Panama: 10% annual growth projected for real estate prices

According to companies in the sector, the increase in prices of construction materials and the salary adjustment of workers is increasing the final price of homes.

Monday, May 12, 2014

The annual average increase in the final price of the homes to be sold over the next four years in the country, including those currently under construction, has been calculated at 10%.

"This increase is due to several factors, which include increased wages for construction workers, an increase in the value of materials, cost of land, taxes, etc. among other things" according to Ivan Carlucci Sucre, manager of Inversiones Natasha and former president of the Panamanian Association of Brokers and Real Estate (ACOBIR).

According to the banker Julio Aguirre, a member of the Banking Association of Panama, "the cost of houses in the Panamanian market could increase because purchases and sales have a clause stating that the costs are calculated at the current price and consequently all changes, including wages, will result in a price adjustment. That is to say, technically even the sales price of homes that are currently under construction will increase."

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