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Everything you need to know before buying real estate is included in our Panama Property Pack
Panama real estate prices vary significantly across different regions and property types.
As of September 2025, Panama City averages $2,055–$2,529 per square meter, while luxury ocean-view condos in Punta Pacifica reach $3,500–$6,000 per square meter. Coastal and mountain towns offer more affordable options at $1,200–$2,000 per square meter, making Panama an attractive destination for both investors and residents seeking quality real estate at competitive prices.
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 real estate averages $2,055–$2,529 per square meter, while luxury areas command $3,500–$6,000 per square meter.
Property taxes are minimal with exemptions up to $120,000, closing costs run 5-7%, and rental yields average 7-8.6% in Panama City.
| Property Type | Panama City | Prime Areas | Beach/Mountain Towns |
|---|---|---|---|
| Price per m² | $2,055–$2,529 | $3,000–$6,000+ | $1,200–$2,000 |
| 1-Bedroom Apartment | $180,000–$245,000 | $350,000+ | $120,000–$160,000 |
| 3-Bedroom House | $350,000–$495,000 | $650,000–$1.3M+ | $180,000–$350,000 |
| Land per m² | $1,000–$3,000 | $3,000–$10,000+ | $250–$1,000 |
| Monthly HOA Fees | $1.00–$1.80/m² | Up to $3.50/m² | $0.80–$1.20/m² |
| Rental Yield | 7–8.6% | 5–7% | 5–9% |
| Annual Appreciation | 1–4% | 3–6% | 4–8% |
What's the average price per square meter for real estate in Panama City compared to smaller cities and rural areas?
Panama City real estate averages $2,055–$2,529 per square meter as of September 2025.
Prime neighborhoods within Panama City command higher prices, typically ranging from $2,800–$3,200 per square meter. Luxury developments in prestigious areas like Casco Viejo, Punta Pacifica, and Costa del Este often exceed $3,000–$4,500 per square meter.
Smaller cities and coastal areas offer significantly more affordable options. Beach towns like Coronado and Pedasí range from $1,200–$2,000 per square meter. Mountain towns such as Boquete generally price below Panama City levels, making them attractive for retirees and lifestyle buyers seeking lower costs.
Rural areas present the most budget-friendly opportunities, with land prices dropping to as low as $33 per square meter near coastal towns like Pedasí. These areas appeal to buyers looking for development opportunities or those seeking maximum value for their investment.
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How much does a one-bedroom apartment in the city center typically cost versus outside the center?
One-bedroom apartments in Panama City center typically cost $180,000–$245,000 for units ranging from 60–100 square meters.
These central apartments command rental rates of $1,800–$2,400 per month, reflecting their prime location and proximity to business districts, restaurants, and entertainment venues. The higher prices reflect the convenience and lifestyle benefits of city center living.
Outside the city center, one-bedroom apartments are considerably more affordable at $120,000–$180,000. These properties typically rent for $1,000–$1,500 per month, offering 20–40% savings compared to city center locations.
The price difference reflects accessibility, amenities, and neighborhood prestige. City center properties often feature modern buildings with concierge services, gyms, and rooftop pools, while outer areas may offer larger spaces but fewer premium amenities.
What's the average price of a three-bedroom house in Panama City compared to coastal towns and mountain regions?
Three-bedroom houses in Panama City average $350,000–$495,000, with prices typically ranging from $1,600–$2,000 per square meter.
These properties often feature modern construction, gated community amenities, and proximity to international schools and business centers. The higher prices reflect the urban convenience and infrastructure available in the capital city.
Coastal and mountain towns offer three-bedroom houses at $180,000–$350,000, representing significant savings of 30–50% compared to Panama City. Beach areas typically price at $1,200–$2,000 per square meter, while mountain regions often fall at the lower end of this range.
Rural and small-town properties can cost even less, with some three-bedroom houses available under $200,000. These areas attract buyers seeking lifestyle changes, retirement destinations, or investment opportunities in emerging markets.
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How do prices differ between new developments and older resale properties?
New developments command premium pricing in Panama's real estate market.
In expat-favored areas, new and off-plan units typically price at $2,720–$4,150 per square meter, representing a significant premium over existing properties. Developers justify these prices through modern amenities, energy-efficient systems, and contemporary designs that appeal to international buyers.
Resale properties offer more value-conscious options, typically pricing 10–20% below new developments. Older buildings may offer even greater discounts depending on their age, maintenance condition, and available amenities.
The price gap varies by location and property type. In prime areas like Punta Pacifica, new luxury developments may command 25–40% premiums, while in emerging neighborhoods, the difference might be smaller as buyers focus more on location than building age.
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What's the cost of luxury condos with ocean views in prime areas like Punta Pacifica or Avenida Balboa?
Luxury ocean-view condos in Punta Pacifica and Avenida Balboa range from $3,500–$6,000 per square meter as of September 2025.
A typical example includes a 376 square meter ocean-view condo in Punta Pacifica listed at $1,250,000, equating to approximately $3,300 per square meter. Smaller luxury units ranging from 200–300 square meters typically cost $650,000–$900,000.
Ultra-luxury penthouses and prime-tier units can exceed $10,000 per square meter, particularly in iconic towers with exclusive amenities like private elevators, concierge services, and premium finishes. These properties target high-net-worth individuals seeking prestigious addresses.
The premium pricing reflects not only the ocean views but also the exclusive locations, building amenities, and proximity to Panama City's financial district. These areas represent Panama's most prestigious residential addresses.
