The commitment to long term rentals instead of vacation rentals, preference for larger residences and innovation in the marketing tools of the projects under development are some of the changes expected in the coming months, which could set a new pattern in the sector.
The health crisis caused by the spread of covid-19 ended up changing consumer habits in all Central American markets.
As a result of the crisis, the unemployment rate of commercial premises in Costa Rica rose from 8.81% to 9.86%, and the average price per square meter fell by 3%.
It is estimated that 20% of the stores located in the country's malls will not be able to open after the most critical phases of the covid-19 outbreak are overcome, according to Colliers' figures.
In the canton of Santa Ana, Costa Rica, 55% of the people who express interest in apartments for sale have a high purchasing power and are between 25 and 44 years old.
An analysis of the real estate supply by area, prepared by the Trade Intelligence Unit of CentralAmericaData, shows interesting results about the real estate market in Santa Ana, in the province of San José, and the interest of consumers in the area.
About 60% of the apartments in the district of Santa Ana, Costa Rica, have prices per square meter that range from US$1,500 to US$2,000.
An analysis of the real estate supply by area, prepared by the Trade Intelligence Unit of CentralAmericaData, shows interesting results on the behavior and distribution of prices per square meter in the sector of Santa Ana, in the province of San José.
Although some office buildings report acceptable levels of occupancy, since the crisis began in April last year, rental prices in Nicaragua have fallen by up to 35%, and no improvements are envisioned in the short term.
Businessmen dedicated to the rent of real estate assure that in this scenario of political and economic crisis, they have had to diminish costs to give facilities to the clients and thus to stimulate the contracts.
In Panama, 83% of the houses and apartments for sale range in price from $150.000 to $2 million, while 80% of those interested seek properties with prices below $150.000.
Andres Buitrago, manager for Central America and Colombia of OLX, who prepared the study, detailed to Elcapitalfinanciero.com that "... 84% of the supply is concentrated in six areas: San Francisco, Bella Vista, Betania, Ancon, East and West Panama."
Between the first seven months of 2017 and the same period in 2018, the registration of new horizontal properties went down by 19% in Panama.
According to figures from the Comptroller General of the Republic, new horizontal properties registered during the period from January to July reached their highest level in 2017, when 9,083 were reported, 19% higher than the 7,373 registered this year.
In Panama City a reduction of almost 20% in the prices of residential rents has been reported, particularly in areas that five years ago registered the highest prices in the capital.
The high supply of apartments and houses in residential areas has pushed down prices, especially in areas such as Paitilla, Balboa Avenue and Costa del Este, where in 2013 2 and 3 bedroom apartments were rented at prices above $2,000 and $3,000 a month.
About 100 real estate, financial and decoration exhibitors will be present at the Parque Viva Events Center in Costa Rica, from August 22nd to 26th.
Nacion.com explains that "...This year attendees can find a total of 52 real estate companies, 36 decoration stands and other services for the home, as well as an insurance company and nine entities dedicated to financing."
High levels of absorption have been reported in the segment of housing projects focused on the middle class, in the south of the capital and also in the suburban area of Heredia.
From a report by Newmark Grubb Central America:
The south of the capital stands out as having the strongest momentum of all the areas with the highest absorption of housing projects in the Greater Metropolitan Area.This was revealed by the latest report on the sector published by NEWMARK corresponding to the Second Quarter of 2016.
The segments of industrial buildings and office-warehouses, provided the most dynamism to the industrial real estate market in the Greater Metropolitan Area of Costa Rica at the end of 2016.
From the report "Industrial and Logistics Property Market: An Overview December 2016"by Colliers Costa Rica:
Complete gray works and at least 48 thousand square meters in the plant located in Down Town are part of the features that the office buildings to be offered to the Ministry of Finance must have.
One of the important specifications required the Ministry is that the building must be located within a radius of 10 kilometers from the main building of the Ministry of Finance.
Predictions are that the office vacancy rate in Panama City, currently 33%, could reach 45% in 2016.
Following that under usage prevailing in the office market rental rates have dropped by up to 30%. In the case of hotels, they are also experiencing this phenomenon, the vacancy rate has fallen by 50% and in turn nightly rates have decreased by 28%.
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.