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Where are the best places to invest in Panama right now? Is Panama City still the top pick, or are areas like Boquete, Coronado, and Bocas del Toro gaining ground? What makes these locations attractive to both local and foreign investors?
We’re often asked these questions because we work directly with notaries, real estate agents, and clients who invest across the country. Our firsthand experience in these markets gives us unique insights into where the real opportunities lie. To save everyone from asking privately, we’ve written this article to share our knowledge broadly.
Our goal is to highlight the hottest markets in Panama and explain why they’re worth your attention in 2025.
If you have suggestions or want us to dive deeper into a specific area, let us know. You shoot an email, we answer within 24 hours.
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1) Coronado is gaining interest for its growing expat community and rising demand for beach vacation rentals
Coronado is drawing in investors with its lively expat community and booming demand for beachside vacation rentals.
Expats from places like Canada, the UK, the US, and South America are flocking to Coronado, attracted by its easygoing lifestyle and vibrant social scene. This influx is transforming the area into a melting pot of cultures, where newcomers find it easy to connect and settle in.
In 2024, the median home sale price in Coronado hit $2,650,000, marking a 10.1% jump from the previous year. This price hike underscores the strong demand for real estate, as more people look to invest in this picturesque locale.
Vacation rentals are thriving, with properties booked for an average of 237 nights annually and maintaining a 65% occupancy rate. By late 2024, there were 274 active Airbnb listings, showcasing Coronado's popularity among tourists seeking a slice of paradise.
Coronado is a hotspot for North American retirees, thanks to its top-notch amenities like a world-class golf course, equestrian centers, and fitness facilities. These features cater to the expat community, making it a desirable place to live and invest.
International schools and services are expanding, making it easier for families to settle in Coronado. This growth supports the expat lifestyle, ensuring that newcomers have access to the resources they need to thrive.
Sources: International Living, Retire in Panama Tours, Live and Invest Overseas
2) El Cangrejo in Panama City is thriving with its vibrant urban lifestyle and proximity to universities, enhancing rental income potential
El Cangrejo in Panama City is buzzing with demand thanks to its vibrant urban lifestyle and proximity to universities, making it a hot spot for rental income.
In recent years, property sales have surged in El Cangrejo, drawing in those who crave the lively city vibe and easy access to educational institutions. This trend has been especially noticeable as more people flock to the area for its convenience and excitement.
Rental prices here are climbing, outpacing other neighborhoods in Panama City. The high demand from international students and expatriates is a major driver, as they seek a place that offers both ease and a lively atmosphere.
New developments, including the metro-subway expansion, have made El Cangrejo more accessible and appealing. These upgrades have boosted the area's popularity and property values, drawing in more interest from potential buyers and renters.
Young professionals and students are increasingly drawn to urban living, and El Cangrejo's vibrant nightlife and cultural attractions make it a prime choice. Its closeness to universities further fuels the demand for rental properties.
With major universities like the University of Panama nearby, there's a significant boost in student housing demand. This is a key factor in the rising rental prices, as students look for convenient and lively accommodations.
Sources: Spanish Panama, Newsroom Panama
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.
3) David, the capital of Chiriquí Province, is growing with its strategic location and rising commercial real estate opportunities
David, the capital of Chiriquí Province, is buzzing with growth thanks to its strategic location and booming commercial real estate market.
In recent years, property values in David have surged, turning it into a prime spot for buyers. This spike is fueled by major infrastructure upgrades and a wave of new job opportunities. The city is becoming a magnet for those looking to invest in real estate.
The Panama-David Train project, completed in 2024, has been a game-changer. It has slashed travel time from Panama City to David, making the city more accessible and appealing for businesses and residents alike. This has led to a noticeable uptick in commercial real estate developments, which is great news for the local economy.
Government infrastructure projects have also been key in boosting connectivity across Chiriquí Province. These initiatives have not only made the area more accessible but have also increased its attractiveness to businesses and residents. The local government is offering incentives for real estate investment, drawing in both local and international investors.
David's growth is further supported by its strategic location, which is ideal for businesses looking to expand. The city's proximity to major transportation routes and its improved infrastructure make it a prime location for commercial ventures.
