These numbers are based on construction permits which are typically below actual building costs by about 30% from my experience. It is interesting to note that the areas seeing the greatest investment are not the city high rise towers as wold be expected, but areas just outside the city. They are mostly housing projects for local consumption. When I fly over these areas there is a sea of red roofs covering many hectares arranged into neat rows. The special bank financing for these types of projects make it attractive for both the developers and the local buyers. From La Prensa
Panama, Tuesday, August 21, 2007
Investments by $550 million in six months
Duarte Castle ecastillo@prensa.com
The construction sector has obtained their better semester of all the times, with a private investment enter important execution that rise to 550 million dollars. The amount represents an increase of 28,2% in the value declared in constructions permits, repairs and improvements, if it is compared with the first semester of last year.
The district of Arraiján, with a rise of 58,7% was the one that presented the greater dynamism in residential work, followed by the district of Panama (35.4%) and San Miguelito (16.5%), according to the General Comptroller of the Republic.
The result of the semester of this industry, last year closed with a growth of 17%, is well above of which it had projected the Panamanian Chamber of Construction (Capac). And, for this year closing the perspective looks even better.
The president of Capac, Walter Medrano, commented that the entrance in execution of a series of mega projects, like construction sites of the third locks of the Canal, real estate developments and the coastal line, will make year 2007 one of the best ones of the industry.
Consulted on if the union problems could affect this performance, he was sorry that the union is victim of this situation of instability. "to guarantee a sustainable development and to give guarantees for foreigner investment, Capac agreed on wages until 2013 in the collective convention and we are fulfilling exactly everyword of the agreement".
