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Everything you need to know before buying real estate is included in our Panama Property Pack
As of September 2025, the average house price in Panama City is USD 337,645, with property prices ranging from USD 800-4,530 per square meter depending on location and property type.
Panama's real estate market offers diverse opportunities from affordable government subsidized homes starting at USD 65,000 to luxury villas exceeding USD 1.5 million, with the country positioning itself as one of Latin America's most accessible markets for foreign investment.
It's something we develop in our Panama property pack.
Panama's residential property market in 2025 shows steady growth with moderate price appreciation of 1-2% annually, offering attractive opportunities for both lifestyle and investment purposes.
The country provides excellent value compared to other major Latin American cities, with strong rental yields of 6-15% depending on property type and location strategy.
| Property Type | Price Range (USD) | Best Areas |
|---|---|---|
| Budget Homes | 65,000 - 120,000 | La Chorrera, Arraiján |
| Family Homes | 120,000 - 200,000 | Brisas del Golf, Don Bosco |
| Urban Homes | 180,000 - 350,000 | Condado del Rey, Villa Lucre |
| Luxury Properties | 400,000 - 1,000,000+ | Santa María, Punta Pacifica |
| Prime Apartments | 370,000 - 500,000 | Casco Viejo, Costa del Este |
What's the current average house price in Panama?
The current average house price in Panama varies significantly by location and property type, with Panama City leading the market at approximately USD 337,645 for median home prices as of September 2025.
In Panama City specifically, apartment prices average USD 2,055-2,529 per square meter, while the broader national market ranges from USD 800-1,500 per square meter depending on location and property category.
The Panama residential market shows stable pricing with moderate appreciation, making it an attractive destination for both local and international buyers seeking value in Central America.
Nationwide averages reflect the diverse nature of Panama's property landscape, from affordable government subsidized housing to premium waterfront developments in established neighborhoods.
How do prices differ between apartments, condos, single-family homes, and luxury villas?
Property prices in Panama show clear differentiation across categories, with apartments commanding higher per-square-meter rates than single-family homes in most markets.
| Property Type | Typical Price Range (USD) | Price per sqm (USD) |
|---|---|---|
| Government Subsidized Homes | 65,000 - 120,000 | 800 - 1,000 |
| Gated Community Homes | 120,000 - 200,000 | 1,200 - 1,500 |
| Urban Single Family Homes | 180,000 - 350,000 | 1,400 - 1,800 |
| Premium Apartments | 370,000 - 500,000 | 2,394 (average) |
| Luxury Villas | 400,000 - 1,500,000+ | 3,200 - 4,500 |
Which areas are the most expensive, most budget-friendly, and up-and-coming?
The most expensive neighborhoods in Panama are concentrated in Panama City's premium districts, with Casco Viejo leading at USD 4,150 per square meter, followed by Santa Maria at USD 4,530 per square meter.
Punta Pacifica commands USD 4,160 per square meter, while Costa del Este averages USD 3,685 per square meter, establishing these areas as the country's luxury property hubs.
Mid-range neighborhoods include San Francisco at USD 2,720 per square meter, El Cangrejo at USD 2,930 per square meter, and Avenida Balboa at USD 3,200 per square meter, offering good value for urban living.
Budget-friendly and emerging areas include La Chorrera, Arraiján, Pacora, and Penonome, where properties typically start around USD 1,000 per square meter with strong growth potential.
Panama Oeste stands out as a particularly promising up-and-coming region, offering attractive investment returns for buyers seeking appreciation opportunities in developing infrastructure zones.
How have house prices in Panama changed over the past 5 years and past year?
Panama's residential property market has experienced significant growth over the past five years, with overall prices rising 59.8% from 2020 to 2025.
Panama City home values specifically increased nearly 60% during this five-year period, though the market shifted to buyer-favorable conditions in 2025 due to oversupply in certain segments.
Over the past year, Panama City apartment prices showed modest growth of 0.8-2% year-over-year, while luxury segments performed better with 2-4% annual appreciation.
Single-family house prices experienced a slight decline of approximately 3% year-over-year, reflecting market corrections in oversupplied suburban developments.
The Panama property market in 2025 demonstrates stabilization after the rapid growth period, creating opportunities for strategic buyers in select neighborhoods and property types.
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What are the price forecasts for the next 1 year, 5 years, and 10 years?
Panama's residential property market is forecast to experience steady but moderate appreciation over the coming decade, with analysts projecting 1-2% annual growth for 2026.
Five-year forecasts through 2030 suggest average prices will reach approximately USD 1,880 per square meter from current levels of USD 2,483, indicating market consolidation rather than aggressive growth.
Ten-year projections to 2035 estimate properties will reach around USD 193,668 for a typical 100-square-meter home, following similar moderate appreciation rates throughout the forecast period.
The Panama City property market is expected to lead national growth due to continued infrastructure development and urban expansion projects scheduled through 2030.
Investment opportunities in emerging neighborhoods like Panama Oeste and La Chorrera may outperform these conservative forecasts due to planned transportation and commercial developments.
How do average house prices in Panama compare with other major Latin American cities and globally?
Panama City's average price of USD 2,529 per square meter positions it competitively within the Latin American property market, ranking as moderately priced compared to regional capitals.
| City | Average Price per sqm (USD) | Comparison to Panama City |
|---|---|---|
| Rio de Janeiro | 3,285 | 30% higher |
| Montevideo | 2,897 | 15% higher |
| Mexico City | 2,856 | 13% higher |
| Panama City | 2,529 | Baseline |
| San José, Costa Rica | 2,432 | 4% lower |
| Buenos Aires | 2,208 | 13% lower |
Globally, Panama offers exceptional value compared to major international cities, with prices significantly below New York (USD 15,000+ per sqm) and London (USD 13,500+ per sqm).
