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Yes, the analysis of Panama City's property market is included in our pack
Panama City's real estate market commands some of the highest prices per square meter in Central America, with apartments averaging $2,483/m² as of September 2025.
The price variation across neighborhoods is substantial, ranging from $1,700/m² in El Cangrejo to over $4,300/m² for new constructions in premium areas like Casco Viejo and Punta Pacifica. Understanding these price dynamics is crucial for both investors and potential residents looking to make informed property decisions in Panama's capital.
If you want to go deeper, you can check our pack of documents related to the real estate market in Panama City, based on reliable facts and data, not opinions or rumors.
The median apartment price in Panama City stands at $2,483/m² while houses average $1,603/m², making it the most expensive real estate market in Central America.
Luxury waterfront developments can reach $4,500/m² or more, while inland neighborhoods offer more affordable options starting around $1,700/m².
| Neighborhood | Resale Price ($/m²) | New Construction ($/m²) | Annual Trend |
|---|---|---|---|
| Avenida Balboa | $2,200 | $3,300 | -3% |
| Casco Viejo | $3,200 | $4,300 | +4% |
| Costa del Este | $2,400 | $4,000 | 0% |
| El Cangrejo | $1,700 | $2,800 | +7% |
| Punta Pacifica | $2,200 | $4,300 | -4% |
| San Francisco | $1,900 | $3,500 | +2% |
| Santa Maria | $2,900 | $3,800 | -6% |
What's the current average price per square meter in Panama City right now?
As of September 2025, the median apartment price in Panama City stands at $2,483 per square meter.
New luxury developments in prime neighborhoods command significantly higher prices, ranging between $2,500 and $4,500 per square meter. These premium properties are concentrated in areas like Casco Viejo, Punta Pacifica, and Santa Maria, where international buyers and affluent locals compete for limited inventory.
Houses in urban Panama City average considerably less at $1,603 per square meter, making them approximately 35% more affordable than apartments on a per-square-meter basis. This price differential reflects the higher demand for apartment living in the city center and the additional amenities typically found in condominium developments.
The current pricing positions Panama City as the most expensive real estate market in Central America, reflecting its status as a major financial center and the country's dollarized economy.
It's something we develop in our Panama property pack.
How does the price per square meter vary between different neighborhoods?
Neighborhood variations in Panama City are substantial, with price differences exceeding 150% between the most and least expensive areas.
Casco Viejo commands the highest resale prices at $3,200 per square meter, driven by its UNESCO World Heritage status and historic charm. New construction projects in this area can reach $4,300 per square meter, though supply is extremely limited due to preservation restrictions.
Santa Maria and Punta Pacifica represent the luxury residential segments, with resale prices around $2,900 and $2,200 per square meter respectively. These oceanfront communities offer high-end amenities and attract wealthy expatriates and local elites.
Mid-market neighborhoods like El Cangrejo ($1,700/m²) and San Francisco ($1,900/m²) provide more accessible entry points while maintaining good connectivity to business districts. El Cangrejo is experiencing the strongest growth at +7% annually, making it attractive for investors seeking appreciation potential.
Costa del Este offers modern developments at $2,400 per square meter for resales, though new constructions reach $4,000 per square meter due to its planned community design and proximity to the airport.
What's the historical trend of prices per square meter over the past 5 to 10 years?
Panama City property prices have appreciated approximately 18-20% from 2020 to 2025, rising from around $2,050-$2,100 per square meter to the current $2,483 per square meter.
The annual appreciation rate has moderated significantly to 3-4% per year in recent years, representing a substantial slowdown from the double-digit increases experienced during the 2010s real estate boom. This stabilization reflects a maturing market with more balanced supply and demand dynamics.
The period from 2015 to 2020 saw more volatile price movements, with some years experiencing flat or negative growth as the market absorbed oversupply from the previous construction boom. The post-2020 recovery has been more sustainable, driven by selective international demand and improved economic fundamentals.
Different neighborhoods have experienced varying trajectories, with historic areas like Casco Viejo showing more resilience during downturns while newer developments faced greater price volatility. The luxury segment has generally outperformed the mid-market, creating a widening price gap between premium and standard properties.
How do prices differ between new constructions and older properties?
New pre-construction condominiums typically cost 25-45% more than comparable resale properties in the same neighborhoods.
Pre-construction developments in top areas can reach $4,000-$7,000 per square meter, while resale units in similar locations trade for $1,100-$3,200 per square meter depending on age and condition. This premium reflects modern amenities, energy efficiency, and the ability to customize finishes during construction.
