The global financial crisis has started to put a premature end to the construction industry boom in Panama, and in 2009 the fall of this important industry is expected to be more pronounced. The local market has reached saturation point, and demand for new projects is falling.
As proof, in the month of September, investments in construction projects were down by 35 percent, compared to September 2007. The sale of projects in the month of October fell 78 percent compared to statistics for October 2007.
A study by the economist Osvaldo Lao for the Panamanian Association of Real Estate Agents and Promoters revealed that housing sales reached 1,766 in October 2007, while the number fell to just 438 this past October, the lowest monthly figure in the last two years. In housing complexes that cost less than $80,000 the fall was ...
In the first five months of 2014 the value of building permits processed was $809 million, 22.3% more than in the same period in 2013.
Just as the business sector foresaw, the change of government did not produce changes in the projections of new projects, mainly in the commercial and residential areas. In the first five months investments of $809 million were accumulated.
A proposal has been presented to the bondholders to extend the term of the debt.
$220 million in bonds issued in 2007 to build a luxury apartment building called Trump Ocean Club, owned by tycoon Donald Trump, will be restructured before the next payment of debt, which is due on November 15.
During the first quarter of 2009, demand for rentals fell by 18% when compared to the same period last year.
Norma Thrush, chairperson of the Property Owners Association of Panama (API), told Prensa.com: "I think things might improve. We are not complaining thus far. Thousands of buyers were affected because they bought during the height of the building boom in order to resell or rent."
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