Are Panama Property prices going down?

It’s going to take a while for real estate prices in Panama to adjust to declining economic conditions world wide. Although the cost of living in Panama is still cheap if you know where to look for the bargains, in many places, especially in the resort areas and in Panama City, speculators and investors have driven up the prices of and living in Panama.

What follows is an article from Marijulia Pujol on the the possibility of prices for Panama real estate declining.

"Panama was attractive for foreigners because properties were cheap and cost of living was low but no longer. Real estate prices are decreasing for the first time since the boom according to the 2009 Panama Real Estate Report.

This trend is causing a great deal of distress among developers and speculators who are beginning to see their dreams of doubling their money disappear.

The report written by Martin Landau says that the main problem with real estate in Panama is that sellers want to sell high and buyers want to buy low and nobody really knows the right price of the properties.

At the beginning of the boom Panama was an attractive proposition, because real estate was cheap, but with the entrance of speculators and luxury projects the prices went skywards to first world levels.

Landau said that the projects that are suffering the most are the luxurious ones..."

Read the complete article here