Panama Under Construction |
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| Written by Matt |
| Wednesday, 10 December 2008 07:27 |
 It's a common sight in magazine features and online blogs, the developing Panama City skyline as a symbol of unbridled growth and development in Central America: it's the tangible synergy of a banking hub, a trade center, and budding tourism and real estate sectors all bundled together in an emerging nation. Articles plagued with words like expansion and progress make headlines both home and abroad, however in a time of such intense imaginings, some believe the fruition of Panama's vision to be a dubious castle in the sky.
Part of what makes Panama so exciting, the multi-faceted levels of growth the country is experiencing in various sectors, is also what makes its future unclear. Panama's current growth is just that, a period of evolution. Completed and successful growth in Panama will mean the ultimate: however, much of it remains to be seen (with the exception of the Centenario Bridge and a few others). The early years of the new millennium brought about great optimism in Panama. Real estate developers emerged over night, domestic infrastructure projects (marked by buoyant billboards throughout the country) announced glamorous plans, and there was a glimmer in the eye of locals and foreigners alike that said, although we've always known Panama to be great, the rest of the world is about to find out for themselves. With the abruptness that Panama's boom arrived in the first place followed a period of mass construction, of implementing the nation's grandest schemes and turning artist renditions into realities. Foundations were built, cranes were rented, and construction in Panama broke into a new stratosphere bordering on the insane. Everything now, representative of Panama as a whole, is a work in progress. It would be convenient for Panama's advocates to identify newly completed projects, as testaments to its ability to make dreams a reality, but such evidence is hard to come by nowadays with the lions share of projects nowhere near finish date. While the ambition is in full supply, an underlying feeling of un-resolve seems to loom overhead and many of the following Panama City projects, funded and carried out in many different ways by many different groups, are the target of Panama's skeptics who claim that's all Panama is: one giant incomplete project. - Howard base development - Canal expansion - Real estate projects - Cinta Costera - Bay clean-up - Use the comment section below to add to this list While I'm certainly no economist or sage, I am confident there's a trend in Panama; things hardly, if ever get done on time, if at all. There are very few successfully completed projects, from real estate to tourism to government infrastructure that began in recent years and are now complete. Could Panama be the case of a marathon runner, whose start and middle of the race is strong, yet one that ultimately falls short in the end? Some concerns to hinder Panama's in-progress boom Bank Loans: While many of Panama's real estate projects have begun successfully, a large percentage of their buyers have yet to complete full payments on units meaning, with the credit crunch, Panama may see a number of buyers scrambling to find money, instead of promised loans which may have all but dried up. If payment isn't complete by the time projects are indeed ready for occupancy, units will be returned to the developers. Recession: Projected real estate sales in Panama are down drastically. While this is not to say the world's financial crises are driving Panama into a recession of its own, it does represent a significant group of North Americans and Europeans that is not buying as they were originally suspected: a trend characterized by distraught agents and antsy sellers. A final decrease in buyers could mean the end for projects teetering on the edge, due to the inability to meet sales quotas. {adsense} Rising Prices: Panama was originally touted as a low-cost alternative to retirement destinations in the USA. But with prices rising on almost front from property to Pringles, it's not nearly as cheap as it used to be. Not to mention, increased construction costs have put a strain on developers, making little space for error and less flexible payment schedules. Tightened restrictions on doing business as a foreigner: With "tourists" now unable to head Panamanian corporations (without residency paperwork) and banks not approving anyone but permanent residents for business accounts, the dream of coming to Panama to open a small business has been complicated, which should result in decreased emigration and less laundered money (money that, in some cases is being used to finance said projects). When this money dries up, will too the work on mid-action projects? This is not meant by any means to be a negative piece about Panama. It's simply noticing the pretty clear fact that Panama as a country is in-flux right now, with very few of it's largest ventures complete. Panama City is symbolic of this because the half-finished buildings that dot its skyline and the infrastructure missions that are currently in progress represent not a fully developed country, but rather what we're always reminded Panama truly is, a developing one. Image: geri.soe.purdue.edu/images/under-construction.jpg Trackback(0)
Comments (7)
  written by Jim Carenza , December 11, 2008 Matt; Thank you for taking off the rose-colored glasses! I just wish you could have cited a few examples and statistics. One of the problems in Latin America is the lack of verifiable real estate data. This situation allows everyone to present their own story or just repeat someone elses until it seems true. Are you aware of mass cancellations of pre-sold units in Panama City or elsewhere? Or of government projects construction that are being canceled? How is the global economic slowdown effecting the Country's revenue from the Panama Canal? I would like to see a follow up article.
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 written by The Great Panama Hoax , December 16, 2008 In response to Jim Carenza's comments...how do you go about getting those stats? And, when you do...they are all bullsh** any way. Thats the problem.
I live and do business in Panama...and the last thing I want are more stats. Heres an idea..open your eyes. Take a look at all the black buildings at night with no one living or renting them. Talk to a few bankers about the $1500 a square meter max loan to value - and do your own math about no one being able to qualify for them. Look at all the non completed roads, apartments, buildings, et al - its numerous. A forward thinker can put 2 and 2 together to see how...no money + non shipped goods = bad for Panama canal revenues. The problem with all these non sense numbers...is that they are completely bogus, done by paid off government people, who can't think on their own. Want a follow up? Talk to some people in the business - like Matt - who are independent and straight shooters. report abuse
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 written by Jack , January 14, 2009 With 100 of millions dollars comming to Panama every day,thing are very good here today. The smart money knows that if the world powers keep printing money the way the are we will soon see double diget inflacation and if you put you money into something solid it will double and triple in value.The Republic of Panama is the second largest free trade zone in the world, number one being Hong Kong. It is on the New Silk Route and the Cross-Roads of the Americas. It is the X that marks the spot, where money is beinng made. It will all work out in the end. I saw it in 1974 at the end of the war, a house I bought went from $38,000.00 to $235,000.00 in just 6 years, only because they where printing money. Keep on printing and we will be making money. But this time The Republic of Panama will be leading the way.
Jack republicofpanama.net report abuse
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 written by Mateo , January 14, 2009 Isn't 'colateral expert' spelled with two L's?
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| Last Updated on Wednesday, 10 December 2008 07:37 |
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Revelent is the key word.
Thanks.