The real estate market in Panama during 2017 showed a growth in middle and low class housing, while properties valued at more than $ 200 thousand dollars did not show an increase in the first quarter. However, luxury apartments in Panamaincreased their figures during the first 3 months of 2017.
Panama is a market primarily for the purchase of its own home, thanks to the liquidity of the banking sector that provides fast financing to buyers.
In the first quarter of 2017, the World Bank reported a 5% growth in GDP thanks to the projects by the infrastructure government and the logistics industry. Also during this period the residential projects under construction marked about 1,200 units of sales per month, 65% of these sales are projects of $ 120 thousand dollars.
As for the luxury real estate market, 50 units were sold in Santa María and Costa del Este per month in the first quarter of 2017, an increase of 29% because for 2016 only 29 were sold. Most of the purchases of these luxury properties are first-time homebuyers.
Real estate market of Panama currently
During 2017 in the real estate sector of Panama there have been more sales and more construction than in previous years. Residential projects on the outskirts of the city have had higher sales compared to luxury projects in Panama City. The majority of property sales have occurred in the sectors of Arraiján and La Chorrera, thanks to the constant growth of Panama East.
Residential projects with prices around 40 thousand dollars are those that cause more interest in buyers.
Real estate market in Panama West and Panama East
The constant development of Panama West has caused an increase in the value for the amount of residential projects that are being built, the third line of the Metro, the fourth bridge over the Panama Canal and the extension of the road to eight lanes to Arraiján.
The most sought after areas to invest in real estate in Panama during 2017 are located in the district of Panama West, specifically Arraiján and La Chorrera. In these areas, property prices start at $ 30,000, ideal for families looking to buy a home of their own. Realtors have focused on these areas to build residential projects.
The real estate boom in Panama East has been due to the construction of Line 2 of the Metro, which explains the growing attractiveness of the area for the development of residential projects.
Figures from the National Institute of Statistics and Census reveal that from January to October, in the province of Panama, the cost of construction amounted to $ 909.4 million, which represented an increase of 16.1%. Last year, in the tenth month, the value of the construction permits was $ 783.6 million.
Expectations and projections of the real estate market of Panama
In recent years, the increase in properties has been quite high, making Panama’s real estate market attractive to investors. It is expected that this year that the properties are sold in full despite the high prices of the majority.
The property tax in Panama is reduced by law and will begin to rule in 2019. The project proposes a general reduction in property tax rates of between 80% and 100%, protects the family dwelling and the main dwelling, modifies the exemption regime, establishes mechanisms to guarantee the collection of the tax and proposes a moratorium period for the payment of the tax until December 2017. This will give the real estate market in Panama a great boost.