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
If you are considering buying property in Panama in 2026, you are probably wondering how the real estate market is really performing right now.
We constantly track Panama's housing market so we can give you fresh, reliable data on current housing prices, market momentum, and what to realistically expect as a foreign buyer.
This blog post is regularly updated to reflect the latest developments in Panama's property market.
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.
How's the real estate market going in Panama in 2026?
What's the average days-on-market in Panama in 2026?
As of early 2026, the estimated average days-on-market for residential properties in Panama City is around 110 days for mid-range resale apartments, though this figure stretches to 150 days or more for overpriced units competing in condo-heavy corridors like Punta Pacifica or Costa del Este.
The realistic range that covers most typical listings in Panama falls between 60 and 150 days, with correctly priced family homes and townhomes in sought-after neighborhoods like Clayton or Albrook often finding buyers within 60 to 90 days, while generic condos take considerably longer.
Compared to one or two years ago, days-on-market in Panama has remained relatively stable, though the luxury segment above $400,000 continues to show extended selling times due to an inventory overhang that built up during the pandemic years and has not fully cleared.
Are properties selling above or below asking in Panama in 2026?
As of early 2026, the estimated average sale-to-asking price ratio for residential properties in Panama is around 92% to 95%, meaning most properties sell 5% to 8% below their listed asking price, with resale condos in oversupplied areas often seeing discounts of 10% to 12%.
In Panama's current market, roughly 85% of properties sell at or below asking price, with only about 15% achieving asking price or slightly above, and we are fairly confident in this estimate based on consistent signals from multiple data sources including developer incentives and listing price adjustments.
The property types most likely to see bidding wars and above-asking sales in Panama are scarce, move-in-ready family homes in high-demand neighborhoods like Costa del Este, San Francisco, and Clayton, where inventory is limited and buyers compete for livability, good schools, and convenient commutes.
By the way, you will find much more detailed data in our property pack covering the real estate market in Panama.
What kinds of residential properties can I realistically buy in Panama?
What property types dominate in Panama right now?
In Panama in 2026, the estimated breakdown of residential property types available for sale is approximately 70% apartments and condos (known locally as PH units), 15% single-family houses, 10% townhouses or duplexes, and 5% luxury villas or beachfront properties.
The single property type that represents the largest share of Panama's market is the high-rise apartment or condominium, which dominates listings in Panama City neighborhoods like San Francisco, Bella Vista, El Cangrejo, Punta Paitilla, Punta Pacifica, and Costa del Este.
High-rise apartments became so prevalent in Panama because the country's rapid economic growth since the early 2000s, combined with limited buildable land in desirable urban areas and strong demand from both local buyers and international safe-haven investors, incentivized developers to build vertically rather than horizontally.
If you want to know more, you should read our dedicated analyses:
Are new builds widely available in Panama right now?
The estimated share of new-build properties among all residential listings currently available in Panama is approximately 25% to 30%, as active construction permits through mid-2025 indicate ongoing delivery of new condo inventory, particularly in vertical developments across Panama City and Panama Oeste.
As of early 2026, the neighborhoods in Panama with the highest concentration of new-build developments are Costa del Este, Panama Pacifico, Condado del Rey, Via Espana corridor, and parts of San Francisco and Bella Vista, where developers continue to deliver towers despite softer absorption rates in some segments.
Which neighborhoods are improving fastest in Panama in 2026?
Which areas in Panama are gentrifying in 2026?
As of early 2026, the top neighborhoods in Panama currently showing the clearest signs of gentrification are Santa Ana (adjacent to Casco Viejo), select pockets of Calidonia, and very specific micro-areas of El Chorrillo, where spillover investment from the historic district is slowly transforming formerly neglected blocks.
The visible changes indicating gentrification in these areas include the opening of boutique hotels and trendy restaurants along Avenida Central, renovation of colonial-era buildings for short-term rentals, increased police presence creating safer pedestrian zones, and a noticeable demographic shift from low-income residents to young professionals and foreign investors.
Price appreciation in these gentrifying Panama neighborhoods over the past two to three years has been estimated at 15% to 25%, with Casco Viejo itself seeing average prices reach around $4,150 per square meter as of early 2025, while adjacent Santa Ana offers entry points at roughly half that rate with higher upside potential.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Panama.
Where are infrastructure projects boosting demand in Panama in 2026?
As of early 2026, the top areas in Panama where major infrastructure projects are currently boosting housing demand are the Panama Oeste corridor (Arraijan, La Chorrera, and Panama Pacifico) and neighborhoods with direct access to new transit connections leading to business hubs like Costa del Este.
