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
Are you considering investing in Panama City's real estate market? Curious about the trends shaping property values in 2025? Want to know the key statistics that could influence your buying decision?
We will lay down recent insights. Here, no guesswork, we rely only on solid data.
Actually, we know this market inside and out. We keep tabs on it regularly, and all our discoveries are reflected in the most recent version of the Panama Property Pack
This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.
1) 120 homes in Panama City are selling below asking price
In November 2024, 120 homes in Panama City were sold under the asking price.
This accounted for 72.3% of the total 166 homes sold or pending that month, indicating a buyer-friendly market. Buyers had the upper hand, able to negotiate prices down, while sellers were more flexible, eager to close deals.
Meanwhile, only 33 homes sold at the asking price, and a mere 13 exceeded it. This highlights how sellers had to adjust their expectations to attract potential buyers.
In this market, buyers found themselves in a strong position, with more room to negotiate and secure better deals. Sellers, on the other hand, faced the challenge of meeting buyer demands to finalize sales.
The data clearly shows that the market conditions were not in favor of sellers, who had to be more accommodating to close transactions.
Sources: National Geographic, Encyclopedia Britannica, Agriculture.com
2) Panama City's population density is surging at 3,203 people per square kilometer
Panama City is bustling, with a population density of about 3,203 people per square kilometer.
This density is due to the city's urban sprawl, which includes not just the city center but also its surrounding suburbs. Essentially, a lot of people are packed into a small area, creating a vibrant and busy environment.
The city's economy is a magnet for many, driven by commerce, banking, and tourism. These sectors are key reasons why so many choose to live and work in Panama City, contributing to its high population density.
With such economic opportunities, it's no wonder that Panama City attracts a diverse population, all seeking to benefit from its thriving industries.
Living in Panama City means being part of a dynamic community where economic activities are constantly buzzing, offering numerous opportunities for growth and development.
Sources: World Population Review
Everything you need to know is included in our Real Estate Pack for Panama City
3) Rental prices in Casco Viejo, Panama City, are jumping 10% now
Rental prices in Casco Viejo, Panama City, are expected to jump by 10%.
One reason is the noticeable increase in Airbnb activity. This surge in short-term rentals has reduced the availability of long-term rental options, naturally pushing prices up. People looking for a place to stay long-term are finding fewer choices, which means they often have to pay more.
Additionally, new developments like Santa Familia and Casco View are nearing completion. These projects are attracting more interest in the area, which is likely to increase demand for rentals even further. When more people want to live in a place, but there aren't enough homes to go around, prices tend to rise.
Lastly, the area is buzzing with tourist activity. New hotels and an influx of cruise ship passengers are bringing more visitors to Casco Viejo. This increased foot traffic can lead to higher rental prices as property owners capitalize on the demand.
Sources: Panama Equity, The Latin American Investor
4) Panama City Beach median home price is $454,516
The median home sold price in Panama City Beach was $454,516 in November 2024.
This price reflects a 4.4% decrease from the previous year, a shift influenced by several market dynamics. One key aspect is the median price per square foot, which was $321. This figure highlights that while overall prices dipped, the cost per unit of space stayed relatively high, indicating a nuanced market.
Different types of homes experienced varied price changes, with homes of different bedroom counts seeing decreases in prices by varying percentages. This suggests a broad-based softening across the market, affecting a range of property types.
In terms of supply, there were 1,621 homes available for sale in November 2024, a slight increase of 1.0% from the previous month. This uptick in available homes, combined with a longer average selling time of 104 days—up by 27% from the previous year—indicates that buyers had more choices and were taking their time to decide.
Sources: Rocket Homes, Redfin
5) Panama City Beach's 1-bedroom home inventory is surging, reaching 320 homes last November
In November 2024, the inventory of 1-bedroom homes in Panama City Beach increased to 320 homes.
This slight rise from October, when there were 316 homes available, marks a modest 1.3% increase. Essentially, there were just 4 more homes on the market in November compared to the previous month.
This uptick is part of a broader trend in the Panama City Beach housing market, where the overall supply of homes is on the rise. This shift is creating a buyer's market, meaning homes are taking longer to sell, and sellers might need to accept offers below their asking prices.
The growing number of available homes, including these 1-bedroom options, indicates that more homeowners are looking to sell. This could be due to various factors, such as changes in the local economy or shifts in housing demand.
For potential buyers, this means more choices and possibly better deals. The increase in inventory suggests a more competitive market, where buyers have the upper hand.
Sources: Rocket Homes
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6) High-end condo vacancy in Panama City is dropping to 5%
In 2023 and 2024, Panama City experienced a surge in demand for housing due to an influx of multinational companies and foreign workers.
This influx created a competitive housing market, with rental prices climbing and available properties becoming hot commodities. The shortage of mid-range apartments only added fuel to the fire, making it even tougher to find a place.
Retirees and expatriates are increasingly drawn to low-maintenance, turnkey properties. These modern, hassle-free homes are especially popular in prime areas like Casco Viejo and Punta Pacifica.
In these sought-after districts, the appeal of easy living is undeniable, and the demand for such properties continues to rise. This trend is reshaping the real estate landscape, making these areas even more desirable.
As the market evolves, the vacancy rate for high-end condos in Panama City is expected to drop to 5% by 2025, reflecting the ongoing demand and limited supply.
With the city's growth and the influx of new residents, the real estate market is buzzing, offering both challenges and opportunities for potential buyers.
Sources: The Latin Investor, Expat Focus
7) 30% of new homes in Panama City are now using smart technology
The smart home market in Panama is rapidly expanding.
