This year, among the usual slew of Eastern European countries is the less known destination of Panama City.Panama has a stable and growing economy which grew 7.4 per cent in 2004 and 6 per cent in 2005. The recent vote in favour of widening the Panama Canal at a cost of some $8 billion will generate more jobs and provide a massive boost to the economy. This economical advancement should continue for the expected ten-year duration of the project and is likely to increase the price of property in Panama.

"Now is a great time for UK buyers to invest, as the City is moving rapidly forward price-wise," said Andrew Richardson, 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."

The low cost of living and incentives for retirees, including one of the world's best discount programmes with up to 50 per cent off everything from doctors rates to airfares, has helped make property in Panama the most popular choice for Americans looking to buy homes outside of their own country. In 2003 tourism topped the Panama Canal and Free Trade Zone as the country's top revenue earner. This growth in tourism has lead to increased investor interest, encouraged by government incentives in a number of areas called Special Tourist Zones, which is likely to increase to price of property in Panama. "As more foreigners move down to this tropical paradise buying up the residential condos, demand for commercial development will increase," said James Hickman of the Black Knight Capital Group. "There are some tremendous opportunities for commercial and business development, and the tax laws are quite advantageous." Property in Panama, marketed by Property for Wealth, range from $200,000 for a high-end inland apartment unit, $300-600,000 for a water-front prime unit and $130,000 for condo-hotel units.

Alternatively, Escapes2.com plans to complete its 84 storey Los Faros De Panama development in 2010. The development will include homes, a hotel, a casino, a shopping centre and a centre for Panamanian culture. Reservation deposits for apartments in the block cost from $6,000.

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Article published 19 December 2006