The specific infrastructure projects driving that demand in Panama are Metro Line 3, which will connect Panama City to Panama Oeste via a monorail system including a tunnel beneath the Panama Canal, and the Fourth Bridge over the Canal, which will dramatically improve road connectivity between the capital and the western suburbs.
The estimated timeline for completion of these major projects is mid-2028 for Metro Line 3's full commercial operation (with dynamic testing beginning in early 2026 and partial operations expected by April 2027), while the Fourth Bridge is scheduled for completion in late 2028.
The typical price impact on nearby properties in Panama once such infrastructure projects are announced versus completed is a 10% to 20% premium during the construction phase, with an additional 5% to 15% appreciation in the first two years after opening, particularly for properties within walking distance of new metro stations or bridge access points.
What do locals and insiders say the market feels like in Panama?
Do people think homes are overpriced in Panama in 2026?
As of early 2026, the estimated general sentiment among locals and market insiders is mixed: many believe new-build condos are overpriced relative to resale alternatives, while resale properties are widely seen as negotiable and fairly valued for patient buyers willing to make offers below asking.
The specific evidence locals typically cite when arguing homes are overpriced in Panama includes the visible inventory overhang (entire towers with few lights on at night), extended days-on-market for luxury units, and the gap between developer asking prices ($2,200 to $4,150 per square meter for new builds) versus resale prices ($1,800 to $2,500 per square meter) in the same neighborhoods.
Those who believe prices are fair in Panama commonly point to the country's economic stability, dollarized economy, favorable tax regime, strong rental demand from expats and corporate relocations, and the government's preferential interest program that keeps entry-level properties accessible to qualified buyers.
Panama City's price-to-income ratio is higher than the national average but lower than comparable Latin American capitals like Bogota or Lima, making it relatively affordable for the regional middle class and particularly attractive for foreign buyers with dollar-denominated income seeking diversification.
What are common buyer mistakes people regret in Panama right now?
The most frequently cited buyer mistake people regret making in Panama is not verifying early enough whether the land is "titled" (registered in the Public Registry with clear ownership) versus "rights of possession" or concession land, which can create serious legal complications and is especially common in beach and rural areas outside Panama City.
The second most common buyer mistake people mention regretting in Panama is underestimating the impact of PH (horizontal property) building rules and HOA fees, which can restrict short-term rentals, require special approvals for renovations, and add significant monthly costs that were not factored into the original investment calculations.
If you want to go deeper, you can check our list of risks and pitfalls people face when buying property in Panama.
It's because of these mistakes that we have decided to build our pack covering the property buying process in Panama.
How easy is it for foreigners to buy in Panama in 2026?
Do foreigners face extra challenges in Panama right now?
The estimated overall difficulty level foreigners face when buying property in Panama is moderate: legally, Panama is one of the most foreigner-friendly countries in Latin America for titled property ownership, but practically, the process involves more compliance friction, slower banking steps, and greater reliance on competent local legal counsel than locals experience.
The specific legal restrictions that apply to foreign buyers in Panama include a commonly cited rule prohibiting foreign ownership of property within approximately 10 kilometers of international borders, which affects some rural and beach areas near Costa Rica and Colombia, making it essential to verify location eligibility before committing to a purchase.
The practical challenges foreigners most commonly encounter in Panama include the requirement for extensive KYC (know-your-customer) documentation from banks, the need to apostille or authenticate documents from their home country, limited Spanish-language skills when dealing with notaries and registries, and the difficulty of verifying builder reputation and PH administration quality without local networks.
We will tell you more in our blog article about foreigner property ownership in Panama.
Do banks lend to foreigners in Panama in 2026?
As of early 2026, mortgage financing is available for foreign buyers in Panama, but it is more conditional than for locals, with most banks willing to lend only to foreigners who have residency status, can provide extensive documentation, and are purchasing titled property in approved urban areas.
The typical loan-to-value ratios foreign buyers can expect in Panama are 60% to 70% (meaning 30% to 40% down payment required), with interest rates generally ranging from 7% to 9% for non-residents, compared to the preferential 4% to 5.5% rates available to qualifying Panamanian residents under the subsidized housing program.
The documentation banks typically demand from foreign applicants in Panama includes passport copies, an additional ID such as a driver's license, 12 to 24 months of bank statements, two years of tax returns or audited financial statements, proof of income source, letters of bank and commercial references, credit history from the home country, and a letter explaining the purpose of purchase.
You can also read our latest update about mortgage and interest rates in Panama.
How risky is buying in Panama compared to other nearby markets?
Is Panama more volatile than nearby places in 2026?
As of early 2026, Panama's estimated price volatility is moderate compared to nearby markets: it is more stable than Colombia (which faces currency fluctuations) and Costa Rica's beach markets (which depend heavily on tourism cycles), but shows more segment-specific swings than mature markets like parts of Mexico.
