Housing index provides foundation for transparency, sustainability and prosperity in Panama
Housing economics experts Dr Anupam Nanda and Dimitra Kavarnou from Real Estate & Planning at Henley Business School unveiled a new house price index for the Republic of Panama at an industry conference in the country last Friday. The index, which will track changes in residential property value, is the first of its kind in the country and will create a foundation for transparency, sustainability and prosperity in the Panama real estate market.
Produced in collaboration with the regulatory body, Superintendencia de Bancos de Panamá, the index will bring about a more robust real estate market and have a huge impact on the country. It will help industry and government understand market movement in order to plan better for future housing needs, provide benchmarks for mortgage products and tax calculations and lead to a formalised transaction process for home buyers. It will also enable better industry regulation and market health and economics monitoring.
A more sustainable market and clearer industry information also has positive implications for domestic investors, as well as opening up attractive investment opportunities for UK and other international businesses, who have shown concerns over the lack of transparency in Panama. This is expected in turn lead to improved property quality and prosperity of the area.
Dr Anupam Nanda, Associate Professor in Real Estate Economics at Henley Business School, comments:
"The creation of the index is timely as many Latin American countries are experiencing rapid transformation in the real estate market. In order to provide appropriate financing schemes and processes for home buyers, developers and government require market-level information, which this index will provide.
At Henley, we seek out opportunities to use our expertise to support society, individuals, government and industry towards a sustainable future. This project is just one of several we are supporting in Latin America to help the region in improving its economic and developmental situation.
With the Panama index acting as best practice, we hope our index methodology will now be adopted by other Latin American countries to ensure a positive future for all of Latin America."
Funding for the project has been provided by the Foreign and Commonwealth Office, the British Embassy in Panama and Reading Real Estate Foundation (RREF).
More information about Henley’s work in Latin America can be found at the Latin America Initiative Hub.