Lower Real Estate Costs in Panama

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) December 19, 2008 -- The reduced cost of electricity, gasoline, and construction materials is expected to fuel a renewed real estate boom in Panama. Panama has just announced reduced electric costs and has seen the price of gasoline drop to half of last summer’s costs. As reduced production and transportation costs move through the supply chain Panama expects to see a substantial reduction in inflation in 2009. Lower prices are expected to recreate many of the initial conditions of Panama’s real estate boom.

Panama Real Estate Boom

Panama’s ten year old real estate boom thrived on the highest per capita foreign investment in Latin America and a flood of North American retirees taking advantage of low prices and easy residency requirements. The boom had slowed with inflation in Panama driving up prices.

The End of Panama Real Estate Inflation?

The cost of real estate investment in Panama is heading down. The lower cost of electricity, transportation, and construction materials will make construction projects less expensive.

Lower Panama Electric Costs

Panama’s government is about to announce a reduction in electric costs starting January 1, 2009. The new electric rates will be based on a projected $50 a barrel cost of oil.

In addition, Panama subsidized the electric bills of homeowners using less than 500 kilowatts this last summer. Businesses and construction projects did not get a break. Thus the announcement of a recalculation of electric bills will directly help those using larger amounts of electricity, including the many large construction projects that dot Panama City’s skyline.

Lower Cost of Construction Materials

Lower demand is reducing the price of basic construction materials such as Portland cement and structural steel. ABPanama, a corporation registered in Panama, believes that the continued demand for housing, the availability of credit in Panama, and lower construction costs will continue to attract real estate investment.

ABPanama believes that the construction boom will continue in Panama at a slightly reduced pace. Current high end real estate prices have leveled off creating historic buying opportunities.

Panama Real Estate Investment

Panama’s economy has been growing at ten percent a year more of less for several years and is only expected to dip to 6.2% gross domestic product growth in 2009. Panama’s continuing growth has become more broadly based than for much of its history. The United States ran the Panama Canal, and some say Panama, until the end of 1999. The USA has been Panama’s largest trading partner, investor, and patron. Bit by bit this is changing and Panama is establishing trading relationships, especially free trade relationships, throughout the globe.

Local experts such as ABPanama believe that the current collection of forces is recreating the conditions that started Panama’s real estate investment boom.

panama property     Panama Real Estate     panama real estate investment