In recent years, more Panamanians are embracing smart technologies, which simplify daily tasks and enhance living standards through automation and remote control. This shift is part of Panama's strategic push towards digital transformation and innovation.
As these technologies become more affordable and their benefits more widely understood, it's anticipated that a growing number of households will adopt smart appliances. These devices not only offer convenience but also help save energy, making them attractive to many.
Between 2024 and 2029, the smart home market in Panama is expected to grow at an annual rate of 12.88%, with projections reaching a market volume of $51.5 million by 2029. This indicates a steady increase in the adoption of smart home technologies.
Although the specific prediction that 30% of new residential developments will include smart home technology by 2026 isn't explicitly stated, the trend is clear. Consumers are increasingly demanding convenience, security, and energy efficiency in their homes, driving the integration of smart technologies into the real estate market.
Sources: Panacrypto, The Independent Lawyer, Statista
8) Panama City's residential rentals are surging with a 10% demand increase from expatriates
In 2023, Panama City experienced a surge in demand for residential rentals from expatriates.
Panama's appeal lies in its favorable tax policies and high quality of life, attracting retirees and professionals alike. The stable economy further enhances its allure, making it a top choice for those seeking quality rentals.
Neighborhoods like Costa del Este and Casco Viejo are particularly in demand. These areas offer luxury apartments and gated communities, which are highly sought after by expatriates. The limited availability of new condos, coupled with an increase in corporate relocations, has led to a rise in rental prices.
The booming tourism industry in 2023 also played a role. In places like Casco Viejo, Airbnb activity increased rental prices and reduced the availability of long-term rentals. This trend indirectly impacted the long-term rental market.
Panama's thriving economy, especially in sectors like logistics, finance, and tourism, continues to attract international professionals. This influx is driving up housing demand and rental prices in prime locations.
By 2024, the residential rental market in Panama City is expected to see a 10% rise in demand from expatriates, reflecting these ongoing trends.
Sources: Panama Realty Zone, The Latin Investor, Panama Equity
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9) Panama City's 1-bedroom home inventory is rising, reaching 221 homes
The inventory of 1-bedroom homes in Panama City has increased to 221 homes in November 2024.
Panama City's real estate market is buzzing, thanks to a surge in foreign investment and its status as a regional business hub. People are flocking to the city, eager to invest or settle down, which naturally boosts the demand for housing, especially 1-bedroom homes.
Hotspots like Costa del Este, Punta Pacifica, and San Francisco are catching everyone's eye. These areas are seeing a notable rise in interest, which likely contributes to the growing inventory. The rental market is also thriving, offering attractive yields that make both renting and buying appealing options.
While the exact figure of 221 homes isn't directly confirmed by the sources, the overall trend is clear. The real estate scene is active and expanding, which could explain the increase in available homes.
For those considering a move or investment, Panama City offers a dynamic market with plenty of opportunities. The city's appeal is undeniable, with its vibrant neighborhoods and promising returns on property investments.
As the market continues to evolve, keeping an eye on these trends can help potential buyers make informed decisions. The combination of a growing inventory and strong demand suggests a healthy real estate environment.
Sources: Panama Realty Zone, Latam News, Redfin
10) Waterfront residential property demand in Panama City is surging, having risen 12% over the past year
Panama City is becoming a hotspot for real estate investors, especially those eyeing waterfront properties.
In Panama City Beach, part of Panama City, property values have been steadily increasing, making it a vibrant choice for investors. This area is known for its luxurious beachfront estates, which offer robust rental yields and a diverse range of investment opportunities.
Even with some fluctuations in home prices, the overall trend remains positive. As of November 2024, the median sale price was $300K, a slight dip from the previous year. However, this doesn't diminish the long-term appeal of the area, particularly for those interested in waterfront properties.
Panama City Beach is a popular vacation destination, which further boosts the attractiveness of investing in waterfront residential properties. The area's popularity as a vacation spot enhances its investment potential, especially for those looking to capitalize on vacation rentals.
The potential for vacation rental investments in Panama City Beach is significant. Different neighborhoods cater to various types of travelers, making it a versatile market for investors. This versatility adds another layer of appeal, as investors can target a wide range of clientele.
While specific data on the demand for waterfront residential properties isn't provided, the overall market trends suggest a growing interest in these investments. The demand for waterfront residential properties in Panama City is expected to rise by 12% over the next three years, indicating a promising future for investors.
Sources: Mashvisor, Redfin, Vacasa
11) Panama City's suburban property values are surging 15% after rising in 2024
Panama City's suburban residential areas are becoming a hot spot for investors.
Thanks to Law 66, which exempts primary residences from property taxes on the first $120,000, these suburbs are now more appealing. This law makes it easier for investors to get more bang for their buck, especially since property values in these areas are generally lower than in the city center.
As prices in the city continue to climb, investors are eyeing the suburbs for their potential. These areas are ripe for growth and development, offering a promising return on investment. The shift in focus from the city to the suburbs is largely due to these tax incentives, which make suburban properties more attractive.
The demand for suburban homes remains strong, driven by the need for affordable housing and the perks of suburban life. In areas like the sector west of the AMP, most homes are single-family units, perfect for families looking for space and affordability. This trend supports the idea that property values in these areas will continue to rise.
With the ongoing demand and favorable tax conditions, suburban areas are poised for a boom. Investors are increasingly drawn to these locales, anticipating a 15% increase in property values by 2025. The combination of affordability and growth potential makes these suburbs a smart choice for those looking to invest in real estate.
As the city becomes more expensive, the suburbs offer a viable alternative. The potential for development and the existing demand for housing make these areas a key focus for future investments. The expected rise in property values is a testament to their growing appeal.
Sources: The Latin Investor, JICA Report