Authored by the expert who managed and guided the team behind the Panama Property Pack
Everything you need to know before buying real estate is included in our Panama Property Pack
Looking to buy property in Panama and wondering if now is the right moment?
This article breaks down the current housing prices in Panama as of the first half of 2026, with fresh data and clear analysis to help you decide.
We constantly update this blog post to reflect the latest market conditions, so you always have access to current information.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Panama.
So, is now a good time?
Rather yes: January 2026 looks like a favorable moment to buy property in Panama, especially if you negotiate well and pick the right neighborhood.
The strongest signal is that construction permits dropped in 2025, meaning new supply is slowing while demand stays supported by services and tourism growth.
Another key signal is that mortgage reference rates rose to around 6.50% in late 2025, which limits what buyers can pay and gives you more negotiating power with sellers.
Other signals include policy uncertainty around preferential interest mortgages (which slows transactions and adds buyer leverage), wide condo inventory in Panama City, and a stable macro outlook from the IMF and World Bank that rules out a sudden crash.
The best strategy right now is to focus on mid-market apartments or family homes in liquid neighborhoods like Costa del Este, San Francisco, or El Cangrejo, negotiate hard, and consider holding for at least three to five years to absorb transaction costs.
This is not financial or investment advice, we do not know your personal situation, and you should do your own research before making any decisions.
Is it smart to buy now in Panama, or should I wait as of 2026?
Do real estate prices look too high in Panama as of 2026?
As of early 2026, property prices in Panama are not dramatically overvalued across the board, but some segments like newer luxury condos in prime towers look stretched because buyers have plenty of similar options to choose from.
One clear on-the-ground signal is that sellers in the condo market are often willing to negotiate, which suggests asking prices are not being met without pushback.
Another signal is that mid-market apartments and family homes in commute-friendly areas tend to sell closer to asking price, indicating these segments are more fairly priced compared to high-end vertical living options.
You can also read our latest update regarding the housing prices in Panama.
Does a property price drop look likely in Panama as of 2026?
As of early 2026, the likelihood of a meaningful property price drop in Panama over the next 12 months is low, with a sharp broad crash looking unlikely based on current fundamentals.
The plausible price change range for Panama property in 2026 sits between a modest decline of around 3 to 5 percent in overpriced segments and flat to slightly positive movement in well-located mid-market areas.
The single most important factor that could increase the odds of a price drop in Panama is a sustained rise in mortgage rates, which would further squeeze buyer affordability and force more sellers to cut prices.
However, a significant additional rate hike looks unlikely in the near term, as the SBP reference rate already moved to 6.50% in late 2025 and the macro outlook remains stable according to IMF and World Bank projections.
Finally, please note that we cover the price trends for next year in our pack about the property market in Panama.
Could property prices jump again in Panama as of 2026?
As of early 2026, the likelihood of a renewed price surge in Panama over the next 12 months is low to medium, and any jump would more likely be neighborhood-specific rather than market-wide.
If conditions align favorably, the plausible upside for Panama property prices in 2026 could reach around 3 to 6 percent in the best-performing corridors, but a broad double-digit surge looks unlikely.
The single biggest demand-side trigger that could drive prices to jump in Panama would be a stabilization or drop in mortgage rates, which would unlock more buyer budgets and pull demand forward.
Please also note that we regularly publish and update real estate price forecasts for Panama here.
Are we in a buyer or a seller market in Panama as of 2026?
As of early 2026, Panama's residential property market is buyer-leaning for condos and apartments, while family homes in good locations sit closer to balanced conditions.
While Panama lacks a single official months-of-inventory metric, platform data from Encuentra24 shows wide project choice in Panama City, which typically means buyers have around 6 to 12 months of supply to choose from in the condo segment, giving them solid bargaining power.
The share of listings with price reductions or seller incentives appears elevated in crowded condo submarkets, which suggests sellers are having to work harder to close deals and further confirms buyer leverage in 2026.
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.
Are homes overpriced, or fairly priced in Panama as of 2026?
