Lack of sanitation, electricity, basic water, health, and education amongst the poor is a serious problem affecting Panama’s housing conditions.
Similar to the U.S. and Canada, Panama uses a system of publicly recorded titled deeds as proof of real estate ownership.
A unique Rights of Possession system exists allowing individuals to occupy unused government lands in order to make improvements to them.
[3] The World Bank reported Panama has experienced the fastest economic growth in Latin America for the past ten years.
[8] Professors Edward Jackiewicz and Jim Craine of California State University at Northridge claim that Panama in 2010 found a temporary niche as a safe place to invest.
[10] The U.S. State Department reported in 2013 that numerous U.S. investors complained about fraud and corruption involved with purchases of titled real properties in Panama.
[11] Other possible investment risks are connected to long standing corruption, cronyism, being a zone for cocaine transshipments and drug money laundering, and high exposure to North and South American economic environments.
The Ice Tower was to be 104 stories on the seafront Avenue Balboa in Panama City began construction in 2007, but was cancelled later that year.
"[18] Panama City's real estate boom really got a lift when Donald Trump announced the construction of a huge hotel, casino, condominium apartments, and office building on the waterfront in 2006.
[26] In February 2007, a study published by Vanderbilt University disclosed the cost of Panama's corruption on its economy was between $600 million and $1.2 billion causing the nation's growth rate to fall 0.5% to 1% in 2006.
[27] Despite all of the positive publicity there were some speculating a real estate bubble would burst because most Panamanians couldn't afford the high prices and not enough foreigners would purchase the expensive new apartments.
[29] Regardless of the real estate economic boom, The World Bank published a report in 2007 calling for more progress with poverty reduction in Panama.
[30] 2008 Spanish real estate developer, Interplus, planned US$280 million real-estate investments in two projects in Panama City's Balboa Avenue.
"[40] 2010 Panama's 29 banks were offering up to 98% financing for 30-year mortgages with preferential interest rates including free appraisals and commission waivers in 2010.
[42] Panama's real estate market grew in 2010 due to increase in tourism, having U.S. Dollar currency, growing economy, good medical care, and low cost of living.
[50] 2012 Panama's present and future infrastructure projects included a new rail system, new roadways, airport expansion, large-scale event venues, mega shopping malls, and thousands of new hotel rooms.
[55] Colón, Panama, the largest free zone in Latin America, was a blight of crime and poverty in spite of a booming economy where parts of the population were excluded form its economic success.
[63] New high-end luxury apartments market had surged over the past five years due to increasing purchase power by Panamanians and foreigners with income expecting higher quality housing.
[67] The BBC reported that while Panama had the fastest growing economy in Latin America with new buildings going skywards; the poor indigenous communities were not benefitting from the new wealth.
[68] While Panama's economy was averaging 9% growth over the past five years, it still had one of the largest disparities between the wealthy and the poor in Latin America.
[71] The New York Times in its April 3, 2014 edition proclaimed: "Panama Capitalizes on Glimmers of Resurgence" [72] Despite apparent economic growth, office vacancies were soaring at the highest percentage in Latin America.
[74] The International Monetary Fund (IMF) reported that Panama had failed to reduce tax evasion, fraud, and money laundering involving the purchasing of commercial and industrial real properties, other luxury assets, and financial services.
Like Miami, Panama City relied heavily on foreign investors who were finding real estate investments very attractive.
"[81] For the first time, Panama City’s real estate market was seeing a significant increase of European buyers, primarily from Italy, Spain and Switzerland.
A recent International Monetary Fund report indicated that gaps existed in money laundering controls involving real estate agents, insurance brokers, casinos, and lawyers transactions.
[89] Panama's Vice-President and the Cabinet Council proposed that the National Assembly pass a new law specifically for the extradition of Russian fugitives.
Panama's Public Registry has the Horizontal Property Regime Section where all important documents are recorded such as the land's title deed and the condominium's rules & regulations.
In 2007, Panama's Ministry of Housing enacted regulations preventing real estate developers and their promoters from selling or advertising properties before the approval of the project's Master Plan.
The escrow company will perform a title search to make sure no liens or encumbrances exist, verify that the seller is the true owner, and will pay the real estate commission and other costs spelled out in the Buy-Sell Contract.
[111] A builder needs to obtain approval from eight government agencies in order to begin construction of real property in Panama.