An excess of procedures and requirements that must be completed in order to develop real estate projects in the country remains one of the main problems affecting the development of the construction sector in Panama. A study prepared at the request of the Panamanian Chamber of Construction (CAPAC) reveals that “… there has been a decrease in the number of building permits, a reduction in the number of mortgages and a high inventory of high-cost apartments and offices.”

Eduardo Rodríguez, CEO of the CAPAC, told Elcapitalfinanciero.com that “… the industry has to go through 20 public entities and comply with 180 procedures in order to get approval for construction permits and occupancy permits. One of the things that concerns us is the high level of bureaucracy …,” Rodríguez said, adding that the motives of construction industry guilds is to reduce procedures not existing standards.”

Although the builders insist on the need to streamline processes, the Comptroller General’s figures show that at the end of the first quarter of the year, the value of new constructions, additions and repairs totaled $567 million, up 10% compared to the same period in 2016.

See: “Panama: Improvement in Construction Figures Up to March 2017“.