Authored by the expert who managed and guided the team behind the Panama Property Pack
Yes, the analysis of Panama City's property market is included in our pack
Panama City's property market offers diverse investment opportunities with average apartment prices at USD 2,483 per square meter as of September 2025.
The market varies significantly by location and property type, with luxury areas like Santa Maria commanding over USD 4,500 per square meter while emerging neighborhoods offer more affordable entry points around USD 2,700 per square meter.
If you want to go deeper, you can check our pack of documents related to the real estate market in Panama, based on reliable facts and data, not opinions or rumors.
Panama City property prices range from USD 1,603/m² for houses to USD 2,483/m² for apartments, with luxury areas commanding significantly higher prices.
The total cost of purchasing includes 3-5% in additional fees, taxes, and closing costs beyond the property price.
| Property Type | Average Price (USD/m²) | Typical Size Range | Total Investment Range |
|---|---|---|---|
| Apartments/Condos | 2,483 | 38-107 m² | 160,000-270,000 |
| Houses | 1,603 | 150-300 m² | 240,000-480,000 |
| Luxury Properties | 2,500-4,530 | 100-379 m² | 250,000-1,700,000 |
| Budget Areas | 1,500 | 50-120 m² | 75,000-180,000 |
| Premium Neighborhoods | 4,150-4,530 | 80-200 m² | 332,000-906,000 |
| Up-and-Coming Areas | 2,720-2,930 | 60-150 m² | 163,000-440,000 |
| Median Market Price | 1,804 | 100 m² | 337,645 (average) |
What's the current average house price in Panama City?
As of September 2025, Panama City's residential property market shows clear price distinctions between property types.
Apartments command an average of USD 2,483 per square meter, making them the most expensive property category in the city. Houses average USD 1,603 per square meter, reflecting the preference for urban condo living over detached homes in prime city locations.
For a typical 100-square-meter apartment, buyers can expect to invest around USD 248,300. The overall average house price across all property types stands at USD 337,645 as of mid-2025, though actual prices vary significantly based on size, type, and specific location within the metropolitan area.
These figures represent the current market reality where urban apartments in central locations consistently outperform detached houses in terms of price per square meter and investment demand.
How do prices differ depending on the type of property, like apartments, condos, or houses?
Panama City's property market clearly favors apartments and condominiums over detached houses, with significant price differences across property types.
Apartments and condos command the highest prices per square meter at USD 2,483, especially in new luxury developments with modern amenities and prime locations. These properties attract both international buyers and local professionals seeking urban convenience.
Detached houses are priced considerably lower at USD 1,603 per square meter, as buyers generally prefer condo living in prime city locations for security, amenities, and proximity to business districts. The house market tends to be more active in suburban areas and family-oriented neighborhoods.
Luxury properties in exclusive neighborhoods range from USD 2,500 to USD 4,500+ per square meter, with premium locations like Santa Maria and Casco Viejo commanding the highest prices due to limited supply and international demand.
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What's the average price per square meter in different neighborhoods?
Panama City neighborhoods show dramatic price variations, with luxury areas commanding three times the price of budget-friendly locations.
| Neighborhood | Average Price (USD/m²) | Annual Trend | Market Position |
|---|---|---|---|
| Santa Maria | 4,530 | -6% | Most Expensive |
| Punta Pacifica | 4,160 | -2% | Luxury Waterfront |
| Casco Viejo | 4,150 | +4% | Historic Premium |
| Costa del Este | 3,685 | 0% | Business Hub |
| Avenida Balboa | 3,200 | -3% | Central Corridor |
| El Cangrejo | 2,930 | +3% | Up-and-Coming |
| San Francisco | 2,720 | +2% | Emerging Area |
| National Average | 1,804 | +2.4% | Overall Market |
Which areas are considered the most expensive, which ones are up-and-coming, and which are budget-friendly?
Panama City's real estate landscape divides into three distinct market segments based on price levels and growth potential.
Most Expensive Areas: Casco Viejo, Punta Pacifica, Santa Maria, and Costa del Este represent the luxury tier. These neighborhoods feature limited supply, international demand, and premium amenities. Santa Maria leads at USD 4,530 per square meter, followed closely by Punta Pacifica and Casco Viejo above USD 4,150 per square meter.