With all these developments, David is quickly becoming a hotspot for those looking to invest in property. The combination of infrastructure improvements, government incentives, and a strategic location is creating a perfect storm for growth in the area.
Source: Live and Invest Overseas Conferences
4) Bocas del Toro is booming with its appeal to eco-conscious travelers and potential for sustainable tourism projects
Bocas del Toro is buzzing with a real estate boom thanks to its eco-friendly charm and sustainable tourism potential.
In recent years, home sales in Panama have surged, and Bocas del Toro is at the heart of this trend. Properties here are not just selling fast; they're often going for more than the asking price, showing just how hot the market is.
Eco-friendly resorts like Al Natural Resort are popping up, offering travelers a chance to enjoy nature responsibly. These places are a hit with visitors who love diving and exploring marine life, which is why international investors are eyeing sustainable tourism projects in the area.
The government is sweetening the deal with incentives. Bocas del Toro is a Special Tourism Zone, meaning tax breaks and holidays for sustainable projects. This has caught the attention of investors worldwide, pushing property prices even higher.
With its lush landscapes and vibrant marine life, Bocas del Toro is a magnet for those wanting a slice of paradise. The region's commitment to sustainability is not just a trend; it's a lifestyle that appeals to both tourists and investors.
As more people discover this gem, the demand for property continues to rise, making it a prime spot for those looking to invest in a greener future.
Sources: Red Frog Property, Al Natural Resort, OpenSIUC, Benoit Properties, The Bocas Breeze
5) Santa Catalina is gaining attention for its surfing and diving appeal, driving up property prices and investment opportunities
Santa Catalina is quickly becoming a go-to spot for surfers and divers, sparking a rise in property prices and investment opportunities.
Back in 2023, the area hosted the Pan American Surfing Games, drawing in 400 surfers from 19 countries. This event alone brought in over $2 million in tourism earnings, filling hotels to capacity and putting Santa Catalina on the map as a major surf tourism destination.
In 2024, Panama experienced an 11.8% increase in visitor arrivals compared to the previous year. This surge is partly due to better tourism infrastructure and international promotional efforts, which are likely to benefit Santa Catalina as well. The influx of tourists has led to more surf schools and related businesses, showing a thriving surf community in the area.
Santa Catalina is also seeing major infrastructure upgrades, like new sidewalks, water systems, drainage, power lines, and fiber optic internet. These improvements are setting the stage for more tourism and commercial activities, including new hotels and resorts. The development plan even includes a gated community of villas with hotel-style short-term property management services, perfect for visiting families and surfers.
With these changes, Santa Catalina is not just a surf haven but also a promising spot for real estate investment. The combination of natural beauty and improved amenities makes it an attractive option for those looking to invest in property.
Sources: La Prensa Latina, CEIC Data, Santa Catalina Villas
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6) Playa Venao is gaining attention for its surf culture and high-return beachfront property investments
Playa Venao is quickly becoming a hotspot for surf culture and lucrative beachfront property investments.
With a property demand that far exceeds supply, Playa Venao is one of Panama's hottest real estate markets. This surge is fueled by its growing reputation as a vacation paradise, offering both short-term fun and long-term rental potential.
Tourism has skyrocketed in recent years, with visitors flocking from all over the globe. This influx not only boosts the local economy but also supports a thriving scene of hotels, shops, and restaurants. The area is a favorite for international surfing championships, which further enhance its appeal and economic growth.
Recognized as a premier surf destination, Playa Venao is gaining media attention and popularity among surfers and tourists alike. The buzz is attracting significant development projects, like the Mar Valley project, which promises modern amenities while preserving the laid-back beach vibe.
These developments are expected to draw even more tourists and investors, making Playa Venao a prime spot for those looking to capitalize on its booming real estate market. The combination of natural beauty and modern conveniences is a major draw.
For those considering a property investment, Playa Venao offers a unique blend of relaxation and opportunity, making it a compelling choice for both lifestyle and financial returns.
Sources: International Living, Metro Realty Panama, Travel2Latam
7) Pedasí is attracting interest with its affordable beachfront properties and high rental yields driven by growing tourism
Pedasí is catching eyes for its affordable beachfront properties.
In 2023, home sales in Pedasí skyrocketed by over 100% compared to the previous year, and residential home lot sales jumped by 60%. This surge highlights a growing interest, making Pedasí a promising spot for property investment.
