Investors looking at real estate in Panama may want to consider the province of Bocas del Toro.

This is according to Caribbean World Magazine features editor Sarah Woods, who says while the whole of the Caribbean is offering "good value" at the moment due to the global economic downturn, particularly favourable deals can be found in the southern and central parts of the region.

"Anywhere where the middle class has purchased - as opposed to the filthy rich - is ripe for investment, as the secondary market is keenly priced due to people being over-stretched and ready to exit the market," she explains.

Bocas del Toro includes part of mainland Panama - which is situated in the far south of the Caribbean on the South American continent - and numerous islands. It is one of the most popular tourist destinations in the country.

While there are few official statistics relating to house prices in the country, figures from Global Property Guide suggest 120 sq m inland apartments in Panama City cost around $2,128 (£1,364) per square metre to purchase, dropping to $1,705 and $1,689 per square metre for 200 and 300 sq m flats respectively.

Rental yields for these properties generally stand between 8.9 and 9.2 per cent.