Up-and-Coming Areas: El Cangrejo and San Francisco show strong growth potential with prices ranging from USD 2,720 to USD 2,930 per square meter. These central, vibrant neighborhoods attract expatriates and young professionals, experiencing notable price growth of 2-3% annually while maintaining accessibility.
Budget-Friendly Options: Areas near new Metro lines and certain older city sections offer prices closer to USD 1,500 per square meter or below. These locations provide entry-level opportunities for first-time buyers and investors seeking value plays in the market.
The price gaps reflect infrastructure quality, security levels, proximity to business districts, and international appeal across different zones.
Can you give examples of actual purchase prices for typical properties in these areas?
Current market listings provide concrete examples of property prices across Panama City's different neighborhoods and property types.
1. **Costa del Este Luxury Condos:** 4-bedroom units ranging from 344-379 square meters start at USD 1,109,680, representing the high-end market for spacious family properties.2. **Casco Viejo Historic Properties:** 1-3 bedroom condominiums ranging from 38.7-107.1 square meters are priced between USD 177,928 and USD 183,000, offering historic charm in the city's cultural heart.3. **San Francisco New Developments:** 1-bedroom units from 38.5-52.5 square meters start at USD 160,320, providing entry-level opportunities in an emerging neighborhood.4. **Mid-Range Apartments:** A typical 100-square-meter apartment in central areas averages USD 248,300, representing the median market segment.5. **Average Market Property:** The overall median property price of USD 337,645 reflects a mix of sizes and locations across the metropolitan area.These examples demonstrate how location, size, and property condition significantly impact final purchase prices, with luxury areas commanding premium rates while emerging neighborhoods offer better value propositions.
What's the total cost of buying a property when you include fees, taxes, and closing costs?
Property purchase costs in Panama City extend beyond the purchase price, with additional expenses typically adding 3-5% to the total investment.
Major Cost Components: Legal, notary, and registry fees average approximately USD 6,000 for a USD 400,000 property, varying with the purchase value. Transfer tax of 2% is typically paid by the seller but can be negotiated. Notary and registry fees add 0.5-1% of the property value.
Professional Services: Lawyer's fees average around 2%, with each party paying their own legal representation. Bank payment cheque fees range from 0.25-1% for secure transaction processing. Broker commissions of 3-5% are usually paid by the seller.
Annual Obligations: Property tax ranges from 0-1% annually, with many new projects offering multi-year tax exemptions as incentives for buyers.
Buyers should budget for 3-5% of the property value in additional costs, excluding any realtor commission which is typically seller-paid. This translates to USD 10,000-20,000 in additional expenses for a USD 400,000 property purchase.
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How do mortgage options and average monthly payments look right now?
Panama City's mortgage market offers competitive rates with specific considerations for foreign buyers as of September 2025.
Current Interest Rates: Mortgage rates stand at 6.57% as of August 2025, representing the lowest level in 10 months. Foreign buyers typically face slightly higher rates, potentially reaching up to 8% depending on their residency status and creditworthiness.
Down Payment Requirements: Residents can access mortgages with 10-30% down payments, while foreigners and new build purchases often require 30-50% upfront investment. This higher requirement reflects lenders' risk assessment for international buyers.
Monthly Payment Example: For a median property priced at USD 353,238 with current rates, buyers can expect monthly payments around USD 2,427 at the 6.57% rate, assuming standard loan terms and down payment.
The financing landscape favors residents and established buyers, while foreigners need stronger financial profiles and larger down payments to access competitive rates in the current market environment.
What are the best choices if you want to live in the property, rent it out short-term, rent it out long-term, or buy to resell later?
Investment strategy in Panama City should align with specific goals, as different neighborhoods and property types serve different purposes effectively.
Live-in Properties: Choose safe, central areas like San Francisco, El Cangrejo, and Costa del Este for balanced lifestyle and value appreciation. These neighborhoods offer security, amenities, and convenient access to business districts while maintaining growth potential.
Short-Term Rentals: Focus on Casco Viejo, Punta Pacifica, and waterfront zones that attract tourists and business travelers. These areas yield high short-term returns but often require specific licensing and face stricter regulations.
Long-Term Rentals: Mid-range condos in El Cangrejo, San Francisco, and Avenida Balboa typically yield 6-7% gross returns with high occupancy rates. These areas attract steady tenant demand from professionals and expatriates.
