Expanding to $150.000 the range of homes with preferential interest and guaranteeing real estate leasing are two of the changes that could boost a recovery of activity in Panama.

Construction in the country has reported a downward trend in recent years, however, representatives of the Panamanian Chamber of Construction (CAPAC) expect that with the arrival of a new government and the start of major works such as Metro lines 4 and 5, the sector may re-emerge.

You may be interested in “Central America: $270 Million in Road Projects”

Héctor Ortega, president of CAPAC, explained to Laestrella.com.pa that “… at this moment, the scenario is not the most favorable, but the industry has always been thinking about generating tools to motivate the activity development. There is a deceleration, and these are important figures if we see it every year, however, bureaucratic issues are increasing the final cost of housing.”

Ortega added that “… construction is directly related to the condition of the economy, ‘there are few sectors growing, the purchasing power of buyers is important and if there are not there will be no sales, plus there will be a significant rise in mortgage interest rates.”

Also see “Public Works: $1.1 Billion in New Projects”

According to the General Comptroller of the Republic, in the first nine months of 2018 the cost of new construction, additions and repairs fell 40% over the same period in 2017, confirming the trend shown since last year.

Regarding incentives for the construction of social housing, in July it was reported that with the objective of more companies investing in social housing development, the Varela administration decided to raise from $50,000 to $60,000 the price of housing solutions of social interest to be built in the Panama and West Panama provinces.