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
What will happen in Panama’s real estate market? Will prices go up or down? Is Panama City still a hotspot for foreign investors? How is Panama’s government impacting real estate policies and taxes in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with notaries, real estate agents, and clients who buy properties in Panama, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.
How this content was created 🔎📝
1) Property prices along Panama's Caribbean coast will rise moderately as tourism infrastructure grows in less crowded beach towns
Properties along Panama's Caribbean coast are set for moderate price increases as tourism infrastructure grows in less crowded beach towns.
Thanks to government investment, new roads now connect Santiago to the Caribbean, and the coastal highway got a facelift in 2022. These upgrades make the area more accessible, drawing in tourists and investors alike.
In 2024, Panama's tourism sector bounced back with visitor arrivals up by 8.7% in the first half of the year. New hotels and resorts are popping up along the coast, attracting even more visitors. Clearly, the government's push to make Panama a top tourist spot is working.
Air travel is also on the rise, with a 15.8% increase in travelers at Tocumen International Airport during the first half of 2024. Better flight options mean more tourists can easily reach Panama, boosting demand for local properties.
These developments are turning Panama's Caribbean coast into a hot spot for tourism and real estate. The region's charm is becoming more accessible, making it a prime location for those looking to invest in property.
Sources: The Rio Times, Newsroom Panama, Fox59
2) Demand for upscale city condos will rise as Latin American investors seek secure assets and international prestige
Latin American investors are flocking to upscale condos in Panama's city centers, drawn by the country's stable economy and use of the US dollar.
Panama is seen as a safe haven, especially during regional economic instability. The real estate market here is booming, with luxury apartments in high demand. This surge is fueled by favorable tax policies, a cosmopolitan lifestyle, and access to top-notch healthcare and sunny weather.
In Panama City, property values are soaring, with areas like Punta Pacifica reaching up to $4,000 per square meter. This makes it a hot spot for those looking to invest in high-end real estate.
Panama's political and economic stability is a major draw. The country scores impressively on the Fragile State Index, which reassures investors seeking secure assets. The government's push for tourism and infrastructure development only adds to the allure.
Investors are not just buying property; they're buying into a lifestyle. Panama offers a blend of modern living and natural beauty, making it an attractive choice for those wanting both security and a vibrant life.
With all these factors, it's no wonder that Latin American investors are driving demand for luxury condos in Panama's city centers, seeking both secure assets and international prestige.
Sources: Latam News, Central America, Pallas Life
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.
3) Remote workers will be drawn to homes with co-working spaces that suit their flexible lifestyles
Residences with built-in co-working zones are becoming a hot commodity for remote workers, especially in places like Panama.
In recent years, the global coworking industry has been on the rise, with nearly 42,000 locations expected by the end of 2024. This growth highlights a strong demand for flexible work environments, crucial for remote workers who need adaptable spaces to fit their work-from-anywhere lifestyle. In Latin America, the demand for these flexible workspaces has surged, with a notable 29% increase overall.
This trend is particularly evident in Panama City, where the number of coworking spaces has jumped by almost 28% since 2020. These spaces are strategically located in key areas like the banking district, Costa del Este, and Punta Pacífica. Such locations are ideal for remote workers who value accessibility and community, making them a perfect fit for those seeking a balance between work and leisure.
Moreover, Panama has introduced a Short-Stay Visa for Remote Workers, allowing foreigners to live and work in the country for up to nine months, with the option to renew. This initiative is designed to attract digital nomads who prefer flexible and convenient living arrangements. It's a move that further boosts the appeal of residences with integrated co-working zones, catering to the needs of modern professionals.
Residences with built-in co-working zones will attract remote workers seeking amenities tailored to their flexible lifestyles. These spaces offer more than just a desk; they provide a community and a sense of belonging, which is invaluable for those working remotely. The convenience of having a workspace within your living area cannot be overstated, especially in a vibrant city like Panama City.
