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Yes, the analysis of Panama City's property market is included in our pack
Panama City's condo market offers opportunities across all budget levels, but requires careful timing and location selection.
As of September 2025, the market is stabilizing after recent price corrections, with condo prices at $2,483/m² making it Central America's most expensive real estate market. Foreign buyers face a straightforward purchasing process, though due diligence on developers and neighborhoods remains crucial for successful investments.
If you want to go deeper, you can check our pack of documents related to the real estate market in Panama, based on reliable facts and data, not opinions or rumors.
Panama City's condo market ranges from $147,500 entry-level units to $6 million luxury properties, with most two-bedroom condos selling between $180,000-$710,000.
Prices have stabilized in 2025 after 15-25% corrections on some properties, making it an opportune time for selective buyers focused on prime locations.
| Price Range | Typical Property | Best Areas |
|---|---|---|
| $147,500 - $250,000 | 1-2 bedroom, basic amenities | Via España, El Cangrejo |
| $250,000 - $500,000 | 2-3 bedroom, modern building | San Francisco, Punta Pacifica |
| $500,000 - $1,500,000 | 3+ bedroom, luxury amenities | Casco Viejo, Costa del Este |
| $1,500,000+ | Penthouse, ocean views | Punta Pacifica, Trump Tower |
| Rental Yields | 3-6% gross annually | Higher in tourist zones |
| HOA Fees | $150-800/month | Varies by building amenities |
| Property Tax | 0.5-0.7% annually | Based on cadastral value |
What types of condos are actually available to buy in Panama City right now?
Panama City's condo market offers an extensive range of properties across all price points and sizes.
The most common available units are one and two-bedroom condos ranging from 50m² to 120m², typically found in modern high-rise buildings with amenities like pools, gyms, and 24-hour security. These represent about 60% of the current inventory and are priced between $147,500 and $400,000 depending on location and building quality.
Three-bedroom and larger condos make up approximately 25% of available inventory, primarily located in premium areas like Punta Pacifica, Costa del Este, and Casco Viejo. These units typically range from 120m² to 250m² and include luxury amenities such as ocean or city views, concierge services, and premium finishes. Prices for these properties start around $350,000 and can exceed $2 million for penthouse units.
Studio apartments and compact one-bedroom units under 50m² represent the entry-level segment, mainly concentrated in areas like Via España and El Cangrejo. These units start at $147,500 and rarely exceed $200,000, making them attractive for first-time buyers or investors seeking affordable rental properties.
Ultra-luxury condos and penthouses with 300m²+ represent the top 5% of inventory, with prices ranging from $1.5 million to nearly $6 million, primarily located in iconic buildings like Trump Tower and exclusive developments in Punta Pacifica.
How do current condo prices compare with what they were a few years ago, and what's the forecast for the next couple of years?
Panama City condo prices have experienced notable fluctuations over the past three years, with the market now showing signs of stabilization.
As of September 2025, the median condo price sits at $2,483/m², representing the highest real estate values in Central America. This figure reflects a modest 0.8% increase over the past 12 months, a significant slowdown from the 8-12% annual gains seen in 2021-2022. Many buildings experienced price corrections of 15-25% from their peak values in 2023, particularly affecting older buildings and units without recent renovations.
The correction primarily impacted mid-tier properties built between 2010-2018, where oversupply and increased competition drove down asking prices. However, premium properties in prime locations like Casco Viejo and Punta Pacifica maintained stronger pricing, with only 5-10% adjustments from peak levels.
Looking ahead to 2026-2027, most real estate analysts expect continued price stability with gradual appreciation of 2-4% annually. This forecast is based on Panama's continued role as a regional business hub, steady population growth, and the completion of major infrastructure projects that should support long-term demand.
It's something we develop in our Panama property pack.
Is it smarter to buy a condo or just rent one at the moment?
The buy versus rent decision in Panama City depends heavily on your timeline, financial situation, and investment goals.
Current rental costs range from $600-$1,000 monthly for one-bedroom units in central areas, $800-$1,500 for two-bedrooms, and $1,500-$6,000 for luxury properties in prime districts like Punta Pacifica or Casco Viejo. With many landlords offering flexible lease terms and move-in incentives due to increased rental inventory, renting provides immediate cost savings and flexibility for short-term residents.
