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As of September 2025, Panama's apartment market offers significant price variations between the capital and other regions. Apartment prices in Panama City average $2,483 per square meter, while properties outside the capital typically cost between $800-$1,500 per square meter.
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 apartments cost significantly more than properties in other regions, with prime neighborhoods like Punta Pacífica commanding $2,800-$4,500 per square meter.
Foreign buyers typically need 30-40% down payment for mortgages, while rental yields in Panama City range from 6.8-7.8% annually.
| Property Type | Panama City Price Range | Outside Panama City |
|---|---|---|
| 1-Bedroom Apartment (Downtown) | $1,350-$2,000/month rent | $800-$1,200/month rent |
| 2-Bedroom Apartment | $182,000-$355,000 purchase | 30-50% less expensive |
| 3-Bedroom (Premium Areas) | $1,750-$5,000/month rent | $1,200-$2,000/m² purchase |
| Price per Square Meter | $2,483 average | $800-$1,500 average |
| Luxury Neighborhoods | $2,800-$4,500/m² | $1,200-$2,000/m² |
| Monthly Condo Fees | $1.00-$3.50/m² | Similar structure |
| Rental Yield | 6.8-7.8% annually | Variable by location |
What's the average price per square meter for apartments in Panama City versus other regions?
Panama City apartments average $2,483 per square meter as of September 2025, making it the most expensive region in the country.
Prime neighborhoods within Panama City command significantly higher prices. Punta Pacífica, Costa del Este, and Casco Viejo typically range from $2,800 to $4,500 per square meter. These areas attract both foreign investors and wealthy locals due to their premium locations and modern amenities.
Outside Panama City, apartment prices drop considerably to an average of $800-$1,500 per square meter. However, popular expat destinations like Boquete and Coronado maintain higher prices within this range, typically $1,200-$2,000 per square meter due to international demand.
The price difference reflects Panama City's status as the financial and business center, where demand from professionals and investors keeps prices elevated. Provincial areas offer better value but may have limited rental markets and resale potential.
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How much does a one-bedroom apartment cost downtown versus in the suburbs?
Downtown Panama City one-bedroom apartments rent for $1,350-$2,000 monthly in premier locations like Avenida Balboa, Punta Paitilla, and Bella Vista.
These downtown units typically measure 70-100 square meters and come fully furnished with modern amenities. The higher end of the range applies to luxury buildings with ocean views, concierge services, and premium facilities like rooftop pools and fitness centers.
Suburban areas and outer neighborhoods offer the same apartment size for $800-$1,200 monthly. These locations include areas like Albrook, Condado del Rey, and parts of San Francisco that are further from the financial district but still well-connected by metro or main roads.
The $550-$800 monthly difference between downtown and suburban locations reflects proximity to business centers, entertainment districts, and premium services. Suburban apartments often provide better value for families or remote workers who don't need daily access to the financial district.
What's the typical price range for two-bedroom apartments in Panama City?
Two-bedroom apartments in Panama City rent for an average of $1,600 monthly, with purchase prices ranging from $182,000 to $355,000.
Mid-range two-bedroom apartments typically sell between $220,000-$335,000, depending on the building's age, amenities, and specific location within the city. Newer developments in desirable neighborhoods command prices at the higher end of this range.
Rental prices vary significantly based on furnishing and location. Unfurnished units start around $1,200 monthly, while fully furnished apartments in prime buildings can reach $2,200-$2,500 monthly. The average $1,600 reflects typical furnished units in good neighborhoods.
Two-bedroom apartments typically measure 90-130 square meters, making them popular with small families and professionals who need a home office. The purchase price per square meter usually falls between $1,800-$2,700 depending on the building's quality and location.
How much would a three-bedroom apartment cost in upscale neighborhoods like Punta Pacífica or Costa del Este?
Three-bedroom apartments in Punta Pacífica rent from $1,750 monthly for standard units to $3,000-$5,000 for luxury high-rise properties.
| Neighborhood | Rental Range (Monthly) | Purchase Price Range |
|---|---|---|
| Punta Pacífica (Standard) | $1,750-$2,500 | $400,000-$500,000 |
| Punta Pacífica (Luxury) | $2,500-$5,000 | $500,000-$800,000+ |
| Costa del Este (155m²) | $1,700-$2,800 | $350,000-$450,000 |
| Costa del Este (300m²+) | $3,500-$5,200 | $600,000-$900,000 |
| Average per m² | - | $2,800-$3,500 |
Premium buildings in Punta Pacífica average $2,500-$3,750 monthly for three-bedroom units, reflecting the neighborhood's status as Panama's most exclusive residential area. These buildings offer concierge services, private elevators, and panoramic city or ocean views.
