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
Panama offers some of the highest property prices per square meter in Central America, with Panama City leading the market at around $2,500/m² for apartments as of September 2025.
The Panamanian real estate market shows significant variation between urban centers and rural areas, with luxury neighborhoods in Panama City commanding prices up to $4,500/m² while coastal and rural properties can be found for under $1,000/m².
If you want to go deeper, you can check our pack of documents related to the real estate market in Panama, based on reliable facts and data, not opinions or rumors.
Panama City apartment prices average $2,483-$2,529 per square meter, making it the most expensive market in Central America.
Luxury neighborhoods like Santa Maria and Punta Pacifica command $4,000-$4,500/m², while rural and coastal areas offer properties from $800-$1,500/m².
| Location | Apartment Price/m² | House Price/m² |
|---|---|---|
| Panama City (Average) | $2,483-$2,529 | $1,600-$1,628 |
| Santa Maria (Luxury) | $4,530 | $3,500-$4,000 |
| Punta Pacifica | $4,160 | $3,200-$3,800 |
| Costa del Este | $3,685 | $2,800-$3,200 |
| David (Secondary City) | $2,025 | $1,471 |
| Rural/Coastal Areas | $800-$1,500 | $600-$1,200 |
What is the current average price per square meter in Panama City right now?
As of September 2025, the average price per square meter for apartments in Panama City ranges from $2,483 to $2,529, making it the most expensive residential market in Central America.
Houses in Panama City typically sell for less than apartments, averaging around $1,603 to $1,628 per square meter. This price difference reflects the higher demand for apartments in the urban core and the premium associated with vertical living in the capital.
These prices position Panama City significantly above other Central American capitals, with apartment prices approximately 20-25% higher than comparable markets in the region. The pricing reflects Panama's strong economy, dollarized currency, and status as a regional financial hub.
It's something we develop in our Panama property pack.
How does the price per square meter differ between Panama City and other major cities like David, Santiago, or Colón?
Panama City commands the highest prices per square meter in the country, with secondary cities offering more affordable options for property buyers.
| City | Average Apartment Price/m² | Average House Price/m² |
|---|---|---|
| Panama City | $2,483-$2,529 | $1,603-$1,628 |
| David | $2,025 | $1,471 |
| Colón | $2,371 | $824 |
| Santiago | Limited listings | $1,441 |
| Rural Areas | $800-$1,500 | $600-$1,200 |
| Coastal Areas | $1,000-$2,000 | $800-$1,800 |
What is the typical price per square meter for luxury apartments compared to standard residential units?
Luxury apartments in Panama command significantly higher prices than standard residential units, with a clear premium for high-end finishes and prime locations.
Standard residential apartments typically range from $1,000 to $2,500 per square meter, while luxury apartments generally fall between $2,500 and $5,000 per square meter. The most exclusive developments can exceed $4,500 per square meter.
New luxury developments and off-plan projects typically price between $2,720 and $4,530 per square meter, depending on location and amenities. Older luxury properties may trade at a discount of 15-25% compared to new construction.
The luxury segment benefits from foreign buyer demand, particularly from North American and European investors seeking premium properties with high-end amenities and services.
How much is the price per square meter in high-demand neighborhoods such as Punta Pacifica, Casco Viejo, or Costa del Este?
Premium neighborhoods in Panama City command the highest prices per square meter in the country, reflecting their desirability among wealthy locals and international buyers.
| Neighborhood | Average Price/m² (New/Off-plan) | Property Type Focus |
|---|---|---|
| Santa Maria | $4,530 | Ultra-luxury apartments |
| Punta Pacifica | $4,160 | High-rise luxury condos |
| Casco Viejo | $4,150 | Historic luxury apartments |
| Costa del Este | $3,685 | Modern residential towers |
| Avenida Balboa | $3,200 | Waterfront apartments |
| El Cangrejo | $2,930 | Central business district |
Don't lose money on your property in Panama
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
What is the average price per square meter for new developments versus older properties?
New developments and off-plan projects command premium prices compared to older properties in Panama's real estate market.
New and off-plan luxury developments typically range from $2,720 to $4,530 per square meter, depending on location and developer reputation. These properties often feature modern amenities, energy-efficient systems, and contemporary designs that appeal to international buyers.
Older properties and standard apartments generally trade between $1,000 and $2,500 per square meter, representing a discount of 20-40% compared to new construction. Properties built before 2010 may require renovation investments that should be factored into total acquisition costs.
The price differential reflects buyer preference for move-in ready properties with warranties, modern infrastructure, and compliance with current building codes.
How do prices per square meter compare between apartments, houses, and commercial properties?
Property type significantly influences pricing per square meter in Panama, with apartments generally commanding higher prices than houses in urban areas.
| Property Type | Typical Price Range/m² | Market Characteristics |
|---|---|---|
| Apartments (Average) | $2,483-$2,529 | High demand in urban areas |
| Luxury Apartments | $2,500-$5,000 | Premium locations and finishes |
| Houses (Average) | $1,600-$1,628 | Lower than apartments in city |
| Commercial Buildings | $1,500-$3,500 | Wide range by location and use |
| Rural Properties | $1-$2,000 | Farmland to standard coastal |
| Luxury Beachfront | $1,200-$2,000 | Prime coastal locations |
What has been the trend in price per square meter in Panama over the past five years?
