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Panama City's real estate market is showing steady growth with apartments leading the way at a median price of $2,483 per square meter as of September 2025.
The market has experienced modest but positive growth over the past year, with luxury neighborhoods like Casco Viejo and El Cangrejo outperforming the broader market due to strong foreign investment and limited supply. While single-family homes have declined 3.2% year-over-year, urban condos continue to attract both local and international buyers seeking modern amenities and walkable neighborhoods.
If you want to go deeper, you can check our pack of documents related to the real estate market in Panama City, based on reliable facts and data, not opinions or rumors.
Panama City's property market shows moderate growth with apartments averaging $2,483/m² and rental yields reaching 7.8%.
Foreign investment is driving demand in luxury neighborhoods while rental market remains robust with vacancy rates under 2% in prime areas.
| Market Aspect | Current Status | 12-Month Outlook |
|---|---|---|
| Apartment Prices | $2,483/m² median | 1-2% growth expected |
| Rental Yields | 7.8% average | Stable to improving |
| Foreign Investment | 25% increase in 2025 | Continued strong demand |
| Luxury Market | $2,500-$4,500/m² | 2-4% annual growth |
| Vacancy Rates | Under 2% mid-range | Tight market conditions |
| Best Areas | Casco Viejo, El Cangrejo | Continued outperformance |
| Property Type | Condos leading growth | Urban apartments preferred |
What are the current property prices in Panama City right now?
Panama City's property prices as of September 2025 show apartments leading the market at a median price of $2,483 per square meter.
Luxury neighborhoods command premium prices, with areas like Casco Viejo, Punta Pacifica, and Costa del Este ranging from $2,500 to $4,500 per square meter. Pre-construction properties in prime areas can reach upwards of $4,000 per square meter, reflecting the strong demand for new developments with modern amenities.
Single-family houses are priced lower at approximately $1,603 per square meter, but this segment is experiencing a declining trend as urban buyers increasingly prefer condominiums. The rental market shows monthly rates of $1,550 for one-bedroom units, $1,600 for two-bedroom apartments, $2,400 for three-bedroom properties, and $5,500 for four-bedroom or larger units.
These prices position Panama City as having the highest property values in Central America, reflecting its status as a regional business hub and attractive destination for international investors.
How have prices changed over the past 12 months, and what's the short-term trend for the next year?
Over the past 12 months, Panama City's apartment market has grown by 0.8% year-over-year as of Q2 2025.
Luxury and prime apartment segments have significantly outperformed the broader market, with annual growth rates of 2-4% in key zones including Casco Viejo, Punta Pacifica, Costa del Este, and San Francisco. This growth is primarily driven by steady foreign demand and limited supply in these desirable neighborhoods.
In contrast, the single-family home market has declined by 3.2% year-over-year, reflecting a clear urban shift toward condos and apartments among both local and international buyers. This trend indicates changing lifestyle preferences toward amenity-rich, secure, and walkable living environments.
For the next year, moderate but positive growth is expected, with apartments likely to appreciate 1-2%. Luxury and expat-centric zones are set to continue outperforming due to supply shortages, ongoing urban revitalization projects, and robust appeal to international buyers.
What are the forecasts for the medium term, say the next 3 to 5 years?
The medium-term forecast for Panama City's real estate market from 2025 to 2030 projects steady, moderate growth at 1-2% annually.
Average apartment prices are expected to reach approximately $1,880 per square meter by 2030, representing a conservative but sustainable upward trajectory. This growth will be supported by persistent foreign investment, continued business activity in the city, modern infrastructure development, and ongoing neighborhood revitalization projects.
The market is moving away from boom-bust cycles toward a more mature, income-driven expansion model. Foreign investment patterns are expected to broaden beyond traditional luxury segments, creating opportunities in emerging neighborhoods while maintaining strength in established premium areas.
It's something we develop in our Panama City property pack.
This moderate growth trajectory reflects Panama City's evolving status as a stable, mature real estate market rather than a speculative investment destination.
What about the long-term outlook for 10 years and beyond?