The price gap is widest in luxury segments and core business districts where new supply is constrained by land availability and zoning restrictions. Developers justify higher prices through superior building materials, smart home technology, and premium amenities like rooftop pools and fitness centers.
Older properties, particularly those built before 2010, may require significant renovation investments that can partially offset their lower purchase prices. However, many resale properties in established neighborhoods offer larger floor plans and unique architectural features not found in newer developments.
Buyers choosing new construction typically pay a 10-20% deposit with staged payments during construction, while resale purchases require immediate financing or cash payment.
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What's the difference in price per square meter for apartments versus houses?
Apartments in Panama City average $2,483 per square meter while houses average $1,603 per square meter, representing a 35% price differential favoring houses.
This pricing gap reflects several market dynamics: apartments offer better security, shared amenities, and prime locations in high-rise developments, while houses typically provide more space but are often located in suburban areas with longer commutes to business districts.
Luxury apartments in premium towers can exceed $4,500 per square meter, particularly those with ocean views and top-floor locations. These properties compete directly with international real estate markets and attract wealthy buyers seeking turnkey luxury living.
Houses in gated communities within Panama City limits can reach $2,500-$3,000 per square meter, approaching apartment prices when they include premium locations and extensive amenities. However, the majority of urban houses fall well below apartment pricing due to their locations and the land-to-building value ratio.
The apartment premium is most pronounced in neighborhoods like Casco Viejo and Punta Pacifica, where high-rise development maximizes valuable waterfront or historic land use.
How do prices vary between properties facing the ocean and those further inland?
Waterfront properties in Panama City command premium prices, with oceanfront locations reaching $4,500 per square meter or more for new developments.
Prime waterfront neighborhoods like Casco Viejo, Punta Pacifica, and Avenida Balboa consistently outprice inland areas by 50-100%. Direct ocean views, particularly from higher floors, can add $500-$1,000 per square meter to property values compared to similar units without water views.
Inland neighborhoods typically range from $1,700-$2,400 per square meter for existing properties, though some premium inland developments can approach waterfront pricing through exceptional amenities and design. The further inland a property is located, the more price becomes determined by neighborhood characteristics rather than proximity to water.
Properties with partial ocean views or those within a few blocks of the waterfront often trade at moderate premiums of 20-30% above purely inland locations. Beach access, marina facilities, and waterfront dining options contribute significantly to these premium valuations.
It's something we develop in our Panama property pack.
What's the average rental yield per square meter compared to purchase price?
Gross rental yields in Panama City apartments average 6.8-7.8% annually across the market as of September 2025.
Mid-range neighborhoods often deliver yields exceeding 8%, particularly in areas like El Cangrejo and San Francisco where rental demand from young professionals and expatriates remains strong. These areas benefit from good connectivity to business districts while maintaining more affordable purchase prices.
Prime luxury areas with slower absorption rates may see yields closer to 6-7%, as higher purchase prices aren't always matched by proportionally higher rents. Waterfront properties often prioritize capital appreciation over immediate yield, attracting investors with longer-term horizons.
Properties in the $2,000-$2,500 per square meter range typically offer the best yield-to-price ratio, balancing purchase affordability with strong rental demand. Smaller units generally achieve higher yields per square meter due to higher rental rates relative to their purchase prices.
These yields compare favorably to other major Latin American capitals and reflect Panama City's growing role as a regional financial and business center attracting international tenants.
What are the additional costs per square meter when buying (taxes, fees, maintenance)?
Total additional purchasing costs typically range from 5-8% of the property price beyond the base per-square-meter cost.
| Cost Type | Percentage/Rate | Notes |
|---|---|---|
| Acquisition Tax | 2% | On transfers above $30,000 |
| Legal Fees | 1-2% | Attorney and documentation |
| Registration Fee | 0.5% | Property registry |
| Agent Commission | 5% | Real estate agent fees |
| HOA/Maintenance | $1.50-$3.00/m²/month | Ongoing monthly costs |
| Insurance | 0.1-0.3%/year | Property insurance |
| Property Tax | 0.5-0.7%/year | Annual municipal tax |
Monthly maintenance fees vary significantly by building quality and amenities, with luxury towers charging $2.50-$3.00 per square meter while standard buildings may charge $1.50-$2.00 per square meter. These fees cover security, common area maintenance, and amenities like pools and gyms.
Foreign buyers should budget for currency exchange costs and potential financing fees if obtaining local mortgages, though Panama's dollarized economy eliminates currency risk for USD-based investors.
