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Yes, the analysis of Panama City's property market is included in our pack
Thinking about buying a 3-bedroom apartment in Casco Viejo? It’s a vibrant area, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other neighborhoods like Punta Pacifica or Costa del Este where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Panama City Property Pack.
Will property prices increase in Panama City in 2025?
Yes, property prices in Panama City are expected to rise in 2025, driven by a combination of economic growth and increased foreign investment.
Backed by our fresh, in-depth market analysis, we’re confident that Panama City remains an attractive destination for both local and international investors.
While there are challenges such as inflation and potential regulatory changes, the main factors driving Panama City's property market growth are robust and likely to persist.
The city's strategic location, coupled with its status as a financial hub, continues to attract buyers, ensuring a steady demand for real estate.
Signals pointing to a property price increase in Panama City
Here are some factors suggesting prices could increase:
Panama's economy is projected to grow steadily in 2025, supported by strong performance in sectors like logistics, banking, and tourism. Economic growth typically boosts consumer confidence and increases demand for real estate.
The expansion of the Panama Canal continues to enhance the country's strategic importance in global trade, attracting international businesses and expatriates, which in turn drives demand for residential and commercial properties.
Foreign investment in Panama City is expected to rise, particularly from North American and European investors seeking opportunities in emerging markets. This influx of capital is likely to push property prices upward.
Infrastructure improvements, including new transportation projects and urban development initiatives, are set to enhance the city's appeal, making it more attractive to potential buyers and investors.
The government's favorable tax policies for foreign retirees and investors continue to draw interest from international buyers, contributing to increased demand for real estate.
Panama City's growing reputation as a regional financial hub attracts professionals and businesses, increasing the demand for office spaces and upscale residential properties.
The limited availability of land for new developments in prime areas of Panama City is expected to constrain supply, leading to higher property prices as demand remains strong.
Signals pointing to a property price decrease in Panama City
Here are some factors suggesting prices could fall:
Rising inflation rates could erode purchasing power, making it more challenging for local buyers to afford property, potentially dampening demand.
Potential regulatory changes or increased property taxes could deter investment, particularly from foreign buyers, leading to a slowdown in the market.
Global economic uncertainties, such as fluctuations in currency exchange rates or geopolitical tensions, could impact investor confidence and reduce the flow of foreign capital into Panama City's real estate market.
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If property prices go up in Panama City, how much would they increase by?
If real estate prices in Panama City were to rise in 2025, the increase would likely be around 3% to 7% of their 2024 values.
Typically, real estate in emerging markets like Panama City appreciates by approximately 3% to 7% annually over the long term. However, fluctuations can occur depending on factors such as location, economic conditions, and property type.
It means that, if you spot a charming 2-bedroom apartment in Casco Viejo for $250,000 today, don't be surprised if it's priced between $257,500 and $267,500 this time next year.
To give you a better understanding, here is a table that shows 7 types of Panama City real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 3%, 5%, and 7%.
| Type of Property | Average Price in 2024 ($) | Price in 2025 (3% increase) | Price in 2025 (5% increase) | Price in 2025 (7% increase) |
|---|---|---|---|---|
| Apartment in Punta Pacifica (100 sqm / 1,076 sqft) | $300,000 | $309,000 | $315,000 | $321,000 |
| Condo in Costa del Este (120 sqm / 1,292 sqft) | $400,000 | $412,000 | $420,000 | $428,000 |
| Luxury Penthouse in Avenida Balboa (150 sqm / 1,615 sqft) | $1,000,000 | $1,030,000 | $1,050,000 | $1,070,000 |
| Studio in El Cangrejo (40 sqm / 431 sqft) | $100,000 | $103,000 | $105,000 | $107,000 |
| Loft in San Francisco (90 sqm / 969 sqft) | $350,000 | $360,500 | $367,500 | $374,500 |
| Townhouse in Clayton (200 sqm / 2,153 sqft) | $600,000 | $618,000 | $630,000 | $642,000 |
| Investment Property in Bella Vista (70 sqm / 753 sqft) | $200,000 | $206,000 | $210,000 | $214,000 |
Everything you need to know is included in our Property Pack for Panama City
If real estate prices go up in Panama City, which areas are likely to see the biggest increases?
Today, people who want to move to Panama City desire the blend of historic charm and modern amenities, which Casco Viejo offers. Hence, we could see a price increase there in 2025.
Also, lately, there's been a shift toward more youthful, vibrant neighborhoods, and El Cangrejo has really taken off.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Panama City market.
| Neighborhood | Level of Increase | Why |
|---|---|---|
| Casco Viejo | High | Recent restoration projects and its increasing appeal to international buyers as travel normalizes post-pandemic, driving demand. |
| Punta Pacifica | High | Expected rise due to limited housing stock, luxury developments, and growing demand for prime properties in central Panama City. |
| Costa del Este | Medium-High | Ongoing development and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher. |
| Obarrio | Medium | The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments. |
| El Cangrejo | Medium-High | Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward. |
| San Francisco | Medium | Investment in local infrastructure, such as the extension of metro lines and renovation of historic areas, is boosting long-term value. |
| Avenida Balboa | Medium-High | With new cultural and commercial spaces being developed, this trendy neighborhood is seeing increased demand from both residents and investors. |
| Bella Vista | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
| Clayton | Medium-High | Its proximity to the city center, along with new office and residential developments, makes it increasingly attractive to professionals seeking more space. |
| Ancon | Medium | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
| Punta Paitilla | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
| Amador | High | Upcoming restoration of historic sites and high-profile cultural projects are driving a renewed focus on this scenic, waterfront location. |
-The best areas to buy a property in Panama City
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Panama City?
In 2025, Panama City real estate trends focus on tech-smart, energy-efficient apartments, larger suburban homes for families, properties with outdoor spaces, and eco-friendly buildings—all driving higher demand and prices. Here is a summary.
- Tech-Equipped and Energy-Efficient Apartments:
Driven by remote work and sustainability trends, these homes offer smart technology features and energy-saving systems. They cater to young professionals and tech workers, making them a hot commodity in 2025.
- Family-Sized Apartments in Suburban Areas:
With a growing demand for larger living spaces, especially among families, suburban areas near Panama City are seeing increased interest. Proximity to green spaces and schools is a major factor driving value.
- Properties with Outdoor Spaces:
Post-pandemic, outdoor spaces like terraces, balconies, or gardens have become highly desirable. In dense cities like Panama City, these features offer a much-needed escape and are likely to drive up property values.
- Eco-Friendly Buildings with Low Carbon Footprints:
Panama City's commitment to sustainability is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the city’s green goals, leading to price appreciation in this category.
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