For remote workers, the combination of a supportive community, strategic location, and flexible living options makes Panama an attractive destination. The city's proactive approach to accommodating digital nomads through initiatives like the Short-Stay Visa and the growth of coworking spaces demonstrates its commitment to becoming a hub for remote work.
Sources: Punta Pacifica Realty, Allwork.Space, Icaza Law
4) Coronado will become a busy year-round spot as retirees and expats move there permanently
Coronado is quickly becoming a year-round hotspot for retirees and expats.
Thanks to the Qualified Investor Program, many have found it easier to gain permanent residency in Panama. This program, which allows investors to apply remotely, has made the process more accessible and appealing for those looking to settle in Coronado.
While Panama's overall housing market has seen some dips, real estate sales in Coronado are booming. Beach apartments are particularly popular, drawing interest from both local and international buyers. The influx of retirees and expats is a major driver of this demand, as they have long favored Coronado for its charm and amenities.
Infrastructure in Coronado is keeping pace with its growing population. The addition of the San Fernando Clinic and the expansion of international schools are just a few examples of how the area is evolving to meet the needs of its residents. These developments provide essential services and educational opportunities for families and individuals alike.
Local businesses are also expanding, with 24-hour supermarkets and other amenities popping up to cater to the needs of permanent residents. This growth reflects the increasing demand for everyday conveniences in the area.
Sources: Retire in Panama Tours, NTL Trust, Global Property Guide, The Agency Panama, International Living
5) Rents in Panama City’s expat-friendly areas will rise slightly as foreign professionals look for convenient, ready-to-move-in homes
In Panama City, rents in popular expat-friendly districts are climbing as more foreigners move in.
Many foreign professionals are relocating to Panama, drawn by its booming economy in sectors like logistics, finance, and tourism. This influx is pushing up demand for housing, especially in areas close to business hubs. For example, multinational corporations are expanding in Costa del Este, making it a hotspot for corporate relocations and increasing the need for nearby residential properties.
Housing supply in these sought-after districts is tight. In 2024, Costa del Este saw a drop in new condo deliveries, which is expected to push rental prices up by 5-10%. Similarly, Casco Viejo is experiencing a rental price hike, with predictions of a 10% increase due to high Airbnb activity and limited long-term rental options.
Real estate agents are noticing a surge in inquiries from expatriates looking for turnkey housing solutions. These are properties that are ready to move into, which are in high demand among those who want to settle quickly without the hassle of renovations or furnishing.
As more foreign professionals seek well-located, ready-to-move-in homes, rents in these districts are expected to inch upward. This trend is particularly evident in areas like Costa del Este and Casco Viejo, where the demand for such properties is strong.
Source: Panama Equity
Get fresh and reliable information about the market in Panama
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
6) Investor interest will move to Panama's suburbs as property tax incentives change
Recent changes in property tax laws are making suburban areas in Panama more appealing to investors.
Under Law 66, if you declare a property as your "Primary Residence," you get a tax break on the first $120,000 of its value. This is a big deal in the suburbs where property values are generally lower, making the tax exemption even more attractive.
Historically, tax breaks like those from Law 28 of 2012 have drawn investors to new developments, which are often in suburban areas. As property prices in Panama City keep climbing, investors are eyeing these suburbs for more affordable options.
Demographic changes and new infrastructure projects are also boosting the appeal of suburban areas. The Strategic Vision for Downtown and Its Waterfront from 2019 suggests that suburban neighborhoods could see population growth. Plus, government projects like metro expansions are making these areas more connected and desirable.
These shifts are encouraging investors to look beyond Panama City's established centers. With the right mix of tax incentives and infrastructure improvements, suburban areas are becoming the new hotspots for property investment.
Sources: The Panama Link, Panama City Government, Government Strategic Plan
7) Investor yields in Panama's prime developments will drop gradually as more condos reduce bidding wars
Panama's real estate market is seeing a surge in newly finished, unsold condos.
