Although some office buildings report acceptable levels of occupancy, since the crisis began in April last year, rental prices in Nicaragua have fallen by up to 35%, and no improvements are envisioned in the short term.
Businessmen dedicated to the rent of real estate assure that in this scenario of political and economic crisis, they have had to diminish costs to give facilities to the clients and thus to stimulate the contracts.
Between January and June the average rental price per square meter requested from warehouses in Panama City dropped from $8.95 to $8.40, due to a slight increase in the supply of available spaces.
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.
In recent years most of the real estate projects have been built in the traditional areas of Guatemala City, but now new developments are seeking to exploit other locations.
This year in Panama realtors expect to sell 9,000 homes and generate $1.146 billion, which would be a 34% increase compared to the value sold last year.
The National Council of Housing Promoters (Convivienda) plans to sell 8,958 units of housing nationwide this year, after having sold 7,219 units last year.
Reports state that the available supply of office space in square meters in Panama City grew from 18% in July of last year, to 21% in the same month in 2017.
A study reported on by Elcapitalfinanciero.com indicates a sustained increase in the available supply of office space in the Panamanian capital, which went from 1,669,189 square meters in July last year, to 1,629,504 in the second half of this year.
In the first half of the year the value of new construction, additions and repairs amounted to $1,16 billion, 21% more than in the same period in 2016.
Data from the Comptroller General's Office shows that the value of new construction, additions and repairs between January and June reached $1.16 billion, led by the province of Panama, with $770 million, followed by David, Santiago, Chitré, Aguadulce and La Chorrera, with $676 million.
Stable returns is the main characteristic of real estate funds which in Costa Rica have shown annualized growth of 26% in their net assets.
An article in Nacion.com reports that "...Real estate funds spent $284.2 million on the acquisition of 32 buildings between April2016 and March 2017. As of March, net assets managed by the seven investment fund management companies (SAFI) amounted to¢754,255 million, after a year-on-year increase of 26%, according to the Superintendency of Securities (Sugeval)."
The construction union has organized for March 23 and 24 a fair which will showcase the supply of houses worth more than $100,000, and commercial and office buildings.
The event, called the Luxury Homes & Building Fair, will be held at the Hotel Intercontinental Metrocentro in Managua.Representatives from the Chamber of Builders of Nicaragua (Cadur) explained that the fair is being organized in response to the growing development of the property market in the country.
The value of buildings, additions and repairs registered in January totaled $120 million, making a total of 180 thousand square meters, led by the districts of Panama and Colon.
The value of building permits that were processed five years ago in the districts of La Chorrera and Arraiján amounted to $208 million, while the figure at the end of 2016 is estimated at $313 million.
Growth in real estate development in Panama West could be further enhanced once Line 3 of the Metro starts to operate, and the fourth bridge over the Canal has been built.
The value of construction, additions and repairs recorded last year fell by 3.2% compared to 2015, mainly due to a 9% drop in the value of non-residential construction.
The mainreduction in value was recorded in San Miguelito, with a variation of -29%, followed by Panama, where the value fell by 8%. In the province of Arraiján the value fell by nearly 5%, while in David, Chitre, Santiago, Aguadulce and La Chorrera, the value of new construction grew by 6%.
Real estate companies have reported a glut in the market for houses with prices below $120 thousand in the capital, while at the same time there is a growing supply of properties priced above $250,000.
The supply of middle class housing in Panama is still insufficient to meet demand, but at the same time the inventory of properties with higher prices continues to grow, but is accompanied by a demand that is not growing at the same rate. A study by Antojo Inmobiliario details that of the 25,724 new homes and apartments unsold in December 2016, 66% were houses with prices of less than $250,000, and 34% were homes priced at above $250,000.
Following the trend seen in recent months, the value of construction, additions and repairs carried out up to November 2016 fell by 5% compared to the same month in 2015.
In the Greater Metropolitan Area 46% of the inventory of industrial real estate developments, such as warehouses and industrial buildings, are located in Heredia and Alajuela.
From a statement by Newmark Grubb Central America:
The provinces of Alajuela and Heredia, with 24% and 22% of the total inventory of industrial real estate developments in the Greater Metropolitan Area respectively, maintain the lead as suitable for complexes such as warehouses, mini-warehouses, industrial buildings and logistic works.
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