Buying makes financial sense if you plan to stay for more than 4-5 years, as you'll build equity while avoiding annual rent increases that typically range from 3-5%. The current market correction has created opportunities to purchase at 10-20% below peak prices, making it an advantageous time for cash buyers or those with strong financing.
From an investment perspective, rental yields currently range from 3-6% gross annually, though this varies significantly by location and property type. Premium properties in tourist areas like Casco Viejo can achieve higher yields through short-term rentals, while standard residential areas offer more stable but lower returns through long-term tenants.
The tax advantages of ownership, including property tax rates of only 0.5-0.7% annually and potential capital gains exemptions, further favor buying for long-term residents and investors.
What are the main real estate market trends shaping Panama City's condo market?
Several key trends are currently reshaping Panama City's condominium market in 2025.
The most significant trend is market stabilization following the oversupply correction that began in late 2023. New construction permits have decreased by approximately 30% compared to peak levels, helping balance inventory with demand. This reduction is particularly noticeable in the mid-tier segment where competition among similar buildings had driven down prices.
Sustainability and smart building features are becoming major selling points, with newer developments incorporating energy-efficient systems, smart home technology, and green building certifications. Buildings with these features command 10-15% premium pricing and experience faster sales cycles compared to traditional developments.
The short-term rental market is experiencing increased regulation, with new licensing requirements and occupancy limits affecting investor strategies in certain neighborhoods. This has shifted some investor focus toward long-term rental properties and owner-occupied purchases.
Foreign buyer activity remains strong, particularly from North American and European investors attracted by Panama's political stability, dollarized economy, and pensionado visa programs. These buyers represent approximately 40% of condo purchases above $300,000.
Location premiums are becoming more pronounced, with waterfront and historic district properties maintaining or gaining value while suburban developments face increased price pressure due to oversupply.
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How exactly does the buying process work, step by step, for foreigners?
Foreign nationals enjoy the same property ownership rights as Panamanian citizens, making the buying process straightforward and secure.
| Step | Action Required | Timeline |
|---|---|---|
| 1. Property Search | Work with licensed realtor, view properties, negotiate price | 2-8 weeks |
| 2. Purchase Agreement | Sign promissory contract, pay 10% deposit | 1-2 days |
| 3. Due Diligence | Property inspection, title search, legal review | 2-3 weeks |
| 4. Financing (if applicable) | Bank approval, appraisal, loan documentation | 3-6 weeks |
| 5. Final Documentation | Public notary signature, title transfer, registration | 1-2 weeks |
| 6. Property Transfer | Final payment, keys delivery, utility transfers | 1-3 days |
| 7. Post-Purchase | Property tax registration, insurance setup | 1-2 weeks |
Which real estate agencies or platforms are the best places to actually find condos for sale?
Panama City offers several reliable channels for finding quality condo listings, each with distinct advantages.
The most comprehensive local platforms include Encuentra24.com and OLX Panama, which feature the largest inventory of available properties with detailed photos, pricing, and contact information. These platforms typically list 70-80% of all available condos in the city and allow direct contact with both agents and property owners.
For international buyers, specialized agencies like Punta Pacifica Realty, Panama Equity, and Counts Real Estate offer bilingual services and focus specifically on foreign client needs. These agencies typically handle properties in the $200,000+ range and provide comprehensive support including legal assistance, financing guidance, and post-purchase services.
High-end properties above $500,000 are often exclusively listed with boutique agencies such as Engel & Völkers Panama and Sotheby's International Realty, which maintain exclusive listings in premium developments and provide white-glove service throughout the purchase process.
Direct developer sales remain important for new construction, with major developers like Grupo Roble, Mallol Group, and Empresas Bern offering pre-construction and newly completed units often at 5-10% below market rates for early buyers.
Working with a licensed realtor is recommended for transactions above $150,000, as they provide market knowledge, negotiation expertise, and legal protection throughout the process.
What kind of condo can you realistically get depending on different budget levels?
Panama City's diverse condo market accommodates every budget level with clear distinctions in location, size, and amenities.
For budgets under $200,000, expect one-bedroom units of 45-65m² in established neighborhoods like Via España, El Cangrejo, or Bella Vista. These condos typically feature basic amenities such as a pool and security, with finishes ranging from acceptable to good condition. Buildings are generally 10-20 years old but well-maintained.
