From September 9 to 10, the VI Latin American Real Estate Congress CILA 2021 will be held in Ciudad Cayala, in zone 16 of the country's capital city, an event that will analyze opportunities to buy properties in the region and the reality of real estate sales in the post-pandemic era.
The Congress, which will be held under the theme "A new beginning in the real estate world", will offer conversations and panel discussions between Latin American countries, corporate stands for sponsors and virtual networking rooms.
Because office buildings are empty, stores are open only a few hours, and hotel occupancy rates are considerably low in this health crisis, the outlook for commercial real estate has been clouded and an uncertain future is projected.
Containment measures taken over the last year in response to the pandemic have closed stores and offices, and dealt a severe blow to demand for commercial real estate, particularly in the retail, hospitality and office segments, according to an analysis by the International Monetary Fund (IMF).
During the first weeks of the year, interest in apartment rentals increased in Honduras, Panama, Dominican Republic and Guatemala, a situation that contrasts with Costa Rica and El Salvador, markets in which interactions in the digital environment decreased.
Through a system that monitors in real time the changes in the interests and preferences of consumers in Central American countries, developed by CentralAmericaData, it is possible to project demand trends in the short and long term, for different products, services, sectors and markets operating in the region.
From January to June 2020, 57 environmental impact studies were presented for the construction of commercial buildings in Central American countries, and most of them are concentrated in Costa Rica and El Salvador.
The interactive platform "Construction in Central America", of the Trade Intelligence Unit of CentralAmericaData, includes an updated list of public and private construction projects that present environmental impact studies (EIS) to the respective institutions in each country.
About 60% of the apartments in the district of Santa Ana, Costa Rica, have prices per square meter that range from US$1,500 to US$2,000.
An analysis of the real estate supply by area, prepared by the Trade Intelligence Unit of CentralAmericaData, shows interesting results on the behavior and distribution of prices per square meter in the sector of Santa Ana, in the province of San José.
Businessmen are looking to districts such as Arraiján and La Chorrera, as the improved connectivity brought by the Fourth Bridge over the Canal and Metro Line 3 will bring a wide range of business opportunities.
These districts, in which considerable growth is expected in the next few years, currently remain among the main areas attracting investment in the construction sector, since according to figures from the Comptroller's Office, between January and July of this year, the costs of new works, additions and repairs reported in La Chorrera and Arraiján, totaled $79 million and $58 million, respectively.
Identifying the best areas to invest in, knowing what type of property is in demand in each area, whether you are looking for more rentals or sales, homes or offices, or in which segments of the population there is more demand for each type of property, is part of what can now be analyzed using modern Big Data techniques.
The real estate market is not alien to the new reality focused on analyzing large volumes of information and making business decisions based on data.
Expanding to $150.000 the range of homes with preferential interest and guaranteeing real estate leasing are two of the changes that could boost a recovery of activity in Panama.
Construction in the country has reported a downward trend in recent years, however, representatives of the Panamanian Chamber of Construction (CAPAC) expect that with the arrival of a new government and the start of major works such as Metro lines 4 and 5, the sector may re-emerge.
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 Elcapitalfinanciero.com that "... 84% of the supply is concentrated in six areas: San Francisco, Bella Vista, Betania, Ancon, East and West Panama."
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. 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.
During the first eight months of the year, 98,769 properties were registered, 9% less than those reported in the same period of 2017.
According to the most recent figures of the General Comptroller, between January and August 2017 and the first eight months of this year, vertical properties reported a decrease of 11%, falling from 84,627 to 75,036.
For horizontal properties, no significant variations were reported for the periods in question, since 23,678 were recorded in 2017 and 23,733 in 2018.
After the Malaga City housing project was acquired by ALD Inmobiliaria in Costa Rica, the construction company has re-started work on the 1,600-unit condominium.
In August, in order to reactivate the project under the name "Residencial Terra Verbena", the acquisition of the residential complex "Malaga City" located in Alajuelita by ALD Inmobiliaria from Rock Constructions was reported.
During the first half of 2018, 203 environmental impact studies were presented in Central American countries to develop condos, apartment buildings and other housing projects.
The interactive platform "Construction in Central America", included in the Business Intelligence Unit at CentralAmericaData, lists updated public and private construction projects that present environmental impact studies (EIA) to the respective institutions of each country.
Between the first seven months of 2017 and the same period in 2018, the registration of new horizontal properties went down by 19% in Panama.
According to figures from the Comptroller General of the Republic, new horizontal properties registered during the period from January to July reached their highest level in 2017, when 9,083 were reported, 19% higher than the 7,373 registered this year.
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.