Panama Real Estate Market: 4 Things to Know Early in 2025

2025 year can be an interesting year for the real estate market in Panama, thanks to a more dynamic real estate environment in the 2^nd half of 2024, as well as the country steady economic growth which, as we know, its being fueled not only by the Canal, but also trade, tourism, international finance and the stop-over reputation Panama has in the recent years.

In this article we dive into some factors you must know from our perspective of as real estate agents. These points will benefit you If you want to understand more the Panama real estate market by 2025, or if you are planning to invest in a property soon.

1. It’s Still a Buyer’s Market in Many Areas, But That’s Changing

For the past few years, buyers have had the upper hand in many areas not only in the city, but also in beach properties. Developers were offering some benefits and discounts in the new projects, and also the second hand market had very competitive prices. However, there’s a shift happening.

Neighborhoods like Costa del Este, Av. Balboa and San Francisco in Panama City and also in beach areas such as Coronado, are seeing increased interest from both foreigners and locals. While inventory is still available, it is starting to tightening in these areas, and prices are starting to reflect that.

If you’re considering buying, our advice is simple: do not wait too long. The deals are still there, but the window is closing in some good locations.

2. Rental Market in Demand, But Know Your Audience

If you are planning to buy as an investment, Panama’s rental market has some serious potential, but understanding your audience is very important. Short-term vacation rentals are booming in tourist-heavy spots around the city, but mostly in Casco Viejo.

However, the competition is strong, especially in places like Panama City where every other new apartment are more intended for short term rentals. It is important to find a property with something unique to stand out, such as a perfect city or ocean view, good amenities, or in the case of Casco Viejo, a historic vibe that no modern building can replicate.

On the other hand, long-term rentals are a safer venture for those looking for a steady ROI. Quieter areas, or apartments with closeness to healthcare, shopping and business centers are usually popular. The rental market for both short and long term stay seems to be increasing in value in the recent months as Panama is becoming a more popular destination.

3. New Infrastructure is a Major Plus

Infrastructure projects in Panama have always been a major driver of real estate trends, and 2025 is no exception. One of the most exciting developments is the ongoing expansion of Panama City’s metro system, which soon will be connecting Panama City with the interior areas such as Arraijan and Panama Pacifico.

Properties near the new metro stations will become a hot commodity, since buyers will recognize the convenience of having public transit nearby in a city that’s notorious for its traffic. Developers are not staying behind, particularly in Panama Pacifico, there are new projects being built, taking advantage that a metro station is being built in this area, and it is not far away from Panama City.

4. Lifestyle is Driving Demand on Real Estate

One of the biggest reasons Panama real estate market is being on demand isn’t just the affordability, but also the lifestyle. The country offer different real estate types for everyone’s taste, such as modern apartment with city views, ocean view luxury apartments, or beach properties.

For younger buyers, properties now are offering amenities that match the current lifestyle, such as co-working spaces, gym, pool, sometimes spa, sports courts and running tracks. But the lifestyle perks don’t end there. Panama also combines city life with tropical climate, proximity to the beach and national parks, so depending on the buyer preferences, there is a property for everyone.

When buying real estate in Panama, consider not just the numbers, but how the property aligns with the lifestyle you or your target renters are looking for. A home is more than an investment, it can be the foundation for your way of living.

If you are planning to invest in Panama in 2025, please do not hesitate in contacting us!