Private construction fell by 2.6% as a result of the construction of middle-class housing, which accounted for 40% of all residential buildings, recording a drop of 15%.
Constructions for the private sector went down by 2.6% yoy in the fourth quarter 2015. According to a report by the Central Bank of Costa Rica (BCCR), the contraction is mainly explained by residential buildings, which fell to an annual rate of 15%, with middle class homes and residential buildings showing the biggest declines.
More control of projects, regulation of the use of sidewalks, and fines up to $100,000, are part of the newly approved regulations relating to construction works in Panama City.
In late December the Municipal Council approved agreement No. 193, which replaces that of 1996 and now regulates the process of reviewing the documents which must be submitted when applying for building permits in Panama City.
Floods that have caused serious damage are forcing a review of the geology of the area and its ability to support new infrastructure.
While preparations are being made for a new general plan of pending and existing works, the Municipality of Panama has suspended permits for 50 residential, commercial and mixed building constructions in Ancon.
The decision to suspend the works came after floods, which occurred a few days ago, revealed a lack of resistance on the part of new buildings in the area that were developed in recent years. The Mayor of Panama will create a new urban plan of the area to define the needs in terms of infrastructure and establish rules for its orderly development.
In the second quarter private construction grew by 20% compared to the same period in 2014, driven by an increase of over 600% in the industrial area constructed.
From the report "Status of Private Construction - Second Quarter 2015":
In the second quarter, the amount of area constructed recorded a growth of 20 per cent (-19.2% and 39.1% in 2014.II in 2015.I) and an average annual growth of 22.5 percent.
In the first half of the year the number of projects grew by 3.4%, but the construction area fell by 4%, compared to the same period in 2014.
From a statement issued by the National Institute of Statistics and Census (INEC)
Construction Statistics are compiled from information that includes the "Construction Permit" issued by the municipalities. It contains basic information such as: month, type (construction, expansion or repair); class, destination, economic activity, financing of the work; number of works, area, value of the construction, in addition to the predominant materials.
The amount of square metres of construction in applications for permits up to June 2015 decreased by 7% compared to the same period in 2014, with office buildings and industry leading the decline, with negative rates of 22% and 10%, respectively.
Data from the Costa Rican Chamber of Construction shows the decline in the number of square meters of construction being processed with the Association of Engineers and Architects.
Restrictions have been extend until February 2017 on granting new water availability in different sectors of the cantons of San Rafael and San Isidro, Province of Heredia.
From a statement issued by the Public Service Company of Heredia (ESPH):
The measure taken in 2014 will be maintained in the same areas until February 2017
From August 8, 2014 various restrictions govern the granting of new water availability in different sectors of the cantons of San Rafael and San Isidro.
The increase of nearly 6% in building permits between January and May, differs from the drop in production of some building materials in the same period.
Between January and May an increase of 5.7% was registered in the building permits, which forecasts, according to industry representatives, good perspectives for the coming months. On the other hand, production of ready-mixed concrete, for example, declined by 22% and gray cement 2.6%, indicating that overall construction fell in the first five months of the year.
Hospitals, roads and educational works make up the list of construction projects awarded by state institutions in Panama in May.
The report 'Construction Project Contracts', prepared by the Business Intelligence unit at CentralAmericaData.COM, includes construction projects awarded by the institutions of the Central American states in May 2015.
In the case of Panama, a total of $80 million was awarded in various construction sites in the month of May.
The 60 steps needed to start a project and the slow pace of approvals is exasperating the sector, which fears a decline in foreign investment if the situation does not change.
According to entrepreneurs, reviewing and approving a building plan takes six institutions between five and nine months, while approving an environmental impact study can take up to twelve months.
The private sector claims that excessive paperwork and the lack of technical personnel in the Ministry of Environment is delaying the assessment of environmental impact studies and the granting of building permits.
According to the Guatemalan Chamber of Construction, the slowness with which the studies are evaluated and permits granted to construction companies is preventing projects being carried out in the medium-term and moving towards recovery of the sector.
In March this year the balance of the loan portfolio in the construction sector amounted to $4.692 billion, 25% more than in March 2014.
Of the total amount loaned by banks for construction activities, 32% was allocated to housing construction, with a balance of $1.526 million, followed by financing for stores, with 18% of the portfolio ($835 million), and other infrastructure, with 12% ($564 million).
Just days after it was announced that due to lack of water no more permits would be issued for building in one of the most in demand tourist areas, the Mayoral office has backtracked and said that "it is not necessary to stop construction."
Downplaying the problem of overexploitation of the aquifer in Santa Cruz, the City Council has overturned the decision made days ago to prohibit the issuance of building permits in Tamarindo, Tempate and Cabo Velas, saying now that it is not necessary to stop building as solutions are being sought to the problem of water shortage affecting the area, as revealed by a report by the National Service for Groundwater, Irrigation and Drainage (Senara).
In Santa Cruz the issuance of new building permits for the exploitation of existing water sources has been prohibited due to risk of salinization of near-shore wells.
Until a proper long term water plan has been created, including the construction of a new pipeline, real estate development projects must remain on paper, since new construction permits will not be granted in three districts in Guanacaste most sought out by tourists, Tamarindo, Cabo Velas and Tempate.