Construction & Real Estate

Buoyed by a combination of factors, including the country’s prime geographic location, sustained economic growth and the influx of foreign investment in recent years, Panama’s real estate market has seen unprecedented growth since 2006. Today it is a key component of Panama’s economy, amounting to $4.6bn or 12% of GDP in 2014. Though fast growth has led the cost of land to skyrocket, sometimes as much as three-fold, a growing middle class and a significant housing deficit, coupled with thriving industrial and retail segments, make for a positive outlook for the real estate sector. Meanwhile, representing $5.1bn and 14% of the nation’s growing GDP, the construction sector is another dynamic component of the economy. According to the Panama Construction Chamber, the sector grew by 14% in 2014 and is set to expand by 10% in 2015, with the residential market offering the most potential for dynamic growth.

This chapter contains an interview with Ramón Arosemena, Minister of Public Works; and Alberto Vallarino, President, Grupo Verdeazul.