The long-term outlook for Panama City real estate extends the medium-term trends with projected apartment prices reaching $193,700 per average unit by 2035.
By 2045, typical apartments could reach $235,000 to $250,000, assuming stable economic and political fundamentals continue alongside sustained investor interest. This represents a continuation of the steady 1-2% annual increase pattern established in recent years.
Major market volatility is not forecast, with analysts expecting a conservative, sustainable uptrend rather than dramatic price swings. The city's role as Central America's financial hub and its appeal to international residents provide fundamental support for long-term value appreciation.
Infrastructure improvements, urban planning initiatives, and the city's strategic position for business and lifestyle will likely continue driving steady demand over the next two decades.
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Which neighborhoods are currently growing fastest, and which ones are slowing down?
| Neighborhood | Price Trend | Key Features |
|---|---|---|
| Casco Viejo | +4% | UNESCO status, limited supply, high foreign demand, historic charm |
| El Cangrejo | +3% | Expat hotspot, amenities, walkable lifestyle |
| San Francisco | +2% | Green projects, family-oriented, younger buyers |
| Costa del Este | 0% | Strong rental market, business hub, mixed-use development |
| Punta Pacifica | -2% | Still premium, but rental yields under pressure from new supply |
| Bella Vista | +1% | Central location, major renovations, premium lifestyle |
| Balboa Avenue | +1% | Waterfront properties, office proximity |
How do price trends compare across property types like condos, single-family homes, and commercial spaces?
Condos and apartments are clearly leading price appreciation in Panama City, with growth ranging from 0.8% to 4% depending on the district.
These properties are most in demand for both local and expat buyers, as well as rental investors seeking modern amenities, security, and urban convenience. New luxury condos with premium amenities command the highest premiums compared to older stock.
Single-family homes are losing ground in the city center, experiencing a 3.2% year-over-year decline as buyers increasingly prefer the security, amenities, and maintenance-free lifestyle that condominiums offer. However, houses in outer suburbs still maintain some demand for families seeking larger spaces.
Commercial real estate, including office and mixed-use spaces, is recovering as Panama's business appeal rebounds from previous economic pressures. Retail spaces are adapting to new consumption patterns while office demand strengthens with the city's continued role as a regional business hub.
The largest appreciation gap exists between modern, amenity-rich properties and older stock, regardless of property type, as buyers prioritize contemporary features and building management.
What's the rental yield in different areas, and how stable are rental demand and occupancy rates?
| Area | Studio/1BR Yield | 2BR Yield | 3BR+ Yield |
|---|---|---|---|
| Bella Vista | 12.4% | 7.8% | 5.5% |
| San Francisco | 9.0% | 7.4% | 7.6% |
| El Cangrejo | 8.4% | 7.4% | 6.6% |
| East Coast | 7.8% | 7.1% | 6.7% |
| Pacific Point | 7.7% | 6.4% | 7.3% |
| Balboa Avenue | 7.6% | 7.0% | 6.6% |
| Costa del Este | 7.5% | 6.8% | 6.5% |
What level of supply is coming onto the market, and how does that compare with buyer demand?
Panama City's real estate market is experiencing mid-range inventory shortages, with pre-construction condo inventory dropping 7.2% year-over-year.
Demand is outpacing supply in the best neighborhoods, driven by expat inflows and local buyers who increasingly prefer apartments due to their amenities and security features. This supply-demand imbalance is particularly pronounced in established areas like El Cangrejo, Bella Vista, and San Francisco.
The luxury and new-build segment shows some oversupply overhang, but this inventory is being gradually absorbed as international demand persists and discerning buyers seek premium properties with modern amenities.
It's something we develop in our Panama City property pack.
Overall, the market is highly competitive for well-located condos in desirable neighborhoods, while older houses face weak absorption rates as buyer preferences shift toward urban living.
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 is foreign investment affecting the market, and is it concentrated in specific areas or property types?
Foreign investment in Panama City real estate has increased by 25% in 2025, with international buyers predominantly making cash purchases.
