Panama Real Estate Market in 2024: What is driving the market now?

As of the second half of 2024, the Panama real estate market has shown several key trends, influenced by both global factors and local dynamics.

Panama City remains the hub for real estate activity, with demand for high-rise condos, mixed-use developments, and office spaces growing.

The banking and financial sectors in Panama are key drivers, as international businesses continue to set up offices in the capital. There are new developments in neighborhoods such as Costa del Este, Punta Pacifica and San Francisco that are bringing dynamics to the real estate sector. But also there is an interesting dynamic in the beach areas.

Beachfront real estate:

Areas like Coronado, Buenaventura and Chame are still experiencing a surge in demand, particularly from foreign retirees, as well as remote workers. These regions offer a mix of beachfront and calm living, which can be interesting for to those seeking a relaxed lifestyle away from the capital’s hustle.

Beachfront projects like Playa Caracol keeps growing, including new buildings and resorts on the way, such as Margaritaville, to join other developments such as Surfside and Olas del Mar already in this area.

Besides the new real estate projects in the beach towns, it is worth to mention the infrastructure development which combines new highways and the upcoming metro line 3 (estimated to be finished in 2026). These improvements will have the potential of appraising the actual and future beachfront real estate developments.

Projects in Panama City:

In urban Panama, there is also a lot of dynamic thanks to several new skyscraper residential projects.

Punta Pacifica and Punta Paitilla maintain its peak in terms of luxury location with their current availability of units specially in Ocean Reef islands, but also with new buildings as well such as The Towers, Ocean Front, Allure and others.

In Avenida Balboa, there are new projects such as Uptown and Seaside in calle Uruguay, but also available now Costanera, a luxurious skyscraper just steps from the coast and near Parque Urracá.

Costa del Este has on the way an ambitious residential development called Bioma, a building full of amenities and in a prime location just steps from Town Center. and also the building Arcadia, a newly built residential tower with aparthotel style units that makes an interesting opportunity for those seeking for a rental income property.

What to look for when exploring real estate in Panama?

There are several key factors to pay attention to when seeing Panama as a potential investment. To benefit the most, you should pay attention to the following elements:

• Location and Neighborhood Trends: areas that are still affordable but poised for growth due to infrastructure improvements or new developments, such as El Cangrejo, San Francisco or the beach areas.
• Property Type: whether is a pre-construction project, where you can lock in a lower price before the building is complete, or an interesting resale, where well-maintained buildings can be a potential investment if they are in desirable areas.
• Market timing: Sellers might be more willing to lower prices during this period of May until November (rainy season), this can be an opportunity, or also being informed about broader economic trends, such as interest rates, inflation, and specific policies, since Panama is a dollarized economy.

Overall, Panama’s real estate market in 2024 offers a mix of opportunities, particularly for foreign investors seeking high-quality properties in a stable, growing market. The market is being more active than the past 4 years with new developments, change of government and infrastructure improvements, which brings a lot of potential for future appreciation in properties, if chosen wisely.