The perspectives of continuous economic growth look promising, given overall favorable business and legal environment, tax incentives, immigration and labor benefits, dollar economy, and finally strong banking and logistic sectors. Besides, the Republic of Panama still has comparatively low crime rate and booming infrastructure.
And although presidential and parliamentary election will be held in May 2014, it is highly unlikely that any result will change the trend of economic and political development.
General overview of the commercial real estate market
Panama continues to experience the consequences of unprecedented construction boom of office and commercial real estate. Approximately 175,000 sq. meters of office spaces were delivered to the market in 2013 and more than 500,000 are scheduled for delivery between 2014 and 2015. Class A offices and AB will dominate and take up approximately 70% of the market space.
About 40% of the major commercial and office space can now be found in the financial district (Area Bancaria), while in San Francisco and the areas close to the Corredor Sur (Southern Corridor) ~ 25% of the total amount. Over the next three years, most of the projects will be built in the financial district (~ 350,000 thousand. sq. meters or 60% overall), while in other parts of no more than 130,000 sq. meters or 22% of the total number of Class A and AB.
The prices generally tend to go lower because of flooded market. The rent rates for Class stay in $15-28 per meter sq. , while AB - $13-25. Salesaremadeatprice $2,500 – 3,500 and $1,000 - $ 3,400 accordingly.
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