Foreigners who invest a minimum of $300,000 in real estate in Panama may apply for the Permanent Residence Program for Economic Reasons for Qualified Investors.
In order to stimulate economic reactivation by attracting high net worth investors to boost different sectors of the economy such as real estate and construction, the government created a new program.
The commitment to long term rentals instead of vacation rentals, preference for larger residences and innovation in the marketing tools of the projects under development are some of the changes expected in the coming months, which could set a new pattern in the sector.
The health crisis caused by the spread of covid-19 ended up changing consumer habits in all Central American markets. In this scenario the real estate market is no exception. This sector will have to adjust to take advantage of the opportunities generated by the current crisis.
Hotel entrepreneurs in Costa Rica attribute the decline in occupancy rates to a lesser flow of US tourists visiting the country, which in the first half fell by 2%.
According to the results of an occupancy survey carried out by the Costa Rican Chamber of Hotels among its affiliates, hotel occupancy fell by 5% in June compared to the same month in 2016, and projections for the coming months are not very flattering.
Lack of control of unofficial businesses that are setting up on the coasts is preventing further development in areas with high tourism potential such as San Juan del Sur.
The business community argues that the Law for the Development of Coastal and Environmental Conservation is not being complied with, as unofficial businesses such as restaurants and hotels are being allowed to set upon the coasts.
A plan is being made to develop residential buildings and a 614 room hotel complex in a 25 acres area in the touristic area of Rio Hato, Panama.
The promoter of the project, Agro Playa Blanca SA, detailed in the Environmental Impact Assessment (EIA) submitted to the Ministry of Environment, that the development will be called "Agro Playa Blanca Phase II", and will be built in Rio Hato, district of Antón, province of Cocle.
The announcement of the construction of a new 151-room hotel in the resort Reserva Conchal Cabo Velas, Santa Cruz, confirms the recovery of the tourism sector in the country.
From a statement issued by Desarrollos Hoteleros Guanacaste S.A:
The project consisting of 7 hotels with 855 rooms and condominiums to be built in the Papagayo Peninsula, Costa Rica, will be developed by the Costa Rican company Florida Ice and Farm.
According to a file submitted by the company Florida Ice and Farm (Fifco) to the Technical Environmental Secretariat, the project will require $467 million to be invested in five phases running up to 2022 and includes, in addition to hotels and residences, "... the building of four beach clubs, a community center, an equestrian center, a golf course, lakes and 165.3 acres to be preserved as a private reserve. "
The phenomenon is concentrated on the Pacific coast in Guanacaste with buyers mainly being foreigners and locals from the upper middle class.
The area of Tamarindo in Guanacaste's Gold Coast leads sales in 2014 in the real estate market in Costa Rica, helped by the increasing preference of investors for enclosed coastal districts, first class tourist infrastructure with beaches near to Liberia International Airport, and legal certainty for investment in properties.
The tourism developer Gran Pacifica is planning to complete the Gran Pacifica villa with 300 homes, hotels and condominiums, golf courses and parks, according to the master plan for investment.
Laprensa.com.ni reports that "Leveraging the signs of recovery shown in some of the world’s economies, which seem to have withstood the roughest stage of the global crisis, the tourism developer Gran Pacifica is expanding its growth targets toward agribusiness, energy generation and mining, without abandoning its goal of consolidating residential tourism. "
Renting homes for a few days as an alternative to traditional hotel accommodation for tourists, is a growing trend all over the world and Panama is no exception.
EDITORIAL
In Panama City, the phenomenon is also being driven by the widespread availability of apartments built and purchased as an opportunity to gain profit from resale, which the current market stagnation has left unoccupied.
The current dynamism of the economy, especially in tourism, has created a rise in real estate projects which should be examined carefully before investing in them.
The main factor influencing the current housing boom is the Nicaraguan tourism sector, which has grown in terms of number of visitors and investment, with the help of the natural beauty spots in the country.
In 2011 $405 million was invested in projects in the tourism sector, and 2012’s investment is estimated at $842 million.
From a press release from the Tourism Authority of Panama (ATP):
There is no doubt that tourism in Panama is taking giant leaps when beach projects are attracting thousands of visitors from around the world who choose to come to the isthmus to have their best vacation ever.
In order to attract the attention of investors, entrepreneurs have created a portfolio of six major projects for tourism development.
The Association of Coastal Marine Tourist Developers (Promar in Spanish), led by renowned Salvadoran entrepreneurs, recently presented the Government with an ambitious portfolio of six mega resorts with high potential to attract investment to the country, to be run in the next 14 years, and which is valued at $2 billion.
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