At the end of the first half of 2018, the number of units of apartments built and in progress has decreased, from 92.3% to 87.4% in the first semester of 2018 according to a report by CBRE. This represents a decline from 1,047 sales to a total of 255 sales of 233 buildings used for the calculation.
The report details that the residential market reported an increase in availability from 7.1% to 8.2% in all its existing units. Both the average requested sales prices and the average requested rental value have decreased.
The residential market has been slowing down over the last 2 years, beginning to reflect an increase in availability, which projects a tendency towards slow consumption. Due to the economic context and prices per m2 offered that do not yet fit the needs of the local consumer, explains the document.
At the end of the first half of 2018, the average requested sales price for existing High-End projects decreased slightly from US$3,067.00 per m2 to US$2,980.00 per m2 as the availability of apartment units increased from 10.5% to 11.1%. As well, existing Mid-Range projects decreased their prices from US$2,255.00 per m2 to US$2,180.00 per m2, due to the increase in availability from 4.8% to 6.3%.
What does this mean? It means the real estate market in Panama has become a buyers market. Prices are steadily decreasing offering potential investors a golden opportunity to strike. This is also helpful to those looking to re-locate to a warmer climate. Panama is a wonderful place to live and do business. Taking advantage of market trends is prudent for those savvy individuals or businesses looking for a new place to call home.