Costa del Este provides slightly more affordable options, with three-bedroom apartments ranging from $1,700 monthly for older or smaller units (155m²) up to $5,200 monthly for larger luxury options exceeding 300 square meters.
Purchase prices in both neighborhoods typically range from $400,000-$500,000 for standard three-bedroom units, with luxury properties often exceeding $600,000-$800,000. The price per square meter averages $2,800-$3,500 in these prime locations.
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What's the typical price difference between new developments and older apartments?
New luxury developments cost $3,000-$4,500 per square meter in prime areas, representing a 20-40% premium over older apartment buildings.
Older apartments typically price between $1,800-$2,500 per square meter, with some buildings priced lower if they require maintenance or lack modern amenities. Buildings constructed before 2010 often fall into the lower end of this range, especially if they haven't undergone recent renovations.
The premium for new developments reflects modern building standards, energy-efficient systems, contemporary finishes, and advanced security features. New buildings also typically offer better amenities like fitness centers, co-working spaces, and smart home technology.
However, older buildings may offer advantages like larger unit sizes, established neighborhoods, and lower monthly maintenance fees. Some vintage buildings in prestigious areas like Casco Viejo command premium prices despite their age due to historical significance and unique architecture.
Buyers should consider that new developments often include 5-20 years of property tax exemptions on construction value, which can significantly reduce ownership costs and improve investment returns.
How much cheaper are apartments outside Panama City, such as in Boquete or Coronado?
Apartments outside Panama City cost 30-60% less than comparable properties in the capital, with significant variations between different regions.
Boquete apartments typically cost around $2,870 per square meter, which represents a moderate discount compared to Panama City's average of $2,483 per square meter, but remains expensive due to strong expat demand and mountain location premiums.
Coronado beach apartments usually fall within the $1,200-$2,000 per square meter range, offering substantial savings compared to Panama City while maintaining appeal to foreign buyers seeking coastal properties.
Other provincial areas offer even greater savings, with apartments averaging $800-$1,200 per square meter in cities like David, Colón, or Santiago. These locations provide the best value but may have limited rental markets and lower resale liquidity.
The trade-off for lower prices includes reduced access to international amenities, fewer direct flights, limited healthcare facilities, and smaller expat communities. However, these areas often provide better quality of life for retirees and those seeking a quieter lifestyle.
What are typical monthly condo fees and how do they vary by building type and size?
Monthly condo fees range from $1.00-$1.80 per square meter for standard buildings and $2.00-$3.50 per square meter for luxury properties with extensive amenities.
For a 100 square meter apartment, expect monthly fees between $100-$350, while a 150 square meter unit costs $150-$525 monthly. The wide range reflects differences in building amenities, security levels, and management quality.
Standard buildings typically include basic security, elevator maintenance, common area cleaning, and often water and gas utilities in their fees. These buildings usually charge $1.00-$1.80 per square meter monthly.
Luxury buildings with premium amenities like concierge services, multiple pools, fitness centers, business centers, and 24/7 security charge $2.00-$3.50 per square meter. Some ultra-luxury properties may charge even higher fees for exclusive services.
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 are annual property taxes for 100m² or 150m² apartments?
Property taxes in Panama offer significant exemptions for primary residences, with the first $120,000 in property value completely tax-exempt.
For apartments valued above $120,000, the tax rate is 0.5% annually on the portion between $120,001-$700,000, and 0.7% on any value exceeding $700,000. This progressive structure keeps taxes relatively low for most apartment owners.
A $250,000 apartment would generate annual property taxes of approximately $650. The calculation: first $120,000 exempt ($0), remaining $130,000 taxed at 0.5% ($650 annually).
A $400,000 apartment would pay roughly $1,400 annually: first $120,000 exempt ($0), next $280,000 at 0.5% ($1,400 annually). Properties exceeding $700,000 total value pay the higher 0.7% rate on the excess amount.
New construction projects often receive 5-20 years of property tax exemptions on the construction value (excluding land value), making new apartments particularly attractive for investors during the exemption period.
