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
Where are the best places to invest in Panama City right now? Is Casco Viejo still the top pick, or are areas like Costa del Este, Punta Pacifica, and San Francisco gaining ground? What makes these locations attractive to both local and foreign investors?
We’re often asked these questions because we work directly with notaries, real estate agents, and clients who invest across the city. Our firsthand experience in these markets gives us unique insights into where the real opportunities lie. To save everyone from asking privately, we’ve written this article to share our knowledge broadly.
Our goal is to highlight the hottest markets in Panama City and explain why they’re worth your attention in 2025.
If you have suggestions or want us to dive deeper into a specific area, let us know. You shoot an email, we answer within 24 hours.
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1) San Francisco is attracting young professionals with its central location and vibrant lifestyle, boosting property values and rental rates
San Francisco is a hot spot for young professionals, and it's shaking up the property scene.
With its central location and vibrant lifestyle, the city is drawing in a crowd that's pushing property values and rental rates higher. Picture this: the median home price is now around $1.4 million, and in neighborhoods like Pacific Heights and the Mission District, homes are flying off the market, often for more than the asking price.
Rentals are no different. The average rent for an apartment was about $3,154 per month in late 2024, and it's expected to keep climbing. By 2025, you might see rents between $3,358 and $3,392 per month, thanks to the ongoing demand for prime rental spots.
Why are young professionals flocking here? Well, San Francisco is ranked as the best city for recent college graduates. With a median income of $106,552 and a low unemployment rate of 3.3%, it's a great place to kickstart a career.
The city's strong job market, along with its cultural attractions and natural beauty, makes it a magnet for this demographic. It's not just about work; it's about living in a place that offers a rich lifestyle.
Sources: The Luxury Playbook, Norada Real Estate, Poets & Quants
2) Costa del Este is booming with modern infrastructure and high demand for luxury apartments, offering strong rental yields
Costa del Este is a hot spot in the real estate market thanks to its modern infrastructure and high demand for luxury apartments.
With a surge of multinational companies and expatriates moving in, occupancy rates for luxury apartments have soared. In 2024, rental prices for these upscale homes jumped by 5% to 10%, showing just how in-demand they are.
Property values in Costa del Este are climbing too. In 2023, the average price per square meter went up by 5%, and this upward trend is expected to keep going. The area's popularity and limited housing options make it a prime spot for investment.
Real estate agencies are buzzing about Costa del Este, calling it a prime investment area. The construction boom over the past five years has brought new shopping malls and hospitals, adding to its allure.
This development has led to strong rental yields, with luxury condos offering returns between 5% and 8%, which is higher than the national average. Investors are taking note of these promising figures.
With its vibrant community and modern amenities, Costa del Este is not just a place to live but a smart investment choice. The area's limited housing options and growing demand make it a top pick for those looking to invest in real estate.
Sources: Global Property Guide, Panama Equity, Panama Realty Zone
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 is popular for its affordable housing and proximity to universities, perfect for student rentals
El Cangrejo is a hotspot for affordable housing, especially appealing to students.
Back in 2023 and 2024, property prices in El Cangrejo were quite a steal, with costs per square meter ranging from $1,800 to $2,800. This was a bargain compared to other neighborhoods in Panama City, making it a prime choice for budget-conscious buyers.
Investors find El Cangrejo's rental market enticing, with a three-bedroom apartment potentially bringing in $1,200 per month. This translates to a rental yield of about 7-8%, which is quite attractive for those eyeing the student rental market.
One of the biggest draws of El Cangrejo is its proximity to major universities, like the University of Panama. This makes it super convenient for students to get to their classes, naturally increasing the demand for rental properties in the area.
Living in El Cangrejo means students can enjoy a vibrant neighborhood with easy access to cafes, bookstores, and public transport, enhancing their overall living experience.
For anyone considering investing in property, El Cangrejo offers a unique blend of affordability, location, and potential for steady rental income.