The historical price swings Panama has experienced over the past decade include a 20% to 30% decline following the 2008 global financial crisis (with recovery by 2012), followed by a boom through 2018, then stagnation and correction during 2019 to 2023, and a gradual recovery of 2% to 2.5% annually since 2024.
If you want to go into more details, we also have a blog article detailing the updated housing prices in Panama.
Is Panama resilient during downturns historically?
The estimated historical resilience of Panama property values during past economic downturns is relatively strong compared to other Latin American markets, as the 2008 global financial crisis had a milder impact on Panama than on the United States or Europe, with the market continuing to see transactions even during the worst months.
Property prices in Panama dropped by approximately 20% to 30% during the 2008-2009 downturn, with recovery taking roughly three to four years (prices stabilized by 2012), though the luxury segment took longer to fully recover and some condo-heavy corridors saw extended softness.
The property types and neighborhoods in Panama that have historically held value best during downturns are Casco Viejo's historic colonial properties (where owners tend not to sell at a discount), scarce single-family homes in established neighborhoods like Clayton and Albrook, and lower-priced properties under $150,000 that benefit from government-subsidized mortgage programs.
How strong is rental demand behind the scenes in Panama in 2026?
Is long-term rental demand growing in Panama in 2026?
As of early 2026, the estimated growth trend for long-term rental demand in Panama is moderately positive, supported by steady economic growth projections of around 4% GDP expansion, continued corporate relocations to Panama City, and ongoing household formation in urban areas.
The tenant demographics driving long-term rental demand in Panama include expatriate professionals working for multinational companies headquartered in Panama Pacifico and Costa del Este, young local professionals priced out of homeownership, families relocating from Venezuela and Colombia, and retirees exploring Panama before committing to a purchase.
The neighborhoods in Panama with the strongest long-term rental demand right now are Costa del Este (corporate families), San Francisco and El Cangrejo (young professionals), Obarrio and Bella Vista (central convenience), and Clayton (American and international school families).
You might want to check our latest analysis about rental yields in Panama.
Is short-term rental demand growing in Panama in 2026?
Short-term rental operations in Panama are affected by strict PH (horizontal property) building rules that often prohibit rentals under 45 days, plus increasing enforcement in residential towers, which means investors must carefully verify building regulations before purchasing with Airbnb income expectations.
As of early 2026, the estimated growth trend for short-term rental demand in Panama is positive in permitted locations, driven by rising tourism arrivals, the new Amador cruise terminal (opened in 2024, expecting 450,000 passengers annually), and increased visibility of Panama as a digital nomad destination.
The current estimated average occupancy rate for short-term rentals in Panama varies significantly by location: Casco Viejo's permitted properties often achieve 60% to 75% occupancy during peak season, while beach destinations like Coronado and Bocas del Toro see seasonal swings between 40% and 80%.
The guest demographics driving short-term rental demand in Panama include North American and European tourists transiting through Panama City, business travelers attending conferences, digital nomads exploring Central America, and cruise passengers seeking pre- or post-cruise accommodation near the canal.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Panama.
What are the realistic short-term and long-term projections for Panama in 2026?
What's the 12-month outlook for demand in Panama in 2026?
As of early 2026, the estimated 12-month demand outlook for residential property in Panama is steady to moderately improving, with buyer activity expected to remain price-sensitive while macro fundamentals including approximately 4% GDP growth and low inflation support continued interest from both local and foreign purchasers.
The key economic factors most likely to influence demand in Panama over the next 12 months include domestic interest rate trends (the reference mortgage rate has held at 6.25% since early 2024), the extension of the preferential interest regime through Law 468 of 2025, tourism recovery momentum, and any resolution of uncertainty around the Cobre Panama mine situation.
The forecasted price movement for Panama over the next 12 months is a modest 1% to 3% nominal appreciation in desirable neighborhoods and well-located properties, with flat to slightly negative performance in oversupplied condo corridors where inventory remains elevated.
By the way, we also have an update regarding price forecasts in Panama.
What's the 3 to 5 year outlook for housing in Panama in 2026?
As of early 2026, the estimated 3 to 5 year outlook for housing prices and demand in Panama is constructive, with expert consensus forecasting moderate appreciation of 1% to 2% annually for most residential properties, while prime neighborhoods and infrastructure-connected areas are expected to outperform this average.
The major development projects expected to shape Panama over the next 3 to 5 years include the full opening of Metro Line 3 (connecting Panama City to Panama Oeste by late 2028), completion of the Fourth Bridge over the Canal (also 2028), continued expansion of Panama Pacifico, and potential new metro lines extending toward Paitilla and beyond.
