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Latin America Investment News on Viva Tropical

Rising Rent Prices in Panama City Explained

Article Summary:

The booming economy and the arrival of foreign executives are driving demand and pushing up prices for rentals in Panama City.

Photo Credit: Prensa Panama

Original Article Text From Prensa via Google Translate :

Rent, a costly decision

The City of Panama is moving at a pace that anguish. Buses loaded with dozens of people begin their travels since early morning, and drivers of private cars handled at a rapid pace to arrive on time to work.

This reflects how hectic life has become in Panama City, where most jobs are concentrated, it is not surprising that the first choice of housing is in the most central areas of the city.

But for many singles that initiate an independent life of their parents or the newly formed couples, buying property becomes proprietary.

Prices range from $ 100,000 to $ 300,000, while 45.6% of 64 000 257 million households have monthly incomes of $ 400 or less, according to the Comptroller General of the Republic.

With these market prices, rent an apartment would be a departure, however, the picture is also disappointing, as has happened to Ana and Jose, who generate monthly income is $ 1,200 to six months of marriage.

For them, renting an apartment in San Francisco, El Cangrejo or Bethany would represent 63% of their salaries, leaving less than $ 500 for meal expenses, transportation and utility payments, among other responsibilities acquired.

Realtors projected that the cost of the holiday in the capital city has increased 40% over the past five years.

In close to the city center, as the Rio Abajo, Parque Lefevre Carrasquilla and areas, renting a flat cost between $ 450 and $ 500, while now worth up to $ 800.

According to the Comptroller General of the Republic, the Consumer Price Index of vacation in the districts of Panama and San Miguelito increased 23% between 2007 and 2012.

When Thomas Villarreal moved with his family to San Francisco seven years ago, the monthly fee to occupy an apartment of 65 square meters was $ 280.

Now you pay $ 480 every 30 days. “The building is four floors and no elevator, but we are paying for the revaluation of the area with the construction of new residential towers of 20 and 30 floors,” he said.

In some cases the increases are justified by higher maintenance fees of buildings, but are mostly associated with a domino that has started in the apartments of high value effect.

The country’s economy is growing at a good pace and both professionals and expatriates with money in his pocket, they find it cheaper to pay $ 2000 for the rental of an apartment executives arrive. Then, based on that market, and because of increased demand, prices take an upward trend.

In areas like Punta Pacifica and Balboa Avenue East Coast, called class A, square meter rent to $ 11.30 on average, ie rent an apartment of 250 square meters costs about $ 2 000 800.

This price may be doubled if the unit is rented furnished, as in many cases, since customers are foreigners who stay for short periods in the country.

The construction of public spaces such as the coastal strip and its proximity to major shopping centers has also increased the cost of rentals in those areas.

According to real estate consultancy specializing in Cbre Panama, this is a related market to foreign investment, mainly intended for executives of multinationals that have been installed in recent years in the country.

Felix Carles, real estate broker, believes that one reason for the rise in recent years is the high mobility of the clients.

“There are foreigners who say they will rent for a year, but after three months they go to another place, and so the property owners set a high price for profit,” he said.
If demand continues to rise, prices will not fall.

Link to Original Article:

From Prensa

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