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
If you're considering buying property in Panama City in 2026, you're probably wondering whether prices are fair, whether a crash is coming, or whether you should just wait things out.
We've gathered fresh data from Panama's official statistics office, banking regulators, and international institutions to give you a clear picture of where the market stands right now.
This blog post covers the current housing prices in Panama City and we constantly update it as new data comes in.
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).
So, is now a good time?
As of January 2026, buying property in Panama City is a "rather yes" if you shop selectively and negotiate hard, but a "wait or rent" situation if you're looking at overpriced listings.
The strongest signal is that prices haven't spiked into bubble territory, with citywide averages around $2,050 per square meter, which is only modestly above where they were a year ago.
Another key signal is that higher mortgage rates (now around 6.5%) have cooled speculative buying, which means sellers are more willing to negotiate, especially in older condo towers.
The macro backdrop remains supportive with Panama's economy expected to grow in the mid-single digits, infrastructure projects like Metro Line 3 are moving forward, and rental demand stays solid in central neighborhoods like El Cangrejo, Bella Vista, and Costa del Este.
The best strategy right now is to focus on well-located condos in liquid neighborhoods (Costa del Este, San Francisco, El Cangrejo, Marbella), negotiate for discounts, and plan for rental income since yields around 5.5% to 7.5% are achievable.
This is not financial or investment advice, we don't know your personal situation, and you should always do your own research before making any property purchase.
Is it smart to buy now in Panama City (in the country Panama), or should I wait as of 2026?
Do real estate prices look too high in Panama City (in the country Panama) as of 2026?
As of January 2026, property prices in Panama City don't look dramatically overpriced compared to fundamentals, but they do feel stretched in certain segments, especially older high-rise condos where supply has built up over the years.
One clear signal from listing data is that price cuts are common in the condo market, particularly in towers with lots of similar units for sale, which tells you that sellers are adjusting expectations downward rather than holding firm.
Another sign is that well-priced homes in desirable neighborhoods like Costa del Este and El Cangrejo still move within a few months, while generic units in oversupplied towers can sit for six months or longer, showing the market is very uneven.
You can also read our latest update regarding the housing prices in Panama City (in the country Panama).
Does a property price drop look likely in Panama City (in the country Panama) as of 2026?
As of January 2026, the likelihood of a meaningful property price decline in Panama City over the next 12 months is low to medium for the overall market, though certain oversupplied condo segments face higher risk.
We estimate that citywide prices could realistically move anywhere from a 5% decline to a 4% gain over the next year, with specific older condo buildings potentially seeing drops of 10% to 15% if sellers get desperate.
The single most important factor that could push prices down in Panama City is a sustained rise in mortgage rates or a credit tightening by banks, since most local buyers depend heavily on financing to afford current prices.
That said, a sharp rate increase looks unlikely right now because Panama's banking regulator has signaled that any rate relief might come toward late 2026, and the current 6.5% reference rate appears to be a plateau rather than the start of a climb.
Finally, please note that we cover the price trends for next year in our pack about the property market in Panama City (in the country Panama).
Could property prices jump again in Panama City (in the country Panama) as of 2026?
As of January 2026, the likelihood of a renewed price surge across Panama City is low to medium, because credit is not cheap enough and there's still plenty of condo supply sitting on the market.
That said, in the most liquid and scarce neighborhoods like Punta Pacífica, Costa del Este, and Santa María, prices could realistically rise by 3% to 7% over the next year if mortgage rates ease later in 2026.
The single biggest demand-side trigger that could drive prices higher in Panama City would be a meaningful drop in mortgage rates, since that would immediately expand what local buyers can afford and bring sidelined purchasers back into the market.
Please also note that we regularly publish and update real estate price forecasts for Panama City (in the country Panama) here.
Are we in a buyer or a seller market in Panama City (in the country Panama) as of 2026?
As of January 2026, Panama City's residential market leans toward buyers, especially for condos, while the market for well-priced houses and townhouses in top school and commute areas is closer to balanced.
Panama doesn't publish a standard "months of inventory" figure for resales, but based on construction pipeline data and market commentary, the condo segment has enough supply that buyers can typically negotiate on price, furniture, or closing terms without much pushback.
