🌴 Panama Real Estate in 2025: A Prime Buyer’s Market

Ken Norton
Jun 11
3 min read

If you’ve been eyeing the tropical skyline of Panama City or the serene coastlines of the Pacific and Caribbean, 2025 may be the year to finally make your move. The Panama real estate market has clearly tilted in favor of buyers, offering a rare opportunity for both investors and homebuyers to enter the market on favorable terms.

Why It’s a Buyer’s Market in Panama

1. Oversupply of Inventory

The most telling sign of a buyer's market? Inventory exceeds demand, and Panama is a textbook case.

Over 4,000+ unsold units are sitting in the market, especially in mid to high-end condo developments in Panama City.
Some estimates put the number of vacant luxury units at 8,000–15,000, particularly in areas like Punta Pacifica and Costa del Este.

As supply surges and demand remains cautious, prices begin to soften, and sellers become more open to negotiation.

2. Price Drops and Incentives

Developers and private sellers alike are offering:

Discounts of 10%–25% on list prices
Financing deals, including developer-backed loans
Added incentives, such as upgraded appliances, furnishings, or HOA fee waivers

Whether you're buying to live or rent, these conditions give you more room to negotiate and secure value.

3. Longer Time on Market

Listings are staying active for 12 months or more, especially for higher-end units or larger floorplans. This slowdown reflects cautious buyer sentiment and creates leverage for motivated buyers.

4. Rising Interest Rates Tighten Local Credit

While Panama uses the U.S. dollar and has no central bank, local banks have tightened credit:

Mortgage rates have increased, reducing the number of qualified local buyers.
Cash buyers or foreign investors with offshore financing are in a stronger position to negotiate.

5. Strong Economic Fundamentals

Despite the real estate cooling, Panama’s economy is expected to grow by 4.6%–5.3% in 2025, driven by logistics, services, and infrastructure. The country remains a stable, dollarized economy with favorable investment laws and no restrictions on foreign property ownership.

Best Opportunities in the Market

Type	Opportunity
Condos (50–175 m²)	Most negotiable, especially in oversupplied towers
Pre-construction units	Strong developer incentives, but careful due diligence needed
Long-term rentals	Solid yields of 6%–8% still possible in prime areas
Resale apartments	Private sellers more flexible, especially for quick closings

Areas to Watch

Panama City – Especially downtown, San Francisco, El Cangrejo, and Obarrio: saturated but great deals available.
Costa del Este & Punta Pacifica – Luxury towers with high vacancy = negotiation power.
Casco Viejo – Boutique and colonial units hold value and rental demand.
Panama Pacifico – Emerging as a live-work-play hub with tax advantages.
Beach areas (Coronado, Pedasí, Bocas del Toro) – High variation in prices and value depending on proximity to amenities.

Tips for Smart Buying in 2025

✅ Negotiate everything: Price, closing costs, maintenance fees, and furniture packages.✅ Prefer cash if possible: You'll move faster and get better terms.✅ Understand the HOA: Monthly fees and building occupancy rates matter.✅ Hire local experts: A bilingual real estate lawyer and buyer’s agent are essential.✅ Think long-term: Buy to hold, not flip. The rental market is steady, but capital appreciation may take time.

Final Thoughts

The Panama real estate market in 2025 offers a golden window for serious buyers. With oversupply, softening prices, and motivated sellers, this is not the time to sit on the sidelines if you've been considering investing or relocating.

Panama continues to offer lifestyle, tax, and climate advantages—and now, with better pricing than we've seen in years, buyers finally have the upper hand.