The $200,000-$400,000 range offers two-bedroom units of 70-100m² in desirable areas like San Francisco, Clayton, or entry-level Punta Pacifica properties. These condos include modern amenities such as gyms, social areas, and underground parking, with contemporary finishes and appliances in buildings less than 15 years old.
Budgets of $400,000-$800,000 provide access to premium two to three-bedroom units of 100-150m² in top neighborhoods like Punta Pacifica, Costa del Este, or renovated Casco Viejo properties. Expect luxury amenities including concierge services, rooftop pools, and high-end finishes with potential ocean or city views.
Above $800,000, buyers can secure large three to four-bedroom condos exceeding 150m², penthouses with terraces, or unique properties in historic buildings. These units feature top-tier amenities, premium locations, and often include features like wine cellars, private elevators, or panoramic views.
Ultra-luxury purchases above $1.5 million provide access to exclusive developments with private amenities, waterfront locations, and custom finishes that rival international luxury standards.
What are the biggest mistakes people make when buying condos in Panama City, and how can you avoid them?
Foreign buyers in Panama City commonly make several costly mistakes that can be easily avoided with proper preparation.
The most frequent error is insufficient due diligence on developers and building management, particularly for pre-construction purchases. Always verify the developer's track record, financial stability, and previous project completion rates. Request references from previous buyers and inspect other completed projects by the same developer before committing.
Overlooking ongoing costs represents another major mistake, as many buyers focus solely on purchase price without calculating HOA fees ($150-800/month), property taxes (0.5-0.7% annually), insurance ($800-2,000/year), and maintenance costs. These expenses can add $400-1,200 monthly to ownership costs and significantly impact investment returns.
Location selection errors are common, with buyers choosing based on initial price appeal rather than long-term value potential. Areas experiencing oversupply or lacking infrastructure development may offer attractive prices but poor resale prospects. Research neighborhood development plans, proximity to business districts, and transportation access before deciding.
Many buyers skip professional inspections, assuming new construction eliminates concerns. Even new buildings can have construction defects, incomplete common areas, or delayed amenity completion. Always hire qualified inspectors and verify all promised amenities are functional before closing.
Currency and financing mistakes include failing to understand exchange rate risks for non-USD buyers and not exploring local financing options that may offer better terms than foreign mortgages.
It's something we develop in our Panama property pack.
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 much does it really cost to live in a condo there, beyond just the purchase price?
Living costs in a Panama City condo extend well beyond the purchase price and vary significantly based on building type and location.
Monthly HOA fees represent the largest ongoing expense, ranging from $150 for basic buildings to $800+ for luxury developments with extensive amenities. These fees cover building maintenance, security, common area utilities, amenities operation, and reserve funds. Premium buildings with features like rooftop pools, concierge services, and private beach access command the highest fees.
Annual property taxes are relatively low at 0.5-0.7% of the property's cadastral value, which is typically 20-30% below market value. For a $300,000 condo, expect annual property taxes of $800-1,200. Properties valued below $120,000 qualify for additional tax exemptions.
Utilities costs average $80-150 monthly for a two-bedroom unit, including electricity ($40-80), water ($15-25), internet ($35-50), and cable TV ($20-40). Air conditioning usage significantly impacts electricity bills, particularly during Panama's hot season from January to April.
Insurance ranges from $800-2,000 annually depending on coverage level and property value. Comprehensive coverage including contents, liability, and natural disaster protection is recommended given Panama's seismic activity and hurricane exposure.
Additional costs include building-specific fees for amenities like gym access ($20-50/month), parking spaces ($50-150/month if not included), and storage units ($25-75/month). Luxury buildings may charge additional fees for concierge services, valet parking, or private event space usage.
Which neighborhoods and areas are best for condos—whether affordable, upcoming, or upscale—and what are the pros and cons of each?
Panama City's neighborhoods offer distinct advantages and challenges for condo buyers across different price points and lifestyle preferences.
Punta Pacifica stands as the city's premier luxury district, featuring high-end condos from $400,000-$6 million with ocean views, world-class amenities, and proximity to Multiplaza Pacific mall. Pros include excellent resale value, top security, and prestigious addresses. Cons include high HOA fees, traffic congestion, and limited local dining beyond expensive restaurants.
Casco Viejo provides unique historic charm with restored colonial buildings converted into luxury condos priced $350,000-$2 million. Pros include UNESCO World Heritage status, vibrant nightlife, cultural attractions, and strong tourism appeal for short-term rentals. Cons include limited parking, higher crime risk, and potential noise from restaurants and bars.
