Undeveloped Casco Viejo properties facing expropriation

The Government has begun the process of expropriation of at least 20 buildings in Panama’s World Heritage site,Casco Viejo.

The targets are sites that., according to the National Heritage authority, have not been developed, and buildings that have not been restored.

Sandra Cerrud, director of  National Heritage, did not specify who owns the properties, but said that the law covering expropriation will be strictly applied..

"After two years of project approval  you have to start with the construction," said Cerrud . She  acknowledged that some existing processes may be reconsidered.

Many sites purchased by speculators who obtained special low interest mortgage rates have sat untouched for years. At one point, La Prensa exposed one company that had six sites sitting untouched long after the mandatory two years for  commencement of development had expired. With constantly rising property prices in the old city, some speculators have been sitting on a potential gold mine, which is about to be closed.

Meanwhile, says La Prensa,,  Patrizia Pinzon, of AVACA (Neighborhood Association and Friends of Casco Antiguo), called the expropriation "a very dangerous tool, which gives investors a sense of instability,"

She hoped that the processes were against specualting promoters but warned that the best way to end these practices is to apply the current law and collect taxes..

Pinzon, who represents one of the groups who oppose the development of the third phase of the coastal strip around the old quarter, did not rule out the arbitrary use of the expropriation tools.