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Tuesday, June 19 2018 @ 10:41 AM EDT

ACOBIR Warns of Potential Real Estate Bubble in Panama

Real Estate By Víctor D. Torres for La Prensa - According to the Association of Real Estate Agents (ACOBIR), the suspension of two high profile real estate projects in Panama City, El Palacio de la Bahia and the Ice Tower, will negatively effect the real estate market and forces the country to face the possibility of a real estate bubble. Acobir met today to analyze problems in the the construction sector. "This types of errors negatively affect the real estate market which is currently in a boom," said Iván Carlucci said, president of Acobir. Carlucci called upon real estate promoters and developers to be serious and to present their projects in a realistic fashion. "Just because a developer has a dream does not mean the project can be built," he added. The paralyzing of the Palacio de la Bahia was announced in December of 2006 for "economic and financial" reasons, and in June it was announced that the Ice Tower, which would have been the tallest building in Latin America, would not be built.

Editor's Comment: Real estate bubble. Real estate bubble. I think people just like to be able to say real estate bubble. It's an expression of a concern. Like, allow me to look up from the pile of money I'm counting here just long enough to express a concern that I might not be able to count this much next time. The buildings keep going up, and everyone has the same concern that the boom has to come to an end sometime. When will it end? That's the $64 billion dollar question that no one can answer. The Panamanian economy is growing strongly and inflation is staying low. The implementation of the new Free Trade Agreement will have a positive impact on the "canasta basica" (basic cost of living) for most Panamanians because many of the basic everyday food products will be available at a lower price. So, agricultural producers will feel a pinch but everyday consumers will benefit from the open markets.

Climbing To Our Cruising Altitude: Right now everything indicates that all four engines are running smoothly, there's a good supply of fuel, the weather is clear and there are no signs of a major storm. In my personal opinion jumping up to shout "real estate bubble" every thirty seconds or so will only entitle someone to say "I told you so" when the market eventually cools off. Hopefully there will be a smooth landing, which will probably be controlled by a tightening of the global money and credit supply (fed raising prime) more than anything else. Again, I see this economy more like a tire inflating on a car, and it's just coming up to a comfortable pressure. No signs of anything bursting any time soon. But, what do I know. Man, is that a rhetorical question or what? The only people hanging it out there are the speculators. Everyone else is on pretty solid ground.


Acobir, preocupada por ‘burbuja inmobiliaria’

Víctor D. Torres

La suspensión de proyectos inmobiliarios de alto perfil que se construyen en la ciudad de Panamá, como Palacio de la Bahía y, más recientemente, Ice Tower, afectará de manera negativa el mercado inmobiliario y pone al país frente al fenómeno de la burbuja inmobiliaria.

Así ve el panorama de este segmento del sector construcción la Asociación de Corredores de Bienes Raíces (Acobir), que analizará los problemas del sector hoy. "Este tipo de errores afecta negativamente el mercado inmobiliario, el cual se encuentra en pleno desarrollo", dijo Iván Carlucci, presidente de Acobir.

Carlucci hizo un llamado a los promotores y desarrolladores inmobiliarios para que sean serios y presenten la realidad de los proyectos. "No porque se tenga un sueño, eso quiere decir que un proyecto se puede desarrollar", agregó.

La paralización de Palacio de la Bahía, por razones "económicas y financieras" fue anunciada en diciembre de 2006, mientras que la noticia de que no se construiría el que sería el edificio más alto de Latinoamérica –el Ice Tower– se hizo en junio de este año.

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