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 which neighborhoods are set to boom in 2025? Want to know where your investment will yield the highest returns?
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) El Cangrejo is ideal for student rentals with affordable housing and close proximity to universities
El Cangrejo is a hotspot for affordable student housing.
In 2023 and 2024, the average price per square meter in El Cangrejo ranged from $1,800 to $2,800, making it a budget-friendly choice compared to pricier neighborhoods like Punta Pacifica and Costa del Este. This affordability is a big draw for students.
What makes El Cangrejo even more appealing is its proximity to major universities. With the University of Panama nearby, students find it easy to commute, adding to the neighborhood's charm as a student rental hub.
For investors, El Cangrejo offers an attractive rental yield. A three-bedroom apartment can fetch around $1,200 per month, translating to a yield of about 7-8%. This makes it a lucrative spot for those eyeing student rental investments.
Transportation in El Cangrejo is a breeze. The area is well-served by Metro Line 1, with the '5 de Mayo' station providing easy access to the rest of the city. Local buses and taxis add to the convenience, making it ideal for students.
Sources: Global Property Guide, The Latin Investor, Evendo
2) Punta Pacifica's high-end ocean-view condos consistently command premium rental prices
Punta Pacifica in Panama City is famous for its luxurious condos with breathtaking ocean views.
These high-end properties are in demand, with rental prices consistently at a premium. Over the past few years, the area has seen a significant uptick in sales and occupancy rates, with prices rising by about 10% from 2023 to 2024. This surge is largely due to the modern amenities and top-notch living standards that these condos provide, making them a magnet for renters.
Punta Pacifica is a hotspot for high-end property investments, drawing interest from both local and international buyers. The neighborhood's appeal is bolstered by the strong demand for rentals, with property management companies frequently handling high-profile sales.
The average price of high-end apartments in Punta Pacifica has been climbing annually, with increases ranging from 6% to 12%. This is partly due to a shortage of available units, which drives up property values. The neighborhood's prime location and ongoing infrastructure development further enhance its attractiveness to both expatriates and locals.
Sources: Central America, Living in Panama, Punta Pacifica Realty, The Latin Investor
Everything you need to know is included in our Property Pack for Panama City
3) Obarrio attracts businesses seeking prime office spaces in its central business district's commercial real estate market
Obarrio is becoming a hot spot for commercial real estate in Panama City.
Businesses are drawn to this area, especially with the rising demand for office spaces like those in the Panama Business Tower. This impressive 40-story building, completed in 2015, offers top-tier executive amenities and flexible layouts, making it a prime choice for companies looking to establish a presence in the city.
In April 2024, Panama Equity reported closing over $7,000,000 in property sales, a clear sign of growing interest in Obarrio. The area's strategic location between El Cangrejo and San Francisco makes it a magnet for new businesses, as seen with Bennigan's opening in October 2016.
Rental prices are on the rise, especially in popular spots like the Panama Business Tower, indicating a growth in commercial property values. This trend aligns with businesses' preference for central locations, further boosting Obarrio's reputation as a business hub.
High-profile openings, like Bennigan's, are not just about good food; they highlight Obarrio's appeal and contribute to its growing reputation. The media buzz around these openings attracts attention from both local and international business communities.
Obarrio's central position and the allure of modern office spaces are making it a go-to destination for businesses looking to tap into Panama City's vibrant market.
Sources: Panama Equity, Walter P Moore, Bennigan's
4) Bella Vista attracts investors with residential and commercial properties offering diverse opportunities and steady rental income
Bella Vista is a prime spot for property investors thanks to its rising property values and diverse real estate options.
In recent years, the average price per square meter for new apartments has climbed to about $2,300, while second-use properties are also seeing steady appreciation. This shows a strong upward trend in property values, making Bella Vista an attractive choice for those looking to invest in real estate.
The area is buzzing with mixed-use developments that blend residential and commercial spaces. These projects, ranging from 40 to 200 square meters, offer a variety of investment opportunities, appealing to those who want both residential and commercial returns. This mix is a big draw for investors aiming to diversify their portfolios.