In 2024, there are about 4,200 unsold units, which is over a 10% increase from last year. This growing inventory is a big chunk of all the condos that are planned, being built, or already completed. With so many options, renters can take their time and negotiate better deals, which means landlords might have to lower rents to attract tenants.
Previously, rental yields were between 6.8% and 9.5%, but with more condos available, these numbers are expected to drop. The increased supply gives renters more choices, reducing the urgency to rent quickly. This shift means landlords might have to adjust their expectations and pricing strategies.
Condos are staying on the market longer, both for sale and rent, because buyers and renters now have more options. This change in dynamics is making developers offer price reductions or incentives to attract buyers. It's a clear sign that buyers have more bargaining power than before.
For those looking to invest, it's important to know that the market is shifting. The abundance of condos is curbing bidding wars, which could lead to incremental declines in investor yields in prime developments. This means that while there are opportunities, the returns might not be as high as they once were.
Sources: Panama Equity, Latam News, GlobalData
8) Energy-efficient homes with solar panels and natural ventilation will gain value as utility costs increase
In Panama, utility costs have been climbing, especially electricity, which is pricier than in nearby Mexico.
To tackle these rising costs, Panama's government is pushing for solar energy adoption. With the introduction of Law 417 in 2024, homeowners can enjoy tax breaks and import duty reliefs, making solar panels a smart choice for cutting down electricity bills.
Homebuyers are increasingly interested in energy-efficient homes. As utility prices soar, features like solar panels and natural ventilation are becoming must-haves for those looking to save money and live sustainably.
These energy-efficient features not only help reduce costs but also align with the global trend towards sustainable living. In Panama, the demand for such homes is on the rise, driven by both economic and environmental factors.
Investing in a property with these features could be a wise move, as energy-efficient homes are likely to appreciate in value as utility costs continue to rise.
With the government's support and the growing consumer demand, solar technology is set to become a key player in Panama's real estate market.
Sources: Enerdata, UNCTAD, Exact Solar
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.
9) More buyers will be drawn to David as infrastructure improves and job opportunities increase
David, the bustling hub of Chiriquí, is becoming a hotspot for property buyers thanks to major infrastructure upgrades and new job opportunities.
The completion of the Panama-David Train project in 2024 has been a game-changer, slashing travel time from Panama City to David from over seven hours by car to just 2.5 hours by train. This makes David not only more accessible but also more attractive for businesses and residents alike.
Panama's construction market is on the rise, with an expected annual growth rate of 5% from 2025 to 2028. This boom is fueled by investments in transport, renewable energy, and telecommunications, which are set to create a wealth of job opportunities in sectors like construction and tourism. David is poised to benefit from this growth, drawing in job seekers and businesses eager to expand.
Chiriquí's recognition as one of the top 10 tourist destinations for 2025 by Lonely Planet underscores its potential for new ventures, especially in tourism. This accolade, coupled with ongoing infrastructure improvements, indicates a rising interest in relocating to well-connected areas, enhancing David's allure.
With these developments, David is not just a place to live but a thriving community with promising prospects for economic growth. The combination of improved connectivity and job creation is setting the stage for a vibrant future.
As infrastructure projects continue to unfold, David is expected to see a surge in both residential and commercial interest, making it a prime location for those looking to invest in property. The city's transformation is a testament to its growing importance as a commercial center in the region.
Sources: Casa Solution, GlobalData, Newsroom Panama
10) Property prices in well-managed condos will rise steadily as buyers prioritize professional maintenance and security
In Panama, the demand for gated communities and secure living environments is on the rise.
People are flocking to areas like El Cangrejo and Boquete for their unique blend of urban and peaceful living. Local residents and expatriates alike are driving this trend, seeking a lifestyle that offers both safety and tranquility.
Properties in well-managed condominiums are seeing a steady appreciation in value. For example, condos in AAA buildings like Allure at the Park have seen a 13% increase in price per meter over the past two years. This is largely thanks to the professional upkeep and security these places offer.
