May 11, 2011
House prices decrease in Panama, but investment booming
Residential property prices have fallen in Panama, and are still expected to adjust downwards, as demand shifts from upscale and luxury apartments to middle- and low-income smaller apartments. Residential property prices now reach as low as US$1,050 to US$1,200 per square metre, down from US$1,350 to US$1,500 square metre before the downturnn. Commercial property prices, on the other hand, are steadily rising as more foreign investments pour in.
Despite the recent economic downturn, investment interest in the country has not wavered. Many developments are being built, spreading to the outskirts of Panama City, and to the East and West of the country as well. Both apartments and stand-alone homes are being built.