Panama: Disparity in the Residential Market

  • Wednesday, February 15, 2017
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.

Ivan Carlucci, president of the International Real Estate Federation (FIABCI) Panama, told that "... the inventory of homes for $120,000 and less in the city of Panama is exhausted. 'We have seen the natural evolution of costs, the price of materials has led the industry to sell less square meters than what was sold before for the same amount.'

In the case of households with prices over $250,000 price, Andrés Farrugia, President of Antojo Inmobiliario, stated that "... the sales turnover of residences and apartments in this segment is slow."

"... The construction of apartments and houses in the capital city has grown so much that there is inventory available to meet that demand for years to come. For example, the market study that was carried out by Antojo Inmobiliario reveals that there is inventory for 24 months or two years for those homes that have a price range of at least a quarter of a million dollars. And in apartments, for 33 months, i.e. almost three years."

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