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
What is happening in Panama City’s real estate market? Are prices on the rise or decline? Is Panama City still attracting foreign investors? How are government policies and taxes shaping the real estate landscape in 2025?
These are the questions we hear every day from professionals, buyers, and sellers alike, from Casco Viejo to Punta Pacifica and beyond. Perhaps you’re curious about the same things.
We know this because we stay closely connected with local experts and people like you, exploring the Panama City real estate market daily. That’s why we crafted this article: to offer clear answers, insightful analysis, and a comprehensive view of market trends and dynamics.
Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we missed the mark or could improve, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll strive to enhance this content for you.
How this content was created 🔎📝
1) Virtual reality is increasingly used in real estate marketing for remote property viewings
Virtual reality is reshaping real estate marketing by letting buyers explore homes from anywhere.
In Panama City, real estate agencies are jumping on the VR bandwagon, especially since 2023, to offer more engaging property tours. This shift is driven by the growing demand for immersive experiences that let buyers feel like they're walking through a home without leaving their couch.
By 2024, a whopping 67% of home buyers were choosing virtual tours over static photos. The reason? VR's convenience and the ability to explore every nook and cranny of a property remotely, making it a game-changer for those who can't visit in person.
Homes with VR tours are not just getting noticed; they're selling faster. These properties see 87% more views and close deals 31% quicker, often at prices 9% higher than those without VR. It's a win-win for sellers looking to stand out in a crowded market.
VR is proving to be a smart investment for real estate agents, as it broadens their reach and showcases listings on multiple online platforms. This tech-savvy approach is not just a trend; it's becoming a staple in the industry.
Sources: Richr Blog, AZ Big Media, PhotoUp
2) Demand for gated communities will increase as residents' security concerns grow
The demand for gated communities is expected to rise as security concerns grow among residents.
In Panama City, crime rates have been climbing, with 581 homicides recorded in 2024, marking a 4.4% increase from the previous year. This uptick in violent crimes has understandably made people more anxious about their safety.
With media coverage on safety issues intensifying, many residents are rethinking their living arrangements. Over half of the locals, about 53%, feel the city is unsafe, which is pushing them towards gated communities that promise a more secure environment.
The real estate market is catching on, with developers increasing the number of gated communities in the city. They are heavily marketing the security features, which are a major attraction for potential buyers seeking both safety and exclusivity.
Property values in these communities are climbing, with condos in AAA buildings seeing a 13% price increase per meter over the last two years. This surge is largely driven by the appeal of secure living.
Gated communities are stepping up to meet the demand by offering peace of mind, making them a popular choice for those prioritizing safety. Developers are focusing on marketing the security features, which are a big draw for potential buyers.
Sources: Newsroom Panama, Jasher Substack, Latam News
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.
3) El Cangrejo properties attract investors with stable prices and consistent returns, avoiding high volatility
El Cangrejo's property market is known for its stable prices, making it a magnet for investors seeking steady returns.
Over the past few years, property prices in El Cangrejo have shown minimal fluctuations. For instance, an apartment listed at $285,000 in 2023 held the same price in 2024, reflecting a steady market environment.
Investors are also drawn to the consistent rental yields in El Cangrejo. A 2-bedroom apartment here offers an average gross rental yield of about 6.57%, which is quite stable compared to other parts of Panama City.
This stability in rental yields means investors can expect reliable income from their properties, making El Cangrejo a smart choice for those looking to minimize risk.
When you compare El Cangrejo to other neighborhoods, it stands out for its lower price volatility. For example, Panama Oeste has a slightly lower average gross rental yield of 6.13%, underscoring El Cangrejo's relative stability.
This comparative analysis highlights El Cangrejo as a favorable location for investors who prioritize stability over chasing high returns.
Sources: Panama Real Estate, Global Property Guide, Panama Equity
4) Infrastructure improvements in Panama City will likely boost property values in affected areas due to government initiatives
Panama City is buzzing with government-led infrastructure upgrades that promise to boost property values.
One standout project is Project Restore A2, which is all about fixing and replacing miles of sewer, stormwater, and water main lines. Funded by Community Development Block Grant Disaster Recovery funds, this initiative aims to revamp the area's infrastructure by 2025, making it a hot spot for buyers and investors.
Then there's the Downtown North District Projects, where the Community Redevelopment Agency is pouring resources into a mixed-use commercial and residential area. This development will feature must-have amenities like a grocery store and restaurants, which are expected to raise the area's appeal and property values. The first phase is on track to wrap up by mid-2025, thanks to funding from the Millville District Budgets.
Over at the Front Beach Road CRA Projects, the focus is on redeveloping 20 miles of roadways. With plans for widened streets, better lighting, and new sidewalks, these upgrades are set to improve transportation links and attract more businesses and residents, typically driving up property prices. Segment 3 is slated for completion by mid-2025, once utility relocation is sorted out.
These projects are not just about infrastructure; they're about transforming Panama City into a more vibrant and connected community. The improvements are expected to draw in more businesses and residents, which usually means a rise in property values.
With these initiatives, Panama City is positioning itself as a prime location for real estate investment, offering a blend of modern amenities and improved infrastructure that enhances the quality of life for its residents.
Sources: Panama City Government, GlobalData, Panama City Beach CRA
5) Buyers are favoring move-in-ready homes over older properties needing renovation
In Panama City, buyers are now favoring move-in-ready homes over those needing renovations.
This shift is largely due to the rising costs of home improvements and the convenience of ready-to-live-in properties. With mortgage rates around 7.2%, many buyers are avoiding the extra expenses and time involved in fixing up older homes.
Modern amenities and immediate occupancy are particularly appealing to younger buyers who value convenience and modernity. They prefer homes that don't require additional work, making the buying process smoother and more straightforward.
Market data from November 2024 shows that 72.3% of move-in-ready homes in Panama City sold below asking price, allowing buyers to negotiate better deals. This makes these homes even more attractive compared to older properties.
Older homes needing renovation are spending an average of 79 days on the market, indicating their waning appeal. Buyers are clearly leaning towards homes that offer immediate comfort and less hassle.
As a result, the demand for move-in-ready homes is growing, while older properties in need of renovation are losing their charm among potential buyers.
Sources: Rocket Homes, Saltwater Real Estate PCB
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6) Panama City’s younger population, led by millennials, is boosting demand for modern, affordable housing
Panama City's population is getting younger, with millennials leading the charge for modern, affordable housing.
Since 2020, the city's population has grown by 11.35%, reaching 36,592 in 2024. The median age is now 38.5 years, with younger males averaging around 35.4 years, painting a picture of a youthful demographic. This shift is not just about numbers; it's about a vibrant, dynamic community that's reshaping the city's landscape.
Education is a big draw here, with Florida State University Panama City hosting 1,200 students. The competitive acceptance rate of 23% shows that millennials are eager to engage in a challenging yet accessible educational environment. This influx of young professionals and students naturally fuels the demand for housing that fits their lifestyle and budget.
Real estate trends are responding to this demand. There's a need for 82,192 housing units to keep up with the growing population, but only 104,060 units are available. This gap highlights the strong demand for modern, affordable housing options. Millennials are particularly attracted to urban living, seeking better living standards and job opportunities.
New residential projects in central locations are popping up to cater to these preferences. These developments are not just about providing a roof over one's head; they're about creating communities that offer convenience, connectivity, and a sense of belonging.
Millennials are reshaping Panama City, driving a demand for housing that aligns with their modern, urban lifestyle. This trend is transforming the city into a hub of youthful energy and opportunity.
Sources: World Population Review, EduRank, Benoit Properties
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.