Properties that Maximize ROI in Panama: Which types and why?

When we first started looking at real estate opportunities in Panama market (for our customers, and overall for the company), we quickly realized something: there are a lot of options, in different locations, buildings, views and amenities, but not all of them will actually make you substantial money.

In Panama you can easily get caught up in the excitement of oceanfront apartments, beautiful skyscrapers, or pre-construction deals that seem too good to pass up, especially when the developer companies are getting better at marketing them. However, if your goal is to maximize return on investment (ROI) in a shorter time than the average, you definitely need to be a bit more strategic.

Over the years, after talking to many developers, property managers, and other investors on the ground, we at Panama Realty Zone started to notice patterns in what actually works.

Some property types generate consistent income month after month. However, other real estate units look good on paper but end up sitting empty or losing value.

Of course, we understand that this can happen in any nation, not only in Panama, particularly in 2025 and onwards, with sudden market and economic changes worldwide. But for sure there are local factors that directly affect the real estate market in this country.

In this article, we are sharing some of the things we’ve learned about the types of properties that are most likely to maximize your return in Panama. This breakdown will give you a clearer picture of where the real opportunities are (and what to avoid), when buying either for rental potential, flipping or in a pre-construction phase.

Key Ocean Front Properties, Expats Potential:

If you are planning buying property in Panama, oceanfront units are usually in demand, but not just any ocean view will do.

The properties of this type that really hold value (and rent easily) are in well-known areas like Avenida Balboa, Punta Pacifica, and depending of the job location, also Costa del Este. These are places where expats, and multinational company managers want to live, and they’re willing to pay for the view and the lifestyle.

The sweet spot? Modern, well-managed buildings with good amenities such as pools, gyms, security, and in some cases concierge services. The rental ROI can range from 8 to 10%, and the value of these properties often hold and grow over time.

Focusing on 1 or 2 bedroom units is ideal, since it is more attractive for those professionals or couples looking for city life with a view.

Specific Properties, High Rental Potential:

If you are more knowledgeable into the local job market and what specific locations can offer, you should be able to identify good second hand apartments that still have a good value appreciation potential, but also there is a good opportunity to have a stable rental income from the local renters.

Apartments in areas such as San Francisco (due to its proximity to Parque Omar), El Cangrejo (centric and close to Via Argentina) or in some areas in Tumba Muerto (university renters potential) could give you a steady income because of the specific appeal of these areas.

Buying a second-hand apartment, in great conditions, in a building which offers the usual amenities (pool, gym, security), can give you a steady 6 – 8 % return.

Pre-Construction Properties and Short Term ROIs:

One of the best ways we have seen investors make money in Panama without even renting a property is by, getting into pre-construction condos early. Basically, you’re buying a unit before the building is finished, sometimes even before they break ground.

Here’s why this can be a smart move: developers usually offer lower prices in the early stages to get the project moving. So, if you’re one of the first buyers, you can lock in a great deal. Then, as the building goes up and demand grows (especially in good locations), prices often increase by 15% to 20% or more by the time the project is completed.

What’s great about this is that you don’t need to pay the full price upfront. Most developers offer payment plans, for example: you can pay 10% when you sign, then small payments over the next 2-3 years during construction.

This payment plans gives you time to plan or even sell the unit before you ever have to close on it,  that’s where some people make their capital gain. Or you can keep the property and rent it, making rental gains for a couple of years before selling it at the market price.

Furnished and Utilities Included, Short Term Rental Potentials:

One of the most profitable segments in Panama City is short-term rental apartments, especially in popular areas like El Cangrejo, San Francisco, Marbella, Casco Viejo, and Punta Pacifica.

They usually can have a good ROI due to the high demand for those tourists staying for more than just few weeks, business travelers or those coming for medical reasons, and due to the premium nightly rates compared to long term rentals.

Ideally, these apartments have the best potential when they are fully furnished and with utilities included (such as electricity, Internet/WiFi and cleaning services), we estimate they can bring a return of 7% to 10% per year if properly managed.

Focusing on What Works

At the end of the day, not every property in Panama will give you great returns, but if you focus on the right types like oceanfront apartments, expat-friendly units, and well-chosen pre-construction projects, you’ll put yourself in a much better position to succeed.

The key is to know who your future tenant or buyer will be, and pick properties that match what they’re actually looking for. Panama has real opportunities, but like any market, you need to be smart, do your homework, and work with the right people.

Invest wisely, and Panama can be a great place to grow your portfolio. Let us know if you are interested in opportunities to invest in real estate in Panama, contact us!