Real Estate Market: Excessive Demand

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.

Monday, November 12, 2018

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."

See "New real estate investment in Central America"

On the other hand, Aldo Stagnaro, president of the Panamanian Association of Real Estate Brokers and Promoters (Acobir), said that "... Sales and rent of properties are not going as fast as expected, but if 80% of the demand is for properties below $150,000, it is necessary to adjust the supply."

You may be interested in "$1.500 million investment in residential projects"

Luis Navarro de Indesa explained that "... Panama has experienced a 14-year expansion cycle and is now going through a correction process, where housing projects benefited by the Law of Preferential Interest, less than $120,000 maintain a healthy rhythm, but in the higher ranges the sale has slowed down."

Two weeks ago, CentralAmericaData published figures detailing that "... It is estimated that it will take about seven years to commercialize, through the usual channels, the over-supply of between 500,000 m2 and 600,000 m2 that currently exists in the real estate market in Panama." See "Real Estate Market is Saturated?"

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More on this topic

Home Sales: Optimism in Panama

February 2020

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.

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%.

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 is Saturated?

October 2018

It is estimated that it will take about seven years to commercialize, through the usual channels, the over-supply of between 500,000 m2 and 600,000 m2 that currently exists in the real estate market in Panama.

Those times when real estate projects were selling fast are already in the past.

Real Estate Market Deflates

September 2018

In Panama City a reduction of almost 20% in the prices of residential rents has been reported, particularly in areas that five years ago registered the highest prices in the capital.

The high supply of apartments and houses in residential areas has pushed down prices, especially in areas such as Paitilla, Balboa Avenue and Costa del Este, where in 2013 2 and 3 bedroom apartments were rented at prices above $2,000 and $3,000 a month.

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