What are rents like in Panama City (in the country Panama) right now? (January 2026)

If you're looking to rent or invest in Panama City in 2026, understanding how rents work here is essential.

Panama City has a unique rental market where expat-focused luxury towers and local middle-market apartments exist side by side, and knowing the difference can save you thousands.

We constantly update this blog post with fresh Panama City rental data.

And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Panama City (in the country Panama).

Who is the author of this content?

THE LATINVESTOR

A team specialized in real estate investing in LATAM countries

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Panama City (in the country Panama). If you’d like to learn more about us, you can check our presentation page.

What are typical rents in Panama City (in the country Panama) as of 2026?

What's the average monthly rent for a studio in Panama City (in the country Panama) as of 2026?

As of early 2026, the average monthly rent for a studio in Panama City is approximately $1,250 (about €1,150 at current rates).

Most studios rent between $1,000 and $1,450 (€920 to €1,335), though luxury studios in Punta Pacífica or Avenida Balboa can reach $1,500 to $2,100.

The main factors causing studio rents to vary are neighborhood (waterfront versus inland), building age and amenities, and whether the unit is furnished.

What's the average monthly rent for a 1-bedroom in Panama City (in the country Panama) as of 2026?

As of early 2026, the average monthly rent for a 1-bedroom apartment in Panama City is approximately $1,550 (about €1,425).

Most 1-bedroom apartments rent from $1,250 to $1,900 (€1,150 to €1,750), with luxury waterfront units reaching $2,000 to $3,000.

In Panama City, El Cangrejo and Bella Vista offer more affordable 1-bedroom rents ($1,200 to $1,500), while Punta Pacífica and Costa del Este push into the $1,800 to $2,500 range.

What's the average monthly rent for a 2-bedroom in Panama City (in the country Panama) as of 2026?

As of early 2026, the average monthly rent for a 2-bedroom apartment in Panama City is approximately $2,050 (about €1,885).

Most 2-bedroom apartments rent between $1,650 and $2,600 (€1,520 to €2,390), though family-oriented areas like Costa del Este and Santa María can command $2,700 to $4,500.

For 2-bedrooms, San Francisco and El Cangrejo offer moderate rents starting around $1,700, while Costa del Este, Santa María, and Punta Pacífica top the price range.

By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Panama City (in the country Panama).

What's the average rent per square meter in Panama City (in the country Panama) as of 2026?

As of early 2026, the average rent per square meter in Panama City is approximately $22 per month (about €20).

Across neighborhoods, rent per square meter ranges from $16 to $30 (€15 to €28), with older inland buildings at the lower end and newer waterfront towers at the higher end.

Compared to other Latin American cities, Panama City's rent per square meter is mid-to-upper range, higher than Bogotá or Lima but below prime Mexico City or São Paulo.

Characteristics pushing rent above average include waterfront views, backup generators, 24/7 security, modern amenities, and proximity to the Cinta Costera or business districts.

How much have rents changed year-over-year in Panama City (in the country Panama) in 2026?

As of early 2026, rents in Panama City have increased by an estimated 2% to 4% compared to January 2025.

Main factors driving rent changes include steady expat demand, continued high-rise supply in prime corridors, and Panama's stable dollar economy keeping inflation contained.

This year's rent growth mirrors the previous year's modest single-digit trend, unlike the double-digit increases seen in some other Latin American capitals.

What's the outlook for rent growth in Panama City (in the country Panama) in 2026?

As of early 2026, we project rent growth in Panama City of 2% to 5%, with prime expat corridors potentially seeing 3% to 6%.

Key factors include migration flows, Panama's regional business hub status, dollar-denominated leases, and the balance between new supply and absorption.

Neighborhoods expected to see strongest growth include Costa del Este, Punta Pacífica, and Avenida Balboa, where expat demand and limited inventory create upward pressure.

Risks that could alter projections include slowdowns in corporate relocations, oversupply in certain submarkets, or broader shifts in Panama's banking and logistics sectors.

We have made this infographic to give you a quick and clear snapshot of the property market in Panama. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.

Which neighborhoods rent best in Panama City (in the country Panama) as of 2026?

Which neighborhoods have the highest rents in Panama City (in the country Panama) as of 2026?

As of early 2026, the highest-rent neighborhoods in Panama City are Punta Pacífica, Costa del Este, and Santa María, where 1-bedrooms start at $2,000+ (€1,840) and 2-bedrooms exceed $3,000 (€2,760).

These neighborhoods command premiums due to newer luxury towers, waterfront or golf views, top amenities, proximity to international schools and hospitals, and master-planned environments.

Typical tenants in these high-rent areas include corporate executives, international business professionals, diplomats, and established expat families seeking turnkey living.

By the way, we've written a blog article detailing what are the current best areas to invest in property in Panama City (in the country Panama).

Where do young professionals prefer to rent in Panama City (in the country Panama) right now?

