By the end of 2016, the bank loan portfolio for housing and commercial construction exceeded $14.7 billion, and more than 19,000 houses and 545 buildings were built in Panama in the last six years.
A combination of low interest rates coupled with a growing and stable real estate supply account for much of the growth in real estate and construction activities in Panama.
In February 2016 the mortgage loan portfolio exceeded $13 billion, 15% more than was recorded in the same period in 2015.
For the remainder of the year it is estimated that the total mortgage portfolio of the banking system will far exceed what it was in 2105, at a time when there is increasing demand for this type of financing and there remains a significant shortage of low and middle income housing.
The portfolio of mortgage loans at the end of 2014 exceeded $11 billion, with the categories of social interest loans and homeownership loans recording the highest growth rates.
Credit for housing increased by $1,142 million compared to 2013, followed by the commercial sector, where $195 million more was invested than in the previous year, according to the Superintendency of Banks in Panama (SBP).
At the end of 2013 the balance of these loans in the banking system exceeded $10 billion, representing growth of 30% in the last three years.
The increase in the real income of households, the Preferred Interest Act and the increased demand for housing in the medium / high cost category, have strengthened the portfolio of mortgage loans in the country, with the balance of this portfolio up to March this year standing at $10.296 billion, $9.041 billion for homeownership loans and $1.254 billion for commercial premises.
Between January and November 2013 credit to the private sector increased by 14% compared to the same period in 2012.
Personal consumption and trade were the sectors that experienced the largest growth in the period under review, beating construction loans and mortgages. Overall, the banking system awarded $24,815,000 in loans to the private sector.
Between January and November 2013, Panamanian banks gave out 14% more loans than in the same period of 2012.
Statistics from the Superintendency of Banks of Panama (SBP), reveal that during the first 11 months of 2013, the National Banking System (SBN by its initials in Spanish) gave out 14% more loans than in the same period of 2012, with its balance being $24.8154 billion.
Up until June 30 the portfolio of construction loans rose to $3.34 billion, $369.1 million more than in the same period in 2012.
Of that total, $136.6 million was used for housing, $490.9 million for commercial shops, $672.4 million for infrastructure and $1.04 million in other buildings, said the Superintendency of Banks of Panama.
In the last three years loans for the construction sector increased by 427%.
Statistics of the Superintendency of Banks of Panama (SBP) reveal that between January and May 2013, $2.509 billion more has been provided than in 2011, when the amount of loans processed was $587 million. Loans for interim housing are the largest amount reported at $1.121 billion.
In Panama trade sector loans have increased by 40%, those for personal consumption by 49%, mortgages 48%, and construction 25.4%.
In the first three months of 2012, banks in Panama have disbursed $4.9283 billion in new loans, which means an increase of 35.4% or $2.2879 billion compared to the same period in 2011.
"The sectors that have shown the greatest growth in terms of attainment of fresh money in the first quarter of 2012 were: commerce 39.9%, representing $7.97 billion dollars, personal consumption (49.2%, $157 million), mortgage (48.1%, $150 million) and construction (25.4%, $83 million)", reported Prensa.com.
At the close of July, $11 billion worth of new loans were granted, 17% higher than in the same period last year.
Among the different sectors of the economy, mining, livestock and fisheries were those receiving the most new loans.
"The biggest increase registered, in terms of percentages, was in mining and quarrying, where $15.2 million in new loans was granted, up from $12.3 million compared to figures from the same period in 2010.
May 2009 saw $1.05 billion in new loans, $408 million less than in the same period of last year.
Industry and commerce where the most affected sectors of the economy, with drops in new loans of 66% and 60%, according to data by the Banking Superintendence of Panama.
María De Gracia writes in Pa-digital.com.pa: "According to sources of the banking industry, the drop is a result of banks being more selective with new customers, and greater restrain when granting a loan to economic sectors with negative growth".
Panama is the leading nation in Latin America for the provision of housing credit.
According to a Banco de España study, mortgages for housing purposes make up only 8 percent on average of the gross domestic products of Latin American countries. But in Panama it accounts for 24 percent of GDP.
The study says that the figures for Latin America "are well below what they ought to be, given the region's per capita income and in comparison with other regions."
Panama's financial sector, which has sustained strong growth for the past five years, has started showing signs of slowing down.
The latest report from the Comptroller General of the Republic on Gross Domestic Product in the first quarter shows a decline in the number of new mortgage loans. Previously these had been one of the most dynamic sectors of growth.