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're thinking about renting or investing in rental property in Panama, understanding what rents actually look like right now is essential.
In this article, we break down current housing rents across Panama, from studios to family apartments, and we keep this blog post constantly updated with fresh data.
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.
Insights
- Panama City rents have grown by only about 1.5% year-over-year in 2026, making it one of the most stable rental markets in Latin America compared to neighbors like Colombia or Costa Rica.
- A well-priced apartment in Panama City typically rents within 35 days, but units without a generator or water reserve can sit on the market for 60 to 90 days or more.
- Furnished rentals in Panama City command roughly 45% of the market, driven mainly by expats and corporate tenants who value move-in convenience.
- Prime neighborhoods like Punta Pacifica and Costa del Este can see rent growth of 2% to 4%, while older buildings in less connected areas often experience near-zero growth.
- Installing inverter air conditioning units is one of the highest-ROI renovations for Panama landlords because electricity costs are a major concern for tenants in this tropical climate.
- Panama City's vacancy rate sits around 6%, but premium towers in top locations maintain vacancy as low as 3% to 5%.
- The peak rental demand months in Panama are January through March and July through August, driven by job relocations and expat arrivals.
- Property taxes on a typical investment apartment valued at $250,000 in Panama City run between $75 and $200 per month, depending on exemptions and assessed value.
What are typical rents in Panama as of 2026?
What's the average monthly rent for a studio in Panama as of 2026?
As of early 2026, the average monthly rent for a studio apartment in Panama City is around $850 (approximately €780), which represents the typical asking price for a standard unit in a decent building.
The realistic range for studio rents in Panama spans from about $650 to $1,100 (€600 to €1,010), with the lower end found in older buildings or less central areas and the higher end in newer towers with amenities.
The main factors that cause studio rents to vary in Panama include building age, whether the property has a generator and water reserve (which is very important in Panama), proximity to the Metro line, and neighborhood prestige like Punta Pacifica versus El Cangrejo.
What's the average monthly rent for a 1-bedroom in Panama as of 2026?
As of early 2026, the average monthly rent for a 1-bedroom apartment in Panama City is approximately $1,100 (around €1,010), which is the typical price point for a modern unit in a mid-range to good neighborhood.
The realistic range for 1-bedroom rents in Panama runs from about $850 to $1,450 (€780 to €1,330), with premium waterfront towers easily reaching $1,500 or more for newer buildings with full amenities.
In Panama City, neighborhoods like Bethania and El Dorado tend to have the most affordable 1-bedroom rents, while areas like Punta Pacifica, Costa del Este, and Avenida Balboa command the highest prices due to their ocean views and modern infrastructure.
What's the average monthly rent for a 2-bedroom in Panama as of 2026?
As of early 2026, the average monthly rent for a 2-bedroom apartment in Panama City is around $1,550 (approximately €1,425), which reflects a typical family-sized unit in a building with standard amenities.
The realistic range for 2-bedroom rents in Panama spans from about $1,200 to $2,100 (€1,100 to €1,930), though family-friendly buildings in top areas like Costa del Este can easily reach $2,200 to $3,000 for units with ocean views and multiple parking spots.
For 2-bedroom apartments in Panama City, Condado del Rey and parts of San Francisco offer more affordable options, while Santa Maria, Punta Pacifica, and Costa del Este represent the most expensive choices due to their gated communities and premium amenities.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Panama.
What's the average rent per square meter in Panama as of 2026?
As of early 2026, the average rent per square meter for apartments in Panama City is approximately $15 per month (around €14/m²), which serves as a practical planning figure for most residential rentals.
The realistic range for rent per square meter in Panama spans from about $12 to $20 (€11 to €18), with older buildings in secondary locations at the lower end and premium towers in Punta Pacifica or Costa del Este at the higher end.
Compared to other major cities in Central America, Panama City's rent per square meter is moderately higher than cities like Guatemala City or Managua, but lower than San Jose in Costa Rica, reflecting Panama's position as a regional business hub.
In Panama, the characteristics that typically push rent per square meter above average include high-floor ocean views, full backup power systems, modern finishes, and buildings with comprehensive amenities like pools, gyms, and 24/7 security.
How much have rents changed year-over-year in Panama in 2026?
As of early 2026, rents in Panama have increased by approximately 1.5% year-over-year, with a realistic range of 0.5% to 3.0% depending on the specific neighborhood and property type.
The main factors driving rent changes in Panama this year include steady demand from multinational companies and logistics firms tied to the Canal, modest expat inflows, and the fact that new supply in prime areas has been absorbed without creating oversupply.
This year's rent change in Panama is slightly higher than the previous year, which saw only about 0.6% growth according to INEC-sourced data, suggesting a gradual normalization as the broader economy stabilizes.
