Two Leading Real Estate Companies of the World® (LeadingRE) members discuss why now’s the time to invest in the Latin American market.
Panama Sovereign Realty
Pedasi, Panama
Jonathan Clay and Tedd Tennis,
Co-Founders
https://www.panamasovereign.com
Tell us about your company.
We’re a boutique real estate brokerage helping clients buy and sell luxury beach properties in the popular beachfront communities of Pedasi and Playa Venao. We’re U.S. expats who have lived in Pedasi for over a decade, with 25-plus years of combined experience in Panama’s real estate market. The market knowledge and professional contacts we’ve gained allow us to better serve our buyers and sellers.
How do you prioritize technology at your company?
We strive to be at the forefront of the global real estate industry’s tech revolution. Buyers can explore Pedasi and Playa Venao through interactive neighborhood drone tours, virtual property tours, articles and videos. We’re also a proud advocate of Panama’s Multiple Listing Service, which gives buyers access to comprehensive market information.
How would you describe your current housing market?
The average home price in our area is $400,000 USD. Overall, prices are trending upward, and we’re fortunate to have a neutral market where supply roughly equals demand. We sell a broad range of residential, rural and suburban properties. Single-family homes are most popular. Buyers are seeking homes close to or on the beach, with ocean views and easy access to shops and restaurants.
What are some of the most important trends in your market?
Younger families are starting to buy in our area due to additional school options and the ability to work from home. In terms of challenges, a lack of large-scale construction companies and developments means that we have a limited inventory of finished homes. Building a custom home is also a challenge in our area because quality builders are in high demand.
Are you seeing much foreign investment? What advice do you have for foreign buyers?
Yes. In fact, our market is primarily driven by foreign investment, mostly from the U.S., Canada and Europe. We advise buyers to talk to an experienced REALTOR® and work with people who have great reputations. In smaller markets, it’s easier to get a feel for the reputation of companies and professionals by asking around. Ideally, buyers would rent for a while before buying to ensure they’re investing in the area that best suits their needs and with the best developers.
Tell us about Panama’s permanent residency programs.
Permanent residency in Panama is a status that allows a person to live and sometimes work here indefinitely. In order to qualify for permanent residency in Panama, an individual must meet specific requirements. A few ways to get permanent residency in Panama include:
Investing in Panama. Make a significant investment in the country, such as purchasing real estate or starting a business.
Guaranteed income. Dubbed the “Retiree or Pensioners” Visa, this program allows all individuals older than 18 with a lifetime pension or annuity that pays a minimum of USD $1,000 per month to apply for permanent residency.
Family ties. If you have a spouse, parent or child who is a citizen of Panama, you may be able to qualify for permanent residency through these family ties.
Marriage. You may be able to qualify for permanent residency if you’re married to a Panamanian citizen.
How does being part of Leading Real Estate Companies of the World® support your business?
LeadingRE gives us credibility and also the ability to share leads with vetted colleagues around the world.
Peters & Romero Real Estate
Mexico City, Mexico
Vanessa C Kerr, REALTOR®
Tell us about your company.
Peters & Romero is a bilingual, multigenerational team of real estate agents in Mexico City. We’re a boutique company, representing a curated selection of properties in the most high-demand neighborhoods of Mexico City. Our staff includes two Canadians and a retired Mexican ambassador. In addition to working with owners, we have a proven track record of representing international buyers interested in this vibrant and growing market.
How would you describe your current housing market?
In the areas where we specialize, average home prices range from $350,000 USD to $1,200,000 USD, depending entirely on the neighborhood. These prices aren’t necessarily representative of the capital city as a whole. Prices are rising exponentially in the hot new residential neighborhoods due to increased demand from international buyers. In well-established residential neighborhoods, prices have remained stable, and there are opportunities to be found in these traditional areas.
What are buyers looking for?
The old phrase rings true: “location, location, location.” Here in Mexico City, buyers make their decision based almost entirely on the location where they most want to be. Despite the fact that Mexico City is made up of more than 1,800 “Colonias” or neighborhoods, divided across 16 mayorships, international buyers are interested in a very small selection of neighborhoods, and that ultimately dictates their decision. Currently, the most popular and in-demand neighborhoods amongst international buyers are Condesa and Roma.
What are your biggest challenges and opportunities for growth?
The market has changed fundamentally in the past three years because of the surge in demand from international buyers. Challenges are minimal as Notary Publics, which in Mexico wield much more significant power and responsibility, take care of the necessary paperwork and permissions. Opportunities for cash buyers looking for either investment properties or a pied-a-terre are infinite. This is a great time to invest.
What’s driving the demand from foreign buyers?
Because Mexico kept its borders open during the pandemic, there was a major influx of temporary and permanent immigration, principally from the United States. Digital nomads from cities such as San Francisco, New York and Los Angeles have chosen Mexico City as their base. Mexico City offers the best of cosmopolitan living with a cost of living considerably lower than in major U.S. cities. Many of these recent arrivals are purchasing apartments in their favorite residential neighborhoods, as property values are considerably more attainable.
What advice do you have for foreign buyers interested in buying in your area?
There are absolutely opportunities to be had for all-cash buyers interested in investing in the hot residential neighborhoods. Our advice is to get in while the getting is good.
What do you love most about living in your area?
Mexico City is a megalopolis with an estimated population of more than 22 million inhabitants. However, each neighborhood, or Colonia, has its own distinct culture, ambience and lifestyle. It really does feel bite-sized and approachable. The character that makes each of these different neighborhoods so unique and emblematic is really what makes up Mexico City as a whole, and it’s wonderful.
How does being part of Leading Real Estate Companies of the World® support your business?
Being a part of Leading Real Estate Companies of the World® has given our local company exposure on a global level.
For more information, visit https://www.leadingre.com.
