Lots of space for rent
Panama’s real estate boom which included commercial stores and warehouses is over and the oversupply of houses and apartments is matched by commercial properties.
The proposal of president Cortizo to increase the coverage of preferential interest for housing, currently under discussion in the National Assembly, is a measure that seeks to re-ignite the sector. However, says TVN there is also a considerable inventory of commercial premises, offices, and warehouses.
“We handled figures that ranged from between500,000 and 600,000 square meters. Remember that Panama is also a country that has been blessed by its geographical position, ”said Luis Pimentel, president of Acobir.
There are free zones whose occupation in previous years was 100%. Now, it only reaches 70%. Local rentals above $20 per square meter are not being rented.
“There is an oversupply of commercial premises at the moment because their construction began with a different economic situation from the one we are currently going through. The slowdown we see in Panama is also reflected in Latin America and the export destinations of our products, ” Aida Ureña De Maduro, a member of the Board of Directors of the Industrial Union of Panama told TVN
Entrepreneurs ask the government for incentives for foreign investment so that Multinational Company Headquarters are established in the country. They clarify that this requires that Panamanians are qualified to work in the companies.
the strategies of entrepreneurs is the adjustment of rents, moving to smaller spaces or commercial strategies such as converting shopping centers into outlets, with discounted products to encourage sales.
Although the impact is more marked in the capital city, they explain that the oversupply feels the same in the rest of the country.
I do rent but I have friends who are thinking that they can buy if the prices drop. To them I say, are you crazy? the monthly fees will eat you alive and the buildings were thrown up during the real estate boom using poor material and craftsmanship. They will be buying a problem. Just rent there is no logical reason to buy anything in Panama because you will be stuck in it forever.
Buyers remorse and Panama have been synonymous for sometime now. The building I live in is less than 10 years old but has water damage, smells of mold, the elevators are always out of order and cracks have formed in the concrete. Water pressure is hit or miss when there is actually water at all. Luckily I only rent and my lease is up in 2 months so my company is going to move me, hopefully to a better situation. The people who bought in this building are very sour especially since they get nothing for their monthly maintenance fees except yearly increases. so many people were duped into buying during the fever days of the real estate bubble and now are trapped and unhappy. The only solution is a bigger fool coming along to buy but those days seem to be over. Smart people know to only rent in Panama.
this market news has been stable and predictable for more than a year, so what is driving the continued building in Chiriqui? Housing developments, single houses on lots, cleared forest acreage, commercial buildings, new and improved infrastructure.... who's paying for it, and why?