The real estate sector has proven to be a key driver of the economy and quality of life in Panama; here is the annual data:
In 2022, according to data provided by the General Comptroller of the Republic, construction investment reached $918 million, representing a 27% increase compared to the previous year. Despite this growth, the pre-pandemic investment levels of $1,130 million in 2019 have not yet been fully recovered. Of the total investment in 2022, 68.4% was allocated to residential projects, while the remaining 31% went to warehouses, offices, and commercial areas. However, the commercial sector experienced a higher annual growth of 41% compared to the previous year.
In 2023, the construction sector in Panama is projected to experience an increase between 10% and 12%, according to the projections of the Panamanian Chamber of Construction. This growth is attributed to large-scale projects, such as the $1.254 billion "turnkey" program by the Ministry of Public Works, the construction of the Fourth Bridge over the Canal, and the Third Line of the Panama Metro. These initiatives will benefit over 2 million people, including residents of Panama West and travelers between the capital and the interior of the country, thereby enhancing national tourism. Consequently, construction in Panama is expected to reach pre-pandemic levels, providing new employment opportunities and economic growth.
In 2024, the Panama Canal Authority (ACP) plans to begin the expansion of the Mendoza Drinking Water Plant to increase its daily water production from 40 to 60 million gallons. This initiative aims to meet the growing demand for drinking water in the province of Panama West. In fiscal year 2022, the ACP delivered a record contribution of $2.494.4 billion to the Panamanian state, an increase compared to the $2.080.6 billion delivered in 2021.
In 2025, the construction of a third runway at Tocumen International Airport is scheduled, a crucial infrastructure project to maintain the country's competitiveness and promote tourism and economic and social development. Passenger traffic is estimated to increase from 16.5 million in 2019 to over 25 million. The estimated cost of the project is $200 million, but it is expected to pay for itself in terms of long-term economic benefits. In 2023, projected revenues for the airport are $278.9 million, 15% higher than the 2022 revenues.
In summary, real estate data shows that the real estate sector plays a significant role in Panama's economy and well-being. It offers investment and employment opportunities, promotes sustainable development, and contributes to a higher quality of life. Through strategic planning and collaboration between the public and private sectors, healthy economic growth can be fostered for the country.