News

As the year draws to a close, it’s time to look into the crystal ball and try to predict the future of real estate in Panama City.

It’s been a great year, especially here in Punta Pacifica, and we expect many of the trends to continue in 2015. We’ve seen increased improvements in all the fundamental aspects of the business, based on Panama’s fast-growing economy.

There’s no telling for sure what will happen in the next 12 months, but we track the meta-data for the market very closely and here’s our look at the big trends to watch:

Declining Inventory: Current residential inventory is quickly being absorbed by the global market. As the availability of quality housing market shrinks, we expect prices to rise an average of 8 percent in 2015.

Return of Pre-Construction Pricing: The pre-construction market disappeared in the wake of the economic collapse, leaving developers without one of their primary routes for financing. But we expect off-plans sales to return in the months ahead, as demand increases and developers launch large infrastructure-based projects.

Growth of the Middle Class: With the economy expanding at a steady rate, Panama’s middle class is growing at a spectacular pace. That expansion will dramatically increase demand for upscale housing

Infrastructure Development: The government will continue to invest heavily in a wide array of infrastructure projects, including the start of construction on the second phase of the Metro. Several other projects should move forward, including Panama City road improvements and a fourth bridge over the canal.

Amador Causeway Expansion: Construction on the Amador Convention Center will move into its final stages and the final phase of the Frank Gehry-designed Biomuseum will open, signaling the next step in the development of Amador as a major tourist, business and residential destination. New projects will be announced in the months ahead, which will help build the excitement for the area and Panama City, in general.

Duncan McGowan is president of Punta Pacifica Realty, a Panama real estate agency focused on Punta Pacifica, the exclusive neighborhood of 18 towers perched on the edge of the Pacific Ocean.