Reports state that the available supply of office space in square meters in Panama City grew from 18% in July of last year, to 21% in the same month in 2017.
A study reported on by Elcapitalfinanciero.com indicates a sustained increase in the available supply of office space in the Panamanian capital, which went from 1,669,189 square meters in July last year, to 1,629,504 in the second half of this year.
Between the first half of 2015 and the same period in 2016 the average selling price per square meter rose from $2,850 to $3,100 in Class A projects.
Data from CBRE Panama reported on by Capital.com.pa reflects the growing demand for residential projects in the capital and its surrounding areas.In the case of Class A residential projects, in the first half of the year an increase was recorded in the average price per square meter, while in the segment of class B projects, stability is reported in prices,"... underpinned by a low availability. "
Despite the slowing of the pace of construction of industrial parks and warehouses in the second quarter, rents remained stable.
Capital.com states that"... at the end of the second quarter of 2016, construction of industrial parks continued cautiously, going from 350,759 to 317,535 square meters. And, despite the entry of new warehouse spaces in the market, availability remained stable at 7.2%, confirming a high demand."
Increases in the average price of office space have been recorded due to less construction of these types of buildings in the first half of the year.
Figures from a report by CBRE Panama cited by Capital.com.pa indicate that construction has declined in this segment due to increases in the price of materials and high utility rates, leading to the average price of "...
Growth has been projected in demand for warehouses, especially within industrial parks and a consequent increase in rent prices is predicted.
The forthcoming entry into operation of the expanded Canal and the Tocumen airport expansion are two of the factors that have influenced the projected increase in demand for rental of specialized storage warehouses in the medium term.In 2015 the rental price for warehouses"... remained above $9 per square meter, the average sales price in industrial parks amounted to $1,580.00 per square meter and class B warehouses at $935.00 per square meter."
An inventory of apartments on the beach front could grow from 400 to over 1,600 units in three years, thanks to demand from domestic and foreign buyers.
Buying an apartment on the beach is not a something that only foreigners do in Panama. Although prices range between $200,000 and one million dollars, Panamanians in the high and upper middle class brackets are also positioning themselves as buyers of such properties, according to studies cited by Panamaamerica.com.pa. Important sectors of Punta Chame to Playa Blanca, Farallon, Santa Clara, El Palmar (Hato River) and Rio Mar (San Carlos).
The incentives for investment by multinational companies and free zones explain part of the increase in demand for space by the industrial sector.
The development of new industrial parks run by large companies seeking to position themselves as logistics centers, has become the main driver of the property market, which in reports for the last half of 2013 showed an absorption rate of 92%, higher than the 86% recorded in the previous semester.
20 years ago for every apartment for sale in a high rise building there were 9 houses on offer, whereas today the ratio is 50-50.
The construction of residential buildings in the city has been driven by the increased purchasing power of immigrants and the integration of the underground transport system.
Nowadays people prefer to buy a home that is close to the areas where they are underground stations.
During the first six months of 2013, the Class A office market remained highly dynamic, mainly in the Banking area and Costa del Este.
A market study prepared by CBRE Offices Panama, recorded a total of 400,104 square meters under construction in the office market, of which 379,000 are Class A and luxury offices, while 20,685 are Class B and C offices
During the first six months of 2013 there was a total of 215,000 m2 in construction of logistics parks, where there are already more than 539,000 m2 and an available area of 106,000 m2.
An Industrial Market Report for the first half 2013 prepared by the firm CBRE Panama reflects an increase in the construction of logistics parks mainly in the East periphery with 115,803 m2 under construction and 218.182 m2 already constructed, areas which are near Tocumen Airport and which are very accessible to the main location of the projects.
The mini city has become a target for locating companies in offices which now cost $3000 per square meter.
According to an article in Prensa.com "Up to the second half of 2012 there were 139 shops in Costa del Este, with an unemployment rate of 2.23%, one of the lowest in the capital, according to figures from CBRE Panama, consultant real estate. "
During that same period, there were 50,539 meters square under construction, representing one of the submarkets with the greatest amount of development in this location.
At the end of 2012, the luxury Class A apartments accounted for 78% of the units under construction, while the Classes B and C together accounted for 22%.
According to a residential market study prepared by the firm CB Richard Ellis Global Research and Consulting (CBRE Panama), at the end of 2012, luxury apartments categorised as Class A, were the most popular in the residential market in Panama, representing 78% of the total units under construction. Meanwhile, Class B and C apartments, amounted to 22%.
With strong preference for the vicinity of Tocumen Airport, in 2012 Panama's logistics industry totaled $200 million in investment in new facilities.
Capital.com.pa reports that "according to the Industrial Market Report prepared by the firm CBRE Global Research and Consulting for 2012, the increase of logistics parks and booming growth for such projects, especially with Class A facilities, has allowed those building to improve product delivery and offer advantageous prices for companies on the look out in these areas. "
The residential market in Panama City remains stable, with slightly increased demand for Class A buildings at 74%, up 2% on the prior period.
CBRE Panama submitted its report on the housing market for the first half of 2012:
The residential market in Panama City has remained stable in the first half of 2012, showing an absorption rate of 74% in Class A buildings compared to 72% in the previous period.
In the past five years, the average price for renting office space has increased from $13 to $32.
According to company CB Richard Ellis (CBRE), the City of Panama has 810.000 square meters of office space available for rent.
In a report, the company informs that an additional 303.460 m2 will be available for rent over the next two years.
Of the 303.460 square meters under construction, 263.711 correspond to class “A” and “Plus” (luxury finishes), while the remaining 39.749 correspond to classes “B” and “C”, reported La Estrella.