Following the rise of the complexes that combine commercial spaces with offices and residences, two new projects are being developed west of the capital.
It is expected that the Escazu Village complex will be ready in late 2016, and Las Terrazas Lindora November 2015, two mini-cities which offer housing, retail stores, offices, parks and entertainment areas in the same place.
The private sector has requested that the debate on the bill to reform the tax code be suspended and changes made to the way property values are updated and the tax on them is calculated.
From a statement issued by the Chamber of Commerce, Industries and Agriculture of Panama:
PROPERTY TAX REQUIRES CONSENSUS
In the Chamber of Commerce, Industries and Agriculture of Panama, the same as other private-sector groups, we have respectfully requested suspension of the debate of Bill No. 43, "which amends articles of the Tax Code and other provisions" related to property tax.
A proposal has been made to change the tax exemption bracket from over $30,000 to $120,000 and for the rate for amounts above that figure to be set at 0.25%.
Although the process of cadastral appreciation in the capital city was suspended in November 2013, the private sector claims that the rule remains in effect and proposes amending it in order to minimize the impact of appraisals in the payment of property tax.
The Ministry of Economy and Finance in Panama is considering bringing forward auctions of reverted lands in order to increase state revenues faster.
Minister Dulcidio de La Guardia proposed that the Administrative Unit of Reverted Properties (UABR) bring forward the sales in order to mitigate deficiencies in the state of public finances.
The Secretary General UABR, José Antonio Serracín told Panamaamerica.com.pa that "...At the end of August it is estimated that a a total of $7.1 million will have been auctioned. "
The Superintendency of Securities will be subjecting to public consultation an agreement that defines the scope and characteristics of these instruments for real estate investment.
The draft agreement states"...For purposes of this Agreement a "Society of Real Estate Investment" is defined as anyone who invests at least eighty percent (80%) of their assets in real estate, securities representing rights to property, or business development and property management.
The increase in residential real estate projects around the center of Panama City has doubled land prices in some areas in the space of five years.
The real estate boom experienced in Panama City can now be seen in the prices of residential projects in areas previously considered as "suburbs" where residential real estate developments are priced at over $80,000.
In the last twelve months, the total amount of assets managed by property funds increased by $68 million, to $966 million.
More purchases of new property by managers and revaluations of existing ones partly explain the increase in assets managed by real estate funds in the country, which as of June 13, had a total portfolio of $966 million.
Alvaro Camacho de la O, CEO of BCR Sociedad Administradora de Fondos de Inversión, told Elfinancierocr.com that their portfolios "... increased by $25 million because of acquisitions and capital gains."
Specialty and department stores are the entities demanding the most space in commercial centers and malls in the capital.
The vacancy rate for Class A commercial property fell by 7.4% in the first half of 2013 to 4.8% in the second half of 2013, due to the fact that the rise in meters available in major shopping centers has been absorbed at a good pace, with many of those spaces being leased before the works are finished, reported a study by the real estate firm CBRE Panama.
The decision of whether to sell the event center after three failed attempts to auction it will be left to the incoming government.
According to Law 22 on public procurement, after three attempts at an auction the state should proceed to selling the property for $62 million, ie 50% of the original sales price. However, it will be the government of Juan Carlos Varela which will assess and decide whether to continue with the sale process or follow suggestions from the business community about the value that the state could find in this piece of infrastructure in the promotion of trade and culture.
At the end of 2013 the balance of these loans in the banking system exceeded $10 billion, representing growth of 30% in the last three years.
The increase in the real income of households, the Preferred Interest Act and the increased demand for housing in the medium / high cost category, have strengthened the portfolio of mortgage loans in the country, with the balance of this portfolio up to March this year standing at $10.296 billion, $9.041 billion for homeownership loans and $1.254 billion for commercial premises.
A bill aims to tax properties of any value that either do or do not have constructions on them, and which do not have a specific use anywhere in the country, declaring them "luxury goods".
The proposed law states that "... property for recreation, leisure or rest, with or without construction or under construction, regardless of its value or location , such as houses, lots, plots, villas located in beaches, lakes, mountains or the city ...
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The area of land in process for construction permits for new properties in the first quarter of this year decreased by 5% compared to the amount in the same period in 2013.
Of the total square meters processed with the Association of Engineers and Architects, the category showing the greatest reduction was trade buildings, which fell by 35% compared to the first quarter of 2013.
The incentives for investment by multinational companies and free zones explain part of the increase in demand for space by the industrial sector.
The development of new industrial parks run by large companies seeking to position themselves as logistics centers, has become the main driver of the property market, which in reports for the last half of 2013 showed an absorption rate of 92%, higher than the 86% recorded in the previous semester.