Our recent visit to the Madrid Real Estate Exhibition (SIMA) left us in no doubt that the real estate business still has a great future worldwide. People have invested in various different locations and without doubt many have become real estate millionaires thanks to the enormous values which have resulted from a combination of factors. There is talk of real estate booms in a number of different countries, and in others the talk is of the bubble being about to burst. Even though we have been hearing this in Panama for the past two years, this year’s SIMA bore witness to the fact that this story is far from over. Real estate investment continues to be an attractive business proposition and in some countries the returns are truly incredible.

Panama’s increasingly aggressive profile at international events is a clear statement of the fact that the boom that we are experiencing here is beyond normal expectation. To provide a brief summary of the factors that investors and retirees are looking for when planning to invest, these are: a country that is politically stable with a sound legal system, guaranteed standards of public health, sound infrastructure that supports a good standard of living, effective communications media and public transport. Other factors add or detract from values to a lesser extent. The fact is that the cost per square meter has risen in the last two years to between US$800 and US$1,200, and even to the levels of US$3,000 and US$4,000, levels that I dare say few would even dream of charging.

In every business that seems to have a future, you make short, medium and long term forecasts. If this is what Panama’s developers and promoters are intending to do, they must take a hard look at the foundations on which the future success of their businesses and it is worth also saying, the future of the country, are being built. Panama has huge potential but this is subject to the vision and guidance provided by its politicians and businessmen, who have the final say as to the direction that a country takes. If we carry on building as we are today, both in the city and in other places, without planning or anticipating that water pipes, sewers, drains, power systems, roads, public spaces, leisure facilities, public and private transport facilities will be completely overwhelmed unless we take drastic short term action, we will be building a house of cards. All this effort, this commercial undertaking that has flourished, and yes, even the health, well being and the quality of life of Panamanians and residents, will end in resentment that nobody seems to want to accept or recognize, and that cries out for concrete and effective action. To deny that cities such as Panama, Colon, David and Boquete, just to mention the largest, need urban renewal and an infrastructure that can keep pace with the rapid pace of growth and will allow the current and future citizens to enjoy the comforts of the buildings that are on offer not just today, but for tomorrow and the next 20 years, is to bury our heads in the sand like an ostrich.

The vast majority of people, including the Government, believe either that the cost of investing in infrastructure is too high or that it is not their responsibility. However few appreciate the high cost of failing to foresee the need for such investment in the medium term. Large cities like Bogota for example have had to revise their infrastructure as they went along and the result of such lack of foresight in the master plan is that costs have risen to such an extent that today the residents are drowning under the burden of the taxes needed to cover these costs. And this impact is in addition to the disastrous impact that such renewal “on the run” has on the quality of life.

Many are now beginning to look towards Panama, and without doubt the expansion of the Canal will attract significant new sources of money into the country, as well as new businesses that we should not forget will be largely temporary. However the country needs to adopt an intelligent approach to its future course: it needs a vision for the future with sound fundamentals and to sow seeds that will flourish and continue growing, and given a little watering, will produce fruit in the long term. If we fail to do this, we will be sowing in barren soil, and in only 5 or 10 years, we will be longing for the bonanza that we thought was gong to last forever. Why don’t we take the long view? Why don’t we follow the example of other cities that have enjoyed such boom times, creating the infrastructure necessary for them to continue growing over time, offering their citizens a good quality of life, and long term business prospects that will benefit this and future generations?

Spain under Franco saw definite changes. Now it is vigorous, democratic and full of the fruits of success but this was only achieved through many hardships, tears and misfortunes. In less than a single generation, this country managed to establish itself as one of the most vigorous countries in the European Community, with economic indices that outstripped the expectations of all its neighbors, managing to offer to its people a country in which the rule of law, health, sanitation and education are basic rights that can be observed throughout the length and breadth of the country. Its excellent roads, highways, rail network, high speed trains, underground railways, communications, energy efficiency including alternative energy sources, public toilets, respect for public spaces, for every citizen, for cyclists and pedestrians are reflections of a first world nation. If Franco dreamed that his dictatorship would create a vigorous nation, King Juan Carlos 1 asked Adolfo Suárez to introduce democracy and his wider vision lead to the country achieving what it has today, an achievement that nobody should underestimate. Leaders such as these deserve to be recognized in the history of their countries.

We are no less deserving for being on the other side of the world. On the contrary, we have a country with so many virtues, that together we have the potential to make this nation extremely prosperous, maybe even more prosperous than Switzerland. It is a matter of getting ourselves organized, setting exacting standards for ourselves, doing more and talking less, of setting the ship that is Panama on a clear compass heading and closely following the chosen course.

We ask everybody to reflect on this, so that we can do business together with clear vision and solid foundations so that in the years to come we do not look back and say that we built high, but we forgot that the most important thing is to build on solid foundations so that the building does not collapse. There is not much time left and what time we have we must use wisely so that we can continue to reap the benefit in future years. We can do it; we owe it to ourselves and to future generations.