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 housing market is experiencing steady growth with apartment prices up 0.83% year-on-year as of September 2025.
The market shows strong fundamentals with rental yields around 7.8% for city apartments, declining inventory, and robust demand in luxury neighborhoods like Casco Viejo and Punta Pacifica where prices reach $4,150-$4,160 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's real estate market shows apartment prices averaging $2,483/m² with modest year-on-year growth, while luxury neighborhoods command premium prices above $4,000/m².
The market offers strong rental yields of 7.8% with apartments outperforming houses significantly, and inventory declining 7.2% year-over-year indicating healthy demand-supply dynamics.
| Market Metric | Current Value | Trend |
|---|---|---|
| Average Apartment Price | $2,483/m² | +0.83% YoY |
| Average House Price | $1,603/m² | -3.2% YoY |
| Average Monthly Rent | $1,518 | +17.2% YoY |
| Rental Yield (Apartments) | 7.8% | Stable |
| Days on Market | 86 days | Declining |
| Inventory Level | -7.2% YoY | Tightening |
| Luxury Market Premium | $4,000+/m² | +4% (Casco Viejo) |
What are home prices doing right now in Panama City?
As of September 2025, Panama City apartment prices average $2,483 per square meter, while house prices are significantly lower at $1,603 per square meter.
This means a typical 100-square-meter apartment in the city center costs approximately $248,300. Premium neighborhoods like Casco Viejo and Punta Pacifica command much higher prices, reaching $4,150-$4,160 per square meter.
The market shows a clear preference for apartments over houses, with condos in modern buildings attracting the strongest buyer interest. Luxury developments in prime locations are selling particularly well, often moving within 20 days for preconstruction units.
Houses are experiencing weaker demand, reflected in their lower per-square-meter pricing and slower market movement compared to the apartment segment.
It's something we develop in our Panama property pack.
How have prices changed over the past 6–12 months?
Panama City apartment prices have increased 0.83% year-on-year, showing modest but positive growth through September 2025.
House prices have declined 3.2% over the same period, highlighting the diverging performance between property types. This contrast reflects stronger demand for urban living in apartments versus standalone houses.
Since the market bottom in 2021, overall prices have recovered approximately 7.4%, indicating a steady upward trajectory from previous lows. The luxury segment has shown particular resilience, with Casco Viejo properties appreciating 4% annually.
Rental prices have surged dramatically, with average rents increasing 17.2% year-on-year to $1,518 per month, creating attractive opportunities for rental income investors.
What's the outlook for the next 1–2 years?
Panama City real estate is projected to experience modest growth of 3-7% annually over the next 6-24 months in prime city areas.
However, oversupply in mid and high-end condos may keep some price segments flat, creating a two-tier market where new luxury developments outperform older inventory.
Rental yields are expected to stabilize around 6% by 2026, with the luxury market segment anticipated to grow faster than the broader market. Strong rental demand will continue supporting property values.
Inventory levels are declining, down 7.2% year-over-year, which should provide price support as demand meets tightening supply, particularly for well-located modern apartments.
And what about the longer term, say 5 years out?
The five-year outlook for Panama City real estate projects steady appreciation of 4-6% annually for well-located city properties.
| Property Type | 5-Year Projection | Key Drivers |
|---|---|---|
| Luxury Apartments | 6-8% annual growth | Limited supply, expat demand |
| Mid-range Condos | 4-6% annual growth | Urban migration, rental demand |
| City Center Houses | 2-4% annual growth | Limited demand, land constraints |
| Beach Properties | 5-7% annual growth | Tourism recovery, second homes |
| Emerging Neighborhoods | 4-6% annual growth | Infrastructure development |
| Rental Yields | 6-8% stabilization | Strong tenant demand |
| Luxury Market Stock | +15% by 2027 | New developments pipeline |
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How many properties are currently for sale, and how fast are they selling?
Panama City's property inventory is declining, with available properties down 7.2% year-over-year as of September 2025.
The median time to sell a property is 86 days, though this varies significantly by property type and location. Preconstruction condos in the hottest neighborhoods move much faster, often selling within 20 days.
Sales volume reached 41 transactions in July 2025, down from 82 transactions one year prior, indicating buyers are being more selective but demand remains strong for premium and new-build properties.
The declining inventory combined with steady demand suggests a healthy market balance that should support continued price stability and growth.
What are rental prices like, and are they going up or down?
Rental prices in Panama City have increased sharply, with average apartment rents reaching $1,518 per month as of September 2025, representing a substantial 17.2% year-over-year increase.
Studio and one-bedroom apartments rent for $950-$1,550 monthly, two-bedroom units average $1,505, and three-bedroom apartments command $1,891 per month.
Houses rent for significantly less per square meter at $8.10 compared to $12.96 for apartments, reflecting stronger rental demand for urban apartment living over standalone houses.
Gross rental yields for city apartments are currently near 7.8%, making Panama City an attractive market for rental income investors seeking strong cash flow returns.
It's something we develop in our Panama property pack.
