Panama City, Panama is known for having some of the world’s tallest and newest skyscrapers. It’s one of the fastest growing cities in Latin America, and has a booming commercial and residential Real Estate market. And as Panama keeps building up and up, despite all the glitz and glamour that comes with it, they’re creating a big economic separation between the city’s residents. Most of Panama’s recent urban development has all been targeted to a luxury market, which has worked out for developers, and people who meet the economic criteria.
The issue is, as the city’s luxury properties grow so fast, it’s made it very difficult for the middle and working class to live in a centric location. Luckily, one company is looking to solve this, and has its sights set on the Panama market.
Bringing Low-Cost High Rises to a Luxury Market
In a recent interview done by Panama’s “El Visitante” newspaper, an innovative Canadian company claims that they are planning on developing a new type of skyscraper project in the Panamanian market. The idea, as promoted by CORE Architects, Inc. is a relatively new concept which proposes self-contained budget high rises that would act as mini neighborhoods indoors. Much like many luxury towers in the city, CORE buildings would have commercial and retail businesses integrated into the residential unit’s shared space. The idea behind this is to create affordable housing by building up, not out. It’s more economical, and therefor becomes more affordable to the renter or buyer.
Why Panama Needs More Affordable Housing
As Panama grows, so does the gap between rich and poor, and that’s something that most Panamanians want to change. One of the biggest issues facing Panama’s poor and middle classes is finding adequate housing close enough to the center of the city to make it viable to work and do business there. If CORE’s affordable high rise idea works, this could bring a number of new affordable housing options downtown, and bring self-contained services to neighborhoods that lack them.
A residential tower can essentially act as a micro-economy adding equally affordable services to residents who live on a tighter budget. Building the sense of a sustainable, economically functional, and low-cost urban development project is critical to Panama’s economy. According to a statement made by a CORE senior advisor in El Visitante, “Panama has areas like that in the city center where this concept can work very well, allowing the population to stay in town, without having to go to the suburbs in search of an affordable home”.
A Net Positive For Panama’s Residents
Part of the reason why affordable housing concerns many Panamanians is that many new luxury developments have replaced previously affordable houses and apartments. This has given way to entire neighborhoods changing demographics drastically in as short as 10 years. With affordable high rise towers, whether from CORE or otherwise, Panama will be able to continue to grow without necessarily displacing anyone in the process.
According to CORE senior advisor Babak Eslahjou, from the El Visitante article, “In effect, low story buildings create two different classes. However, with a high riser it is possible to buy a small apartment at a reasonable price and it goes hand in hand with the community. We figure out how a building can connect one street with another, creating at the same time a safe environment.” While this process is still in the idea stages, this should become more prevalent as Panama continues to expand. Look for more creative affordable development options to come, as long as Panama’s working class continues to grow.
