Will Panama Real Estate Prices Appreciate? (2024 Onwards)

It is very clear that in the 2000s and 2010s, the Panama real estate market has grown significantly over the years (sometimes in double digits percentages) thanks to different factors related to the economic development, foreign investment, infrastructure expansion, and its growing popularity for foreigners and retirees.

Considering the 2020 pandemic and the economic impact that has caused, the country’s recovery process has been way faster when compared to other Latin-American countries.

There’s no doubt that Panama still has economic challenges to overcome after the pandemic, but the bouceback of real estate market valuation started showing more positive outcomes since the last year, but in a slow pace, when compared to the 2010s.

Many buyers and investors wonder: will Panama real estate prices continue to appreciate from now to the future? Is the real estate market in 2024, 2025 and onward showing signs of potential growth?

These questions may arise for many, but the answer might be differ depending of the type of investor, whether the buyer is looking for a 5 year return or less, or if he/she is looking for a 6 or more years return potential.

Real estate valuation outlook in 5 years or less

The real estate market and its potential for growth from the present up to 5 years will be directly related with the new government efforts to carry on and finish the development in all types of industries in Panama.

The new Tocumen terminal has increased passengers traffic for about 9% more than the previous year, and there are signs that the demand will continue growing. Copa Airlines, continues to offer new routes in every coming season to new destinations, opening the country to more people interested in Panama, coming from different regions around the world.

The major infrastructure developments going in Panama such as new highways, the city’s cruise terminal in Amador and a new access to the causeway are also crucial efforts to invite more tourists coming from cruise ships to get to know Panama City and what it has to offer. Few weeks back, Norwegian Cruise Line announced Panama as its home port, this is a driving factor for tourism grow in the coming years.

The metro line 3, which will be completed in 2026 and will allow locals and residents to move between cities, is definitely an important factor not only for Panama’s mobility, but also for new real estate appreciation in other areas such as Panama Pacifico and Arraijan. The metro line will also promote more real estate development in the areas close to the new metro stations.

All these factors mentioned will bring sustainability, economic growth and development to the country, that will subsequently drive real estate appreciation, particularly for those investors who chose wisely where and when to buy in the short term.

Real estate market in 6 years or more

The question of whether Panama real estate prices will appreciate in the long term is complex and depends on several factors. To better understand the future trajectory in real estate valuation, it must be considered the following points:

Economic Growth: Panama’s economy has been one of the fastest-growing in Latin America over the past decade, driven largely by the Panama Canal, international trade, and infrastructure projects. If Panama’s economy continues to grow at a strong pace, particularly with investments in sectors like logistics, tourism, and technology, real estate prices are likely to appreciate.

Foreign Investment and Demand:  Panama must maintain its appeal as a retirement and investment destination, so that the demand for real estate can stay strong. Factors like political stability, cost of living, healthcare quality, and global mobility (e.g., Panama’s residency visa programs) will influence how much foreign demand persists over the years.

Global Economic and Political Factors: Panama’s real estate market is sensitive to global economic and political trends. A downturn in the U.S. economy, for instance, could impact foreign demand. But also, based on prior experiences, political instability in neighboring countries could increase demand for safe, stable investment options like what Panama offers.

In summary, Panama’s real estate market in the long term is likely to experience an steady appreciation, particularly in areas with strong infrastructure development, foreign demand, and a growing tourism sector. However, the pace of price increases will vary depending on locations, supply-demand balance, and the economic and political environment of neighboring countries.

Separating this analysis by a mid-term potential and a long-term overview shows better how Panama’s real estate economy might develop, helping investors to make better choices when choosing where to invest. Regardless, Panama at the moment keeps staying at the top for foreign real estate investors and retirees.