The Real Estate Market in Panama

The demand

The real estate market in Panama

Why Panama?

The demand

A huge demand in the property market is created by:

  • Investors from the USA and Canada, who are more strongly represented than Europeans.
  • Wealthy people from South America who move to Panama for security reasons.
  • Retirees from North America because of the climate and lower cost of living.
  • Employees of international companies.
  • The broad middle classes and Panama`s elite.
  • Europeans, Asians and Arabs have hardly discovered Panama for themselves. With this background, prices are still attractive.
  • The arrival of Chinese investors can change real estate prices in Panama forever.
The real estate market in Panama

Rental yields

  • The property prices in Panama City in prime locations are approx. 2,500 USD / sqm and the rents are 15 USD / sqm.
  • In Panama City`s top locations gross rental yields are at around 7% per year.
  • These returns are paid in US dollars.

High returns are the result of a strong demand for rental property from:

  • Multinational companies and their employees.
  • International business people who wish to profit from the economic growth.
  • Spanish workers who have no prospects at home.
  • Foreign pensioners who settle in Panama.
  • South Americans attracted by job possibilities.
The real estate market in Panama

The purchase/rental price ratio

The purchase/rental price ratio (“multiplier”) compares the price of a property to its achievable yearly returns. Through this, an investor can simply calculate how long it will need before he is “paid in full” through rents. Or put another way, how many years rent one has to invest in a property. The rule is simple: the higher the multiplier, the more expensive the property. The index is very popular and it allows one to select overvalued and undervalued locations alike.

These figures concern average prices in the city centre and not just the top locations.

Investments in Panama:

Profitable, secure and beautiful

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