The Azuero Peninsula, where Pedasí is located, is seeing more tourists. In the first half of 2024, Panama experienced an 8.7% increase in visitor arrivals, with a notable rise in international visitors to the region. This influx is expected to continue, driven by Panama's unique blend of natural landscapes and cultural heritage, boosting demand for rental properties.
Pedasí stands out with more affordable property prices compared to other popular beach destinations in Panama. This affordability, combined with the area's natural beauty and cultural heritage, makes it an attractive investment opportunity.
The rental yields in Pedasí are expected to remain competitive due to the area's growing popularity among tourists and expatriates. This is further supported by successful vacation rental businesses in the area.
With its charm and potential, Pedasí is becoming a hotspot for those looking to invest in a slice of paradise. Tourism is on the rise, and so is the interest in its real estate market.
Sources: Panama Sovereign, Rio Times Online
8) Boquete is attracting retirees and expats with its cool climate and scenic mountain views, boosting property values
Boquete, Panama, is a hotspot for retirees and expats, driving up property values.
With its cool climate and breathtaking mountain views, Boquete offers a peaceful retreat that many find irresistible. The town has seen a noticeable increase in real estate activity, particularly from foreign buyers who are drawn to its charm and lifestyle. This includes excellent healthcare and a welcoming community, making it an ideal place to settle down.
Expats make up about 20% of Boquete's population, creating a vibrant and active community. This group is known for organizing numerous social events, making it easy for newcomers to integrate and feel at home. The sense of camaraderie among residents is a significant draw for those considering a move.
Boquete's climate is often described as "eternal spring," offering a perfect balance of warmth and coolness. The natural beauty of the area, highlighted by the stunning Volcán Barú and the Caldera River, adds to its allure. These features, combined with amenities tailored to international residents, continue to attract people from all over the globe.
For those seeking a blend of tranquility and community, Boquete stands out as a top choice. Its infrastructure is well-suited to meet the needs of its diverse population, ensuring a comfortable and fulfilling lifestyle. The town's appeal is further enhanced by its ability to cater to the desires of both retirees and expats, making it a unique destination.
As more people discover the benefits of living in Boquete, the demand for property is likely to continue rising. This trend reflects the town's growing reputation as a desirable place to live, offering both natural beauty and a strong sense of belonging.
Sources: International Living, Retirement Travelers, Expat Exchange
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.
9) San Carlos is attracting interest for its affordable coastal properties and potential as a weekend retreat from Panama City
San Carlos is gaining traction as a hotspot for affordable coastal properties and a quick escape from Panama City.
In recent years, property sales in San Carlos have surged, with Casa Solution reporting over $79 million in sales in 2024. This shows a clear interest in the area, especially since property prices here are much lower than in other coastal regions of Panama, making it a tempting choice for potential buyers.
Real estate development is booming, with new homes and condos popping up that promise a low-maintenance lifestyle. These modern constructions are perfect for those seeking a weekend retreat. Plus, infrastructure is getting a boost with new roads and amenities, making San Carlos even more appealing.
San Carlos is also drawing more weekend visitors from Panama City. Its stunning beaches, lush greenery, and warm weather are a big draw for outdoor enthusiasts. This uptick in tourism is not just by chance; media outlets are spotlighting San Carlos as a rising destination.
Locals and newcomers alike are noticing the changes. The vibe in San Carlos is shifting, with more people discovering its charm. It's not just about the properties; it's about the lifestyle and the potential for growth.
As more people flock to San Carlos, the community is evolving. The mix of new developments and natural beauty is creating a unique atmosphere that’s hard to resist. San Carlos is becoming a go-to spot for those looking to invest in a piece of paradise.
Sources: Casa Solution, White Oaks Blog
10) Punta Chame is gaining interest for its kite surfing scene and high return potential in vacation rentals
Punta Chame is buzzing with excitement as a top spot for kite surfing enthusiasts.
With its steady trade winds from December to April, Punta Chame is a dream for kite surfers, and the number of kite surfing schools, like the Panama Kite Center, is growing. These schools offer lessons and gear rentals, making it easy for newcomers to dive into the sport. The area also hosts more kite surfing events, which are drawing in tourists eager to catch the action.