Expatriate buyers, especially from North America and Europe, are showing a strong preference for properties with professional management and security features. This is particularly true for luxury developments and beachfront properties in hotspots like Panama City and Coronado.
These buyers value the peace of mind that comes with knowing their investment is well-maintained and secure. As a result, properties in these well-managed communities are becoming increasingly attractive.
Sources: Panama Equity, Pallas Life, Panama Equity Blog
11) Property prices in Casco Viejo will rise modestly as preservation efforts boost its cultural appeal
Casco Viejo in Panama City is buzzing with exciting preservation and restoration projects that are boosting its charm.
With the completion of the Plaza Santa Ana restoration by the end of 2023 and new projects like Santa Familia and Casco View launching in early 2024, the area is seeing a fresh wave of development. These changes are making properties more valuable, and it's a great time to consider investing.
Tourism is booming, and Casco Viejo is now the second most popular tourist spot in Panama. This surge in visitors is pushing up property values and rents. Expect Airbnb activity to cause a 10% rise in property rents in 2024, as the neighborhood's trendy vibe with its restaurants, cafes, and art galleries attracts both tourists and locals.
Thanks to government incentives like Law 9, there's been a significant boost in investment and development in Casco Viejo. Its status as a UNESCO World Heritage Site adds to its appeal, making it a hot spot for investors and developers.
The area is also becoming a cultural hotspot with more events and festivals, drawing even more visitors. This cultural buzz is enhancing its allure and driving up property values.
Sources: Panama Equity, Frapan Invest, Tropical Research Institute
Don't buy the wrong property, in the wrong area of Panama
Buying real estate is a significant investment. Don't rely solely on your intuition. Gather the right information to make the best decision.
12) Rents for older condos in central Panama City will drop as tenants prefer newer buildings with modern amenities
Older condos in central Panama City are feeling the squeeze as tenants flock to newer buildings.
With the rise of new residential constructions, tenants are drawn to modern amenities that older units just can't compete with. Take the St. Joe Company's expansion of Pier Park, for instance. This development includes multi-family units and a hotel, all decked out with the latest conveniences, making them irresistible to renters.
Surveys back this up, showing a clear tenant preference for newer facilities. According to Buildium, renters are sticking to their current homes because of the growing rent gap between older and newer properties, highlighting their desire for modern living spaces.
Rental prices tell the same story. Reports from Zumper reveal a notable drop in rent prices for older units in Panama City, as tenants increasingly choose the allure of newer, more modern buildings.
It's not just about the amenities; it's about lifestyle. Newer buildings often come with perks like gyms, pools, and community spaces, which are becoming essential for today's renters. This shift is putting downward pressure on older condos, as they struggle to keep up with the evolving demands of the market.
In the heart of Panama City, the trend is clear: modern facilities are winning the rental race, leaving older units to rethink their appeal.
Sources: Zillow, Buildium, Zumper, Life Media Group
13) Demand for homes with gyms, pools, and social spaces will grow as wellness living becomes the norm
In recent years, homebuyers have shifted their focus towards wellness-oriented living spaces.
Back in 2023 and 2024, builders noticed that 59% of them experienced a rise in requests for wellness features. This isn't just a fleeting trend; it's part of a larger movement towards wellness-focused living. In places like Panama, especially in luxury areas such as Costa del Este, properties often come with gyms, swimming pools, and social areas as standard amenities.
The wellness real estate market is on the rise, with expectations to hit $180 billion by 2025. This growth underscores the economic benefits of integrating wellness into real estate. Modern residents are increasingly prioritizing holistic well-being, making these features essential rather than optional.
Consumer surveys reveal that people are looking for environments that support their overall health. This means not just traditional workout spaces but also areas for meditation, yoga, and outdoor activities. Real estate projects are adapting by including shared social spaces that encourage community engagement, which can lead to lower levels of loneliness and greater life satisfaction.
