Development Groups are preparing to build four new high rise luxury apartment buildings in the northwest area of San Pedro Sula.
Private developers announced the launch, in the coming months, of the implementation of high rise construction projects, which will mean an investment of more than $42 million .
"A businessman in construction and infrastructure and advisor to the Mayor of San Pedro Sula, Ernesto Lazarus reported that the minimum investment is $8 million for the construction which is a strong investment in an average of two years during the construction."
Shopping centers and hotels in the city and on the coast are part of the new projects planned for this year and 2015.
Four commercial and mixed-use projects are predicted to boost the sector in 2015. These are City Mall, City Place in Santa Ana, Ocean Mall in Puntarenas and Jacó Beach Walk in in Jaco beach. City Mall and City Place are currently under construction and are projected to start operations in the middle of this year.
The well positioned area of Coco del Mar, in Panama City, will be designated as high density, allowing the construction of residential and office buildings.
The Ministry of Housing and Land Management has made changes to the zoning of the area adjoining via Cincuentenario, between Calle 50 and Calle Republica de la India, changing its classification to RM3-C2, which allows the construction of high-rise residential and office buildings.
A project by the Chamber of Construction proposes the creation of a residential lease that would allow home purchases without payment of a deposit.
"Currently the project is in the hands of the Ministry of Housing so that they can review and assess it and it is also being studied by a committee in the Chamber of Construction which includes the financial sector," noted an article in Elfinancierocr.com.
An announcement has been made in Guatemala for a housing subsidy program for public officials, and mortgage credit lines for private employees.
Prensalibre.com reports that Alejandro Sinibaldi, Minister of Communications, Infrastructure and Housing (CIV in Spanish), advertised the program, after having opened the sixth edition of the Housing Fair Expocasa, organized every year by the Guatemalan Construction Chamber (CGC).
In Muxbal, between markers 10k and 13k from the old road to El Salvador, three new shopping centers will soon be opened.
Elperiodico.com.gt reports that " Grupo Pucom is building the ‘Vista a Muxbal’ complex at kilometer 9.5; Grupo Tir is developing Minuto Muxbal at kilometre 13, while MU Inmobiliaria (Mauricio Urruela) is constructing Shops at Muxbal at kilometer 13.5. '
In the first seven months of the year the value of approved construction projects amounted to $918 million, 45.3% more than in the same period last year.
This July alone, the total approved exceeded $151 million, representing a 140% increase compared to July 2011.
Of the total number of permits approved $705 million worth was for projects to be developed in the capital, being mostly non-residential.
Demand for luxury properties in Panamanian coastal areas has grown and it is not unusual to end up paying up to $1,800 per square meter.
Residential projects, depending on their proximity to the beach and how well esteemed the area is, in many cases can exceed a million dollars.
The most sought after are the banks of the Pacific, starting in the Capira district, continuing through the area of Coronado, San Carlos and Farallon in Cocle.
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 pa-digital.com 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."
According to their press release, Panama’s Superintendency of Banks’ study of the real estate market shows growth in the construction sector.
For the fifth consecutive year, Panama’s Superintendency of Banks circulated a survey among those banks with most lending activity within the construction sector in order to analyze the housing market. On this occasion, as well as requesting information regarding single-family housing projects and apartments, it included financed projects which fall into the category: Other Buildings, Infrastructure and Commercial Properties.
The crisis in Europe, North America and Venezuela is dampening the dynamism in the real estate sector whose sales depend heavily on these markets.
In the first six months of 2011, of the total amount of real estate transactions only 2% related to the sale of luxury real estate projects.
The executive director of the National Housing Promoters (Convivienda), Elisa Suarez Gomez, said that building of luxury residences has been reduced in the first half of the year. "... In luxury segments, those costing upwards of $350,000, sales depend heavily on the foreign market, so the crisis in European countries, Canada and Venezuela, has made for significant changes in the sales process", said the director to Panamaamerica.com.pa
In Costa Rica, this niche market was hit hardest by the U.S. housing crisis.
According to the Costa Rican Chamber of Construction the outlook is not encouraging and they do no foresee recovery in the short term.
Jose Alfredo Sanchez, vice president of the group, said "In Costa Rica, there has been a dramatic effect on the coast, where (project development) has not recovered in the short term because this would require strong economic growth in the U.S., which is not happening. "
The Chamber of Construction Companies is urging the Government to create a new financing model for home purchases.
Employers propose that the government subsidize up to four interest rate percentage points for the purchase of homes under $38,000 and up to two points for homes between $38,000 and $51,000. Current interest rates fluctuate between 7.5% and 9%.
In the past two years, the value of constructions in the district of Arraijan, in the central-western part of the Province of Panama, rose to $200 million.
Of all the money invested, $97 million corresponds to non-residential projects.
According to the President of the Panamanian Chamber of Construction (Capac) commercial and real estate investments are continuing to grow to the west, even as far as Capira.
The company Urbánica Desarrollos Inmobiliarios plans to develop an residential project, known as Portal Canarias in a 15.7 hectare area in El Espino.
The project, which includes four residential condominiums, will generate about five thousand jobs both direct and indirect, said Alvaro Barraza, Commercial Manager of the project.
"According to Barraza, Portal Canarias is inspired by the Atlantic archipelago of the same name, and each condominium building - Puerta Gran Canaria, Allegranza, La Palma and Los Faros, aims to meet the needs of different types of families in El Salvador, but gathered together in an environmentally friendly space that will give all residents the opportunity to experience a fusion of nature, urban creativity and security", reported Elsalvador.com.