Tourism is booming, especially with kite surfers flocking to the area. By the end of 2024, Panama's visitor numbers bounced back to pre-pandemic levels, with Punta Chame being a key attraction. This influx of tourists is great news for the local economy and has sparked a rise in short-term rental listings on platforms like Airbnb.
Vacation rentals, such as the popular Panama Kite House, are thriving with positive reviews and high occupancy rates. This trend is a testament to Punta Chame's appeal, not just for its natural beauty but also for its vibrant adventure sports scene. Real estate agencies are noticing higher rental yields here compared to other regions, making it a hot spot for investors.
For those considering a property investment, Punta Chame offers promising returns, thanks to its growing popularity among adventure seekers. The combination of stunning landscapes and a lively kite surfing community makes it a unique destination. Investors are drawn to the potential for high returns on vacation rentals, fueled by the area's increasing tourist numbers.
Sources: The Rider Experience, The Kite Spot, Punta Pacifica Realty, Benoit Properties, Panama Kite Center
11) Casco Viejo in Panama City is thriving with property appreciation thanks to its UNESCO status and cultural charm
Casco Viejo, the historic heart of Panama City, is seeing a notable increase in property values thanks to its UNESCO World Heritage status.
This recognition has sparked a wave of restoration and development projects, like the revamp of Plaza Santa Ana and new ventures such as Santa Familia and Casco View. These efforts have not only boosted the district's allure but also increased the value of properties significantly. The arrival of new hotels, including La Compania Hotel and a soon-to-open Marriott, is further fueling this growth.
Tourism is a major driver here, with Casco Viejo now ranking as the second most popular tourist destination in Panama. This surge in visitors is pushing property values and rents higher, with a projected 10% increase in rents by 2024, largely due to the booming Airbnb scene.
The district's trendy atmosphere, filled with vibrant restaurants, cozy cafes, and eclectic art galleries, continues to draw both tourists and locals. This cultural appeal is a key factor in the ongoing property appreciation, making Casco Viejo a hot spot for real estate investment.
Insiders know that the charm of Casco Viejo lies in its blend of old-world architecture and modern amenities, creating a unique living experience. This mix is what makes properties here so desirable, as they offer a slice of history with all the comforts of contemporary living.
For those considering a property purchase, Casco Viejo offers not just a home but a lifestyle, where the past and present coexist beautifully. The district's growth shows no signs of slowing, making it an attractive option for investors looking to capitalize on its rising popularity.
Sources: Tropical Research Institute, Panama Equity, Bandits
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12) Volcán is gaining attention for its agricultural land and eco-tourism potential in the highlands
Volcán is becoming a hotspot for those interested in agricultural investments and eco-tourism.
With a significant portion of Panama's land being suitable for agriculture, Volcán stands out as a prime location. In 2021, 29.41% of Panama's land was dedicated to agriculture, making areas like Volcán attractive for those looking to invest in farming. The fertile soil and favorable climate here are perfect for growing a variety of crops, from coffee to vegetables, which are in high demand both locally and internationally.
On the eco-tourism side, Panama's government is pushing hard to make eco-tourism a big deal. They've rolled out the Community-Based Ecotourism Plan, which is all about protecting nature and getting local communities involved. This kind of support is a big win for Volcán, as it helps preserve its stunning landscapes and wildlife while boosting the local economy.
Volcán is not just about farming; it's also a playground for nature lovers. The town has been sprucing up its infrastructure, adding things like a new bicycle path and reforestation projects. These improvements make it easier and more fun for tourists to explore the area. Plus, places like Eco Horqueta offer unique eco-friendly stays, giving visitors a chance to really connect with nature.
Tourists are flocking to Volcán for its natural beauty and outdoor activities. The town's efforts to enhance its appeal are paying off, with more visitors coming to enjoy hiking, bird watching, and other adventures. The combination of natural attractions and improved facilities is making Volcán a must-visit destination for eco-tourists.
For those considering a move or investment in Volcán, the blend of agricultural potential and eco-tourism opportunities is hard to beat. Whether you're looking to start a farm or open an eco-lodge, Volcán offers a unique chance to be part of a growing community focused on sustainability and nature.
Sources: Trading Economics, Sustainable Travel, The Visitor Panama, EcoBnb
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.