Site Meter
Send Us An Email
Panama Guide

Welcome to Panama Guide
Wednesday, May 22 2019 @ 03:02 AM UTC

Decline in Apartment Construction Offset by Increases Elsewhere

Construction & Interiors The construction of buildings suffered a decline of 22.2% in the fourth quarter of 2009 in the districts of Panama and San Miguelito, compared with the same period last year, according to the Census of Construction of the Comptroller General of the Republic. In the last quarter of last 2009 a total of 784 buildings were built, while in the fourth quarter of 2008 the number was 1,008. What's more, a total of 629 occupancy permits were issued in the fourth quarter of 2009, registering a fall of 38.39% compared to the same period of time in 2008.

"At the moment there is little availability of suitable land for construction in the area, and the few that exist are very expensive, which has affected the sector," said Elisa Suarez Gomez, the Executive Director of the National Council of Housing Promoters of Panama. She added that the trend for 2010 with regard to buildings in San Miguelito will remain the same, with a slight tendency towards a decrease.

However, Pedro Detresno, the owner of Pedro's Real Estate, the construction of new buildings in these areas will achieve a recovery towards the end of this year or in the beginning of 2011. He explained that this recovery will be a result of the start of the current government's five year plan which will be pushed further by the ongoing project of the expansion of the Panama Canal.

In this sense Aristides Hernandez, of the consulting firm BDO Panama, said that despite the decline in private sector buildings, the decline this year will be offset by an increase in the construction in the public sector. Among other expectations of the sector a decrease is expected in the construction of high rise buildings and apartments, offset by an increase in the construction of infrastructure, roads, and houses. Detresno said the construction sector is currently directed towards the local market and tourism, unlike past years when the market was directed towards foreign buyers.

During the first quarter of 2010 the amount of construction being accomplished by the Grupo Su Casa increased 15%, according to their Vice President Guillermo Quijano. "Sales of low cost social housing and to the middle class increased significantly, encouraged by the Law of Social Interest, thanks to good levels of liquidity in the banks, and because we expect the prices of materials used in construction to remain stable," said Quijano. (Panama America)

Editor's Comment: Check out this same article as "interpreted" by another online publication. Notice, there is no mention in the original article of the last line. Also, they fail to credit the original source. This article appeared in the Panama America yesterday, 5 June 2010. Now, with that having been clarified, there is no doubt that the construction sector is turning away from apartments and moving towards commercial buildings, infrastructure, roads, and other large scale projects. For example when they talk about projects of "social interest" what they mean is that they are building large numbers of low cost houses for people who make less money. There is a government program which basically provides the profit margin. If I can remember the numbers off of the top of my head I think the builders get $5,000 for each house they can deliver at a price of $21,000 or less, and it has to meet a series of government specifications. Like, so many square meters, so many rooms, on a lot of a certain size, etc. What's more, the construction sector in Panama is looking at the 8,000 jobs they have to fill to build the third set of locks for the expansion of the Panama Canal. And, Panama is about to embark on the construction of a new mass transit project - the Panama Metro - which will cost about $2 billion dollars. All told in the next five years the government of Panama will spend about $17 billion dollars on public sector projects, and the guys who are in the construction business are walking around making tents in their pants - yes, they are happy to see it coming. So, of course there is a decline in permits for highrise apartment buildings, because a whole lot of them have already been built. The main point of this article is that the construction guys are moving on to something else. And that, my friends, is a good and healthy thing for the Panamanian economy in the strategic sense.

  • Facebook
  • Google Bookmarks

Story Options

Decline in Apartment Construction Offset by Increases Elsewhere | 1 comments | Create New Account
The following comments are owned by whomever posted them. This site is not responsible for what they say.
Decline in Apartment Construction Offset by Increases Elsewhere
Authored by: Anonymous on Monday, June 07 2010 @ 04:43 PM UTC

Why do you even give those bozos any recognition? It is only a matter of time before any DW hater with a website (all 4 of them) to start playing Six Degrees of Don Winner and publish their big "headline". They already got kicked out of La Estrella for that crap. Let´s play!
Last Tuesday, Chinese Mafia members smuggled in 5 underage girls to be sold as prostitutes in Panama City. As proof, please see the attached fuzzy photo which clearly shows the silhouette of two men, although everything else in the photo is not decipherable. After successfully selling the girls off, the men went to a local bar, where they ordered drinks from a bartender named Jose Aguierre and got very drunk. After work, Mr. Aguierre went to a nearby Casino to play in a poker tournament. In this tournament, he played at the table next to one William Cunningham, who lost very early in the tournament. After his loss, Mr. Cunningham went outside and purchased a chorizo from a street vendor. Now, we have many sources confirming that a certain Don Winner, yes THAT Don Winner, frequently purchases chorizo from that particular street vendor. Coincidence, we think not.
Don Winner Lures Underage Chinese Prostitutes with His Sausage and Booze and then Smuggles Them Into Panama!