Panama: An example of development
Since the early 2000s, Panama has shown an uninterrupted development of the Real Estate business, which is apparent in the construction of apartment buildings, hotels, vacation homes, tourist centers, shopping centers, and developments facing the sea.
However, when looking to make money in Panamá, you must consider a difference in earnings, financial decisions, and other factors that govern the citizens’ lives.
In addition, understanding that the value of a property is in its future is critical. The developmental projects that will take place there (or near there) in the future will ultimately increase the capital gain. In the case of Panama, being a country in full development and growth above other Latin American countries, you will find unbelievable opportunities.
For real estate to be a profitable business in Panamá, you must keep two things in mind: the location of the property and the characteristics it has in its favor. Lastly, using these two elements to the maximum, especially while the market is relatively new and people are willing to buy, will bring you success.
3 Recommendations for doing business in Panama
There’s no correct way of making business anywhere in the world. Most times it takes character, ambition and the willingness to learn to be able to improve your business and thrive. However, part of that process is gaining the skill to maneuver the cultural differences that come with expanding your business internationally. This article offers some recommendations to help you grow your business in Panamá:
- Hire Experts: The first step of growing your business in Panamá, and in any destination really, is to hire a group of local expert professionals who will guide you through the socio-economic workings of the country. Even though Panamá is a culture heavily influenced by the United States, there are culture specific rituals that need to be followed when it comes to closing deals and business relationships. These can only be navigated with the help of local knowledge. True North Alliance is a great way to get to meet realtors from around the world and learn from them.
- Cost Estimation: Finding a budget that works for your team is essential, particularly in cases where the currencies change. In the case of Panamá, the national market is very different when compared to other countries in similar circumstances. Thanks to a growing economy, the real estate business is beginning to boom. An understanding of the fluctuation in prices and the change in the market based on international investments is essential to have a successful transition of your real estate business. Get the support you need.
- Find your Niche: Identify what your market is and differentiate yourself from others. Figuring out what makes you different and marketing that to locals is the correct way to welcome new opportunities. As a country, Panamá is a blend of uniqueness and multiple cultures, so bring something new to the table.
Panamá is a great option for entrepreneurs who want a better chance to make their Real Estate business unique and profitable. True North Alliances has a great team of professionals dedicated to helping realtors take a step further into success.
Business Culture in Panamá: What we must learn
Panamá’s culture is based entirely in their way of combining hard-work with their good nature. Similar to other countries in Latinamerica, Panamá is a country of people who value the importance of good relationships as a base for good business.
The cultural landscape of Panamá is based on the touristic attractiveness that the country possesses as well the exchange between nationalities due to the continuous trade provided by the Canal. This brings in diversity with the business related interactions you will experience when growing in Panamá. Let True North Alliances help guide you through the intricacies of relations with Panamanians and people working in the country.
You must recognize the values that are the foundation for companies and the people. They believe in innovation, respect, integrity and commitment, allowing them to rise above and form life-long relationships. Integrating these belief systems into your clientele relationships is critical and is something that everyone should learn from, both in business and in their personal lives.
At the end, everything about the Panamanian business models is created to emit warmth and to be welcoming to everyone, while still being competitive and exciting.
Real Estate in Panamá: A Business in Constant Growth
Out of all the businesses that exist, real estate is the branch with the greatest opportunities. Panamá offers a large real estate market for rent, purchase and sale. Foreigners, through the purchase of properties, acquire residence in a first-rate financial and tourist center. The reality is that real estate investments in Panama can offer an ROI in income from the rental of these properties up to 9% annually. The country has become a world-class center for the global economy, conducive to the commercial crossroads between North and South America, and two major oceans, the Atlantic and the Pacific. Therefore, the real estate market is an amazing opportunity, with low prices and the possibility of acquiring new residences.
Panamá is a country seen as a growing real estate market, located in a world-class business center with a high quality of life. In the area of financial investments, Panamá is like the Switzerland of Central America. Coincidentally, there has been new legislation that allows the acquisition of permanent residence in Panamá, through the acquisition of real estate, which can be in preconstruction, as long as the entire amount of the property’s value is deposited in a trust.
Learning all the different ways to grow your business in Panamá takes patience, time and natural skill. However, there’s some tools that might help you do it better and easier. True North Alliances offers you a great opportunity to improve your business by helping you connect with the best professionals in the world.
Investing in Panamá: Real Estate after Covid
Panamá is a bilingual country where the official language is Spanish, and 80% of its population speaks English, as a product of the high North American influence left by the construction of the Panama Canal by the United States. The official currency of the Central American country is the Balboa; however, the US dollar has the same value and is accepted. The country has a democratic government system, which guarantees stability and security to both national and foreign investors in their negotiations.
After the COVID-19 pandemic, the Panamanian government has remained focused on making Panamá attractive for foreign investment. Some of the offers (tax cuts) are aimed directly at investors and others at developers, who in turn can offer better deals to buyers.
Panamá offers a diverse real estate market for rent, purchase, and sale. Foreigners, through the purchase of properties, acquire residence in a first-rate financial and tourist center that offers them not only a famously stable market but one that is also home to more than 120 local and international banks.
According to experts, 2022 will be a year of reactivation and transformation of the real estate market in Panamá. Offices will be more flexible spaces than before, housing projects will have to adapt to the home-office model, and the industrial sector will benefit from the new regional linkages. The future of the Panamanian real estate market only looks more promising as the country continues to overcome the financial challenges presented due to the pandemic.