Costa del Este offers modern family-friendly living with condos ranging $250,000-$800,000, featuring excellent schools, shopping centers, and business district proximity. Pros include planned development, good infrastructure, and strong rental demand from corporate executives. Cons include limited character, distance from historic areas, and dependence on car transportation.
San Francisco provides excellent value with condos from $180,000-$500,000 in a well-established area with good connectivity and amenities. Pros include central location, diverse dining options, reasonable prices, and strong public transportation access. Cons include older building stock, traffic congestion, and limited luxury options.
El Cangrejo and Via España offer the most affordable options with condos from $147,500-$300,000, providing access to the banking district and shopping areas. Pros include budget-friendly prices, central location, and good public transportation. Cons include older buildings, higher crime rates, and limited amenities compared to newer developments.
What's life like for expats living in condos in Panama City?
Expat life in Panama City condos offers a comfortable blend of modern amenities, tropical climate, and international community connections.
Daily living standards are high, with most modern condos providing reliable utilities, high-speed internet, and comprehensive security systems including 24-hour guards and controlled access. The dollarized economy eliminates currency exchange concerns for American and other USD-earning expats, while Spanish language skills, though helpful, aren't essential in many expat-heavy neighborhoods.
The international community is well-established, with expat groups organizing regular social events, business networking, and cultural activities. Many buildings house significant expat populations, creating natural communities for newcomers. Facebook groups, WhatsApp networks, and organizations like the American Society of Panama provide ongoing support and social connections.
Healthcare access is excellent, with world-class private hospitals like Hospital Punta Pacifica and Clinica Hospital San Fernando within easy reach of most condo developments. Many expats maintain health insurance that covers both local and international medical care.
Transportation options include reliable taxi services, Uber availability, and public transportation, though many expats prefer owning vehicles for convenience. Most condo buildings provide parking, and Panama's compact size makes weekend trips to beaches, mountains, or other provinces easily accessible.
Cultural adaptation varies by neighborhood, with areas like Punta Pacifica feeling more international while districts like Casco Viejo offer more authentic Panamanian experiences. Year-round warm weather, diverse dining scenes, and proximity to both Pacific beaches and mountain retreats enhance the overall quality of life.
It's something we develop in our Panama property pack.
If you buy a condo, is it worth it mainly for living, renting long-term, renting short-term, or trying to resell later at a higher price?
The optimal strategy for Panama City condo ownership depends heavily on location, budget, and current market conditions.
For primary residence, buying makes strongest sense if you plan to stay 5+ years, as you'll benefit from stable housing costs, equity building, and avoid annual rent increases of 3-5%. The current market correction provides opportunities to purchase 10-20% below peak prices, making homeownership more accessible for long-term residents.
Long-term rental investment offers the most stable returns, with gross yields ranging 4-7% annually depending on location and property type. Areas like San Francisco, Costa del Este, and entry-level Punta Pacifica properties attract steady demand from corporate relocations and growing professional populations. Management companies can handle tenant relations for absentee owners, typically charging 8-12% of rental income.
Short-term rental potential has diminished due to oversupply and increased regulation, making it suitable only for unique properties in prime tourist areas like Casco Viejo or beachfront Punta Pacifica units. Success requires active management, significant marketing investment, and compliance with evolving licensing requirements.
Resale appreciation prospects are modest in the current market, with analysts projecting 2-4% annual gains through 2027. Quick flipping strategies are not recommended given market conditions, but selective value purchases in improving neighborhoods may offer better long-term appreciation potential.
The best approach combines primary residence benefits with rental income potential, such as purchasing a larger unit that can accommodate roommates or seasonal rentals while serving as your primary home.
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 condo market in September 2025 presents a balanced opportunity for both residents and investors.
The recent price stabilization following market corrections has created favorable buying conditions, particularly for long-term residents and selective investors focused on prime locations and proven developers.
Sources
- Counts Real Estate - Panama City Beach Homes
- Homes.com - Panama City Beach Condos
- Punta Pacifica Realty
- Panama Equity
- The LatinvestOr - Panama City Price Forecasts
- Nomad Capitalist - Expat Living Panama
- Panama Beach Realty Market Overview
- The LatinvestOr - Real Estate Forecasts
- Panama Sovereign - Market Forecast
- PanaCrypto - Cost of Living 2025