During 2013 the value of building permits increased by 27%, with projections being that it will keep up the same pace during 2014.
The dynamism of the construction sector experienced in 2013 will continue into 2014. The development of residential, commercial and megaprojects developed by the State such as the Metro, have propelled the sector.
Data from the National Institute of Statistics and Census (INEC) reveals that in 2013 "the total value of construction and additions in the country was $1.552 billion, while in 2012 it was $1.197 billion.
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.
The private sector has proposed that free competition in the generation market be maintained and it not be regulated and that there be a permanent plan to promote energy savings.
From a press release issued by the Presidency of Panama:
The Energy Agency Committee, comprising of representatives from the private sector, handed over to the Presidency Minister, Roberto Henriquez, a proposal to make the energy market in Panama more dynamic and economical.
The growth experienced in real estate development in the Pacific coast of Panama has not been tightly regulated.
Capital.com.pa reports: "... at the most recent construction fair, Capac Expo 2013 there were presentations of 36 projects in the Pacific area corresponding to the category of second homes or country housing units with access to beaches." Of these projects, 80% are located between Punta Chame and San Carlos and they don't include hotels.
With the participation of over 375 exhibitors from America and Europe and the attendance of more than 45 thousand people, projections are for an 11% increase in commercial transactions compared t0 2012.
The fair will run from today until September 15. "... If you measure the success of the event in terms of the number of exhibitors and area occupied, the Panamanian Chamber of Construction (CAPAC) surpasses all expectations," said the president of the organizing committee of Capac Expo Habitat, Carlos Allen Arosemena.
In recent years the percentage of taxes paid by promoters compared to the final cost of a home rose from 1.3% to 2.7%.
The price of building materials, labor and land values are not the only factors that influence the cost of housing, taxes collected for construction also affect the end buyers.
It is for this reason that the construction industry has shown its opposition to the tax increase that has been implemented on residential projects, since developers are the ones who bear the costs of infrastructure for sanitation and roads even when the work has been completely finished.
The construction of megaprojects has caused a high demand for cement and an increase in the prices of the main material for the construction industry.
The fact that only two companies (Argos, and Cemex) lead the Panamanian market has caused prices to skyrocket because they are setting the price of this item. Experts expect that when demand for this raw material decreases, so will prices.
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%.
Between January and July the value of approved constructions fell by 14% compared to the same period in 2010.
The most valuable investments are also those that have shown the greatest decline, especially in the case of residential buildings.
Data from the Panamanian Chamber of Construction show that the largest reduction has been in high-value projects, showing that the amount of building permits issued in the period under review fell by $78 million compared to the same period in 2010 .
The show, organized by Panama's construction chamber will be held in the Atlapa Conference Center from 15 to 19 September.
Expo Habitat is a housing and construction industry gathering organized by Panama's construction chamber (CAPAC) in which more than 325 exhibitors participate in a 17,000 m2 space provided by the Atlapa Conference Center. Visitors get to see the latest trends in finishing materials, decoration, tools, machinery, technology and real estate projects, as well as gaining access to attractive mortgage finance offers.
$222 million were sold in the real estate trade show, 12% more than its previous edition.
Additionally, it was visited by 32.000 people, 9% more than in 2008, stated Enrique Asensio, president of the Organizing Committee.
"Residences between $40.000 and $80.000 and heavy machinery were the best performing sectors in the fair. The first caters to the nation's middle class, while the second is affected by the large construction projects being undertaken in the country".
The event is organized by the Panamanian Construction Chamber (CAPAC) between September 16th and 20th.
325 national and international exhibitors will participate in the fair, located in Atlapa Conventions Center.
Enrique Asensio, president of the organizing committee, told newspaper Panamá América: "...CAPAC wants to promote real estate products ... we estimate over $100 million in deals".