Reasons for rising property prices in Panama City

We expect real estate prices to rise in Panama City. Since 2016, the real estate market in Panama City has been characterized by a buyer’s market, which allows investors to generate interesting real estate returns. In our article we would like to explain what is currently changing and why we expect rising prices.

In modern city districts, we concentrate on very special locations where hardly any building land is available. These are the Pacific promenades in Panama City with unobstructable views of the sea and the entrance to the Panama Canal. We select the properties according to their micro-location, the quality of construction and rentability. In the UNESCO colonial old town “Casco Viejo” there are basically only about 850 houses on a peninsula, of which about 50% are already renovated or under restoration. Due to the nature of the peninsula, the supply of real estate here is naturally limited. The properties have a great potential for appreciation and we concentrate on details that are in demand (quiet locations, balcony, parking space, etc).

Based on the following points, we expect property prices in Panama City to rise:

  • We only buy in the special locations mentioned above, which cannot be expanded due to lack of building land.
  • Since 2016, we have had a buyer’s market in Panama City which allows us to buy in prime locations in the modern city at around 2,500 USD per square meter and to rent at around 14-15 USD per square meter. Like every economic cycle, this one will come to an end and we are currently seeing new international investors discovering the real estate market in Panama City, as they can no longer generate interesting real estate returns in their home markets. Here our real estate market report Panama City 2020.
  • Due to the worldwide unstable political situation many wealthy families are looking for safe international USD locations. Panama is one of them.
  • In the past, political unrest in South America has often led wealthy families to bring their assets to Miami or Panama. Both Spanish speaking, legally secure and with the USD as currency. Whoever wants to invest in the Latin American region will have Panama on the agenda right now due to the lack of alternatives. Under the following link you will find the consequences of the South American crisis for Panama.
  • The current crisis in South America is leading Panama to further expand its status as “Hub of the Americas“. More than 250 multinational corporations appreciate the security and geographical location of Panama as headquarters for their Latin American business. In 2019, more new groups have once again set up headquarters than in the previous year.
  • Directly in front of the skyline, a city beach (info link) modelled on Rio de Janeiro is to be built, which should greatly enhance the value of the properties.
  • Further large infrastructure projects in Panama City will be completed in 2020 (cruise terminal, congress centre, airport terminal) and will bring many new people to Panama. With Metro Line 3 and the new Panama Canal Bridge, new projects will start in 2020 (info link).
  • In 2019, one of the world’s largest copper mines started operating in Panama, which will further support the already strong GDP growth.
  • Since 2002 Panama has been one of the fastest growing countries in the world economically. It is good to invest where economic growth already exists.


Klaus Happ’s company “FRAPAN-Invest” advises investors who want to invest in real estate in Panama. He offers advice on all aspects of living in Panama.

The real estate market in Panama is internationally one of the most interesting for investments. We would like to be your trusted local partner and assist you with the initial purchase. Additionally, we can take care of your real estate in Panama in a sustainable way.

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