Learn more about Panama and Panama Real Estate on Panama Real Estate TV !
February 7, 2007
By Julieta Ledezma
The construction industry has contributed to the economic growth by means of both private and public investment. The construction industry is one of the country's largest employment sources and sustains related production industries, such as cement, concrete, rock, earth transportation and others. Real estate activity was one of the sectors of the Panamanian economy that experienced the largest growth during 2006.
According to statistics from the Panamanian Association of Real Estate Brokers and Developers (Asociación Panameña de Corredores y Promotores de Bienes Raíces -Acobir), real estate investment in 2006 grew 25% since 2005, reaching USD $2.775 million and comprising approximately 17% of the gross domestic product of Panama.
Investment in residential real estate experienced the greatest growth, increasing 10.64% compared with 2005. Although investment in commercial real estate decreased, there is considerable activity concentrated towards developments in the hospitality and tourism sectors, in addition to investments in the port areas.
Iván Carlucci Sucre, Acobir president, thinks that "It is about a true and solid growth, and not about a real estate bubble, as others have mentioned." Last year, the amount of acquisition for construction permits, additions, and repairs grew 7.46%, equivalent to USD $1 billion, suggesting that the growth rate and activity will maintain itself this year.
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