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 apartment prices have reached USD 2,483 per square meter in central areas as of September 2025, making it the most expensive real estate market in Central America.
The Panama City residential market shows significant price variations between neighborhoods, with luxury areas like Punta Pacifica commanding up to USD 8,000 per square meter while peripheral areas remain accessible at USD 1,804 per square meter. One-bedroom apartments in the city center typically cost between USD 150,000-250,000 to purchase, while two-bedroom units in popular neighborhoods range from USD 250,000-350,000 for standard properties.
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 apartment prices range from USD 1,804 per square meter in peripheral areas to USD 8,000 per square meter in luxury developments like Casco Viejo and Punta Pacifica.
A standard two-bedroom apartment in a good neighborhood requires a total budget of USD 250,000-350,000 for purchase plus USD 250-500 monthly running costs.
| Property Type | Standard Range | Premium/Luxury Range |
|---|---|---|
| Price per m² (citywide) | USD 1,800-2,500 | USD 3,500-8,000 |
| 1BR apartment (center) | USD 150,000-250,000 | USD 300,000-500,000 |
| 2BR apartment (good area) | USD 250,000-350,000 | USD 400,000-2M+ |
| Monthly rent 1BR (center) | USD 800-1,500 | USD 1,800-3,000 |
| Monthly rent 2BR (good area) | USD 1,400-2,000 | USD 3,000-5,500+ |
| Condo fees (100m²) | USD 150-300/month | USD 400-800/month |
| Mortgage interest rate | 6.25% standard, 4-5.5% subsidized | 6.25% standard |
How much is the average price per square meter in Panama City right now?
The average price per square meter for apartments in central Panama City reaches USD 2,483 as of September 2025, making it the highest in Central America.
The Panama City residential market shows significant price variation depending on location. The broad citywide average including peripheral areas sits at approximately USD 1,804 per square meter, while prime neighborhoods command substantially higher rates.
In luxury neighborhoods like Casco Viejo, Punta Pacifica, and Costa del Este, prices range from USD 2,500 to USD 4,500 per square meter for standard luxury properties. The most exclusive developments in Old Town can reach USD 5,000 to USD 8,000 per square meter for newest luxury projects with premium finishes and locations.
These prices reflect Panama City's position as a major financial hub and popular destination for international buyers seeking both investment opportunities and residence options in Latin America.
What's the typical price range for a one-bedroom apartment in the city center compared to outside the center?
One-bedroom apartments in Panama City's center typically cost between USD 150,000 and USD 250,000 to purchase, depending on the building quality and specific amenities offered.
For rental prices in central areas, one-bedroom units range from USD 800 to USD 1,500 per month. The variation depends on factors like building age, amenities, and exact location within the central business district.
Outside the city center, purchase prices for one-bedroom apartments drop significantly to USD 100,000 to USD 180,000 for similar-sized units. These peripheral properties often offer larger spaces but may be in older buildings or less convenient locations.
Rental costs outside the center fall to USD 600 to USD 1,000 per month for one-bedroom apartments. The trade-off typically involves longer commute times but access to larger living spaces and lower monthly housing costs.
It's something we develop in our Panama property pack.
How much does a two-bedroom apartment usually cost in the most popular neighborhoods?
Two-bedroom apartments in popular neighborhoods like El Cangrejo and San Francisco typically cost between USD 225,000 and USD 350,000 for new construction units.
These neighborhoods offer square-meter pricing around USD 2,720 to USD 2,930, reflecting their desirability among both local and international buyers. Monthly rental rates in these areas average USD 1,600 for well-maintained two-bedroom apartments.
In premium neighborhoods like Costa del Este and Punta Pacifica, two-bedroom apartment prices rise sharply to USD 350,000 to USD 500,000 for modern units. The highest-end luxury properties in these areas can exceed USD 650,000 for apartments with premium finishes and ocean views.
The price differential reflects the significant amenities and location advantages these popular neighborhoods offer, including proximity to business districts, shopping centers, and international schools that attract expatriate families.
What's the starting price for luxury apartments in Panama City, and how high can it go?
Luxury apartments in Panama City start at approximately USD 450,000 to USD 650,000 for large units with premium views in upscale towers.