We estimate that a meaningful share of condo listings in Panama City, perhaps 25% to 35%, have undergone price reductions or are marketed with "negotiable" pricing, which tells you that sellers don't have the upper hand in most buildings.
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.
Are homes overpriced, or fairly priced in Panama City (in the country Panama) as of 2026?
Are homes overpriced versus rents or versus incomes in Panama City (in the country Panama) as of 2026?
As of January 2026, homes in Panama City look stretched when measured against local incomes, but more reasonably priced when compared to rents, which helps explain why investors and higher-income buyers dominate the market.
The price-to-rent ratio in Panama City suggests gross rental yields of around 5.5% to 7.5% depending on the neighborhood and whether the unit is furnished, which is decent by global standards and means purchase prices aren't wildly out of line with what landlords can earn.
However, the price-to-income multiple tells a tougher story: a typical 90 square meter condo at around $185,000 equals roughly 20 times the median annual salary for a single earner in Panamá province, or about 10 times for a two-earner household, which is why the market leans heavily on expats, higher-income locals, and subsidized mortgage programs.
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).
Are home prices above the long-term average in Panama City (in the country Panama) as of 2026?
As of January 2026, home prices in Panama City are roughly near their long-term trend, perhaps 0% to 10% above a smoothed multi-year average, rather than dramatically elevated like they might be in a speculative bubble.
Over the past 12 months, prices have grown modestly, likely in the low single digits, which is actually slower than the pre-pandemic pace and suggests the market is digesting previous oversupply rather than racing ahead.
When you adjust for inflation, real prices in Panama City are probably still below their prior cycle peak from around 2014 to 2015, especially in older condo stock where maintenance costs and HOA fees have eaten into effective values.
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What local changes could move prices in Panama City (in the country Panama) as of 2026?
Are big infrastructure projects coming to Panama City (in the country Panama) as of 2026?
As of January 2026, the single biggest infrastructure project that could move property prices in Panama City is Metro Line 3, which will dramatically cut commute times between Panamá Oeste and the city center, potentially boosting values in connectivity corridors over the next several years.
Metro Line 3 is already under construction with active institutional oversight, though full delivery is still a few years away, meaning the price impact will be gradual rather than immediate, benefiting areas like Albrook and parts of Panamá Pacífico as the system integrates.
For the latest updates on the local projects, you can read our property market analysis about Panama City (in the country Panama) here.
Are zoning or building rules changing in Panama City (in the country Panama) as of 2026?
The most important zoning change in Panama City is the ongoing implementation and periodic review of the PLOT (Plan Local de Ordenamiento Territorial), which sets formal rules around land use and building densification across the district.
As of January 2026, these zoning rules could have a mixed effect on prices: in some areas they may allow more towers (adding supply and capping prices), while in others they may restrict building heights (limiting supply and supporting prices).
The areas most affected by these rule changes in Panama City tend to be transitional neighborhoods on the edges of established zones, places where developers are watching closely to see whether new projects get approved or face tighter restrictions.
Are foreign-buyer or mortgage rules changing in Panama City (in the country Panama) as of 2026?
As of January 2026, the bigger rule changes affecting Panama City's property market are on the mortgage side rather than foreign-buyer restrictions, since Panama remains generally open to international purchasers while domestic financing conditions have tightened.
The most significant mortgage-related change is the government's extension and modernization of the "interés preferencial" (subsidized interest rate) program, which pulls demand toward new-build homes in certain price brackets and can shift activity away from the resale market.
On the rate side, the reference mortgage rate moved up to around 6.5% in late 2025, which effectively limits what buyers can borrow and puts downward pressure on what sellers can realistically ask, especially for properties that don't qualify for subsidized financing.
You can also read our latest update about mortgage and interest rates in Panama.
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.
Will it be easy to find tenants in Panama City (in the country Panama) as of 2026?
Is the renter pool growing faster than new supply in Panama City (in the country Panama) as of 2026?
As of January 2026, renter demand and new rental supply in Panama City are roughly in balance for well-located mid-market units, though luxury segments still face oversupply while everyday neighborhoods see tighter competition for good listings.
The demand side is supported by Panama's economy, which the World Bank expects to keep expanding in the mid-single digits, plus growing tourism traffic that brings short and medium-term rental demand to central areas.