The single biggest uncertainty that could alter the 3 to 5 year outlook for Panama is the trajectory of mortgage affordability: if rates stay elevated or credit conditions tighten further while new supply continues to arrive, the condo-heavy segments could see extended stagnation or modest price declines.
Are demographics or other trends pushing prices up in Panama in 2026?
As of early 2026, the estimated impact of demographic trends on housing prices in Panama is moderately positive, as continued urbanization, household formation, and population concentration in Panama City maintain baseline demand even as supply has grown substantially over the past decade.
The specific demographic shifts most affecting prices in Panama include steady internal migration from rural provinces to Panama City and Panama Oeste, immigration inflows from Venezuela, Colombia, and other Latin American countries seeking stability, and a growing retiree population attracted by the Pensionado visa program and favorable tax treatment.
Non-demographic trends also pushing prices in Panama include the country's status as a safe-haven destination for capital fleeing less stable regional economies, growing interest from digital nomads and remote workers attracted by Panama's timezone and connectivity, and increased corporate regional headquarters activity bringing executives who need quality housing.
These demographic and trend-driven price pressures in Panama are expected to continue for at least the next 5 to 10 years, as urbanization rates remain elevated (the UN projects continued urban concentration), the dollarized economy provides currency stability, and connectivity improvements expand the pool of desirable commutable neighborhoods.
What scenario would cause a downturn in Panama in 2026?
As of early 2026, the estimated most likely scenario that could trigger a housing downturn in Panama is a combination of persistently elevated mortgage rates that keep local buyers sidelined, continued delivery of new condo inventory that exceeds absorption, and a slowdown in foreign buyer activity due to global economic uncertainty or competing regional destinations.
The early warning signs that would indicate such a downturn is beginning in Panama include sharply rising days-on-market beyond current levels, increasing developer discounts and incentive packages exceeding 15% to 20% off list price, visible construction project delays or cancellations, and a sustained drop in new residential mortgage originations reported by the banking regulator.
Based on historical patterns, a potential downturn in Panama could realistically produce price declines of 10% to 20% in the most oversupplied segments (particularly luxury condos above $400,000), while scarce single-family homes and well-located mid-market properties would likely see flatter performance with minimal forced selling due to the market's cash-heavy buyer composition.
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 Name | Why It's Authoritative | How We Used It |
|---|---|---|
| Panama INEC (Instituto Nacional de Estadistica y Censo) | It's Panama's official national statistics agency, providing the cleanest government data on construction activity, housing census, and inflation. | We used it to track construction permits, gauge new supply momentum, and understand housing characteristics and household formation trends for demand projections. |
| Superintendencia de Bancos de Panama | It's Panama's banking regulator, publishing official mortgage reference rates and lending statistics that directly affect affordability. | We used it to interpret financing conditions for 2026 and stress-test price resilience under different rate scenarios. |
| International Monetary Fund (IMF) Panama | The IMF is a top-tier macro source with regularly updated country projections and economic assessments. | We used it for 2026 GDP and inflation expectations as a demand driver and as a macro sanity check on housing market optimism. |
| World Bank Panama Macro Poverty Outlook | The World Bank provides methodologically transparent growth outlook and risk analysis for developing economies. | We used it to triangulate macro momentum, construction sector trends, and inform our 12-month and 3 to 5 year scenario projections. |
| Global Property Guide | It's an established international housing market publisher that clearly cites its data sources including RIAL research. | We used it for internationally comparable price context, historical trends, and the RIAL benchmark figures for Panama City pricing. |
| ACOBIR (Asociacion de Corredores de Bienes Raices) | ACOBIR is Panama's main real estate industry association, reflecting broad market data and professional consensus. | We used it to triangulate private market signals, pricing trends, and market sentiment as a check against single-broker opinions. |
| Encuentra24 | It's one of Panama's largest listing platforms with transparent price-per-meter tracking tools based on large inventory samples. | We used it to approximate on-the-ground listing dynamics and asking price momentum by area, treating it as a market thermometer rather than official truth. |
| Metro de Panama | It's the official source for Metro Line 3 construction progress, timelines, and technical specifications. | We used it to identify where connectivity improvements will lift housing demand and anchor our infrastructure-boosted neighborhood analysis. |
| Ministerio de Obras Publicas (MOP) | It's the project owner's official channel for the Fourth Bridge, providing the most direct source on progress and completion timelines. | We used it to support demand uplift projections for Panama Oeste and canal-crossing connectivity corridors. |
| Autoridad de Turismo de Panama (ATP) | It's Panama's official tourism authority, providing the best data on visitor arrivals, hotel occupancy, and tourism income. | We used it as a proxy for short-term rental demand pressure, avoiding reliance on scraped platform numbers. |