The perspectives of a stable economy growth in Panama look great and considering very welcoming juridical and business environment, tax incentives, immigration policy and dollar economy, very strong banking system and logistics sector, relatively low levels of crime and constantly improving infrastructure. The first metro line has been completed and the second and third are being designed.
The presidential and parliament elections are ahead, but it is highly unlikely that any of the winning candidates will change the general political and economic trend of the country.
Overview and Market Forecast
Panama continues to experience the effects of an unprecedented construction boom of office and commercial real estate. About 175,000 sq. meters of offices were delivered to the market in 2013, and more than 500,000 are planned for the delivery between 2014 and 2015. Class A office and AB will dominate and take a share of at least 70% over the next three years. Class A and AB take the biggest share of the market and account close to 70% at least for the next 3 years.
About 40% of the major commercial and office space can now be found in the financial district (Area bancaria), while in San Francisco and in the vicinity of the Corredor Sur (Southern Corridor) there are about 25% of the market. Over the next three years most of the projects will be built in the financial district (about 350,000 sq. meters or total 60%). The total construction area in other districts during this time will be no more than 130,000 sq. meters or 22% of A and AB class commercial space.
In terms of prices, generally rental rates tend to keep between $15-28 per sq. meter per month for Class A commercial spaces, and $13-25 for Class AB. Sales are made in the range between $2,500 – 3,500 and $1,000 – 3,400 accordingly.
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