Panama: New Housing Boom, but Lower Prices

In Panama, the construction sector is seeing the same high levels of growth that existed before the crisis, however residential properties prices are falling.

Friday, May 20, 2011

Unlike other countries in the region, the effect of the global recession of 2008 on property investment in Panama was not very serious. The slight impact resulted in a small reduction in prices and a decrease in the growth rate of new constructions.

This seems to be the element that explains the speed with which the sector has rebounded, and reached pre-crisis levels.

In the residential construction sector, although prices have fallen and are expected to continue in that trend, investment remains buoyant, as is the case with the commercial and office sector, with the difference that prices for this type of real estate have not fallen.

A Report in Global Property Guide says: "The flow of tourism coming to the country and new investments in the transport sector among other things, explains the housing sectors growth, one which is expected to continue expanding over the next three years. Industry experts estimate a rise of 12% this year. "

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In the Northwest of the city a square yard is worth up to $300, and there is still plenty of space available.

An article on reports that "... The cost of a square yard of land located in the northwest quadrant is between $150 and $300, due to the fact that this area has become one of the most exclusive in the city."

No Housing Bubble in Panama

March 2012

Prices are rising, and some areas stand out above others for higher growth rates, with no signs of a housing bubble.

Mass construction in Panama, particularly in the capital, is concentrated in some residential areas where prices are rising and it is advisable to monitor this situation. However, this does not constitute a threat of a housing bubble in the view of some economists.

Hotel Bubble in Panama?

January 2012

The economic and tourism boom has created an inordinate amount of investment in hotels, which is threatening to lower the occupancy rate to unsustainable levels.

The opening of more than 20 hotels has been announced for 2012, adding 6,000 rooms to the inventory offered by Panama, and representing an annual increase of 300% in the hotel supply, while the increase in the number of visitors to the country during 2011 grew by - 13%, which although significant, is far below what would be needed to keep up the hotel occupancy rate, which currently stands at 66%.

The Metro Generates Real Estate Opportunities

October 2011

Great interest is being taken in land and homes in areas near to the new Metro stops.

Real estate industry representatives agree on declaring areas where underground stations will be located "gold mines".

The price per square meter could rise to the same values or even higher as those currently paid on Avenida Balboa, the area considered the most expensive in Panama.

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