Small and strategically located, Panama has succeeded in beating the real estate and construction demons where others have failed through careful planning and stable government investment.
Ing. Nicolás Corcione
Published: April, 2015
Logistics and geography. Those are the keys for Ing. Nicolás Corcione, describing Panama’s construction sector, which not only weathered the global real estate recession but continues to draw investors. Corcione, president of construction firm Group Corcione, also credits a lack of cumbersome bureaucracy, Panama’s robust, dollar-based banking system, its reputation as a strong financial center, infrastructure development, and legal incentives for its continued success.
A steady future … plus a gamechanger
These factors, along with the country’s political stability and the Colón Free Zone, have attracted such multinational companies as Maersk, Procter & Gamble, Caterpillar, and Adidas. The office sector is perhaps overbuilt, admits Corcione, but Class A space will continue to be in demand as more multinationals move to Panama. The executive sees growth in malls, logistical parks, and warehouses as well, all financed by the private sector.
The canal expansion looks to be a radical gamechanger for the construction industry. Now planned to open in December 2015, the expanded canal, which will double its carrying capacity in the next decade, will give rise to more infrastructure development, new container ports, additional logistical centers, and LNG (liquefied natural gas) projects.
“There are going to be privately developed logistical parks around the expanded canal. There are going to new private logistical parks around the new airport expansion. That’s going to be another key issue. Those are going to be the opportunities.” — Ing. Nicolás Corcione