What's the outlook for rent growth in Panama in 2026?
As of early 2026, projected rent growth for Panama is estimated at 1% to 3% nationally, with prime Panama City submarkets expected to see 2% to 4% growth while older or oversupplied areas may experience near-zero growth.
The key factors likely to influence rent growth in Panama over the coming year include continued activity in the logistics and financial services sectors, steady expat demand, and infrastructure improvements like Metro line expansions that boost accessibility in certain neighborhoods.
In Panama City, neighborhoods expected to see the strongest rent growth include Costa del Este, Punta Pacifica, and areas near new Metro stations, where demand from professionals and families remains consistently strong.
The main risks that could cause rent growth in Panama to differ from projections include potential economic slowdowns in key trading partners, changes in multinational corporate relocation patterns, and any oversupply of new residential towers in certain corridors.
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.
Which neighborhoods rent best in Panama as of 2026?
Which neighborhoods have the highest rents in Panama as of 2026?
As of early 2026, the top three neighborhoods with the highest average rents in Panama City are Punta Pacifica, Costa del Este, and Santa Maria, where 2-bedroom apartments typically rent for $2,000 to $3,000 per month (€1,840 to €2,760).
These neighborhoods command premium rents in Panama because they offer modern high-rise towers with ocean views, excellent security, full backup power and water systems, and proximity to international schools and business districts.
The tenant profile in these high-rent Panama neighborhoods typically includes expatriate executives, multinational corporate employees, diplomats, and wealthy local professionals who prioritize convenience, safety, and lifestyle amenities.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Panama.
Where do young professionals prefer to rent in Panama right now?
The top three neighborhoods where young professionals prefer to rent in Panama City are El Cangrejo, Bella Vista, and San Francisco, all of which offer a balance of urban lifestyle, walkability, and reasonable commute times.
Young professionals in these Panama neighborhoods typically pay between $900 and $1,400 per month (€830 to €1,290) for a 1-bedroom apartment, depending on building quality and specific location within the neighborhood.
The specific features that attract young professionals to these Panama City areas include Metro access, abundant restaurants and nightlife along Via Argentina, proximity to offices in the banking district, and modern apartment buildings with gyms and social areas.
By the way, you will find a detailed tenant analysis in our property pack covering the real estate market in Panama.
Where do families prefer to rent in Panama right now?
The top three neighborhoods where families prefer to rent in Panama are Costa del Este, Clayton, and Panama Pacifico, all of which offer spacious apartments or houses in safe, community-oriented environments.
Families in these Panama neighborhoods typically pay between $1,800 and $2,800 per month (€1,650 to €2,575) for a 2-3 bedroom apartment or townhouse, with higher prices for gated communities with extensive amenities.
The specific features that make these Panama areas attractive to families include large green spaces, lower population density, excellent international schools nearby, safe streets for children, and easy access to supermarkets and family services.
Top-rated schools near these family-friendly Panama neighborhoods include the International School of Panama in Clayton, King's College in Costa del Este, and the Panama Pacifico International School, all offering English-language curricula popular with both expat and local families.
Which areas near transit or universities rent faster in Panama in 2026?
As of early 2026, the top three areas near transit hubs that rent fastest in Panama City are El Cangrejo near the Via Argentina Metro station, Bella Vista along the Metro corridor, and Albrook near the major transit hub and mall.
Properties in these high-demand Panama areas typically stay listed for only 20 to 30 days when priced correctly, compared to the citywide average of about 35 days on market.
The typical rent premium for properties within walking distance of Metro stations in Panama City is around $50 to $150 per month (€45 to €140) compared to similar units farther from transit, reflecting the strong value tenants place on avoiding Panama City traffic.
Which neighborhoods are most popular with expats in Panama right now?
The top three neighborhoods most popular with expats in Panama are Punta Pacifica, Costa del Este, and Casco Viejo, each offering a distinct lifestyle that appeals to different types of international residents.
Expats in these Panama neighborhoods typically pay between $1,400 and $2,500 per month (€1,290 to €2,300) for a furnished 1-2 bedroom apartment, with higher budgets common for those on corporate relocation packages.
The specific features that attract expats to these Panama areas include English-speaking services, international restaurants and shops, secure buildings with full amenities, and communities where meeting other foreigners is easy.
The nationalities most represented in these expat-friendly Panama neighborhoods include Americans, Venezuelans, Colombians, Europeans (particularly British and German), and increasingly Asian nationals, all drawn by Panama's tax advantages and business-friendly environment.
And if you are also an expat, you may want to read our exhaustive guide for expats in Panama.
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Who rents, and what do tenants want in Panama right now?
What tenant profiles dominate rentals in Panama?
The top three tenant profiles that dominate the rental market in Panama are local professionals and couples seeking modern apartments, families prioritizing space and schools, and expats or multinational employees often looking for furnished units.
