real estate

Construction on the rise

David Mesa/La Prensa

going up: Panama’s construction industry has shown few signs of slowing down, and industry insiders say its growth should continue.1076936

The value of building permits issued by the government for the first six months of the year amounted to $829.8 million dollars, a 54.5 percent increase over the same period last year, according to a report published by the Contraloría General de la República.

The bulk of projects are concentrated in the district of Panama, with $675 million worth of construction, a 58.1 percent increase from the previous year. Arraiján, the area with the second-highest number of works planned, had the largest increase in the country. Work in that area totaled $44 million, a 161 percent increase from the first half of 2007.

This is a consequence of movement toward outer areas by Panamanians looking to escape high prices for real estate in the city, said Walter Medrano, president of the Cámara Panameña de la Construcción.

Regarding the overall results, Medrano said he hoped that the increase is maintained in the second half of the year.

José Boyd, president of the Asociación de Corredores y Promotores de Bienes Raíces, said he sees no end in sight to the construction boom in Panama.

“What may happen now is that sectors such as commercial real estate will gain more prominence now,” he said.

Boyd estimated that the industry will continue to grow over the next five years, driven by public works and coastal tourism developments within the country.