Just like in the past in US, the Panamanian middle class have moved up in the housing ladder and what used to the be norm of $100,000 for a newer suburban community has moved up to $150,000 and $175,000.  This niche market is drastically under served.   Despite high interest rates and the high cost of building materials, great opportunities lie ahead for Panama’s construction industry.

Construction has been one of the engines driving economic growth in Panama. New residential neighborhoods, buildings, logistics parks and shopping centers, as well as major works such as Metro Line 1 and the Canal expansion are the projects currently being built in a country which many see as one of the most dynamic centers the region.

One example of the dynamism that has taken hold of the industry is that residential projects during the first half of 2013 together represented an investment of $438.2 million, which is an increase compared to the same period in 2012. With the growth of construction in Panama, experts foresee some challenges and opportunities which the industry will have to face in the near future.

Among the challenges says, Henry Asencio, president of the Panamanian Chamber of Construction (CAPAC), is the expansion of the airport and lines 2 and 3 of the Metro, works which will be tendered in the current administration.

Alexander Crisan, vice president of Corporate Banking at Multibank, noted that another challenge exists in the “sub $200.000 home market, which should match the existing housing deficit, estimated at over 100.000 units”.

Source: Capital.com.pa