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 does Panama City's price per square meter compare to other major Latin American cities?
Panama City ranks as the most expensive real estate market in Central America, with prices exceeding regional neighbors by 15-25%.
| Capital City | Average Price/m² (USD) | Relative to Panama City |
|---|---|---|
| Panama City, Panama | $2,483 | Baseline |
| San José, Costa Rica | $2,420 | -2.5% |
| Guatemala City, Guatemala | $2,028 | -18.3% |
| San Salvador, El Salvador | $1,831 | -26.2% |
| Managua, Nicaragua | $1,582 | -36.3% |
| Mexico City, Mexico | $2,150 | -13.4% |
| Bogotá, Colombia | $1,890 | -23.9% |
This premium pricing reflects Panama's strategic advantages: political stability, dollarized economy eliminating currency risk, strong banking sector, and position as a regional logistics hub. The Panama Canal's economic impact and growing financial services sector support sustained property demand.
Compared to larger South American markets like São Paulo ($2,800/m²) or Buenos Aires ($2,200/m²), Panama City remains competitive while offering superior political and economic stability.
What's the forecast for price per square meter in the next 2 to 5 years?
Panama City's real estate market is forecast to experience moderate, steady growth of 2-4% annually through 2030.
This conservative growth projection reflects the market's maturation and the absorption of oversupply in certain segments that accumulated during the previous construction boom. International demand is expected to remain stable, supported by Panama's continued role as a regional financial center and retirement destination.
The luxury segment may face price stagnation in the short term if new inventory continues to outpace buyer demand, particularly in high-end developments where absorption rates have slowed. However, mid-market properties in established neighborhoods are likely to see consistent appreciation driven by growing local demand.
Infrastructure improvements, including metro expansions and new highway connections, should support price growth in previously less accessible areas. Climate change concerns may also increase demand for higher-elevation properties away from flood-prone coastal areas.
Economic diversification beyond the canal and banking sectors could provide additional price support, though global economic uncertainty remains a key risk factor for the market's trajectory.
What's the typical size of properties being sold, and how does that affect price per square meter?
Most apartment sales in Panama City fall within the 80-140 square meter range, with premium buildings offering units exceeding 200 square meters.
Smaller units, particularly studios and one-bedroom apartments of 40-70 square meters, typically command higher prices per square meter due to higher demand from young professionals and investors seeking rental properties. These compact units often trade 10-15% above the per-square-meter rate of larger apartments in the same building.
Larger family units of 150+ square meters often trade at a discount on a per-square-meter basis, as the buyer pool is more limited and the absolute purchase price becomes a barrier for many buyers. These properties may see 5-10% lower per-square-meter pricing compared to similar smaller units.
Penthouses and unique large units can command premium per-square-meter pricing despite their size due to their exclusivity and enhanced features like private terraces or panoramic views. The luxury market often defies typical size-based pricing patterns.
It's something we develop in our Panama property pack.
How much negotiation margin is usually possible on the advertised price per square meter?
Negotiation margins in Panama City average 5-10% for resale properties, with limited flexibility on new construction projects.
Developers typically maintain firm pricing on new launches and pre-construction sales, offering incentives like upgraded finishes or payment plan flexibility rather than direct price reductions. Early buyers may receive 3-5% discounts through promotional pricing, but this is usually time-limited.
Resale properties offer more negotiation opportunity, particularly for older units requiring updates or properties in oversupplied segments. Motivated sellers facing carrying costs may accept offers 10-15% below asking price, especially for properties that have been on the market for several months.
Cash buyers often secure better pricing than financed purchases, with sellers preferring the certainty and speed of cash transactions. Foreign buyers should engage local real estate professionals familiar with negotiation customs and market conditions.
Market timing affects negotiation leverage significantly, with the best deals typically available during economic uncertainty or seasonal low-demand periods when seller motivation is highest.
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 City's real estate market offers diverse opportunities across price segments, from affordable mid-market neighborhoods to luxury waterfront developments.
The current price per square meter of $2,483 for apartments positions the city as Central America's premium market, supported by strong economic fundamentals and strategic location advantages.
Sources
- Global Property Guide - Panama Square Meter Prices
- The LatinVestor - Panama City Price Forecasts
- Panama Equity - Q1 Market Report
- Global Property Guide - Panama Price History
- Global Property Guide - Panama Rental Yields
- Ingwe Capital - Panama ROI Analysis
- The Wandering Investor - Panama City Market Analysis
- Overseas Property Alert - Panama City Markets