The Panama real estate market and in many Latin American cities has reached very high levels of development, and cities such as Sao Paulo, Santiago, Lima and Bogota, are characterized by a significant growth in this sector. Panama joins these great cities and achieved sixth place position in the major Latin American cities in real estate.
Panama real estate market – Gogetit Highlights
* It is estimated that Mexico City, Sao Paulo, Santiago, Lima, Bogota and Panama, will attract the largest investments in real estate this and future years.
* The real estate sector in Panama and other cities represent a balance between the stability of a large market, and the smaller but fast growing malls, these catapult the demand for office space.
* In 2013, GDP growth was 7.6% Panama was the largest in Latin America, and will remain strong due to spending on public infrastructure. However, tax incentives and speculation triggered a flood of construction that added 175,000 square meters last year.
Real estate Panama is gaining strength within cities that are considered important. Whenever it is closer to large cities such as Mexico City, Santiago, Bogota and Lima. This group of cities have great potential as drivers of trade and investment.
According to information published by Forbes news portal, according to the study “Prime Latin America Regional Office Report, Year-End 2013” conducted by Jones Lang LaSalle (JLL), a leading provider of financial and professional services, specializing in providing real estate services and investment management, independent and diverse cities in Latin America constitute a favorable environment for real estate opportunities in both large cities and the fastest growing.
JLL experts identified six cities that are at the forefront of economic growth in Latin America: three cities “established”: Mexico City, Sao Paulo and Santiago, and three “emerging” cities: Lima, Bogota and Panama.
However, each city has different expectations and problems. While massive amounts of construction in the three largest office markets in the region will create problems of oversupply in Sao Paulo, Mexico will reach meet demand and Santiago modern product shortages will ease.
Importantly, the three smaller office markets that are generating high levels of construction and intensive foreign investment are Lima, Bogota and Panama. These markets vow to boost a record for foreign investment and economic growth that will create a multiplier effect of business in Latin America in 2014 and beyond, says the study.
In 2013, Panama’s GDP growth was 7.6% (the highest in Latin America) and will remain strong due to spending on public infrastructure. However, tax incentives and speculation triggered a flood of construction that added 175,000 square meters last year. Developers are doing tremendously optimistic bets on the impact of expanding the Panama Canal will have on the city-and the entire region.
Researchers believe that the Canal will generate increased demand for office space, as more than 400,000 square feet under construction for late 2016, which will cause the supply to raise by 47%. The unemployment rate has reached 37.3%, decreasing income. Despite the overbuilding, the prospects for sustained economic growth are promising.