Are homes overpriced versus rents or versus incomes in Panama as of 2026?
As of early 2026, homes in Panama City appear mildly to moderately stretched when compared to household incomes, while pricing looks more comfortable outside prime districts.
The price-to-rent ratio in Panama varies widely by building and location, but in mainstream condo areas it tends to sit in a range that makes renting and buying roughly comparable, with neither option looking dramatically cheaper than the other.
The price-to-income multiple in Panama City sits around 7 times annual household income for a typical 80 square meter apartment, which is not extreme for a regional hub but high enough that buyers feel pressure from interest rates and down payment requirements.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Panama.
Are home prices above the long-term average in Panama as of 2026?
As of early 2026, home prices in Panama appear around their long-term trend rather than dramatically above it, though some luxury condo pockets show frothy pricing.
The recent 12-month price change in Panama has been modest, with asking prices in Panama City rising gently rather than surging, which is more subdued than the pre-pandemic pace seen in some boom years.
When adjusted for inflation, real prices in Panama are not sitting at a new cycle peak, as the combination of cooling permits and higher mortgage rates has prevented runaway above-average pricing across the broader market.
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What local changes could move prices in Panama as of 2026?
Are big infrastructure projects coming to Panama as of 2026?
As of early 2026, the biggest infrastructure project with price impact potential in Panama is Metro Line 3, which will connect Panama Oeste to the capital and reshape commute patterns for thousands of residents.
Metro Line 3 is already under construction with progress updates being presented to the Public Infrastructure Commission, and delivery is expected to meaningfully improve connectivity for areas like Panama Pacifico, Howard, Veracruz, Arraijan, and La Chorrera over the coming years.
For the latest updates on the local projects, you can read our property market analysis about Panama here.
Are zoning or building rules changing in Panama as of 2026?
The most important rule change affecting Panama's property market in 2026 is not traditional zoning but rather the implementation uncertainty around the preferential interest mortgage regime, which directly impacts how many buyers can afford to close deals.
As of early 2026, this policy uncertainty has created transaction friction that slows approvals and closings, which effectively changes demand conditions even when prices stay flat, giving buyers extra leverage in negotiations.
The areas most affected by this uncertainty are the segments that rely heavily on first-time buyers using subsidized mortgage rates, particularly mid-market condos and affordable housing developments in Panama City and surrounding areas.
Are foreign-buyer or mortgage rules changing in Panama as of 2026?
As of early 2026, the main rule changes affecting Panama property buyers are on the mortgage side rather than foreign-buyer restrictions, with shifts in the preferential interest regime creating the biggest impact on effective demand.
The most significant mortgage rule change has been the legislative action around Law 468 governing preferential interest rates, with suspensions and reversions reported in late 2025 that can delay approvals and affect eligibility for subsidized rates.
Foreign-buyer rules are not highlighted as a major 2026 swing factor in Panama, as credit conditions and subsidy clarity remain the more immediate levers that determine whether buyers can actually close transactions.
You can also read our latest update about mortgage and interest rates in Panama.
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.
Will it be easy to find tenants in Panama as of 2026?
Is the renter pool growing faster than new supply in Panama as of 2026?
As of early 2026, renter demand in Panama's key markets appears supported by services-led growth and tourism momentum, while new rental supply is not accelerating as fast as in prior boom years.
The strongest signal for renter demand in Panama comes from continued tourism growth into 2025 and the services sector expansion that the World Bank projects, both of which bring workers and visitors who need rental housing.
On the supply side, INEC permit data shows declining construction values in key districts through 2025, which suggests the pipeline of new rentals is cooling rather than flooding the market with competition.
Are days-on-market for rentals falling in Panama as of 2026?
As of early 2026, we do not have a single official rental days-on-market series for Panama, but demand proxies suggest well-priced mid-market units in prime neighborhoods lease faster than luxury stock.
