As well as being a great place to own a second home, Panama City has been identified by several media as one of the best places in the world to retire, spurring a construction boom for real estate developers such as Group Corcione.

Long, hot nights, the world’s second-largest Carnaval celebrations, joie de vivre and a construction boom are singling out Panama as a recreation destination of choice

Always a detour, never a destination. “Canal” rather than “Carnaval” is more often associated with Panama internationally, as travelers throughout history have passed through it en route to somewhere else. Yet the southernmost Central American nation is home to one of the world’s largest Carnaval celebrations and is so much more than a convenient cross-continental shortcut for global commerce.

Music and culture are just as entrenched in Panama as the manufactured waterway that supplies its economic sustenance. The acclaimed salsa singer and songwriter Ruben Blades is Panama’s most celebrated pop-culture figure and is also the country’s minister of tourism. By largely giving up his recording and acting careers to serve the nation with the same creative spirit and sense of social purpose, he sent out a signal to the international community that there is more to Panama than many may have thought.

Visitors to the capital of the world’s most famous isthmus with a ditch will be instantly struck by the multimillion-dollar building boom that is transforming the city with new office towers, hotels, condominiums and casinos.

The skyline of Panama City now conceals modern shopping malls, elegant Italian restaurants, stylish French diners, and a variety of bars and nightclubs. The capital city encapsulates a wide range of architectural experiences, from the high-rise waterfront and the fortressed historic center to the crumbling colonial buildings and the busy streets with traditional craft shops.

Shopping districts, such as the Via España and Central Avenue, hold an array of boutiques, bazaars, gift shops, jewelers and many local handicraft stores. The Colon Free Zone, located only 75 minutes from Panama City by car, is the world's largest free zone and duty-free shopping area.

The Bridge of Life Museum of Biodiversity that is under construction in the capital was caught in the paparazzi’s glare last December as the high-profile celebrity couple Brad Pitt and Angelina Jolie were photographed in the neighborhood, rumored to be considering investing in the project and buying land in Panama.

The country also hit the headlines in November 2006 when the United Nations elected Panama as the newest member of its Security Council.

Panama has been highlighted in several media as one of the best places in the world to retire. Along with stunning coastlines and highland havens, the country offers no threat of natural disasters and has a low crime rate. Cranes, building sites, slick sales offices and realty package tours aimed at foreigners are everywhere, with bay-front apartments, mountain villas and luxurious residential and office properties being snapped up by potential residents and intercontinental speculators from California to Dubai. Donald Trump is participating, developing Trump Ocean Club – a 68-story mixed-use hotel and apartment tower in the Punta Pacifica district, which meets with his four key criteria: great views, prestige, convenience and growth potential.

The real estate frenzy is further fueled by easy credit from Panamanian banks, government incentives and a saturated U.S. market for retirees. Construction moguls and estate agents firmly believe Panama City is a sure bet for investors, offering low-priced high quality of life, health care rivaling U.S. standards, international banks, the U.S. dollar as legal tender, major economies within a three-hour flight, tax breaks, and sustainable economic development.

Panama holds more bird species than in the whole of Europe, hanging out in more tree types than in the whole of North America. They share space with beautiful old colonial towns and a modern capital. As for the eponymous hats, they’re actually from Ecuador, and nowadays they’re strictly optional.