In Panama, luxury properties are setting the standard with these wellness features, catering to a growing demand for spaces that promote a balanced lifestyle. The trend is clear: buyers are increasingly favoring buildings with amenities like gyms and pools as wellness-focused living becomes the norm.
As wellness becomes a priority, these features are no longer just perks but essential elements of modern living. The shift towards wellness in real estate is not just about luxury; it's about creating environments that enhance quality of life.
Sources: Core Handf, Le Figaro Properties, The Luxury Playbook
14) Demand for senior-friendly homes with barrier-free designs and medical access will grow as the local population ages
Panama is experiencing a noticeable increase in its aging population.
In 2023, over 8% of the male population was aged 65 and above, and this trend is expected to continue. As the median age rises from 30.3 in 2025 to 31.9 by 2030, more people are living longer, which means their housing needs are evolving. This shift is prompting a global trend towards homes designed for older adults, featuring barrier-free designs that make it easier for seniors to move around safely and comfortably.
In Panama, this trend is likely to catch on, especially since the population aged 80 and above is projected to grow significantly by 2030. This growth highlights the need for homes that can accommodate the unique needs of older residents. As people age, they often require more healthcare services, and the rapid increase in the population aged 80 and above suggests a rising demand for on-site medical facilities in senior residences.
These facilities would not only provide convenience but also ensure that seniors have quick access to medical care when needed. An aging local population will drive demand for senior-friendly residences featuring barrier-free designs and on-site medical access. This trend is particularly notable in Panama, where the aging population is growing, and the need for specialized housing is becoming more apparent.
For potential property buyers, this means there is an opportunity to invest in real estate that caters to this demographic shift. Properties that offer these features are likely to be in high demand, as they provide the necessary amenities for an aging population. This is a chance to be part of a growing market that addresses the needs of older adults, ensuring they have a comfortable and safe living environment.
Sources: Trading Economics, NIC MAP Vision, Worldometers
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.
15) Rental prices for luxury condos in waterfront areas will rise as wealthy tenants look for upscale amenities and views
Luxury real estate in Panama is booming, especially in waterfront areas.
Panama is a magnet for wealthy expatriates and retirees because of its friendly tax policies and great lifestyle. These folks love properties with modern amenities and ocean views, which are plentiful along the coast.
The country's strategic location and a growing economy are also pulling in foreign investors. This has led to a surge in luxury condo developments, offering high-end features and prime spots.
These new condos are not just about comfort; they offer a sense of prestige. Affluent tenants are willing to pay a premium for upscale amenities and stunning views.
Waterfront neighborhoods are particularly hot right now. The demand for these luxury condos is rising as more people seek the perfect blend of luxury and location.
Expect rental prices in these areas to keep climbing as the market continues to attract high-net-worth individuals. Upscale living spaces with ocean views are the new gold standard.
Sources: Statista, Pallas Life, Panama Equity
16) Interest from North American buyers in gated communities near schools and shops will grow due to a focus on security and convenience
North American buyers are increasingly drawn to gated communities in Panama, especially those near top schools and shopping areas.
Many North American families are choosing Panama for its proximity to top international schools, making neighborhoods like Clayton highly desirable. These areas offer easy access to quality education, which is a top priority for families with children.
In places like Santa Maria, the real estate market is booming with luxury homes in gated communities, known for their excellent security. This trend reflects the growing demand for safe and convenient living spaces among expatriates.
Security and convenience are key for North American buyers, and neighborhoods like Costa del Este are designed with these priorities in mind. High-rise apartments and family-friendly parks create a clean and organized environment, enhancing the appeal of these areas.
The media often highlights the safety and lifestyle benefits of gated communities, which boosts their popularity among North American buyers. This focus on security and convenience aligns with the preferences of expatriates seeking a new lifestyle abroad.
Sources: Siuma Mobility, Frapan Invest, Casa Solution
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.