The social housing in Panama, that have been developed mostly by the private sector, have reduced their supply in recent months. This was reflected in the last housing fair organized by the Panamanian Chamber of Construction (CAPAC), the largest in this sector in Panama. According to numbers, they dropped from 182 million 291 thousand dollars approved in 85 transactions, to only 12 million 429 thousand 760 dollars for social interest properties.
Social Housing – Gogetit Highlights
* Out of a total of 2,575 approved units, 90% (2,317 units) corresponding to the rank of prime interest and of that amount, only 309 units (12%) have prices that correspond to the range of affordable housing, according to the preliminary figures Capac.
* Considering the amount of transactions, the second place is occupied dwellings approved without preferential interest law, which totaled more than 38 million.
* The figures show that the range of preferential interest, remains the largest supply and demand, but driven not by social housing (with costs up to $ 50,000), as in previous years, but projects with a value between 60 thousand to 120 thousand dollars.
Investments in Panama in residential construction, grew by 32.6% in the first two months of this year. Although the offer for people with less purchasing power is increasingly reduced, the real estate sector continues to develop positively. The good development of the property sector, also reflected in the figures published by the Office of the General Comptroller, which detailed that investment in residential construction, grew during the first two months of this year 32.6%, while non-residential decreased 18.7%.
The 79% (144 million 10 thousand 565 dollars) of the approved amounts, corresponded to preferential interest housing (housing up to 120 thousand dollars), but that figure was only 7% for properties of social interest. In the latter category, are the properties of more than 120 thousand dollars, beach houses, lands and second homes, which the director of the National Council of the Housing Developers (Convivienda), Elisa Suarez, is an offer that is increasing thanks to the growing demand from both domestic and foreign.
By 2014, investment in real estate increased by 4.4%, while during the first two months of last 2015, the increase was 7%. For 2016, investment in construction has risen 1% so far this year. It is expected to continue rising later this year.
The president of the Commission of Fairs Capac, Alejandro Ferrer, said the sums reached exceeded projections made for this year, which had been recorded in the order of $160 million. Moreover, the president of Capac, Ivan de Ycaza, said that the industry is being impacted by excessive bureaucracy, lack of expensive rules, the deficit in the supply and delivery of public services, new taxes, duties and the steady rise in service fees applicable for institutions.