Sources: Student Demographics, Panama City Airport to El Cangrejo
4) Punta Pacifica is in demand for its luxury condos with ocean views, commanding premium rental prices
Punta Pacifica is a hotspot for luxury condos with stunning ocean views.
Recently, home sales in Panama City jumped by 21%, showing a strong appetite for upscale living. This surge in demand is reflected in the transaction values, which climbed over 8% to $750 million. Clearly, people are eager to invest in the luxurious lifestyle that Punta Pacifica offers.
In this area, the average price per square meter for apartments is climbing, with some luxury units reaching up to $4,000 per square meter. This trend highlights a thriving rental market, as many are willing to pay a premium for the exclusive oceanfront experience and top-notch amenities available here.
Real estate reports consistently spotlight Punta Pacifica as a prime location for luxury living. The Panama real estate market continued its upward trajectory in 2024, with new developments and bustling activity, further cementing Punta Pacifica's status as a sought-after residential area.
Insider knowledge reveals that the area is not just about the views; it's about the lifestyle. Residents enjoy access to high-end shopping, gourmet dining, and vibrant nightlife, all within a stone's throw. This convenience adds to the allure, making it a preferred choice for those seeking a blend of comfort and excitement.
Moreover, the community is known for its safety and exclusivity, attracting both locals and expatriates. The combination of these factors ensures that Punta Pacifica remains a top contender for anyone looking to invest in a premium property with a view that never gets old.
Sources: Central America, Overseas Property Alert, Punta Pacifica Realty
5) Bella Vista is gaining interest for its residential and commercial properties, offering diverse investment opportunities and steady rental income
Bella Vista is a prime spot for investors thanks to its rising property values.
In recent years, property appreciation in Panama City has soared, with city homes increasing in value at twice the national average. This steady growth makes Bella Vista a magnet for those looking to invest in real estate.
The area is buzzing with interest in mixed-use developments. From January to September 2024, 606,000 new residential units were completed, reflecting the demand for spaces that blend living and commercial areas. This trend opens up diverse investment opportunities for savvy buyers.
Occupancy rates are high, both in residential and commercial properties, underscoring Bella Vista's allure. In 2023, Panama City Beach saw a 4.7% increase in visitors, boosting the demand for short-term rentals. This signals a strong market for rental income, making it a lucrative area for investors.
Investors are drawn to Bella Vista's mix of residential and commercial properties, which offer steady rental income and diverse investment opportunities. The area's appeal is further enhanced by its strategic location and vibrant community.
With its dynamic growth and attractive investment prospects, Bella Vista stands out as a top choice for those looking to capitalize on the real estate market.
Sources: Shorefront Investments, Hostaway
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6) Casco Viejo is booming with its historic charm attracting tourists and investors seeking unique renovation opportunities
Casco Viejo's property market is booming thanks to its historic charm and unique investment opportunities.
With its vibrant colonial architecture and rich cultural history, Casco Viejo is a UNESCO World Heritage Site, making it irresistible to both tourists and investors. This designation not only preserves its beauty but also enhances its appeal as a prime location for real estate development.
Over the past decade, real estate values in Casco Viejo have soared, driven by its cultural and artistic allure. While the growth rate is expected to slow slightly, the area remains a hot spot. From Q2 2023 to 2024, the average price per square meter in Panama City, including Casco Viejo, rose by 1% to $2,055, reflecting a steady increase in property values.
Tourism is a major factor in this trend. Casco Viejo is the second most visited tourist attraction in Panama, right after the Panama Canal. This influx of visitors is driving up property values and rents, as the neighborhood's trendy atmosphere, with its restaurants, cafes, and art galleries, attracts both tourists and locals.
Adding to the investment appeal, Law No. 9, passed in 1997, offers special restoration incentives for real estate in Casco Viejo. This has spurred significant investment and development, further enhancing the area's charm and value.
Casco Viejo's unique blend of history, culture, and modern amenities makes it a magnet for investors looking for distinctive renovation opportunities.
Sources: Tropical Research Institute, Overseas Property Alert
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.