Here is an article from La Prensa that is so ridicules that I have to post it. The housing ministry believes there are not enough rental properties on the market and incentives need to be given in order to get this part of the real estate market going. They honestly believe that the 20,000 plus apartments being built in the city are just going for full time residents or will stay empty. My prediction is that in a little over a year you will be able to take your pick of thousands of apartments coming on the market. It will be a renters market just as it is a buyers market right now.
Mivi devises reforms to address rental market rut
The Ministerio de Vivienda hopes lease law reforms will attract investors to the rental market.
If you’ve been looking to rent a residence downtown recently, you’ve probably noticed that the rental market in
Despite the country’s economic growth and real estate development, investments in rental properties have been declining over the last 30 years, pushing demand and rents ever higher.
Relief may be in the works, however, as the newly appointed Ministro de Vivienda, Gabriel Diez, is preparing a package of housing reforms to attract investors to the rental market.
His first step was to meet with property owners and developers to discuss changing the lease laws adopted back in 1973. “Since then, not much rental housing has been built because the laws lacked incentives,” said Diez.
Roberto Cedeño, president of the Asociación de Propietarios de Inmuebles de Panamá (API), agreed with Diez about the need to amend the lease laws.
“It’s an extremely rigid law, and one that very much favors the landlord to the detriment of the renter,” explained Cedeño. “That doesn’t give you much opportunity to work in a fast and flexible way.”
In addition to updating current lease laws, the Ministerio de Vivienda (Mivi) also sought the advice of private sector businesses to address revising laws regulating urban planning and horizontal property.
“The objective is to make some adjustments to make leasing attractive to both the renter and the investor,” said Mitsila Espino, director of the Consejo Nacional de Promotores de Vivienda (Convivienda).
High demand within the rental market in some areas has resulted in an increase in lease rates of up to 20 percent in the last 12 months.
Ivan Carlucci, former president of the Asociación de Corredores de Bienes Raíces (Acobir), reported that 10 years ago, a 90-square-meter apartment on Vía Argentina rented for $400 a month. Today, that same apartment could fetch $1,200 a month, or triple the original rate.
Carlucci is convinced that it is better to buy a home than rent one at this time, noting that mortgage payments in