What really makes Bella Vista shine is its high occupancy rates. While rental yields in Panama City average around 6.42% in 2024, Bella Vista offers even better returns, especially for studio and 1-bedroom apartments, which boast yields of 8.87%. This indicates a strong demand for rental properties, ensuring a steady stream of rental income for investors.
Investors are particularly interested in Bella Vista because of its strategic location and the variety of properties available. The area is known for its vibrant community and proximity to key amenities, making it a desirable place to live and work.
With its mix of residential and commercial properties, Bella Vista offers diverse investment opportunities and the potential for steady rental income, attracting both local and international investors.
Sources: Activentas, Global Property Guide, Frapan Invest
5) Punta Paitilla's luxury homes and apartments keep high property values due to exclusivity and prime location
Punta Paitilla is famous for its luxury homes and apartments, maintaining high property values due to their exclusivity and prime location in Panama City.
In Punta Paitilla, the average price per square meter is notably higher than in other parts of Panama City. From 2023 to 2024, prices rose to $2,055 per square meter, continuing a trend of steady increases. This shows the area's strong market position.
Luxury properties here have consistently appreciated over the years. For instance, condos in AAA buildings like Allure at the Park have seen a 13% price increase per meter in the last two years, thanks to top-notch maintenance and security. This appreciation underscores the area's desirability and investment potential.
The demand for luxury apartments in Punta Paitilla is high, leading to low vacancy rates. Both local and international buyers are drawn to the area, seeking secure assets and global prestige. The prime location and exclusivity make it especially attractive to wealthy buyers willing to pay a premium for upscale amenities and stunning views.
Punta Paitilla is close to key amenities like shopping centers, hospitals, and schools, which boosts its appeal to residents and investors alike. The presence of high-end developments and renowned architectural projects adds to its prestige and desirability.
Real estate agents often emphasize the area's desirability due to its exclusive nature and prime location, reflected in the consistent demand for properties. Additionally, limited availability of new properties due to space constraints further drives up property values.
Sources: The Latin Investor, Overseas Property Alert
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6) San Francisco's central location and vibrant lifestyle attract young professionals boosting property values and rental rates
San Francisco is buzzing with interest from young professionals, pushing up property values and rental rates.
In 2024, the city's real estate market saw a significant boost, with median home prices climbing by 7%. Homes are flying off the market in just 19 days, a clear sign of high demand. The rental scene is just as hot, with the average rent for a one-bedroom apartment hitting around $3,539 per month by October 2024, a 3% rise from the previous year.
San Francisco's allure for young professionals is no surprise, given its thriving job market in tech, finance, and healthcare. These sectors are magnets for new residents, especially younger workers and families who often choose to rent before buying. The city's urban lifestyle, packed with career opportunities and cultural attractions, is a big draw for this crowd.
Living in San Francisco means being at the heart of a vibrant lifestyle, with everything from trendy cafes to world-class museums at your doorstep. The city's central location makes it a hub for those who want to be in the thick of things, whether it's for work or play. This dynamic environment is a major factor in why young professionals are flocking here.
For those considering a move, it's worth noting that San Francisco's property market is competitive. With homes selling quickly and rental prices on the rise, acting fast is key. The city's appeal isn't just about jobs and lifestyle; it's also about being part of a community that's constantly evolving and growing.
As more young professionals make San Francisco their home, the city's landscape continues to change, reflecting the needs and desires of its new residents. This influx is reshaping neighborhoods and driving demand for both housing and amenities, making it an exciting time to be part of the city's growth.
Sources: The Luxury Playbook, What's My Cash Flow, California Department of Transportation
7) Casco Viejo property values are surging as its historic charm draws tourists and investors seeking unique renovations
Casco Viejo is seeing a remarkable rise in property values, drawing attention from both tourists and investors.
Over the past decade, property prices have soared, with apartments that once cost $40,000 now fetching ten times that amount. This surge reflects the area's growing allure, as more people are eager to own a piece of its historic charm. The transformation of old buildings into luxury apartments and hotels is a testament to this trend, making the neighborhood even more appealing.
