Does the US policies affects Panama? Real estate market trends in 2025

Panama’s real estate market is very frequently influenced by regional economic trends, with the United States, Canada and other Latin American countries having a significant role.

What happens in USA in general, in terms of politics and economical measures, does not stay in the US, it affects regional markets and industries,  and when we talk about real estate overall investment in Panama, these effects are usually very pronounced.

Why? Because while U.S. real estate is becoming less attractive due to high interest rates, skyrocketing prices, and market volatility, Panama is usually offering something different: stability. The country as we explained before, works with the U.S. dollar, it offers a business friendly environment, and the government overall is developing a lot of infrastructure (such as the cruis terminal, new highways, new bridge over the canal, metro lines, etc.).

If the current US administration‘s policies favor more protectionism and stricter financial rules, we could see even more capital flowing into international markets like Panama, and this affects the real estate market in 2025 and the following years. Here below are some of the trends we see at the current moment in Panama’s property market in 2025.

1. Rising Rental Prices in Central Neighborhoods

If you’ve been looking into Panama’s real estate recently, you’ve probably noticed that rents in central areas like Obarrio, San Francisco, and Costa del Este are rising.

Why is this? Because young professionals, digital nomads, and corporate expats find attractive these business-friendly zones, where they can live and work without long commutes. The demand for modern apartments with amenities like open spaces, gyms, and pools are more in demand, which is naturally pushing rental prices slightly higher.

On top of that, we have noticed that many property owners who previously focused on long-term rentals are now shifting to Airbnb-style short-term rentals, targeting tourists and remote workers who are willing to pay a premium for convenience and flexibility.

By driving around particularly in San Francisco, Obarrio and Costa del Este you will see quite some new apartment buildings under construction, Panama’s real estate economy inside the city center seems to be increasing and the developers are reacting to it, at least faster than in the last 4 years.

2. Infrastructure Development is Driving Property Values

If there’s one thing that can instantly change the real estate industry, it’s infrastructure, and Panama City is in the middle of a many upgrades. Thanks to the new metro line under construction, the expanded highways to the city, and new projects, some neighborhoods that were once overlooked are now catching the attention of investors who might see the potential for rising property values.

The metro expansion, for example. with new line 3 and stations being added, areas that used to be considered “too far” or inconvenient are suddenly much more accessible. This means more demand for housing, which inevitably pushes up prices.

Developers are also taking advantage of such opportunities. We can notice more mixed-use buildings being developed up near improved areas, offering modern apartments and commercial spaces.

3. Luxury Real Estate Demand

Panama is consolidating his hot spote for high income families looking for luxury properties with world-class amenities. Exclusive neighborhoods like Santa María, Punta Pacífica, and Ocean Reef are available and creating new developments, offering everything from high-rise penthouses with ocean views to private island residences.

But it is not only the local investors that are driving this market, also international investors and expats are into these kind of properties. With Panama’s good tax laws and easy accessibility thanks to the Tocumen airport hub, many see luxury real estate here as both as a smart investment. Plus, with global uncertainty fueled by US current situation, it is pushing the investors to diversify, owning prime real estate in a strategic location like Panama and other Latin American countries makes more sense than ever.

Final Thoughts: Why we think Panama’s Market is at a Turning Point

If there’s one thing that’s clear, it’s that Panama’s real estate market is evolving fast, and for investors that’s a good thing. With rising rental demand in central areas, the boom of gated communities, and major infrastructure projects reshaping property values, we consider that opportunities are everywhere.

If you’re thinking about real estate in Panama, this might be the perfect moment. The trends are pointing towards growth, and external factors might only keep the momentum in the economy. For any investor, local or international, we think there are opportunities to invest in Panama in many different ways. The question is: are you ready to make the move before everyone else does?

If you are looking for real estate in Panama, please do not hesitate in contacting us!