In prime luxury locations like Old Town (Casco Viejo) and Punta Pacifica, entry-level luxury apartments begin at USD 630,000 and climb rapidly based on size, views, and building amenities. These properties typically offer square-meter pricing of USD 5,000 to USD 8,000 for the most exclusive developments.
At the highest end of the Panama City luxury market, penthouses and sea-view apartments can reach USD 2 million to USD 12 million. These ultra-luxury properties often feature private terraces, premium imported finishes, and exclusive building amenities like private beaches or marina access.
The luxury market caters primarily to international buyers and wealthy locals seeking trophy properties with investment potential and lifestyle benefits in Panama's most prestigious addresses.
Don't lose money on your property in Panama City
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
How do monthly rents compare to purchase prices for apartments in central areas?
The Panama City apartment rental market delivers gross rental yields averaging 6% to 8% citywide, providing competitive returns for property investors.
A modern two-bedroom apartment purchased for USD 300,000 in a central area typically rents for USD 1,600 to USD 2,000 per month. This represents an annual gross yield of approximately 6.4% to 8%, which compares favorably to other Latin American markets.
Luxury properties show lower yields due to higher entry prices but command premium rents. High-end apartments starting at USD 3,000 to USD 5,500 monthly often yield 4% to 6% annually, appealing to investors seeking capital appreciation alongside rental income.
The rental market benefits from strong demand from expatriates, business travelers, and locals seeking modern amenities in central locations. This consistent demand supports stable occupancy rates and gradual rent increases over time.
What are the average condo or building maintenance fees per month, and how do they vary by size or location?
Standard residential buildings in Panama City charge monthly condo fees of USD 1.50 to USD 2.50 per square meter, making a typical 100-square-meter apartment cost USD 150 to USD 250 monthly.
Luxury towers and prime location buildings command higher maintenance fees of USD 3.50 to USD 4.00 per square meter or more, depending on amenities offered. Buildings with extensive facilities like pools, gyms, 24-hour security, and concierge services typically charge these premium rates.
Prestige buildings in Punta Pacifica and Santa Maria frequently exceed USD 400 to USD 600 per month for maintenance fees, reflecting their high-end amenities and prime waterfront locations. These fees cover comprehensive building services and premium facility maintenance.
The variation in fees directly correlates with building amenities, location prestige, and service levels provided. Buyers should factor these ongoing costs into their total ownership budget when evaluating apartment purchases.
How much more expensive is it to buy in neighborhoods like Punta Pacifica or Costa del Este versus less central areas?
Premium neighborhoods like Punta Pacifica and Costa del Este command a 30% to 50% price premium compared to similar apartments in less central or older areas of Panama City.
| Neighborhood Type | Price per m² | Premium vs Standard Areas |
|---|---|---|
| Punta Pacifica (luxury) | USD 4,000-6,000 | +100% to +200% |
| Costa del Este | USD 3,500-4,500 | +75% to +150% |
| Casco Viejo (luxury) | USD 5,000-8,000 | +150% to +300% |
| El Cangrejo/San Francisco | USD 2,700-2,900 | +35% to +60% |
| Standard central areas | USD 2,000-2,500 | Baseline |
| Peripheral areas | USD 1,800-2,200 | -10% to -25% |
What's the price difference between new developments and older resale apartments?
New construction apartments consistently cost 15% to 40% more per square meter than comparable resale properties in Panama City's residential market.
New developments in premium areas like Casco Viejo and Punta Pacifica start at USD 4,150 to USD 4,160 per square meter, while resale apartments in similar locations typically range from USD 2,800 to USD 3,300 per square meter for properties aged 5 to 10 years.
The price premium for new construction reflects modern amenities, updated building systems, contemporary designs, and warranty coverage that appeals to international buyers. New buildings also often feature better energy efficiency and smart home technology integration.
Resale apartments offer value opportunities for buyers willing to accept older finishes or potentially update interiors. The savings on purchase price can often fund significant renovations while still maintaining a lower total investment than new construction.
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 much do closing costs, taxes, and legal fees typically add to the purchase price?
Buyer closing costs in Panama City typically add 1.5% to 2% to the total purchase price, covering legal fees, notary services, and registration expenses.