The difference in leasing speed between the best areas like Costa del Este, San Francisco, and El Cangrejo versus weaker locations can be significant, with desirable neighborhoods often filling units in weeks while overpriced luxury units in crowded towers can sit for months.
One common reason days-on-market falls in Panama is when tourism and expat arrivals pick up seasonally, which concentrates demand in the most liveable neighborhoods with good amenities and international school access.
Are vacancies dropping in the best areas of Panama as of 2026?
As of early 2026, the best-performing rental areas in Panama City like Costa del Este, San Francisco, Obarrio, Marbella, Bella Vista, and El Cangrejo tend to absorb tenants first, with vacancy conditions tighter than in crowded high-rise clusters.
Vacancy rates in these prime neighborhoods typically run lower than the overall Panama City market because they bundle commute convenience, safety, lifestyle amenities, and often international school access, which keeps demand steady.
One practical sign that the best areas in Panama are tightening first is when landlords stop offering rent discounts or free months that were common during softer periods, indicating they can fill units without incentives.
By the way, we've written a blog article detailing what are the current rent levels in Panama.
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Am I buying into a tightening market in Panama as of 2026?
Is for-sale inventory shrinking in Panama as of 2026?
As of early 2026, for-sale inventory in Panama's condo-heavy zones still feels abundant because the existing project pipeline remains large, though forward-looking supply signals show cooling.
While Panama lacks a single official months-of-supply metric, the combination of wide project choice on platforms like Encuentra24 and declining permit values in 2025 suggests inventory is not dramatically shrinking yet, but future supply growth is slowing.
The most likely reason inventory is not shrinking faster in Panama is that many condo projects launched in earlier years are still working through sales, keeping current choice wide even as new permit activity declines.
Are homes selling faster in Panama as of 2026?
As of early 2026, selling speed in Panama is uneven, with good-value units in liquid neighborhoods moving reasonably well while overpriced units in crowded condo submarkets linger on the market.
Year-over-year, selling times in Panama have likely edged longer for average or overpriced listings due to higher mortgage rates and policy uncertainty, though best-in-class value properties can still sell relatively quickly.
Are new listings slowing down in Panama as of 2026?
As of early 2026, new supply intent in Panama is clearly measurable through permits, and INEC data shows declining construction values in key districts through 2025, which supports a slowing new supply narrative.
The seasonal pattern in Panama typically sees more activity in the dry season months, but the 2025 permit declines suggest the current level of new supply is genuinely lower rather than just a seasonal dip.
The most plausible reason new listings and new construction are slowing in Panama is the combination of higher financing costs for developers and policy uncertainty that makes launching new projects riskier.
Is new construction failing to keep up in Panama as of 2026?
As of early 2026, new construction in Panama is not broadly failing to keep up, as buyers in many condo segments have plenty of choice, though specific corridors benefiting from Metro Line 3 could see localized tightness.
The recent trend in Panama permits shows declining values through 2025 compared to 2024, which suggests the pipeline is cooling rather than accelerating, but this does not yet mean a shortage across all segments.
The biggest bottleneck that could limit new construction in Panama going forward is financing conditions for developers, as higher rates and policy uncertainty make it harder to launch and fund new projects.
We made this infographic to show you how property prices in Panama compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
Will it be easy to sell later in Panama as of 2026?
Is resale liquidity strong enough in Panama as of 2026?
As of early 2026, resale liquidity in Panama is adequate if you buy a unit that matches the largest buyer pool, meaning sensible size, good building management, parking, and a location with proven everyday demand.
Median days-on-market for resale homes in Panama can range widely, but well-priced properties in liquid neighborhoods often sell within a few months, which is reasonable compared to many Latin American markets.
The property characteristic that most improves resale liquidity in Panama is location in a neighborhood with strong everyday demand like Costa del Este, San Francisco, or El Cangrejo, where buyer traffic stays consistent.
Is selling time getting longer in Panama as of 2026?
As of early 2026, selling time in Panama appears to be edging longer compared to last year, driven by higher mortgage rates and policy uncertainty that slow buyer decisions.
