Is now a good time to buy Panama property?

The latter part of 2012 could be the right time to invest in real estate in Panama, with one expert in the country expecting property prices to begin to rise from 2013.

In an article for The Panama Report, Kent Davis, from Panama Equity Real Estate, explained that values are likely to fall by between 10 and 20 per cent in Panama City this year, largely as a result of the number of construction projects coming to an end.

However, he went on to predict that prices will pick up again in 2013, and this will happen "in a manner never seen before due in part to a completely modernised transport system and increased revenue from an expanded Panama Canal".

Mr Davis added it will "most definitely be a buyer's market" in the country over the next 12 months, highlighting areas such as Amador Causeway and the beach district near San Carlos as places where price appreciation is most likely.

Earlier this month, features editor of Caribbean World Magazine Sarah Woods suggested Bocas del Toro in Panama could be a good place to look for a real estate investment.

She stated: "Pretty much the entire Caribbean is good value right now", adding many buyers are turning to the southern and central regions along the Caribbean Sea with the aim of finding "dirt-cheap deals".