Panama: Real Estate Developments Need Drinking Water

The lack of government planning for the water supply is affecting the development of real estate projects.

Friday, July 5, 2013

According to Guillermo E. Quijano Jr, president of Grupo Unesa, real estate development in the country depends on whether there are water services in the area where you want to build. "To be able to say that development will move towards the east or west or north sector of the city ... First you have to ask if there is water in those areas or not. "

"We have had a sustained backlog for 25 years in infrastructure which has been assumed by private enterprise," said the Executive Director of the National Housing Developers Council (Convivienda), Elisa Suarez de Gomez, said that developers have had to make wells in order to have the facilities needed to support a project having water, but believes that this can not remain their responsibility. Gomez poses a challenge for developers, "make the necessary links with the state so that developments can be planned and the necessary infrastructure can be built for this growth."

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Panama: Excessive Bureaucracy for Construction

April 2017

Between 60 and 90 procedures in 19 institutions must be undertaken by developers in order to obtain the necessary permits to build a real estate project.

Companies in the sector are complaining that the procedures which used to be completed within a maximum period of two years, are now taking up to four years.

Projected Rise in House Prices

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In Panama entrepreneurs are anticipating increases of between 6% and 12% in home prices in the coming months.

The increase in the prices of materials such as concrete, gray cement, sand and stone, among others, is one of the factors that is pushing up the prices of homes, both those for social interest as those aimed at the middle and upper classes.

Panama: Fees and Taxes on Property Prices

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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.

Responsible for 57% of What's Built in Panama

June 2012

The National Council for Housing Promoters in Panama is made up of 22 Developers and 9 Banks, who are united by quality and accountability requirements.

An article in reports that "57% of everything that is built in the Republic of Panama is developed by members of this union whose promoters have been in the housing market for over 50 years."