Panama not for the light-hearted

Panama has the fastest growing economy in Central America but new investors are still worried about the political climate, infrastructure and possibly being ripped off, according to a new report.

For investors the Panama real estate market poses significant return on investment; however it is generally regarded as a risky investment, according to The Panama Report.

'Most visitors are amazed by the modernity of Panama City with its diverse restaurant scene, trendy nightlife, and first-rate shopping. From tall, shiny condo buildings that rise over the bay, to lush, luxurious rainforest and beach development projects, it can be easy to get caught up in the hype that says "buy, buy, buy",' said author Matt Landau.

'However, the hype can lead to rash decisions, and while there's not a whole lot you can do wrong in today's Panama real estate market, wide-eyed newbies in the tropics always find a way,' he added.

According to report the majority of people looking to invest in Panama worry about the same things. The stability of the political system, getting an honest quotation from a broker, doing better elsewhere with their life savings, these are the very real concerns his research found.

'Whether already invested in Panama real estate or considering it seriously for the future, panic does not seem to have yet plagued the industry,' the Panama Report reveals.

But with throngs of new direct flights and an ever-evolving City and beach skyline, the future of the Panama real estate empire still seems relatively unclear.

'As an investor, it scares me that there are so few available statistics to go by, said Geoff Walsh, an international real estate investor who also represents a number of visitors to Panama.

'I am not convinced that the infrastructure can handle this new influx, or that real estate prices will remain steady. There is potential for this market to become oversaturated,' he added.

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