On the supply side, INEC construction data shows substantial ongoing building activity, meaning new units keep entering the market, but the pace has moderated in some quarters rather than accelerating sharply.
Are days-on-market for rentals falling in Panama City (in the country Panama) as of 2026?
As of January 2026, days-on-market for rentals in Panama City varies significantly by property type and location, with well-priced mid-market apartments in central neighborhoods typically finding tenants within 3 to 6 weeks, while overpriced luxury units can sit for 3 months or longer.
The difference between best areas and weaker areas is striking: a correctly priced one or two-bedroom apartment in El Cangrejo, Bella Vista, or San Francisco will rent much faster than a similar unit in an oversupplied luxury tower in Punta Pacífica.
One reason days-on-market falls in certain Panama City neighborhoods is that higher mortgage rates have pushed some would-be buyers into renting instead, which increases competition for well-located, affordable rental units.
Are vacancies dropping in the best areas of Panama City (in the country Panama) as of 2026?
As of January 2026, vacancy rates in Panama City's most livable neighborhoods like Costa del Este, El Cangrejo, San Francisco, Marbella, and Bella Vista appear stable to slightly declining, as tenant demand concentrates where daily life is most convenient.
In these best areas, effective vacancy is likely lower than the citywide average, perhaps in the 3% to 6% range for well-maintained, fairly priced units, compared to double-digit vacancy in some overbuilt luxury towers.
One practical sign that these "best areas" are tightening first in Panama City is that landlords in El Cangrejo and San Francisco report receiving multiple inquiries within days of listing, while similar units in less convenient locations get sporadic interest.
By the way, we've written a blog article detailing what are the current rent levels in Panama City (in the country Panama).
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An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Am I buying into a tightening market in Panama City (in the country Panama) as of 2026?
Is for-sale inventory shrinking in Panama City (in the country Panama) as of 2026?
As of January 2026, for-sale inventory in Panama City is not broadly shrinking, as the condo market still has enough listings that buyers retain negotiating power in most buildings and price segments.
We estimate that months-of-supply in Panama City's condo market remains elevated compared to a balanced market benchmark of around 4 to 6 months, meaning there's no urgent shortage pushing prices up across the board.
That said, inventory is tighter in specific pockets like Costa del Este family homes and well-priced units in El Cangrejo, where the best listings do move faster because demand for "livable" properties outpaces generic tower stock.
Are homes selling faster in Panama City (in the country Panama) as of 2026?
As of January 2026, homes in Panama City are not selling faster overall, though correctly priced properties in desirable neighborhoods like Costa del Este, El Cangrejo, and San Francisco can close within 1 to 3 months, while average condos in crowded towers take 3 to 6 months or longer.
Year-over-year, median days-on-market has likely stayed flat or even lengthened slightly for the typical listing, because higher mortgage rates have made buyers more cautious and widened the gap between what sellers want and what buyers can afford.
Are new listings slowing down in Panama City (in the country Panama) as of 2026?
As of January 2026, we are not confident that new for-sale listings in Panama City have dropped significantly year-over-year, though developer launches in the new-build segment may have slowed due to uncertainty around the subsidized mortgage program transition.
Panama City typically sees more listing activity in the dry season (roughly December through April) and quieter periods during the rainy months, so current levels need to be compared against seasonal norms rather than taken at face value.
One reason new listings could be slowing in parts of the market is that some developers are waiting for clarity on the "interés preferencial" subsidy rules before launching new projects, since buyer demand depends heavily on whether financing incentives will apply.
Is new construction failing to keep up in Panama City (in the country Panama) as of 2026?
As of January 2026, new construction in Panama City is not failing to keep up with demand, and if anything, the risk historically has been the opposite, with periods of condo oversupply weighing on the market.
INEC construction census data shows the pipeline remains substantial, with ongoing projects delivering square meters into the market even as some quarters have shown year-over-year declines in activity.
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.
Will it be easy to sell later in Panama City (in the country Panama) as of 2026?
Is resale liquidity strong enough in Panama City (in the country Panama) as of 2026?
As of January 2026, resale liquidity in Panama City is strong enough in the most desirable neighborhoods but weaker for generic condo units in oversupplied towers, meaning your exit experience will depend heavily on what and where you buy.
