Real Estate Market is Saturated?

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.

Monday, October 29, 2018

Those times when real estate projects were selling fast are already in the past. The over-supply estimated by the builders' guild ranges between 500 thousand and 600 thousand square meters, and this situation has generated a kind of competition between the owners of unoccupied properties, benefiting those who are looking for premises, warehouses or residences to rent.

Aldo Stagnaro, president of the Panamanian Association of Real Estate Agents and Promoters (Acobir), explained to that "... The fall in rental prices is happening more in the segment of commercial premises and offices. It has increased oversupply, but demand has not grown in the same magnitude, therefore, owners start a price war and that's where users can benefit."

According to recent calculations, rental prices of commercial and office buildings have dropped between 15% and 20%. On the other hand, a report prepared by CBRE details that at the end of the first six months of 2018, the average requested rents of Class A warehouses fell slightly from US$8.95 per m² per month to US$8.40 per m².

Also see "Industrial Warehouses: Lower Rental Prices"

Stagnaro explained that "... Hopefully those who rent at a lower price, also transfer that benefit to consumers, lowering costs in restaurants and services. That would help the economy to activate."

About the supply of apartments, CBRE reported that at the end of the first half of 2018 the inventory of apartments in the country's capital amounted to 17,871 units, 5% more than reported at the beginning of the year.

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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

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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 that "... 84% of the supply is concentrated in six areas: San Francisco, Bella Vista, Betania, Ancon, East and West Panama."

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.

Panama: Investment Boom in Luxury Offices Continues

June 2013

During the first six months of 2013, the Class A office market remained highly dynamic, mainly in the Banking area and Costa del Este.

A market study prepared by CBRE Offices Panama, recorded a total of 400,104 square meters under construction in the office market, of which 379,000 are Class A and luxury offices, while 20,685 are Class B and C offices

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World Panama Real Estate Marketing

Organization that operates in Panama and Panama.
Phone: (507) 3454542

World Panama real estate marketing promotes city and beach property listings for sale or rent with international syndication to more then 80 real estate web portals worldwide.

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