How much does land cost per square meter in urban zones versus beachfront and countryside?
| Location Type | Price per m² | Typical Features |
|---|---|---|
| Urban Panama City | $1,000–$3,000 | Serviced lots, central locations, utilities |
| Prime Urban Areas | $3,000–$10,000+ | Premium locations, development-ready |
| Beachfront Properties | $250–$1,000 | Ocean access, tourism potential |
| High-demand Beach Areas | $1,000+ | Infrastructure, established communities |
| Mountain/Coastal Rural | $30–$200 | Basic access, development potential |
| Remote Countryside | $30–$100 | Limited infrastructure, large parcels |
| Rural with Utilities | $100–$300 | Road access, power, water available |
What are the average monthly costs for homeowners' association or condo fees in Panama?
Homeowners' association fees in Panama average $1.00–$1.80 per square meter monthly for modern buildings with standard amenities.
The range varies significantly based on building services and luxury level, spanning from $0.80–$3.50 per square meter. A typical 100 square meter condo incurs $100–$180 monthly in HOA fees, though ultra-luxury towers can exceed $300 monthly.
Fees typically cover security, maintenance, common area upkeep, elevators, pools, gyms, and concierge services where available. Buildings with extensive amenities like multiple pools, tennis courts, or full-service spas command higher fees.
Luxury developments in prime areas like Punta Pacifica may charge up to $3.50 per square meter monthly, reflecting premium services and amenities. Budget-conscious buyers should factor these ongoing costs into their total ownership expenses.
How much are typical property taxes for a $200,000 home, and are there exemptions for foreigners?
Property taxes in Panama are remarkably low with generous exemptions for all property owners regardless of nationality.
Primary homes valued up to $120,000 are completely exempt from property taxes. For a $200,000 home, the annual property tax typically ranges from $530–$650, calculated on a progressive rate system applied only to the value exceeding the exemption threshold.
Foreigners receive identical treatment to Panamanian citizens with no surcharges or discrimination. The same exemption levels and tax rates apply universally, making Panama attractive for international property investors.
New construction properties may qualify for additional exemptions lasting 5–20 years on the construction value portion, further reducing the tax burden for buyers of newly built homes. These incentives encourage development and make new properties particularly attractive from a tax perspective.
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.
What are the average closing costs as a percentage of the property price, including legal fees and registration?
Closing costs in Panama typically range from 5–7% of the property purchase price.
These costs include legal fees (1–2% of purchase price), transfer taxes (2% of property value), and various registration, notary, and administrative fees. The breakdown ensures proper legal transfer and registration of ownership rights.
Some new developments offer negotiable closing cost arrangements, particularly for off-plan purchases where developers may absorb certain fees to facilitate sales. However, buyers should budget for the full 5–7% range to avoid surprises.
Additional costs may include property inspections, surveys, and due diligence expenses. International buyers should work with experienced local attorneys to ensure all legal requirements are properly addressed during the transaction process.
How much do buyers usually spend on renovations or furnishing per square meter after purchase?
Renovation costs in Panama average $350–$700 per square meter for basic to mid-grade updates as of September 2025.
These costs cover standard improvements like painting, flooring updates, kitchen and bathroom renovations, and basic electrical or plumbing modifications. Higher-end renovations with premium materials and fixtures can significantly exceed this range.
Complete furnishing packages typically cost $200–$400 per square meter for quality furniture, appliances, lighting, and decor. This range provides a well-appointed living space suitable for personal use or rental purposes.
Luxury renovations and furnishing can reach $500–$1,200 per square meter in prime areas where buyers demand premium finishes and designer furnishings. Budget-conscious buyers can achieve attractive results at the lower end of these ranges by prioritizing essential improvements.
What is the average rental yield percentage in Panama City versus tourist towns like Boquete or Bocas del Toro?
Panama City apartments deliver gross rental yields of 7–8.6%, depending on neighborhood and unit size.
Net yields typically run 1.5–2% lower after accounting for property management, maintenance, taxes, and vacancy periods. The strong yields reflect consistent rental demand from expatriates, business travelers, and local professionals.
Tourist towns like Boquete and Bocas del Toro generate gross yields of 5–7% for properties targeted at vacation rentals and expatriate residents. Coastal areas like Pedasí and Coronado can achieve 6–9% yields, particularly for properties appealing to retirees and seasonal visitors.
Yield variations depend on property type, location within each market, and management quality. Short-term vacation rentals may achieve higher gross yields but require more active management and face seasonal fluctuations in demand.
How much annual appreciation in property value can buyers expect in key areas over the past five years?
Panama City real estate has appreciated 1–4% annually over the past five years, with luxury and prime areas outperforming modest apartment segments.
Total average price increases reached almost 60% from 2020–2025, though strong gains were concentrated in specific segments including luxury properties and hot neighborhoods rather than being evenly distributed across all property types.
Prime areas like Punta Pacifica and Costa del Este have achieved 3–6% annual appreciation, driven by limited supply of premium oceanfront properties and strong international demand. These areas continue attracting high-net-worth buyers seeking prestigious addresses.
Beach and mountain towns have shown varied performance, with some areas like Pedasí and Coronado outperforming Panama City appreciation at 4–8% annually. Tourism-driven demand and infrastructure improvements have supported these gains in select coastal and mountain communities.
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 real estate offers compelling value propositions across different market segments, from affordable coastal properties to luxury Panama City condos.
With competitive prices, low property taxes, reasonable closing costs, and solid rental yields, Panama continues attracting international property investors seeking both lifestyle and investment returns.
Sources
- The LatinVestor - Panama City Price Forecasts
- The LatinVestor - Panama Real Estate Trends
- Ingwe Capital - Dubai vs Panama ROI Comparison
- Global Property Guide - Panama Buying Guide
- Casa Solution - Pedasí Real Estate Market Report 2025
- Global Property Guide - Panama Rental Yields
- Panama Equity - Punta Pacifica Properties
- Kraemer Law - Panama Property Taxes