What's the average cost per square meter in different neighborhoods?
Neighborhood pricing in Panama shows dramatic variation, with premium Panama City districts commanding four times the price of emerging suburban areas.
Prime neighborhoods like Santa Maria lead at USD 4,530 per square meter for apartments, while Casco Viejo and Punta Pacifica both exceed USD 4,100 per square meter.
Mid-tier urban areas including San Francisco (USD 2,720/sqm) and El Cangrejo (USD 2,930/sqm) offer good value for city living with established infrastructure and amenities.
Emerging neighborhoods like Brisas del Golf average USD 1,315 per square meter for both apartments and houses, providing entry-level pricing with development potential.
Budget areas such as La Chorrera start around USD 1,000 per square meter, making homeownership accessible for first-time buyers and investors seeking high rental yields.
What's the typical total purchase cost including taxes, legal fees, and transaction costs?
Total purchase costs in Panama typically add 3-5% to the property price, making it one of the more affordable markets for transaction expenses in Latin America.
Transfer tax represents the largest cost at 2% of the sale price or cadastral value (whichever is higher), paid by the buyer at closing.
Legal fees range from 0.5-2% of the property price, while notary and registration fees add approximately 0.3-0.5% to total costs.
Annual property taxes are remarkably low at 0-0.7% per year, with properties valued under USD 120,000 typically exempt from taxation.
Real estate agent commissions of 3-7% are typically paid by the seller, not impacting buyer costs, though buyers should budget for property inspections and due diligence expenses.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Panama versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
What are the financing options and average mortgage rates available for buying property?
Financing options in Panama vary significantly between local residents and foreign buyers, with locals enjoying more favorable terms and lower down payment requirements.
Panamanian residents can secure mortgages with down payments as low as 10-30% and interest rates ranging from 4.5-7%, depending on creditworthiness and property type.
Foreign buyers typically require 30-50% down payments and face higher interest rates of 7-9%, with maximum loan terms of 15-20 years and age restrictions requiring loan maturity before age 65-70.
Government programs offer preferred rates up to 4% for properties under USD 120,000 for Panamanian residents, making affordable housing highly accessible for locals.
Bank loan commissions add 1% of the disbursed amount, and required insurance policies increase overall financing costs for all borrowers regardless of residency status.
What are example purchase prices for different property types and areas?
Real estate pricing in Panama spans from affordable starter homes to luxury oceanfront properties, providing options for diverse budgets and lifestyle preferences.
1. **Budget-Friendly Options**: 1-bedroom apartments in La Chorrera or Panama Oeste range from USD 120,000-180,000 for 60-80 square meters2. **Family Properties**: Gated community homes in Brisas del Golf or Don Bosco cost USD 150,000-250,000 for 100-160 square meters3. **Urban Living**: 2-bedroom apartments in prime Panama City locations like Punta Pacifica range USD 370,000-500,000 for 120-160 square meters4. **Beach Properties**: Coastal homes in Coronado or Pedasí cost USD 200,000-600,000 for 150-250 square meters5. **Luxury Market**: High-end villas in Santa Maria or Costa del Este range USD 800,000-1,500,000 for 300-500 square metersNew suburban developments in growing areas like Arraiján offer excellent value at USD 130,000-180,000 for 90-140 square meter homes with modern amenities.
What are the smartest investment choices depending on your goals?
Investment strategy in Panama should align with your primary objective, whether lifestyle, rental income, or capital appreciation, as each goal favors different property types and locations.
For primary residence living, modern gated communities like Don Bosco, Versalles, and Brisas del Golf offer the best combination of safety, amenities, and reasonable pricing for families.
Short-term rental investments perform best in prime Panama City neighborhoods like Casco Viejo and Punta Pacifica, plus beach destinations like Coronado and Playa Venao, generating 10-15% returns.
Long-term rental properties achieve optimal results in El Cangrejo and San Francisco, where high demand from professionals and expats provides steady 6-8% rental yields.
Resale opportunities exist in discounted units from oversupplied new buildings and bank foreclosures, offering 20-30% discounts in rising neighborhoods like Panama Oeste and La Chorrera.
It's something we develop in our Panama property pack.
What neighborhoods offer the best balance of affordability and growth potential?
Panama Oeste emerges as the top choice for balanced affordability and growth potential, offering emerging zone status with projected rental yields of 8-10% annually.
El Cangrejo provides urban convenience with stable growth prospects and reasonable entry prices, making it ideal for investors seeking steady appreciation in established markets.
Beach communities like Coronado and Pedasí offer excellent lifestyle-plus-investment returns, combining rental income potential with personal enjoyment for part-time residents.
Mountain areas such as Boquete attract lifestyle investors seeking medium-term appreciation in Panama's premier retirement destination with growing international recognition.
Turn-key apartment projects in Costa del Este and revitalized Panama City micro-hubs provide hands-off investment opportunities with legal short-term rental management for international buyers.
It's something we develop in our Panama property pack.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Panama's real estate market in 2025 presents compelling opportunities for both lifestyle and investment purposes, with property prices offering excellent value compared to other major Latin American cities.
The combination of stable USD-based pricing, attractive rental yields, low transaction costs, and diverse property options makes Panama an increasingly popular destination for international real estate investment.
Sources
- Global Property Guide - Panama Price History
- Properstar - Panama House Prices
- Global Property Guide - Latin America Square Meter Prices
- The LatinVestor - Panama Price Forecasts
- Travel Safe Abroad - Cheapest Places to Live in Panama
- The LatinVestor - Panama Best Property Investment
- The LatinVestor - Panama Real Estate Trends
- The LatinVestor - Panama City Price Forecasts
- Taxes for Expats - Panama Property Guide
- The LatinVestor - Buy Land Panama