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Although many promoters and construction companies complain about the high cost of materials and the wages for the workers and the red tape they have to contend with when planning projects, new buildings appear everywhere.
The Panama West area has exploded over the last decade with new housing developments and shopping malls to meet the demand of the increasing population, that has been forced out due to the prices that many properties in Panama City and nearby areas command.
According to figures of the Republic General Comptroller, the value of new constructions, extensions and repairs between January and July reached the sum of $1.3 billion, with Panama province ahead of the list, with $923 million, followed by Arraijan (Panama West) with $100 million; Colón with $99 million; La Chorrera with $84 million and David with $60 million. The rest of the provinces registered values below $22 million. The figures do not include San Miguelito.
With regards to the type of construction, new buildings, extensions and repairs amounted $810 million for residential projects and $500 million for non-residential projects.
The permits for a construction project went up in the first three months of the year to $52 million for the grand total of $567 million an increase of 10% in comparison with 2016.
Currently the government is looking at ways to create policies that could be implemented short term to generate a positive impact in the construction sector, which is in the “low part of its cycle”.
However works like the expansion of the Tocumen International Airport, the construction of line 2 and 3 of the Metro, the construction of the Omar Torrijos Road, the Corridor to the beaches, the widening of the road from the Bridge of the Americas to Arraiján and the fourth bridge over the Panama Canal will have a positive impact long term.