In terms of market share in Panama City, local professionals and couples represent roughly 45% of renters, families account for about 30%, and expats and corporate tenants make up approximately 25% of the rental market.
Local professionals in Panama typically seek 1-2 bedroom unfurnished apartments near the business district, families look for 2-3 bedroom units in residential areas with schools, and expats often prefer furnished 1-2 bedroom apartments in premium neighborhoods with amenities.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Panama.
Do tenants prefer furnished or unfurnished in Panama?
In Panama City's long-term rental market, approximately 55% of tenants prefer unfurnished apartments while 45% opt for furnished units, reflecting the split between local renters and the substantial expat population.
The typical rent premium for furnished apartments compared to unfurnished in Panama is around $200 to $400 per month (€185 to €370), depending on the quality of furniture and appliances included.
Tenant profiles that tend to prefer furnished rentals in Panama include expats on short-to-medium term assignments, corporate relocations, and newcomers who want move-in convenience without the hassle of buying furniture.
Which amenities increase rent the most in Panama?
The top five amenities that increase rent the most in Panama are full power backup (generator), water reserve tanks, 24/7 security with controlled access, included parking spots, and building amenities like pools and gyms.
In Panama City, a generator and water reserve can add $100 to $200 per month (€90 to €185) to rent, an extra parking spot adds $50 to $100 (€45 to €90), and comprehensive building amenities with ocean views can command premiums of $200 to $500 (€185 to €460) compared to basic buildings.
In our property pack covering the real estate market in Panama, we cover what are the best investments a landlord can make.
What renovations get the best ROI for rentals in Panama?
The top five renovations that get the best ROI for rental properties in Panama are inverter air conditioning installation, kitchen modernization, bathroom refresh, modern lighting and fresh paint, and adding in-unit washer/dryer hookups.
In Panama, installing inverter A/C units costs around $1,500 to $3,000 (€1,380 to €2,760) and can increase rent by $75 to $150 per month, while a kitchen refresh costing $2,000 to $5,000 (€1,840 to €4,600) can boost rent by $100 to $200 monthly.
Renovations that tend to have poor ROI in Panama and should be avoided include luxury finishes that exceed neighborhood standards, extensive structural changes in older buildings, and high-end smart home systems that most tenants don't prioritize over basics like reliable power and cooling.
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 strong is rental demand in Panama as of 2026?
What's the vacancy rate for rentals in Panama as of 2026?
As of early 2026, the estimated vacancy rate for rental apartments in Panama City is around 6%, which reflects a balanced market that is neither extremely tight nor oversupplied.
The realistic range of vacancy rates across Panama City neighborhoods spans from about 3% to 5% in prime areas like Punta Pacifica and Costa del Este, up to 7% to 10% in older buildings or less connected locations.
Panama City's current vacancy rate is roughly in line with historical averages for the past five years, indicating that rental demand has remained stable without dramatic shifts in either direction.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Panama.
How many days do rentals stay listed in Panama as of 2026?
As of early 2026, rentals in Panama City stay listed for an average of about 35 days when priced correctly, which represents a healthy market pace for finding qualified tenants.
The realistic range of days on market across Panama spans from 20 to 45 days for well-maintained apartments in desirable areas, while overpriced units or those lacking essential features like generators can sit for 60 to 90 days or more.
Panama City's current days-on-market figure is similar to one year ago, reflecting the stable rental demand environment that has characterized the market without significant acceleration or slowdown.
Which months have peak tenant demand in Panama?
The peak months for tenant demand in Panama are January through March and July through August, when the majority of relocations and new lease signings occur in the rental market.
The specific factors that drive seasonal demand patterns in Panama include new-year job transitions, corporate relocation cycles timed to fiscal calendars, expat arrivals coordinated with international school terms, and family moves planned around school schedules.
The months with the lowest tenant demand in Panama are typically April through June and September through October, when fewer relocations occur and landlords may need to be more flexible on pricing to attract tenants.
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An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
What will my monthly costs be in Panama as of 2026?
What property taxes should landlords expect in Panama as of 2026?
As of early 2026, landlords in Panama City should expect to pay between $75 and $200 per month (€70 to €185) in property taxes for a typical investment apartment valued around $200,000 to $350,000, depending on assessed value and applicable exemptions.
The realistic range of annual property taxes in Panama spans from about $900 to $2,400 per year (€830 to €2,200), with primary residences enjoying more favorable rates than investment properties due to different tax bands.
Property taxes in Panama are calculated using progressive bands based on the property's registered value, with investment properties taxed at 0.6% to 1.0% above certain thresholds while primary residences benefit from higher exemption floors and lower rates.
Please note that, in our property pack covering the real estate market in Panama, we cover what exemptions or deductions may be available to reduce property taxes for landlords.