In 2024, the number of property transactions in Casco Viejo saw a significant increase, fueled by both local and international buyers. Investors are keen on converting historic structures into modern living spaces, which adds to the area's unique character. This influx of investment is reshaping the neighborhood, turning it into a vibrant hub of activity.
Casco Viejo's designation as a UNESCO World Heritage Site adds to its allure, attracting global interest from those looking to invest in culturally significant properties. The area's rich history and stunning architecture make it a prime location for those seeking unique renovation opportunities. This status not only preserves its charm but also enhances its value in the eyes of investors.
Government incentives, such as Law 9, have been instrumental in encouraging development in Casco Viejo. These incentives make it easier for investors to undertake renovation projects, further boosting the area's appeal. As a result, Casco Viejo has become a magnet for investment, with many seeing it as a lucrative opportunity.
With its historic charm and strategic incentives, Casco Viejo is poised to continue its upward trajectory in property appreciation. The combination of cultural significance and modern development is creating a unique blend that is hard to resist for investors. This trend is likely to persist as more people discover the potential of this vibrant neighborhood.
Sources: The Latin Investor, Tropical Research Institute, Panama Equity
8) Avenida Balboa's waterfront properties are in demand for high appreciation potential due to limited availability and views
Avenida Balboa is a hot spot for waterfront properties in Panama City.
In recent years, especially around 2023 and 2024, property prices here have soared, with some luxury homes hitting up to $4,000 per square meter. This makes it one of the priciest areas in the city, attracting those who want both prestige and a stunning view.
Experts say property values will keep climbing on Avenida Balboa, thanks to its unbeatable location and the charm of living by the water. Historically, waterfront properties in Panama City have seen a steady rise in value, with a typical annual increase of 5-7% over the last five years.
One reason for this is the limited availability of new developments due to strict zoning laws. This scarcity means fewer new options for buyers, which in turn boosts the value of existing properties.
For those eyeing a smart investment, Avenida Balboa offers high appreciation potential because of its limited supply and breathtaking views. The demand is not just about the location; it's about the lifestyle and the investment opportunity.
Sources: Live and Invest Overseas, H2H Organizing, Overseas Property Alert
Everything you need to know is included in our Pack for Panama City
9) Albrook is popular for its suburban feel and city center proximity attracting families and ensuring stable rentals
Albrook is gaining popularity for its suburban feel and proximity to the city center, making it a top choice for families.
Families are drawn to Albrook because of its stable rental demand, with rental yields in Panama City averaging around 6.42% in 2024. This means a reliable income for those investing in rental properties. Plus, Albrook is packed with family-friendly amenities like parks and recreational areas, which make it even more appealing.
Living in Albrook offers the best of both worlds: urban convenience and a suburban atmosphere. It's close enough to the city center for easy access to work and entertainment, yet far enough to enjoy a quieter, more relaxed lifestyle. This balance is a big draw for families who want to be near the action without being in the thick of it.
Demographic data shows a significant percentage of families in Panama City, which aligns with Albrook's growing reputation as a family-friendly suburb. The area's appeal is further boosted by its proximity to schools and other essential services, making it a practical choice for family households.
Albrook's charm lies in its ability to offer a suburban retreat while still being connected to the vibrant life of Panama City. This unique combination is why more families are considering it as their next home. The steady demand for rental properties in the area also suggests a promising future for real estate investors.
Sources: Global Property Guide, Alliant National, Census.gov
10) Santa Maria is a hot market for gated communities and golf views attracting affluent buyers seeking security and exclusivity
Santa Maria in Panama City is a hot spot for affluent buyers seeking security and exclusivity in gated communities with stunning golf course views.
One reason for this trend is the high property appreciation rates in the area. Santa Maria's proximity to Costa del Este, a bustling hub for international businesses, makes it an attractive choice for those who want to be near business centers while enjoying a luxurious lifestyle.
Luxury homes in Panama City are in high demand, with occupancy rates hitting 90% in prime locations. Santa Maria shines in the luxury real estate market, offering modern amenities like pools, gyms, and playgrounds within its gated communities. These features are perfect for buyers who value a secure and structured environment.