Panama's real estate market has experienced steady growth over the past five years, with apartment prices rising approximately 18-20% since 2020.
Apartment prices increased from around $2,050 per square meter in 2020 to $2,483-$2,529 in 2025, representing an annual growth rate of 3.4-3.8%. This moderate appreciation reflects healthy market fundamentals rather than speculative bubble conditions.
Overall property values have risen 59.8% since 2020, though recent years have shown more moderate growth due to increased supply in certain segments. House prices have experienced some stagnation or slight declines in the past 12-18 months due to oversupply in suburban markets.
The growth trend has been supported by Panama's economic stability, continued foreign investment, and the country's attractive residency programs for international buyers.
It's something we develop in our Panama property pack.
What is the forecasted price per square meter growth for the next two to three years?
Panama's real estate market outlook for 2026-2027 suggests continued moderate growth, particularly in the luxury segment.
GDP growth is forecasted at 3.8% in 2026 and 4.3% in 2027, providing positive economic fundamentals that should support gradual price increases, especially in prime and luxury market segments. Rental yields are expected to stabilize around 6% annually.
Luxury residential property supply is projected to grow by 15% by 2027, driven by high-net-worth demand from both domestic and international buyers. This increased supply may moderate price growth in the ultra-luxury segment while supporting overall market activity.
The forecast suggests annual price appreciation of 2-4% for standard properties and 3-6% for luxury developments, assuming continued economic stability and foreign investment flows.
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 much lower is the price per square meter outside the capital, in rural or coastal areas?
Property prices drop significantly outside Panama City, offering substantial savings for buyers willing to consider locations beyond the capital.
Rural and inland areas typically offer properties between $800-$1,500 per square meter for standard homes, with some farmland available for as low as $1 per square meter. These dramatic price reductions reflect lower local incomes, limited infrastructure, and reduced foreign buyer demand.
Coastal areas present a wider price range, from $1,000-$2,000 per square meter depending on proximity to beaches and development level. Prime beachfront locations command $1,200-$2,000 per square meter, while older or more remote coastal properties can be found for $800-$1,200 per square meter.
The price differential between Panama City and rural/coastal areas can be 50-75%, making these locations attractive for retirees, vacation home buyers, and investors seeking higher rental yields.
What are the main factors that influence the variation of price per square meter in Panama?
Several key factors drive price variations across Panama's real estate market, creating opportunities and risks for different buyer segments.
Location remains the primary price driver, with proximity to business districts, expat communities, and quality infrastructure commanding premium pricing. Prime neighborhoods benefit from established amenities, security, and international community presence.
Property type and age significantly impact pricing, with new construction and luxury developments carrying substantial premiums over older properties. Off-plan projects often offer pre-construction pricing advantages but carry completion risks.
Foreign demand influences pricing in select areas, particularly where international retirement and residency programs concentrate buyer activity. Areas popular with North American and European expats typically see price premiums of 15-30% over comparable local market properties.
Market dynamics including oversupply, infrastructure development projects, and government investment incentives create localized price variations that informed buyers can leverage for better value.
How do price per square meter figures in Panama compare to neighboring countries in Central America?
Panama City ranks as the most expensive real estate market in Central America, reflecting the country's economic leadership in the region.
Panama City's apartment prices of $2,483-$2,529 per square meter exceed San José, Costa Rica at approximately $2,420 per square meter and Guatemala City at around $2,028 per square meter. This regional premium reflects Panama's dollarized economy, banking sector strength, and business-friendly policies.
The price leadership extends beyond the capital, with secondary cities like David and Colón often matching or exceeding primary markets in neighboring countries. This pattern reflects Panama's overall economic development and infrastructure investment compared to regional peers.
Foreign buyers often choose Panama over other Central American markets due to the price transparency, legal framework clarity, and established expat communities, justifying the price premium for many international investors.
It's something we develop in our Panama property pack.
What is the price range per square meter foreigners typically pay versus locals in the same area?
Foreigners generally pay similar prices to locals when purchasing directly from developers or in established markets, though some premium neighborhoods may see slight variations.
In most transactions, price discrimination based on nationality is minimal, particularly in formal real estate transactions with licensed agents and developers. Both foreign and local buyers pay market rates for comparable properties in the same developments.
However, some premium neighborhoods and larger transactions may see foreign buyers paying marginally more due to targeted marketing, specialized residency programs, and willingness to pay for premium services. This premium typically ranges from 5-15% in expat-focused developments.
Residency programs for foreign buyers, including Pensionado and Qualified Investor visas, may actually provide access to developer incentives and pre-construction pricing that can offset any premium pricing in certain projects.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Panama's real estate market offers significant opportunities for both investors and residents, with clear price differentiation between urban and rural markets.
Understanding local market dynamics and price factors can help buyers make informed decisions in this growing Central American market.
Sources
- Global Property Guide - Panama Price History
- The LatinVestor - Panama City Price Forecasts
- Ingwe Capital - Dubai vs Panama ROI Comparison
- Properstar - Panama House Prices
- Properstar - Colon Province House Prices
- Casa Solution - Pedasi Market Report 2025
- The LatinVestor - Buy Land Panama
- Expat-tations - Purchasing Apartment in Panama
- The LatinVestor - Panama Price Forecasts
- The LatinVestor - Panama Real Estate Trends