Rental business is still in option which you can do as an investment in Panama. Demand still generally exists in most of the segments from low-cost to high-end real estate.
Meanwhile, the luxury level recently have passed for slight downturn as there is high supply of the new condos and apartments, thus the prices have dropped.
According to the Association of property owners (Spanish: API), the rental market demand is higher than supply in the price range from $ 150 - 350 dollars monthly, at the same time you can still find good deals in the segment from $ 350 - 900 dollars. The majority of offers stay exactly in the latter segment. According to the president API, a similar pattern can be seen in other cities of Panama, although, obviously there are less options comparing to the capital. The President of API also mentioned that although the rental market of the low-cost market is wide and takes up the major share, in principle it is located in such areas as El Chorrillo, Calidonia, Santa Ana, Curundú or San Miguelito, which currently have very low security level and thus, private investment practically doesn’t affect such areas.
Tendencies
In general, in the area of rental housing is changing. Who has not built projects of apartments, with the right to property from a single owner, as such projects show low profitability.
There are a few tendencies in rental business. There are very few projects now with a single owner, as such projects show generally low profitability. API President notes that “factors such as the cost of the construction have a great effect, and that is why there are very few building targeted to rent. But there are plenty of projects with combined purposes. One part is sold to permanent owners and the other is used for rental business”.
Main figures:
- 20% - Average growth rate in Panama in recent years;
- 136,000 – units is the deficiency in a low-cost segment;
- 15% - Reduction of rental prices in commercial and office real estate rental due to the introduction of new areas and projects in A and B segment.
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