This investment is heavily concentrated in luxury condos within premium neighborhoods including Casco Viejo, Punta Pacifica, Costa del Este, and emerging mixed-use zones. Foreign buyers are particularly drawn to properties offering modern amenities, professional management, and proximity to business districts.
The impact of foreign investment includes price support in select market sectors, the development of international micro-communities, and the growth of foreigner-friendly infrastructure and services. The strong cash market created by international buyers contributes to overall price stability and reduces market volatility.
Foreign buyers are also expanding beyond traditional luxury segments, exploring mid-range properties in up-and-coming neighborhoods as they seek better value and higher rental yields.
If someone wants to buy to live in, which areas and budgets make the most sense right now?
For end-users seeking to live in Panama City, the best value areas offer walkability, amenities, and quality of life within reasonable budgets.
El Cangrejo stands out as an excellent choice for families and singles, offering a walkable, lively environment with 100-120 square meter two-bedroom apartments priced between $200,000 and $250,000. The neighborhood provides excellent restaurants, shops, and entertainment within walking distance.
San Francisco appeals to young professionals and families seeking modern, environmentally-conscious living, with new green projects offering two to three-bedroom condos ranging from $180,000 to $320,000. This area attracts buyers prioritizing sustainability and modern amenities.
Bella Vista provides central location and premium lifestyle options, with one to two-bedroom units available from $150,000 to $250,000. The area offers easy access to business districts while maintaining residential charm.
The optimal budget range for quality city apartments falls between $180,000 and $300,000, providing access to modern amenities, security, and prime locations that appeal to young professionals, digital nomads, and families.
If the goal is rental income, which neighborhoods and property types are the strongest bets today?
For investors seeking rental income, mid-range one to three-bedroom condos in managed or amenity-rich buildings offer the best opportunities.
El Cangrejo, Bella Vista, and San Francisco lead the rental market with yields ranging from 7-12% and vacancy rates under 2%. These neighborhoods attract strong and resilient demand from expats, professionals, and both short-term and medium-term renters.
Balboa Avenue and Costa del Este provide excellent rental opportunities due to their proximity to business districts and modern infrastructure, while East Coast properties appeal to international visitors and short-term rental markets.
It's something we develop in our Panama City property pack.
The key to rental success lies in selecting properties with professional management, modern amenities, and locations that appeal to the growing expat and professional communities in Panama City.
If the plan is to resell in the future, where is the best appreciation potential over short, medium, and long horizons?
For short-term appreciation over 1-2 years, Casco Viejo offers the best potential as major renovations near completion, while El Cangrejo benefits from modernization projects and growing expat appeal.
San Francisco provides excellent short-term prospects due to its appeal to families and the green living movement, attracting younger buyers seeking sustainable urban environments.
Medium-term appreciation over 3-5 years favors Costa del Este, where business expansion and tightening future supply will drive values, alongside Bella Vista, which benefits from major infrastructure upgrades and urban renewal initiatives.
Long-term appreciation over 10+ years looks strongest in central, walkable zones with ongoing urban investment, particularly El Cangrejo and Bella Vista, as well as areas successfully integrating mixed-use and green development projects.
Properties not recommended for appreciation include suburban detached homes, older unrenovated condos, and developments in oversupplied outer areas that lack urban connectivity and amenities.
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 demonstrates steady growth with urban condos significantly outperforming suburban houses for both price appreciation and rental potential.
Foreign investment concentration is broadening beyond traditional luxury segments as new zones open up for international buyers, while the rental market remains robust especially for mid-market apartments in revitalized urban districts.
Sources
- Global Property Guide - Panama Price History
- The LatinVestor - Panama City Price Forecasts
- Global Property Guide - Panama Rental Yields
- Ingwe Capital - Panama ROI Analysis
- Expat-tations - Panama Real Estate Q1 2025
- Gulf Coast Property Group - Best Panama City Neighborhoods
- Live and Invest Overseas - Panama City Best Neighborhoods
- GLP International Sales - Panama 2025 Investment Guide