The golf course in Santa Maria is a major attraction for high-net-worth individuals who see golf as more than a sport—it's a lifestyle. The Santa Maria Hotel and Golf Resort, part of the Marriott Bonvoy collection, adds to the area's allure by offering a luxurious golfing experience.
Santa Maria's combination of exclusivity, security, and lifestyle amenities makes it a top choice for affluent buyers. The area's appeal is further enhanced by its modern amenities and structured environment, which are significant factors in its desirability.
For those looking to invest in a property that offers both luxury and convenience, Santa Maria is a prime location. Its proximity to business centers and the presence of a golf course make it a desirable area for luxury real estate.
Sources: Business Insider, Panama Sovereign, Central America
11) Coco del Mar is a top choice for modern and traditional homes attracting families and investors seeking long-term gains
Coco del Mar is becoming a favorite for its blend of modern and traditional homes, appealing to families and investors looking for long-term appreciation.
Located just 10 minutes from downtown and 20 minutes from the international airport, Coco del Mar is perfect for families who want convenience without sacrificing tranquility. The neighborhood's tropical climate and vibrant atmosphere make it a hit among those seeking a balanced lifestyle. Families love the area, and current residents often rave about its charm and accessibility.
What makes Coco del Mar stand out is its diverse mix of apartment buildings and single-family homes. Whether you're into sleek modern designs or charming traditional styles, there's something for everyone. This variety attracts a wide range of buyers, from families to savvy investors looking for properties with character and potential.
Investors are particularly drawn to Coco del Mar because of its promising real estate investment potential. The area is trendy, strategically located, and offers desirable lifestyle amenities. With rental properties in Panama boasting gross rental yields as high as 9% in urban and tourist hotspots, Coco del Mar is a lucrative opportunity.
Residents enjoy easy access to urban amenities like shops, restaurants, and shopping centers. The neighborhood is also close to popular attractions such as Parque Omar and Cinta Costera, making it a convenient and exciting place to live. Banks and hospitals are nearby, ensuring that all essential services are within reach.
For those who appreciate a blend of modern convenience and traditional charm, Coco del Mar is a top choice. Its strategic location and vibrant lifestyle make it a favorite among families and investors alike, offering a unique opportunity for long-term appreciation.
Sources: Benoit Properties, Panama Equity, Benoit Properties
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12) Costa del Este's modern infrastructure and high demand for luxury apartments drive strong rental yields
Costa del Este is a hot spot in the real estate market due to its modern infrastructure and high demand for luxury apartments.
In 2023, rent prices in Costa del Este saw a slight increase, signaling strong demand for luxury living. This demand is fueled by multinational corporations setting up shop, making the area a magnet for professionals and families moving to Panama. The presence of these companies has turned Costa del Este into a bustling hub, where convenience and modern amenities are at your doorstep.
By 2024, more families were relocating closer to work, boosting occupancy rates in luxury apartments. The area has seen significant development, with new shopping malls, hospitals, and businesses popping up, enhancing its appeal. This growth has led to a rise in property values, making Costa del Este a top investment location for those looking to capitalize on the area's upward trend.
Real estate agencies consistently highlight Costa del Este as a prime investment spot, thanks to its modern infrastructure and the ongoing expansion of multinational corporations. The scarcity of new condos, with fewer than 100 expected in 2024, is likely to drive rental prices up by 5% to 10%, further increasing rental yields. This scarcity creates a competitive market, where investors can expect solid returns.
Insider knowledge suggests that the area's modern infrastructure, including well-planned roads and public services, adds to its allure. The convenience of having everything within reach, from top-notch schools to gourmet restaurants, makes Costa del Este a preferred choice for those seeking a luxurious lifestyle.
With its strategic location and continuous development, Costa del Este remains a sought-after destination for real estate investors. The combination of high demand, limited supply, and modern amenities ensures that the area will continue to thrive, offering lucrative opportunities for those looking to invest in Panama's real estate market.
Sources: Panama Equity, The Latin American Investor