Panama Named Best Place to Retire in 2025: How it affects Real Estate?

Panama’s reputation as a top retirement destination has soared once again, with the country being named the “Best Place to Retire in 2025.”, according to the popular analysis from International Living’s  Annual Global Retirement Index.

This accolade reflects Panama’s commitment to providing retirees with a high quality of life, supported by its affordable cost of living, climate, healthcare system, and a variety of visas and residency programs made for foreign nationals. But also for years, Panama has attracted many foreigners for seeking an international lifestyle, modern amenities, and for those who come for business, tax benefits.

This recognition from International living doesn’t just improves the country’s image but can also impact its real estate market. A growing number of retirees and expats are drawn to Panama’s diverse property options, from beachfront condos and luxury apartments or even mountain homes in places such as Boquete.

With retirees seeking both long-term residences and vacation properties, demand for real estate in key locations can keep its growth, offering opportunities for those looking to invest.

But what does this mean for Panama’s real estate market? Here we show some of the factors that can be affected positively in Panama properties by maintaining this status as the best retirees destination.

1. Demand for properties in retirement-friendly areas

Being the No. 1 reference as a retirees destination will maintain the demand for properties that are more tailored for those foreigners seeking to retire, particularly in the popular locations such as Coronado, Chame, San Carlos, Boquete and El Valle de Antón. These communities have peaceful environment and are also know for its accessibility, comfort, proximity to the beach or outdoor areas and amenities.

If such demand continues to increase, the property values are likely to keep growing in the following years.

2. Rental markets potential

Not all those looking to retire in Panama will be looking to purchase homes right away, they may prefer to rent for short or long term until they get to know the areas and explore the different options available based on their lifestyle.

This trend could promote also a good demand in the rental market, particularly for fully furnished apartments and in areas where are more expat-friendly.

As explained before in our return on investment article, places like in Panama City or the beach town of Coronado, the rental yields are particularly attractive, with average returns ranging from 5% to 10% annually.

3. Commercial properties and infrastructure

A more flow of foreigners and retirees coming to Panama could mean higher opportunities for commercial real estate investments. Expats and retirees bring additional income and for sure, a demand for services such as healthcare, entertainment, retail shops and more restaurants.

Real estate investors can take this opportunity by getting into new properties development which can include commercial spaces. Medical clinics, pharmacies, and grocery stores in areas with a high concentration of retirees and foreigners (such as Coronado) are particularly profitable businesses.

Another related benefit caused by the flow of retirees and foreigners can be the infrastructure improvement. Public and private sectors could join together to develop more infrastructure and amenities for the communities, which could then increase property values in the area by being a more attractive destination for the people.

4. More interest from international investors

Being named the best place to retire not only attracts retirees and foreigners, but also increases the interest of global real estate investors. Many investors recognize the potential for good rental income and long-term appreciation such situations.

This growing international interest increases competition for properties, especially in high-demand areas, further driving up prices and promoting the development of new housing projects: the higher the demand, the more opportunities to keep developing.

Panama’s recognition as the best place to retire in 2025 clearly shows the attractiveness of the country for retirees around the world. This can amplify the demand for properties, affect the rental market, and create more opportunities for infrastructure development. All these factors explained for sure helps create a positive outcome overall for the real estate sector.