The current median days-on-market in Panama can range from around 60 to 90 days for well-priced properties in good locations, up to several months for overpriced units or those in crowded condo buildings with many similar listings.
One clear reason selling time can lengthen in Panama is affordability pressure from the 6.50% mortgage reference rate, which reduces how much buyers can borrow and makes them pickier about price.
Is it realistic to exit with profit in Panama as of 2026?
As of early 2026, the likelihood of exiting with profit in Panama is medium, achievable with a typical holding period of three to five years if you buy smartly and avoid overpaying for new-build premiums.
The minimum holding period that most often makes exiting with profit realistic in Panama is around three to five years, which allows time for transaction costs to be absorbed and some appreciation to accumulate.
Total round-trip costs in Panama, including buying and selling expenses like transfer taxes, legal fees, and agent commissions, typically run around 8 to 12 percent of the property value, or roughly USD 12,000 to 18,000 on a USD 150,000 apartment (about EUR 11,000 to 17,000).
The factor that most increases profit odds in Panama is buying below market through negotiation leverage, especially in the current buyer-leaning conditions, and targeting neighborhoods with structural demand drivers like Metro Line 3 connectivity.
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Panama, we always rely on the strongest methodology we can, and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| INEC Panama Construction Permits | Panama's official statistics office publishing core construction data. | We used it to judge whether new supply is accelerating or cooling. We also used it as a hard check against oversupply narratives. |
| Superintendencia de Bancos de Panama (SBP) | The national banking regulator and cleanest source for mortgage conditions. | We used it to anchor mortgage rate direction and credit availability. We also used it to check whether housing credit is expanding or tightening. |
| Telemetro | Major national outlet directly relaying SBP's published rate updates. | We used it to pin down the latest mortgage rate level heading into 2026. We also used it to frame affordability pressure. |
| IMF Article IV Report | Top-tier institution for macroeconomic risk and policy assessment. | We used it to frame Panama's 2026 macro backdrop and growth risks. We also used it to check whether crash narratives are consistent with fundamentals. |
| World Bank Macro Poverty Outlook | Core reference for growth projections and structural context. | We used it to triangulate the growth trajectory for 2026. We also used it to link housing demand to jobs and services growth. |
| Global Property Guide | Long-running cross-country housing reference citing identifiable datasets. | We used it as a triangulation layer for price direction in Panama City. We cross-checked it against official indicators to avoid over-reliance. |
| Minerpa (MEF-linked) | Government-linked portal referencing Ministry of Economy data. | We used it to produce affordability benchmarks with household income levels. We used it to stress-test whether mortgages fit typical incomes. |
| Encuentra24 Projects Report | Large established marketplace publishing structured platform data. | We used it to approximate active pipeline, product mix, and supply concentration. We used it to triangulate inventory pressure beyond permits alone. |
| Metro de Panama | Project owner and operator reporting directly on scope and progress. | We used it to assess which corridors could see structural demand uplift. We used it to ground infrastructure premium claims in official facts. |
| MIVIOT | Housing ministry communicating policy direction for owner-occupied finance. | We used it to understand policy tailwinds and headwinds for first-home buyers. We used it to interpret demand timing based on rule changes. |
| TVN | Major national outlet reporting concrete legislative action with official references. | We used it to capture implementation risk and timing uncertainty. We used it to explain why some buyers see delays in approvals. |
| Autoridad de Turismo de Panama (ATP) | Official tourism authority publishing demand-side flow data. | We used it as a proxy for short and medium-term rental demand pressure. We used it to separate tourism-driven demand from local household demand. |
| CAPAC | National construction chamber close to real activity and building constraints. | We used it to interpret supply capacity, costs, and execution bottlenecks. We used it to triangulate permit trends with industry conditions. |
| INEC CPI Report | Official inflation print needed to interpret real pricing and wage pressure. | We used it to translate nominal price changes into real changes. We used it to infer how fast rents and incomes need to rise for affordability. |
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Panama. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.