Home Sales: Optimism in Panama

After the Preferential Interest Act was modified and the maximum limit for applying preferential interest to the purchase of homes was raised to $180,000, an 11% decrease in the inventory of available homes was reported.

Monday, February 3, 2020

In September 2019, a bill was approved which establishes that for the purchase of homes for a value of between $120,000 and $150,000, the government will assume 2% of the bank interest, and in the case of properties that are between $150,000 and $180,000, the exoneration will be 1.5%.

This change has boosted sales in the Panamanian real estate market, since the available inventory of homes has dropped from 3,600 to 3,200 and in addition there has been an 18% increase in mortgage approvals.

You may be interested in "Real Estate Supply: How do Prices Behave?"

Data from the Superintendence of Banks of Panama (SBP) detail that up to November 2019, the amount of homes sold under the Preferential Law was $6,109 million, a figure that exceeds by 18% the $5,151 million registered in the same month of 2018.

Luis Pimentel, president of the Panamanian Association of Realtors and Developers (Acobir), told Panamaamerica.com.pa that they are "... on the right track so that in the next two years we finish with the existing inventories. We must strengthen the alliance with the government to achieve economic recovery."

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More on this topic

Housing: How Much Could Prices Fall?

July 2020

Entrepreneurs in the real estate sector estimate that in the Panamanian market the prices of homes in inventory could fall between 5% and 10%, due to the economic crisis resulting from the outbreak of covid-19.

Although the construction industry is currently paralyzed because of the health emergency and the supply of new housing is not increasing, entrepreneurs anticipate a fall in the prices of residential property.

Real Estate Market: Prices in the New Reality

May 2020

It is predicted that in Panama due to the health and economic crisis the inventory of available properties will increase, a situation that will put downward pressure on property prices and rents, affecting mainly the office and commercial space segment.

Directors of the Panamanian Association of Real Estate Brokers and Developers (Acobir) estimate that in the context of the health crisis resulting from the covid-19 outbreak, sales or rental prices in the local market could contract between 20% and 25%.

Real Estate Fair: Optimism for Changes in Law

November 2019

Encouraged by the recent expansion of the sales price range of homes that apply preferential interest rates, Panamanian businessmen remain optimistic for the Expo Inmobiliaria Acobir 2020.

At the end of September 2019, Laurentino Cortizo gave the go-ahead to the law that establishes that for the purchase of homes with a value between $120,000 and $150,000, the government will assume 2% of the bank interest, and in the case of real estate between $150,000 and $180,000, the exoneration will be 1.5%.

Real Estate Market: Excessive Demand

November 2018

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."

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Asociación Panameña de Corredores y Promotores de Bienes Raíces

Organization that operates in Panama.
Phone: (507) 228-7847 - (507) 228-8400

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