The top neighborhoods where young professionals rent in Panama City are El Cangrejo, Bella Vista, and San Francisco, offering urban convenience and social scene.

Young professionals typically pay $1,100 to $1,700 per month (€1,010 to €1,565) for a 1-bedroom in these areas.

Amenities attracting young professionals include walkability to cafés and restaurants, Cinta Costera access, active nightlife, good transit, and reasonable commutes to business districts.

By the way, you will find a detailed tenant analysis in our property pack covering the real estate market in Panama City (in the country Panama).

Where do families prefer to rent in Panama City (in the country Panama) right now?

The top neighborhoods where families rent in Panama City are Costa del Este, Clayton (including Ciudad del Saber), and Albrook, known for space, safety, and family infrastructure.

Families typically pay $2,200 to $4,000 per month (€2,025 to €3,680) for 2 to 3 bedroom apartments in these areas.

Features attracting families include larger units, parks and green spaces, lower traffic, gated communities, and proximity to supermarkets and services.

Top schools near these areas include International School of Panama in Clayton, Balboa Academy, King's College, and Metropolitan School of Panama.

Which areas near transit or universities rent faster in Panama City (in the country Panama) in 2026?

As of early 2026, the fastest-renting areas near transit or universities in Panama City are Via Argentina/Iglesia del Carmen corridor (Metro Line 1), El Cangrejo/Bella Vista, and Clayton near Ciudad del Saber.

In these high-demand areas, well-priced rentals stay listed just 15 to 30 days, versus the citywide average of 25 to 45 days.

The typical rent premium for properties within walking distance of Metro stations or universities is $100 to $200 per month (€90 to €185).

Which neighborhoods are most popular with expats in Panama City (in the country Panama) right now?

The top neighborhoods for expats in Panama City are Costa del Este, Punta Pacífica, and Avenida Balboa/Marbella, offering the turnkey experience expats seek.

Expats typically pay $1,800 to $3,500 per month (€1,655 to €3,220) for furnished 1 to 2 bedroom apartments in these areas.

Features attracting expats include English-speaking staff, international restaurants, modern amenities, backup generators, and established expat communities.

Most represented nationalities include Americans, Canadians, Venezuelans, Colombians, and Europeans, with many corporate transferees from multinationals.

And if you are also an expat, you may want to read our exhaustive guide for expats in Panama City (in the country Panama).

Who rents, and what do tenants want in Panama City (in the country Panama) right now?

What tenant profiles dominate rentals in Panama City (in the country Panama)?

The top tenant profiles in Panama City are young professionals (35% to 40%), expats and corporate relocations (25% to 30%), and families (20% to 25%).

Young professionals typically want 1-bedroom or studio apartments in walkable central areas, expats prefer furnished units in amenity-rich buildings, and families seek 2 to 3 bedrooms in quieter neighborhoods with parking.

If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Panama City (in the country Panama).

Do tenants prefer furnished or unfurnished in Panama City (in the country Panama)?

In Panama City, roughly 40% of tenants prefer furnished apartments and 60% prefer unfurnished, varying by neighborhood and tenant type.

Furnished apartments command a 15% to 25% premium, roughly $200 to $400 more per month (€185 to €370).

Tenants preferring furnished include expats, corporate relocations, and digital nomads, while local long-term tenants and families usually choose unfurnished.

Which amenities increase rent the most in Panama City (in the country Panama)?

The top five rent-boosting amenities in Panama City are reliable A/C with good insulation, backup generators, 24/7 security, dedicated parking, and pools with gyms.

A/C and backup power add $100 to $200/month (€90 to €185), parking adds $75 to $150 (€70 to €140), security adds $50 to $100 (€45 to €90), and pool/gym together add $100 to $200 (€90 to €185).

In our property pack covering the real estate market in Panama City (in the country Panama), we cover what are the best investments a landlord can make.

What renovations get the best ROI for rentals in Panama City (in the country Panama)?

The top five ROI renovations in Panama City are A/C upgrades, kitchen modernization, bathroom refresh, fresh paint with lighting, and in-unit washer/dryer capability.

An A/C upgrade ($800 to $1,500) can add $50 to $100 monthly; kitchen refresh ($2,000 to $4,000) adds $75 to $150; bathroom updates ($1,000 to $2,500) add $50 to $100; paint/lighting ($500 to $1,200) adds $25 to $75.

Poor ROI renovations to avoid include overly luxurious finishes mismatched to building tier, custom built-ins limiting flexibility, and expensive flooring in already decent units.

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 strong is rental demand in Panama City (in the country Panama) as of 2026?

What's the vacancy rate for rentals in Panama City (in the country Panama) as of 2026?

As of early 2026, the estimated citywide vacancy rate in Panama City is 5% to 8%, indicating a reasonably healthy market.

Vacancy ranges from 2% to 4% in prime expat corridors like Costa del Este and Punta Pacífica, to 10%+ in areas with older or overpriced stock.

Current vacancy is roughly in line with historical averages, showing the market has absorbed new supply while maintaining healthy turnover.

Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Panama City (in the country Panama).

How many days do rentals stay listed in Panama City (in the country Panama) as of 2026?

As of early 2026, well-priced rentals in Panama City stay listed approximately 30 to 40 days.

Days on market ranges from 15 to 35 days for prime furnished units to 60 to 90+ days for overpriced or less desirable properties.

Current days-on-market is similar to last year, reflecting a stable market where pricing accuracy and property quality drive absorption speed.

Which months have peak tenant demand in Panama City (in the country Panama)?

Peak demand months in Panama City are January through March and July through August, when most new leases are signed.

Factors driving seasonality include corporate relocations tied to business cycles, family moves around school calendars, and expats arriving after holiday planning.

Lowest demand months are late November and December, when holiday travel slows decision-making and renters defer moves.

What will my monthly costs be in Panama City (in the country Panama) as of 2026?

What property taxes should landlords expect in Panama City (in the country Panama) as of 2026?

As of early 2026, landlords in Panama City should budget $600 to $2,400 per year (€550 to €2,210) in property taxes, roughly $50 to $200 monthly.

Annual property taxes range from under $500 (€460) for smaller units to $3,000+ (€2,760) for luxury properties with higher assessed values.

Property taxes are calculated based on cadastral value as determined by DGI, with progressive rates and various exemptions for newer construction or lower-value properties.

Please note that, in our property pack covering the real estate market in Panama City (in the country Panama), we cover what exemptions or deductions may be available to reduce property taxes for landlords.

What utilities do landlords often pay in Panama City (in the country Panama) right now?

Landlords in Panama City most commonly pay the HOA/PH fee and sometimes water when bundled, while tenants pay electricity and internet.

HOA fees typically run $80 to $300/month (€75 to €275); water (when landlord-paid) adds $15 to $40 (€14 to €37).

Common practice: landlords cover HOA and sometimes water; tenants handle electricity ($80 to $250 monthly depending on A/C use) and internet.

How is rental income taxed in Panama City (in the country Panama) as of 2026?

As of early 2026, rental income in Panama City is taxed as part of total taxable income under progressive rates from 0% up to 25%.

Deductions landlords can claim include depreciation, maintenance costs, HOA fees, property taxes, insurance, and related expenses.

A common tax mistake in Panama City is failing to register rental income with DGI or not keeping receipts for deductible expenses, leading to overpayment or audit penalties.

We cover these mistakes, among others, in our list of risks and pitfalls people face when buying property in Panama City (in the country Panama).

We made this infographic to show you how property prices in Panama compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.

What sources have we used to write this blog article?

Whether it's in our blog articles or the market analyses included in our property pack about Panama City (in the country Panama), we always rely on the strongest methodology we can … and we don't throw out numbers at random.

We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.

Source	Why It's Authoritative	How We Used It
INEC Panama	Panama's official statistics agency and baseline for price and population data.	We used it to anchor inflation context around housing. We sanity-checked that rent estimates don't imply unrealistic growth.
INEC CPI Tables	Official CPI publication hub feeding downstream rent index trackers.	We grounded rent growth in official statistics. We cross-checked third-party summaries against this source.
Global Property Guide (Yields)	Long-running international property research with disclosed methodology.	We got consistent rent levels for Panama City submarkets. We translated figures into bedroom-based estimates.
Global Property Guide (Trends)	Compiles rent-price trends citing INEC as underlying source.	We anchored conservative rent growth baselines. We layered Panama City-specific logic for 2026 outlook.
Global Property Guide (Taxes)	Structured, internationally comparable tax summary.	We cross-checked tax explanations for completeness. We kept DGI as primary reference where possible.
DGI Income Tax Tariff	Official tax authority page listing income tax brackets.	We explained how rental income is taxed under progressive brackets. We used plain language and examples.
DGI Declaration Info	Official income tax declaration and filing guidance.	We explained annual compliance for landlords. We kept it high-level for non-professionals.
DGI Property Tax	Official starting point for Panama's property tax concept.	We defined property tax obligations in plain terms. We added simple budgeting ranges for landlords.
ASEP (Utilities Regulator)	Panama's regulator with official utility tariff documents.	We explained electricity cost volatility for budgeting. We translated tariffs into monthly assumptions.
Servicio Nacional de Migración	Official government source for migration counts.	We supported expat demand narrative for Panama City rentals. We kept interpretation careful.
MIVIOT	Housing ministry publishing lease registration activity.	We used it as signal of rental market activity and formality. We supported seasonality discussion.
Inter-American Development Bank	Major international organization with primary housing sector research.	We got structural context on supply constraints and affordability. We explained Panama City's unique dynamics.
Encuentra24	Leading local classifieds platform aggregating listing data.	We used it as market-check on asking prices. We triangulated with other sources for validation.
Panama Equity	Local resource publishing practical cost breakdowns for owners.	We calibrated HOA fee ranges and landlord costs. We cross-referenced with our survey data.