Panama Real Estate Industry Growth
The real estate industry in Panama is in constant growth due to the stable international banking system and this allows the investment in a medium and long-term. Panama offers several tax advantages on the part of the government for real estate investments, thus increasing the interest of the investors. In recent years an intention has been seen for the introduction of real estate funds, which are mechanisms that could efficiently de-lever the industry, create capital mobility, and create opportunities to attract new investors.
The new Real Estate Investment Trust Law has been an initiative created to provide an opportunity for new long-term financing providers to participate. The Real Estate Investmen Trust funds registered under this regime and comply with the provisions of the law are exempt from the payment of income tax and additionally their investors, exempt from the payment of taxes on capital gains.
According to the online magazine Inversión Inmobiliaria: “The office real estate market is one of the most dynamic, based on an exponential growth in supply and on the acquisition of corporate spaces by investors seeking to capitalize through the lease of this Kind of facilities. “
They also mention that the industrial and logistic real estate sector in Panama has had a stable and sustained behavior during the recent years based on a “BTS” business scheme. The investments have been directed mainly to the acquisition of land with industrial zoning in sectors near the new terminals of the international airport of Tocumen and the line 2 of the Metro of Panama.