of Pacific coastline and hundreds of islands also prove a strong attraction for property buyers. "Most people who live in Panama City also own a property within an hour or so away so they can spend their weekends at the beach," says Rayman. "Since property in Panama is so affordable, one can have the best of both worlds." She continues: "Outside of the city, one will find homes and apartments in gated communities that may offer golf course or beachfront locations. There are also fabulous resorts, such as Isla Saboga, on one of the Pearl Islands, which will host a hotel, spa and golf course." This growth of Panama property development outside of the popular inner city is set to continue at a rapid rate over the next five years as urban space dwindles.

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Article published July 2008