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Everything you need to know before buying real estate is included in our Panama Property Pack
Thinking about buying a 3-bedroom apartment in Casco Viejo? It’s a vibrant area with rich history, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other neighborhoods like Punta Pacifica or Costa del Este where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Panama Property Pack.
Will property prices increase in Panama in 2025?
Yes, property prices in Panama are expected to rise in 2025, driven by a combination of economic growth and increased foreign investment.
Backed by our fresh, in-depth market analysis, we’re confident that Panama remains an attractive destination for both domestic and international investors.
While there are challenges such as inflation and potential political instability, the main drivers behind Panama’s price growth are strong and persistent.
Panama's strategic location, favorable tax incentives, and growing infrastructure projects continue to attract buyers, making any significant price declines unlikely.
Signals pointing to a property price increase in Panama
Here are some factors suggesting prices could increase:
Panama's economy is projected to grow steadily in 2025, supported by sectors such as logistics, finance, and tourism. Economic growth typically boosts property demand as more people and businesses seek real estate opportunities.
The expansion of the Panama Canal continues to enhance the country's strategic importance in global trade, attracting international businesses and investors, which in turn increases demand for commercial and residential properties.
Panama offers attractive tax incentives for foreign investors, including no capital gains tax on primary residences and tax exemptions for retirees. These incentives are expected to continue drawing international buyers, supporting property price growth.
Infrastructure projects, such as the expansion of the metro system and new road developments, are set to improve connectivity and accessibility, making certain areas more desirable and likely to see property value increases.
The government's focus on promoting tourism is expected to boost demand for vacation properties and short-term rentals, particularly in popular tourist destinations, driving up property prices in these areas.
Panama's stable banking system and use of the US dollar provide a level of financial security that appeals to international investors, contributing to sustained demand for real estate.
The growing trend of remote work and digital nomadism is attracting more expatriates to Panama, increasing demand for residential properties, especially in urban and coastal areas.
Signals pointing to a property price decrease in Panama
Here are some factors suggesting prices could fall:
Rising inflation could erode purchasing power, making it more difficult for local buyers to afford property, potentially dampening demand in the domestic market.
Political instability or changes in government policies could create uncertainty, discouraging foreign investment and impacting property prices negatively.
An oversupply of new developments, particularly in certain areas, could lead to increased competition among sellers, potentially driving prices down if demand does not keep pace.
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If property prices go up in Panama, how much would they increase by?
If real estate prices in Panama were to rise in 2025, the increase would likely be around 3% to 7% of their 2024 values.
Typically, real estate in emerging markets like Panama appreciates by approximately 3% to 7% annually over the long term. However, fluctuations can occur depending on factors such as location, infrastructure development, and property type.
It means that, if you spot a charming 2-bedroom apartment in Casco Viejo for $250,000 today, don't be surprised if it's priced between $257,500 and $267,500 this time next year.
To give you a better understanding, here is a table that shows 7 types of Panamanian real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 3%, 5%, and 7%.
| Type of Property | Average Price in 2024 ($) | Price in 2025 (3% increase) | Price in 2025 (5% increase) | Price in 2025 (7% increase) |
|---|---|---|---|---|
| Beachfront Condo (60 sqm / 646 sqft) | $300,000 | $309,000 | $315,000 | $321,000 |
| City Apartment (75 sqm / 807 sqft) | $400,000 | $412,000 | $420,000 | $428,000 |
| Luxury Villa (100 sqm / 1,076 sqft) | $1,000,000 | $1,030,000 | $1,050,000 | $1,070,000 |
| Studio (30 sqm / 323 sqft) | $150,000 | $154,500 | $157,500 | $160,500 |
| Loft (80 sqm / 861 sqft) | $500,000 | $515,000 | $525,000 | $535,000 |
| Townhouse (150 sqm / 1,615 sqft) | $750,000 | $772,500 | $787,500 | $802,500 |
| Investment Property (50 sqm / 538 sqft) | $200,000 | $206,000 | $210,000 | $214,000 |
Everything you need to know is included in our Property Pack for Panama
If real estate prices go up in Panama City, which areas are likely to see the biggest increases?
Today, people who want to move to Panama City are looking for a blend of modern amenities and vibrant social scenes, which Casco Viejo offers. Hence, we could see a price increase there in 2025.
Also, lately, there's been a shift toward more youthful, vibrant neighborhoods, and El Cangrejo has really taken off.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Panamanian market.
| Neighborhood | Level of Increase | Why |
|---|---|---|
| Casco Viejo | High | Recent development of luxury housing projects and its increasing appeal to international buyers as travel normalizes post-pandemic, driving demand. |
| Punta Pacifica | High | Expected rise due to limited housing stock, upcoming renovations to high-end properties, and growing demand for prime locations in Panama City. |
| Costa del Este | Medium-High | Ongoing development of commercial and residential projects, along with new transport links, are likely to push prices higher. |
| Obarrio | Medium | The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments. |
| San Francisco | Medium-High | Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward. |
| El Cangrejo | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
| Bella Vista | Medium-High | With new cultural and commercial spaces being developed, this trendy neighborhood is seeing increased demand from both residents and investors. |
| Avenida Balboa | Medium | Investment in local infrastructure, such as the extension of public transport lines and renovation of waterfront areas, is boosting long-term value. |
| Clayton | Medium-High | Its proximity to the city center, along with new office and residential developments, makes it increasingly attractive to professionals seeking more space. |
| Ancon | Medium | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
| Punta Paitilla | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
| Amador | High | Upcoming restoration of historic sites and high-profile cultural projects are driving a renewed focus on this scenic, waterfront location. |
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Panama?
In 2025, Panama real estate trends focus on tech-smart, energy-efficient apartments, beachfront properties, homes with outdoor spaces, and eco-friendly buildings—all driving higher demand and prices. Here is a summary.
- Tech-Equipped and Energy-Efficient Apartments:
Driven by remote work and sustainability trends, these homes offer smart technology features and energy-saving systems. They cater to young professionals and tech workers, making them a hot commodity in 2025.
- Beachfront Properties:
With Panama's stunning coastlines, beachfront properties are in high demand. These properties offer breathtaking views and easy access to the ocean, making them attractive for both investors and vacationers.
- Properties with Outdoor Spaces:
Post-pandemic, outdoor spaces like terraces, balconies, or gardens have become highly desirable. In urban areas of Panama, these features offer a much-needed escape and are likely to drive up property values.
- Eco-Friendly Buildings with Low Carbon Footprints:
Panama's commitment to sustainability is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the country's green goals, leading to price appreciation in this category.
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