What percentage should I expect for closing costs when buying an apartment?
Closing costs typically range from 2-5% of the purchase price, covering all legal, notary, registration, and government fees required to complete the transaction.
Legal fees usually constitute 0.5-1% of the purchase price, covering due diligence, contract review, and legal representation throughout the buying process. Experienced real estate attorneys typically charge within this range for standard transactions.
Notary fees add another 0.1-1% of the purchase price, though many standard transactions fall within a fixed range of $200-$300 regardless of property value. The notary handles document authentication and official transaction recording.
Registration fees with the Public Registry cost approximately 0.2-0.3% of the sale price, covering the official transfer of property ownership and mortgage registration if applicable.
Additional costs may include property inspections, title insurance (if desired), and bank fees for wire transfers or mortgage processing. Foreign buyers should budget toward the higher end of the 2-5% range to ensure adequate coverage of all transaction costs.
How much should I budget for legal fees and registration during the purchase process?
Legal fees typically cost 0.5-1% of the purchase price, while registration fees add approximately 0.2-0.3% of the sale price to your total transaction costs.
Experienced real estate attorneys in Panama charge $3,000-$8,000 for apartment purchases in the $300,000-$800,000 range, depending on transaction complexity and property value. Simple cash purchases require less legal work than transactions involving mortgages or complex ownership structures.
Registration fees with Panama's Public Registry are calculated as a percentage of the sale price and typically cost $600-$2,400 for most apartment purchases. These fees cover official ownership transfer and document recording in government databases.
Notary services add $200-$300 for most transactions, representing excellent value for document authentication and official witnessing of the property transfer. Some high-value transactions may incur slightly higher notary fees.
Foreign buyers should ensure their attorney specializes in international real estate transactions and can provide services in English or their preferred language. Quality legal representation helps avoid costly mistakes and ensures proper due diligence on property titles and ownership history.
What rental yields can I expect, and how much rent would a $200,000 apartment generate?
Panama City apartments typically generate gross rental yields of 6.8-7.8% annually, making them attractive for income-focused investors.
A $200,000 apartment typically generates $1,250-$1,600 monthly in rental income, translating to $15,000-$19,200 annually before expenses. The actual yield depends on location, apartment condition, furnishing quality, and local rental demand.
Well-located furnished apartments in areas like Bella Vista, San Francisco, or Punta Paitilla typically achieve yields closer to 7.5-8%, while properties in less central locations may generate 6-7% returns. Luxury properties often have lower yields but attract higher-quality tenants.
Operating expenses typically reduce net yields by 1.5-2.5%, including property management fees (8-12% of rental income), maintenance costs, occasional vacancy periods, and condo fees. Smart investors factor these costs when calculating expected returns.
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How much do foreigners typically pay upfront when buying an apartment in Panama?
Foreign buyers typically need 30-40% down payment for bank mortgages, while cash buyers often pay 15-30% down on new project payment plans.
Mortgage financing for foreign buyers requires minimum down payments of 30-40% of the purchase price, with some banks requiring up to 50% for buyers perceived as higher risk. Local Panamanian buyers often qualify for loans with only 10-20% down payment due to local credit history and income verification.
New development projects frequently offer payment plans allowing buyers to spread the down payment over multiple years during construction. These plans typically require 15-30% total down payment, with initial payments as low as 5-10% to reserve the unit.
Cash purchases remain popular among foreign buyers, especially for pre-construction projects where developers offer significant discounts for full cash payments. Cash buyers also avoid mortgage fees, interest rates, and banking requirements that can complicate international transactions.
Foreign buyers should maintain financial flexibility by keeping additional funds available for closing costs, furniture, and immediate maintenance needs beyond the required down payment amount.
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's apartment market offers compelling opportunities for both investors and residents, with Panama City providing the highest yields and most liquid market.
The significant price differences between the capital and other regions create opportunities for different investment strategies, from high-yield urban properties to affordable coastal retreats.
Sources
- Panama City Price Forecasts
- Panama Real Estate Trends
- Global Property Guide - Panama Price History
- Panama Casa - 1 Bedroom Apartments
- Global Property Guide - 2 Bedroom Rent
- Global Property Guide - 2 Bedroom Prices
- Panama Home Realty - Punta Pacifica Rentals
- Global Property Guide - Panama Rental Yields
- Casa Solution - Panama Mortgage Guide
- The Panama Link - Property Taxes