What utilities do landlords often pay in Panama right now?
In Panama City rentals, landlords most commonly pay the HOA or PH building fee, which typically ranges from $100 to $400 per month (€90 to €370) depending on building amenities and size.
For landlord-paid utilities in Panama, the HOA fee averages around $150 to $250 monthly for a typical apartment, while in furnished corporate rentals, some landlords also cover internet at $35 to $70 per month (€30 to €65).
The common practice in Panama is for tenants to pay electricity and water directly, with landlords covering the building fee, though furnished short-term rentals often bundle more utilities into the monthly rent.
How is rental income taxed in Panama as of 2026?
As of early 2026, rental income in Panama is taxed at progressive personal income tax rates, starting at 0% for the first $11,000 of taxable income, then 15% up to $50,000, and 25% above that threshold.
The main deductions landlords can claim against rental income in Panama include property depreciation, maintenance and repair expenses, property management fees, insurance costs, and HOA fees, all of which reduce the taxable base.
A common tax mistake specific to Panama that landlords should avoid is forgetting about the 7% VAT (ITBMS) that can apply to rental income above certain thresholds, which requires proper registration and compliance if you operate multiple rental properties.
We cover these mistakes, among others, in our list of risks and pitfalls people face when buying property in Panama.
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.
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 | Why It's Authoritative | How We Used It |
|---|---|---|
| Instituto Nacional de Estadística y Censo (INEC) | It's Panama's official statistics agency, so it's the most trustworthy baseline for national indicators. | We use INEC as the anchor for official trend data around housing and rent-related inflation. We also use it to sanity-check private-sector rent signals so we don't overreact to portal noise. |
| INEC CPI / Avance en cifras | This is INEC's official release hub for price indices and tables. | We use it to identify the latest official CPI tables that include housing-related groups. We then triangulate rent trend assumptions against those official price movements. |
| Global Property Guide (Rent Price Index) | It's a widely used, methodology-driven cross-country dataset that clearly cites INEC as its underlying source for Panama. | We use it to quantify the most recent official-style rent trend in a clean, comparable format. We use those trend rates as the backbone for our 2026 rent-change estimates. |
| Global Property Guide (Taxes & Costs) | It consolidates Panama's property and rental tax rules with clear bands and links to sources including PwC references. | We use it to spell out landlord-relevant taxes like property holding tax bands and rental income tax brackets. We cross-check the key tax brackets against official DGI tariff pages. |
| Dirección General de Ingresos (DGI) - Income Tax | This is the Panamanian tax authority's official page for income tax tariffs. | We use it to confirm the personal income tax brackets that apply to net taxable rental income for individuals. We reflect these brackets in the rental income tax section in plain English. |
| Dirección General de Ingresos (DGI) - Property Tax | This is the official guidance page for the real estate tax payment process and reminders. | We use it to confirm practical details landlords care about like payment schedules and administration. We pair it with banded rates from structured summaries to keep it readable. |
| Ministry of Economy and Finance (MEF) | It's a government macro report that aggregates official forecasts and context for Panama's economy. | We use it to ground the 2026 outlook discussion in macro fundamentals like growth and inflation. We use it to avoid real-estate-only tunnel vision when discussing rent growth. |
| IMF Panama Country Page | The IMF is a top-tier international institution and its country surveillance is heavily referenced by policymakers and investors. | We use it to anchor the macro baseline for 2026 including inflation and growth direction. We treat it as a neutral outside view when forming rent-growth expectations. |
| Numbeo Panama City | It's not official but it's transparent about sample size and update timing, making it useful as a triangulation layer. | We use Numbeo to estimate current asking-rent levels by unit type where official level data is scarce. We treat it as directional and cross-check it against marketplace ranges. |
| Encuentra24 Listings | It's one of the biggest listing platforms locally, so it's a strong read on asking rent reality right now. | We use it to validate which neighborhoods are active and what typical asking-rent bands look like. We use it to keep neighborhood recommendations grounded in what's truly listed. |
| Encuentra24 Reports | It's a structured report based on platform data which is more transparent than random blog claims. | We use it to understand where supply and demand are concentrating in Panama City. We use it as qualitative support for where rents are strongest and outlook sections. |
| ASEP (Water & Sewer Tariffs) | ASEP is the regulator, so this is the authoritative place to start for utility tariff structures. | We use it to describe which water and sewer charges exist and why costs vary by category and area. We use it to keep the utilities section accurate even when providing monthly cost estimates. |
| Naturgy Panama (Electricity Tariffs) | It's the distributor's official page explaining regulated tariff categories customers actually pay under. | We use it to explain the main tariff buckets renters and landlords see. We use it to support a realistic electricity cost range especially for A/C-heavy homes. |
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