November 24, 2015

Panama is basically a market for buying one’s own home thanks to the liquidity of the banking center that offers buyers financing up to 90%, the subsidized residential interest rates up to US$120,000.00, as well as a tax exemption system for certain levels of new constructions. According to the National Institute of Statistics and Census (INEC), the costs of residential constructions have increased about 5.7% compared to the same period last year. Data provided by CONVIVIENDA (National Council of Home Developers) place residential apartments at 32% of the total homes delivered in Panama City, and anticipates that the delivery of finished homes in Panama City will exceed 4,000 units in 2015, of which about 1,500 will be residential apartments. The Residential Market continues to grow, and during 1S 2015 a total of 8,034 apartments under construction were registered. There were 1,335 units of Class A apartments added. The submarkets with the greatest growth were the East Periphery with 480 units for a total of 1,813 units under construction and South with 422 units totaling 582 units under construction.
According to developers the accumulated units placed represent the units known to have been sold or pre-sold to the tenants or owners/occupants during the period of the research. A unit is considered to be placed once the contracts or existing pertinent agreements have been signed. This includes finished buildings and those under construction that were reduced from 72.5% to 66%. 1,430 units sold were registered during 2S 2014 to 1S 2015. The submarkets that registered a greater number of transactions were: North with 560 units sold and the Coast Line with 315 units sold. The Class A residential projects reduced their accumulated placements from 65.2% to 61.7%. The Class B residential projects also were reduced from 72.5% to 69.7%.
The residential market demand allowed maintaining the average selling price for Class A projects (under construction) at US$2,870.84 per m². The submarkets with the highest price per square meter were: The Coast Line at US$3,441.62 per m² and the East Periphery at $3,000.55 per m². The Class B residential projects under construction increased from US$2,016.80 per m² to US$2,145.38 per m².
The average rental rate for Class A residential projects increased in the 1S 2015 from US$11.23 per m² per month to US$13.85 per m² per month. The submarkets with the highest rental increases were: South US$15.09 per m² per month, East Periphery US$14.52 per m² per month, and Coast Line US$13.29 per m² per month. Likewise, the average rental rate for Class B residential projects reported an increase from US$9.10 per m² per month to US$10.59 per m² per month.

Others News