Resale/Flipping Opportunities: Target new developments in emerging districts or purchase below-market resale units in oversupplied areas positioned for future price growth. Areas near Metro expansion offer particular potential for appreciation.
It's something we develop in our Panama property pack.
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.
How have prices changed compared to one year ago, and compared to five years ago?
Panama City's property market has experienced mixed performance over different time periods, showing both growth and correction phases.
One-Year Performance: Apartments gained 0.83% while houses declined 3.2% from 2024 to 2025. This divergence reflects continued preference for urban condo living over detached houses in the current market environment.
Five-Year Growth: The market achieved remarkable growth of 59.83% from 2020 to 2025, though this includes phases of both rapid appreciation and market softening. This substantial increase reflects post-pandemic recovery and increased international interest.
Rental Market Performance: Gross rental yields improved from 6.78% in 2024 to 7.83% in 2025, indicating stronger rental demand relative to property prices and providing better returns for investors.
The market shows maturation signs with more moderate recent growth after the exceptional gains of the early 2020s, suggesting a stabilization period in the current cycle.
What are the forecasts for prices one year, five years, and ten years from now?
Panama City property price forecasts suggest moderate but steady appreciation across different time horizons.
One-Year Outlook: Expect modest appreciation of 1-2% annually, with apartments and luxury properties slightly outperforming houses. This conservative growth reflects market maturation and economic stability factors.
Five-Year Projection: Average projected price reaches USD 1,880 per square meter, implying steady but unspectacular growth. The greatest opportunities exist in select revitalizing neighborhoods and areas benefiting from infrastructure improvements.
Ten-Year Horizon: While specific forecasts remain limited, market fundamentals including infrastructure development, international appeal, and controlled supply support continued moderate appreciation over the long term.
Growth expectations remain realistic rather than euphoric, with infrastructure projects, Metro expansion, and economic diversification supporting sustainable price increases rather than speculative bubbles.
What would be considered the smartest investment choices in Panama City today?
Strategic property investment in Panama City focuses on locations and property types that combine strong rental yields with appreciation potential.
Primary Recommendations: Mid-range or luxury condos in San Francisco, El Cangrejo, Costa del Este, or Casco Viejo offer the best combination of rental yields, price appreciation potential, and liquidity. These areas maintain strong expatriate and renter demand supporting market stability.
Value Opportunities: Target neighborhoods along new Metro lines or areas with major infrastructure development underway. These locations often experience early price increases as improved access enhances desirability and property values.
Long-Term Stability Plays: Consider well-managed properties with tax exemptions and in-demand amenities like security, pools, and gyms. These features maintain competitive advantage and tenant appeal over time.
The smartest approach combines established areas with proven rental demand and emerging locations positioned to benefit from infrastructure improvements, creating a balanced portfolio approach to the market.
It's something we develop in our Panama property pack.
How do house prices in Panama City compare to other similar major cities internationally?
Panama City commands the highest property prices per square meter in Central America while remaining competitively positioned against global markets.
Regional Leadership: With average apartment prices at USD 2,483 per square meter, Panama City leads all Central American capitals, reflecting its status as the region's primary financial and logistics hub.
International Comparison: Prices remain significantly below major North American cities like Miami or global expat destinations, but align with upscale Latin American cities such as Lima or Bogotá. However, Panama City offers higher rental yields than many comparable markets.
Investment Context: The median apartment price of USD 2,483 per square meter positions Panama City as a middle-tier global market - more expensive than emerging markets but accessible compared to established international destinations.
This positioning makes Panama City attractive for investors seeking Latin American exposure with developed infrastructure while maintaining reasonable entry costs compared to premium global markets.
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 City's property market in September 2025 offers diverse opportunities across price ranges, with luxury areas commanding premium prices while emerging neighborhoods provide growth potential.
Investors should focus on central condominiums for rental income and consider areas near infrastructure development for long-term appreciation, while factoring in 3-5% additional costs beyond purchase prices.
Sources
- Panama City Price Forecasts
- Panama Price Forecasts
- Global Property Guide - Panama Price History
- International Living - Luxury Neighborhoods
- Live and Invest Overseas - Exciting Neighborhoods
- The Panama Link - Mortgage Calculator
- Frapan Invest - Closing Costs
- Global Property Guide - Buying Guide
- Doze Real Estate - Taxes and Costs Guide
- Bright Tax - Buy Property in Panama