Panama Real Estate Market Forecast: Trends and Investment Opportunities

The Panama real estate market is positioned for growth in the last few months of 2025 and beyond, with international interest rebounding post-pandemic, and local infrastructure, investment, and migration trends all aligning in its favor. Even so, potential challenges remain. Whether you’re a first-time buyer, seasoned investor, or expat exploring relocation options, understanding Panama’s real estate forecast is crucial.

This article presents an evidence-based, expert-reviewed breakdown of emerging trends, economic drivers, and investment opportunities in the Panamanian property market. Our insights are drawn from government data, local sales reports, and direct field experience from the team at Panama Sovereign Realty.

Panama’s economy is forecasted to grow by 4% in 2025, making it one of the fastest-growing countries in Latin America. This growth is underpinned by:

• Massive infrastructure projects like the fourth bridge over the Canal and metro expansion.
• The return of tourism and expats, especially from North and South America and Europe.
• Strong logistics, shipping, and banking sectors drawing foreign capital.

Combined, these factors are reinvigorating buyer demand, increasing construction activity, and supporting resale values in key areas.

1. Surge in Pre-Construction and New Developments
Pre-construction sales are surging, with developers offering aggressive pricing, early-stage discounts, and flexible payment options. Inventory is tightening in top-tier areas.

• Punta Pacifica, Santa Maria, and Costa del Este are leading high-end vertical markets.
• Beachfront and mountain communities are positioned for near-term growth, driven by a rise in off-plan purchases.

2. Increasing Demand in Luxury & Expat-Oriented Neighborhoods
High-net-worth individuals and retirees are returning to Panama in large numbers, particularly from the U.S., Canada, and Europe. They are seeking:

• Ocean-view condos in neighborhoods like Coco del Mar and Punta Paitilla.
• Highly sought-after heritage properties in Casco Viejo with limited supply and UNESCO status driving long-term value.
• Suburban gated communities in areas like Costa del Este and Panama Pacifico.

3. Foreign Investor Confidence Rebounding
The government has solidified key programs to attract investors, including:

• Qualified Investor Program – permanent residency in roughly 30 days with a $300K+ real estate investment.
• Pensionado Visa – ideal for retirees.
• In 2024, Panama’s SEM regime attracted 12 new multinational firms with $24.2M in investment, generating over 8,000 jobs

1. Beachfront Property Market
Beach destinations like Coronado, Pedasí, and Bocas del Toro are thriving due to their blend of affordability, lifestyle, and Airbnb potential.

• Starting prices from around $150K for modest single-family homes
• Solid occupancy for well-managed short- and long-term rentals
• Ideal for vacation home + rental income strategy

2. Panama City Rental Market
Urban rental demand is back, driven by digital nomads, professionals, and corporate relocations.

• Long-term average gross rental returns of 6%+ in top buildings
• Fast absorption of quality units
• Capital appreciation in key zones

3. Mountain & Inland Property
Areas like Boquete, El Valle, and Volcán are growing in popularity due to their cooler climate, lower costs, and appeal to expats and retirees.

• Large lots, gated communities, and resale opportunities
• Between 2010–2023 Boquete and Tierras Altas grew 10.3%  and 38%, respectively
• El Valle de Antón population grew 23% between 2000 – 2023

• No restrictions on foreign ownership
• The first $120,000 in property value can often be exonerated from property tax
• Dollarized economy = easier transactions for USA and Canadian buyers
• New controls to reduce unlicensed realtor activity, enhancing buyer protections

As with any emerging market, Panama offers high upside with calculated risk. Investors should be aware of:

• Inconsistent building quality in some pre-construction projects
• Limited inventory in premium areas
• Financing for foreigners is often limited—most purchases are cash-based
• Increasing competition between Airbnb licensed projects
• High-pressure sales tactics, unrealistic promises about investment returns
• Political risk, including tensions related to:

  • U.S. interests in the Panama Canal

  • China’s expanding economic footprint

  • Domestic unrest over economic and environmental policy

  • Labor protests and union activity impacting infrastructure and services

We strongly recommend partnering with a licensed brokerage for due diligence, title verification, and market insights.

The Panama real estate market is growing fast and smart—backed by infrastructure, immigration, and a strong global reputation. Whether you’re targeting capital gains, lifestyle enhancement, or portfolio diversification, now is the time to explore what Panama offers.

We expect steady appreciation in prime locations, greater demand for beach and mountain homes, and a continuous inflow of American, Canadian, and European buyers in the coming years.

Contact Panama Sovereign Realty for more information.