Which neighborhoods are the most expensive, and which are more affordable?
| Neighborhood | Avg. Price/m² (USD) | Annual Trend | Key Features |
|---|---|---|---|
| Casco Viejo | $4,150 | +4% | Historic UNESCO site, limited supply |
| Punta Pacifica | $4,160 | -2% | Luxury waterfront, high-end amenities |
| Costa del Este | $3,685 | 0% | Expat favorite, strong rental market |
| El Cangrejo | $2,930 | +3% | Central location, good value/yields |
| San Francisco | $2,720 | +2% | Upper middle class, eco projects |
| City Average (Apartments) | $2,483 | +0.8% | Overall market benchmark |
| City Houses | $1,603 | -3.2% | Lower demand for standalone homes |
Are apartments, condos, or single-family homes performing better in terms of price and demand?
Apartments and condos are significantly outperforming single-family homes in both price appreciation and market demand in Panama City.
New luxury condominium buildings attract the highest demand and strongest price growth, with buyers particularly favoring modern amenities, central locations, and developer-backed projects.
Houses are experiencing flat or declining prices with much weaker demand in the city center, as buyers prefer the convenience and urban lifestyle offered by apartment living.
Resale condos lag behind new-builds in price increases, creating a distinct two-tier market where newer inventory commands premium pricing and faster sales.
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's the average budget needed to buy a good property for living in the city center versus outside?
A quality two-bedroom apartment in Panama City center requires a budget of $240,000-$320,000 for good living standards.
Luxury and premium properties in prime locations like Casco Viejo or Punta Pacifica cost $350,000-$600,000 or more, offering top-tier amenities and prestigious addresses.
Outside the center, decent homes are available from $130,000-$160,000, benefiting from lower per-square-meter pricing for houses compared to city center apartments.
Buyers focused on expat-friendly, walkable neighborhoods with rich amenities should expect to allocate larger budgets toward the higher end of these ranges.
Where are the best areas if you want rental income?
Costa del Este, El Cangrejo, San Francisco, and Casco Viejo offer the highest rental demand and yields, often achieving 6-8% returns for modern apartments.
- Costa del Este: Popular with expats and corporate clients, offering consistent rental demand and strong yields
- El Cangrejo: Central location with excellent connectivity, attracting both local and international tenants
- San Francisco: Upper middle-class area with good rental stability and growing eco-conscious developments
- Casco Viejo: Historic charm attracts premium renters and short-term tourism rentals
- Tourism-driven neighborhoods: Excellent for short-term and seasonal rental strategies
Punta Pacifica offers strong luxury rental potential, though yields are currently declining due to reduced rental absorption in the ultra-high-end segment.
It's something we develop in our Panama property pack.
If I buy now, what are the chances of reselling at a profit in the short to medium term?
Short to medium-term resale prospects (1-3 years) are moderately positive in prime or emerging areas, with the best profit chances coming from new units in high-demand neighborhoods.
Older properties or those in less desirable neighborhoods face flatter outlooks with slow appreciation expected, especially for houses which show declining value trends.
The luxury market is outperforming expectations, with projected 15% growth in luxury property stock by 2027, suggesting strong continued demand in this segment.
Properties in Casco Viejo, Punta Pacifica, or Costa del Este with limited supply and strong developer reputations offer the strongest resale potential for speculative buyers.
Given all this, where, what property type, and what price range would make the most sense for me depending on whether I want to live, rent out, or resell?
| Investment Purpose | Recommended Property Type | Ideal Location | Budget Range | Expected Returns |
|---|---|---|---|---|
| Primary Residence | Modern 2-3 bed apartment | El Cangrejo, San Francisco, Costa del Este | $250,000-$400,000 | Lifestyle value + 4-6% appreciation |
| Rental Income | 1-2 bed apartment | Costa del Este, El Cangrejo, Casco Viejo | $200,000-$350,000 | 6-8% rental yield |
| Resale/Speculation | New luxury condo | Casco Viejo, Punta Pacifica | $350,000-$600,000+ | 6-8% annual appreciation |
| Value Investment | Mid-market apartment | Central zones, emerging areas | $200,000-$350,000 | Balanced growth + income |
| Luxury Living | Premium penthouse/condo | Punta Pacifica, Casco Viejo | $600,000+ | Prestige + stable appreciation |
| Budget-Conscious | Resale apartment | San Francisco, outer El Cangrejo | $150,000-$250,000 | Moderate growth, good yields |
| Tourism/Airbnb | 1-2 bed in tourist areas | Casco Viejo, coastal areas | $250,000-$400,000 | Higher seasonal returns |
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 real estate market offers compelling opportunities for both investors and residents, with apartment values showing steady growth and strong rental yields.
The market favors modern condominiums in central neighborhoods, offering better appreciation prospects and rental income potential than standalone houses, particularly in expat-friendly areas like Costa del Este and El Cangrejo.
Sources
- Panama Real Estate Trends - The LatinVestor
- Panama City Price Forecasts - The LatinVestor
- Global Property Guide - Panama Price History
- Panama Real Estate Market Analysis - The LatinVestor
- Trading Economics - Housing Market Data
- Panama Equity - Market Update Q2 2025
- Redfin - Panama City Housing Market
- Apartments.com - Rent Market Trends