Legal fees usually represent approximately 1% of the purchase price, while notary and registration costs make up the remaining portion of buyer expenses. These costs are standard across most apartment transactions regardless of property value.
Sellers bear higher transaction costs, including a 2% transfer tax and capital gains tax ranging from 3% to 10% depending on holding period and circumstances. Buyers should be aware these seller costs may influence negotiation dynamics.
Annual property tax obligations begin after purchase, with no tax on the first USD 120,000 of principal residence value. Properties valued between USD 120,000 and USD 700,000 pay 0.5% annually, while values above USD 700,000 incur 0.7% annual property tax.
What's the average cost of financing an apartment through a mortgage in Panama, including current interest rates?
Standard mortgage interest rates in Panama remain at 6.25% as of September 2025, unchanged from 2024 levels for conventional apartment financing.
Government-subsidized mortgage programs offer preferential rates of 4.0% to 5.5% for the first 5 to 8 years, but these apply only to lower-cost homes up to USD 120,000, limiting their availability for most Panama City apartments.
Typical mortgage requirements include 30% down payments with loan terms ranging from 10 to 20 years. For a USD 300,000 apartment, buyers need USD 90,000 down payment with monthly payments of approximately USD 1,400 to USD 1,500 on the USD 210,000 mortgage balance.
Local banks dominate the mortgage market, and foreign buyers may face additional documentation requirements and potentially higher down payment expectations depending on their residency status and income source verification.
How have apartment prices changed in Panama City over the last five years?
Panama City apartment prices have increased 18% to 20% over the five-year period from 2020 to 2025, representing annual appreciation of approximately 3.5%.
In 2019-2020, the average price per square meter stood at USD 2,050 to USD 2,100, compared to the current USD 2,483 per square meter in central areas. This growth rate represents a more moderate pace than the double-digit annual increases seen in the early 2010s.
The appreciation has been driven by continued foreign investment, infrastructure improvements, and Panama's stable political and economic environment. Premium neighborhoods have experienced slightly higher appreciation rates, particularly properties with ocean views or unique historical significance.
Market analysts expect continued steady growth rather than dramatic price spikes, supported by ongoing demand from international buyers and limited supply of premium locations within the city center.
How much should a buyer budget in total, including purchase price, fees, and monthly running costs, for a standard two-bedroom apartment in a good neighborhood?
A standard two-bedroom apartment in a good Panama City neighborhood requires a total purchase budget of USD 250,000 to USD 350,000 plus one-time closing costs of USD 4,000 to USD 7,000.
Monthly running costs typically range from USD 250 to USD 500, including condo fees of USD 150 to USD 300 and utilities/internet costs of USD 100 to USD 200. These ongoing expenses don't include mortgage payments.
With a 30% down payment (USD 75,000 to USD 105,000), the remaining mortgage balance of USD 175,000 to USD 245,000 at 6.25% interest creates monthly mortgage payments of approximately USD 850 to USD 1,200 depending on loan terms.
Total monthly costs including mortgage and running expenses typically range from USD 1,100 to USD 1,700, making this a realistic budget for buyers seeking quality housing in desirable Panama City neighborhoods.
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 City's apartment market offers diverse opportunities from affordable peripheral properties to ultra-luxury developments in prestigious neighborhoods.
Understanding the significant price variations between neighborhoods and property types is essential for making informed investment or residence decisions in this dynamic Central American market.
Sources
- TheLatinvestor - Panama City Price Forecasts
- Global Property Guide - Panama Price History
- Frapan-Invest - Casco Viejo Luxury Apartments
- Pacific Prime - Cost of Living in Panama
- TheLatinvestor - Panama City Real Estate Market
- TheLatinvestor - Property Panama American
- CEIC Data - Panama Mortgage Rates
- KPMG - Panama Legal Guide
- Hipotekya - Panama Mortgage Loans
- International Living - Cost of Living Panama
-Panama City Price Forecasts and Market Trends
-Panama City Property Taxes Guide
-How Much Real Estate Costs in Panama City
-How Foreigners Can Buy Property in Panama City
-Panama City Housing Market Analysis
-Will Property Prices Go Down in Panama City