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September, 21 2006

As of July, the value of permits, additions and repairs registered a positive variation of 14.4% in the main districts of the country, according to the Controller General of the Republic in its report released yesterday.

The Controller General did not mention the absolute value of the permits in the report.

According to preliminary figures from the Panamanian Chamber of Construction (CAPAC), the amount is approximately $380.6 million, a figure that differs with the growth rate registered at the Controller General during the first seven months of the year.

Investments in districts

The Controller General also reported that in the district of the capital, investments grew 14.1%, and in Col�n, 146.5%. Likewise, a favorable total balance of 23.7% in the districts of David, Bugaba, Chitr�, Aguadulce and La Chorrera was registered.

The production of premixed concrete increased 24.1% during the first seven months of the year.

Business boom

The CAPAC emphasized renewed commercial construction in the province of Col�n.

The amount of business investments totaled $30.4 million as of July, while residential investments were $5.7 million.

Last year the outlook was completely different. During the same period in 2005, residential investments amounted to $5 million, and business investments were $6.2 million.

�This tendency towards increases has been maintained during the whole period,� said Javier Cardoze, the CAPAC president, �which is indicative that the economic condition of the Atlantic side could continue changing.�

The business leader mentioned that in August an important increase in construction permits would be seen since on the 31st of that month the period in which real estate companies could take advantage of the 20-year property tax exemption would expire.




Real estate sector

The Association of Real Estate Brokers (ACOBIR) forecasted a 4% growth in sales and rentals of apartments and offices up to July.

The president of this group, Eldas Sans�n, sees greater dynamism in sales than in rentals due to the greater offer existing in the first segment.

�The activity is fully on the rise, and the majority of projects that we are selling on paper are already bought, and if the expansion of the Panama Canal is approved, we expect to see a good demand for rentals,� she said.

Source: Edith Castillo Duarte/La Prensa (ecastillo@prensa.com) 9/16/06