In liquid neighborhoods like Costa del Este, El Cangrejo, San Francisco, Marbella, and Bella Vista, correctly priced resale homes typically sell within 1 to 3 months, which is a healthy benchmark for a market where most transactions require mortgage financing.
The property characteristic that most improves resale liquidity in Panama City is location in an "always-demand" neighborhood with walkability, good schools, or corporate tenant appeal, since these factors ensure a steady pool of interested buyers.
Is selling time getting longer in Panama City (in the country Panama) as of 2026?
As of January 2026, selling time in Panama City appears to be stable or slightly longer compared to a year ago, primarily because higher mortgage rates have made buyers more price-sensitive and less willing to stretch their budgets.
Current median days-on-market for a typical listing in Panama City probably ranges from 2 to 4 months for reasonably priced properties, with a realistic spread of 1 month for hot listings in prime areas to 6 months or more for overpriced or poorly located units.
One clear reason selling time can lengthen in Panama City is affordability pressure: when financing costs rise, the pool of qualified buyers shrinks, and sellers who don't adjust their expectations end up waiting longer to find a match.
Is it realistic to exit with profit in Panama City (in the country Panama) as of 2026?
As of January 2026, the likelihood of selling with a profit in Panama City is medium, achievable if you buy at a fair price in a liquid neighborhood and hold for at least 5 to 7 years to ride out market cycles and cover transaction costs.
A minimum holding period of around 5 years is typically needed in Panama City to make exiting with profit realistic, because shorter holds often don't generate enough appreciation to offset buying and selling costs plus potential market dips.
Total round-trip transaction costs in Panama City, including transfer taxes, legal fees, agent commissions, and notary expenses, typically run around 8% to 12% of the property value (roughly $15,000 to $22,000 on a $185,000 condo, or about 14,000 to 20,000 euros).
The factor that most increases profit odds in Panama City is buying below market value in a liquid neighborhood, since a 10% discount at purchase essentially covers half your transaction costs before you even start.
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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 |
|---|---|---|
| Panama INEC | Panama's official statistics office, run under the Contraloría. | We used it to anchor GDP, inflation, and official publication links. We cross-checked that all construction and labor PDFs are official releases. |
| INEC Construction Census Q1 2025 | Official survey-based construction pipeline stats for Panama City. | We used it to estimate how much new residential supply is still coming. We also judged whether construction is cooling or feeding oversupply. |
| Superintendencia de Bancos de Panamá | Panama's banking regulator with official interest rate data. | We used it to estimate financing costs as of late 2025. We also stress-tested affordability and price risk scenarios. |
| IMF Panama 2025 Article IV | Top-tier macro source with consistent methodology across countries. | We used it to anchor growth, labor-market risk, and downside scenarios. We cross-checked Panama's post-2024 recovery narrative. |
| World Bank Panama Outlook | Top-tier macro source designed for up-to-date country outlooks. | We used it to triangulate GDP expectations and the role of construction and services. We checked whether the macro backdrop supports housing demand. |
| MEF Panama | Government's official policy channel for housing finance rules. | We used it to understand how subsidies affect new-home demand. We identified policy uncertainty that can freeze transactions. |
| Metro de Panamá | The project authority providing primary-source infrastructure updates. | We used it to identify which corridors may benefit from commute-time effects. We also set realistic timeline expectations for price impacts. |
| MIVIOT PLOT Portal | Official housing ministry reference for zoning and territorial planning. | We used it to ground zoning discussions in official documents. We explained where densification constraints could move prices. |
| Autoridad de Turismo de Panamá | Official tourism authority with measured visitor statistics. | We used it to support the tenant pool story in short and medium-stay areas. We validated that tourism growth claims are backed by data. |
| INEC Labor Market Survey | Official labor bulletin crucial for affordability calculations. | We used it for median wage data to calculate price-to-income ratios. We grounded affordability analysis in measurable figures. |
| Global Property Guide | Established cross-country housing publisher citing upstream RIAL data. | We used it as a secondary aggregator to access RIAL headline results. We cross-checked against local reports before using estimates. |
| Panama Equity | Established local real estate firm with on-the-ground market insight. | We used it for new versus resale pricing divergence commentary. We validated buyer-market conditions and negotiation dynamics. |
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Panama. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
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