Panama’s property markets continue to hold opportunity for investors in the know. During 2023, the value of residential construction in Panama rose by over 18% to $747 million after rising by over 21% in 2022 and 83% in 2021.
Demand is strong and continues to rise. Last year, home sales were up by 21%, and transaction values rose by over 8% to $750 million. This year, transaction values are expected to rise to $964 million.
For someone looking to get their foot in the door of Panama’s property market today, where would we recommend?
Panama City, Panama’s capital and biggest city, is a top option. Here, the average price per square meter of apartments is on the rise.
From Q2 2023 to 2024, it’s up by a modest 1% to $2,055 per square meter. This follows year-on-year increases of 1.75% in Q1 2024, 2.74% in Q4 2023, and 1.53% in Q3 2023.
Panama City’s high construction standards and convenient location as the Hub of the Americas have attracted buyers from the US, Canada, Europe, and Latin America for years.
A wave of multinational corporations has established headquarters here thanks to Panama’s business-friendly policies. This has caused an influx of foreign labor that’s spurring demand.
Panama City continues to be a market that can generate outsized rental returns… even going into the double-digit range, if you know where to look….
But the fact is that Panama City is not just one market. It’s broken down into administrative units called corregimientos, which are further broken down into boroughs.
Property prices (and your potential returns) can vary significantly from area to area within Panama City. Some offer more potential and upside than others, so where should you look?
Here are a few recommendations…
San Francisco
San Francisco is to Panama City what Manhattan is to New York. It’s the commercial, financial, and residential hub of the city. Some of the most exclusive and expensive neighborhoods in the city are found here, like Punta Pacífica and Punta Paitilla.
It’s home to some of the city’s most famous buildings, like the JW Marriott Panama (previously Trump International), Atlapa Convention Center, Multipara Mall, and Hotel Las Americas.
This is a trendy area with a wide assortment of shops, cafés, restaurants, and nightlife venues. It’s also home to Parque Omar, the Central Park of Panama City, as well as Calle 50, the city’s most important financial and commercial thoroughfare. Panama’s two best private hospitals—Hospital Punta Pacífica and Hospital Paitilla—are in San Francisco.
This is one of the city’s oldest corregimientos (local administrative units). It’s been developing and modernizing since the 70s, and it’s where Panama’s real estate boom is concentrated.
It’s a mostly upper-middle- to upper-class area that’s rapidly developing, offering a mix of homes and high-rise apartments. I see the best play here as an apartment that’s rented medium- or long-term.
Costa Del Este
Costa del Este is a 740-acre master-planned suburb that stands out for being the city’s best planned community. In contrast to San Francisco, everything in Costa del Este is new and shiny.
It’s a neighborhood within the corregimiento of Juan Díaz, and it’s found just off the main highway that takes you into Panama City from the international airport.
It’s among Panama City’s most sought-after business and residential addresses, and it offers strong investment potential. A number of national and international companies are based here, which has attracted expats from all over the world—especially those with families.
Spacious, walkable, clean, safe, and turn-key, Costa del Este is both a classic suburb and a cosmopolitan neighborhood. It’s also home to Panama City’s newest John Hopkins-affiliated hospital, as well as being just minutes away from a Jack Nicklaus-designed golf course.Prices in Costa del Este are some of the highest in the city, but demand remains strong. The best play here involves targeting the executives and employees of multinational corporations, again with medium- to long-term rentals.
Buying pre-construction, either to sell or to rent at completion, can also be an effective and profitable strategy.
Avenida Balboa
Avenida Balboa is Panama City’s famous waterfront boulevard. The views are so iconic, you’ve probably already seen them. They are what comes up when you Google “Panama City” and are part of the reason people draw comparisons with Miami.
Picture sleek high-rises with unobstructed views of the Bay of Panama. Where the Pacific Ocean meets the land, there’s a palm-tree-lined promenade that’s embellished with manicured gardens, walking trails, and exercise areas. Known as the Cinta Costera, this promenade is a hive of activity at any time of day, with people jogging, walking their dogs, or taking in the view of the ocean.
Just over 2 miles long, Avenida Balboa stretches from Casco Viejo, the city’s historic quarter, to Punta Paitilla in San Francisco. Living here, the best of Panama City is at your fingertips…
It’s within easy reach of the charms and upscale dining of Casco Viejo, the financial district, and the buzz of Calle Uruguay, a street with a vast selection of bars, restaurants, and clubs. It’s also close to public transportation, schools, universities, clinics, pharmacies, grocery stores, restaurants, bars, and green spaces.
Avenida Balboa is one of Panama City’s most prestigious addresses, attracting wealthy Panamanians and expats—businesspeople, politicians, professionals from the finance and logistics sectors, real estate investors… It’s where Kathleen Peddicord and Lief Simon hang their hats when they’re in Panama City.
This area offers apartments only, and the price per square meter can go well above $3,000 here. I recommend investing in pre-construction projects that are rich in amenities to raise the value of your property among renters… and in fact, later this week, you’ll receive details about a new opportunity that meets this description.
It’s fully turn-key, with furnished apartments and in-house property management. It could be your part-time home when you’re in Panama City and a source of easy rental income when you’re away.
Keep an eye on your inbox for incoming details about this exciting new opportunity…
To smooth travels and successful property buys,
Sophia Titley
Editor, Overseas Property Alert