Construction Boom In Panama City Sparks Fears That The Market Is Becoming Overbuilt
June 2, 2024 by patrickwoolford
An article published today in NuWire Investor investigates the current construction boom in Panama City, taking a look at how the large influx of condominiums coming on the market in the next few years may make Panama much less appealing as a short-term investment. Nearly 50,000 preconstruction condos are currently for sale in Panama City, with many currently slated to be completed in the next few years. This construction boom has been primarily fueled by speculators, with up to 80% of the preconstruction sales in the city being bought by short-term investors. With only 8,000 new condominiums finished in the past three years, some analysts fear that the rampant speculation may not be reflective of the actual demand for housing in the city, and that many of the projects may run aground as a result.
Panama City has not been the only region in Panama that has been affected by the real estate speculation. Boquete has also seen a slowdown in end-user demand for housing, and has seen a contraction in new development in the region. Despite signs of a slowdown, many remain confident that Panama will remain a strong bet as a long-term investment, given the countries modern amenities and popularity among American and Canadian baby-boomer expatriates.
Read the full article on the panama city condo craze at NuWire Investor
