The present and future of real estate sector of Panama lie in rental business. In case the development, promotion and sales of new projects is going through a difficult stage, that means the business is concentrated around the rent of apartments and houses.
In Panama the total inventory of rental market is unknown. But there is a wide range of prices and exclusive places to live in: Punta Pacifica, Costa del Este, Obarrio and San Francisco are the most desirable areas, where monthly rates begin at $1,000 dollars and sometimes exceed $5,000.
The importance gained by renting real estate is observed that helps to mark out the field of construction, which happened to have a representation of 13.3% in gross domestic product (GDP) in 2014, and pointed at 7.8% first quarter of 2015.
A range of offers
Rosario Sanchez, a foreigner retired in Panama, found that renting is a profitable way to lead life in Panama. Currently she owns two units: one in Clayton which she rents at $2,500 and another is in San Francisco rented at $1,200 per month. Most of her customers are foreigners: diplomats, pilots, engineers and career-oriented couples. The contracts are renewed annually. She doubts that she would be able to find and successfully manage any other business that would be as profitable as hers.
The strength and stability of rental business in Panama is mostly based on foreigners inflow. Panama is literally flooded with foreigners from all kinds of countries. A lot of foreigners being in Panama temporarily chose to rent instead of buying.
According to many real estate agents, at the moment Costa del Este is the best sector with nearly flawless infrastructure and all kinds of commercial and professional services. Costa del Este has the most significant impact from foreigners, who come to live, work and invest in Panama.
Majority of them prefer apartments, and only few request houses. Among other areas that are on the radar for foreign clients are Casco Antiguo and Panama Pacifico, the latter has major cluster of multinational corporations in Panama.
Studios and apartments in Casco Antiguo are mostly rented at $1,000 to $3,000 per month. If the client is looking for a house in reverted areas, the usual rate is around $3,000 dollars. That kind of rate will include the maintenance and most likely the price range in this sector will remain similar for future years.
The rents usually revolve around 10-11 dollars per square meter; in such cases the apartment normally includes appliances, light, curtains and air conditioning. If the place is furnished, the price would lie in the range of 13-16 dollars per square meter.
The houses are usually cheaper per meter and rent at 10-11 dollars (Costa Sur, for example). If the house total area is 400 sq. meters, you can expect it be rented at $4,000 including maintenance.
Costa del Este is the most expensive area in rental market and prices can go up to $4,500-$6,000 per month. Exclusive houses in Santa Maria would begin at $15 per square meter, in case it only contains appliances and $18 if it is furnished. About 70% of clients in these areas are foreigners and only 30% are Panamanians. The dynamics and the volume of the rental business in Panama can be evaluated with Encuentra24.com – it is the Craiglist for Panama. CEO and co-founder, Boris Metraux, says each months there are totally 25,000 offers for real estate and about 13,000 of them is rent. He says real estate market in Panama has a lot of movement. According to Encuentra24.com, in July 2015 the average rent price per meter in Panama City was $13.81 for apartments and $11.24 for houses.
Another portal, Compreoalquile.com, receives nearly 400,000 monthly visits. The most sought locations are San Francisco, Punta Pacifica, Balboa Avenue, Costa del Este, El Cangrejo, Bella Vista, Via España and Obarrio. The general manager of Compreoalquile.com, Jean Carlos Schechnner, said that besides the location the things that matter are the proximity of grocery stores, hospitals, services, besides that, the ocean view, green and social areas and road connections.
Expected rental rates
Apartments
- Punta Pacifica $1,600 - 5,000
- Costa del Este $1,400 - 4,000
- Obarrio $1,300 - 2,200
- San Francisco $1,200 - 2,200
- Casco Viejo $1,000 - 1,700
- El Cangrejo $900 - 1,850
- Hato Pintado $900 - $1,400
Houses
- Obarrio $7,000 - 10,000
- Costa del Este $4,500 - 10,000
- San Francisco $2,000 - 5,000
- Hato Pintado $1,200 - 2,000
- Chanis $1,200 - 1,800
Requirements for foreigners:
- Letter from work
- Passport
- Bank references
- One year job history
- Two personal references
- Two months of deposit
- One month of rent payment
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