La Prensa reports that the construction industry in Panama is expected to boom within the next 3 to 4 years. This boom will return to the level it was in 2007, before the Global Economic recession. More information below from La Prensa-
Sector sees growth in years ahead
Officials in Panama’s construction industry sees the sector returning to its boom years of 2007 within the next three or four years.
The global recession slowed the industry’s growth, but it expects to resume double-digit growth in 2011. Experts estimate the sector will grow by 12 percent this year, to make up 8.68 percent of Panama’s gross domestic product.
That would mean the sector would grow to $2 billion, a significant jump from 2010, when the sector was valued at $1.65 billion, according to the Panama Chamber of Construction (Capac).
The public sector is driving much of the growth, with a number of large projects on the horizon, particularly in transportation. But housing will also drive this growth.
The market has shifted, however, from luxury apartments to low-income housing. Capac members plan on building 25,000 apartments priced at under $30,000.
Jaime Jované, former president of Capac, said there is room for growth in this area, as the demand for low-income housing is about 140,000 units.
Jované denied that Panama has experienced a housing bubble, saying strict banking controls has prevented that from happening. Also, he said that the increased demand for housing by workers from foreign companies moving to Panama should keep prices from falling.