Because of the hike in interest rates in the United States, several banks in Panama are already increasing mortgage rates by between 0.25% and 0.50%.
According to representatives of the Banking Association of Panama (ABP), the increase in mortgage loans is mainly due to the upward adjustment that interest rates are experiencing worldwide, which will affect the Panamanian market in the short and medium term.
Panama's builders worry about the increase in prices of materials and higher minimun wages.
According to figures from the builders' union, from January 2015 to June 2017 the average price per square meter of homes built in Panama City increased from $1,700 to $2,050, which represents an increase of 21%.Added to this situation are theincreases in the minimum wageand in the prices of construction materials.
The main unions involved in the construction business have formed a group in order to present a common front in the affairs of the sector.
The ‘InterUnion Alliance of the Construction Industry’ has been signed up to by the Panamanian Chamber of Construction (CAPAC), the Association of Brokers and Real Estate Developers (Acobir), the National Housing Council (Convivienda), the Panamanian Chamber of Commerce and Industry (CCIAP) and the Panamanian Institute of Architecture and Urbanism (Ipaur).
Real estate brokers in Panama and Canada agreed to create opportunities to promote both housing markets.
In the negotiations of the Free Trade Agreement between Canada and Panama, the Panamanian Association of Brokers and Real Estate Developers met with their counterparts in Ontario and Toronto, Canada, where they agreed to create blueprints for future agreements between the organizations.
The ACOBIR Real Estate Expo 2009, from July 22 - 26, hopes to attract around 1 thousand foreign and 15 thousand local visitors.
The event, organized by the Panamanian Association of Brokers (ACOBIR), will be attended by over 140 exhibitors, forums and national and international speakers.
In an article in Prensa.com, the president of ACOBIR, Osvaldo Marchena, states that…
Investments in the construction sector were down by 35 percent in September and 78 percent in October compared to last year.
The global financial crisis has started to put a premature end to the construction industry boom in Panama, and in 2009 the fall of this important industry is expected to be more pronounced. The local market has reached saturation point, and demand for new projects is falling.