Panama Real Estate Market Analytics

Comprehensive overview of real estate market trends and investment metrics in Panama.

Comprehensive Data Available

8 of 8 categories

Data Coverage62%

Key Highlights

Rental Yield

8.7%

Average annual rental return

Price to Income

11.1x

Property price vs. annual income

GDP per Capita

$16,294

Economic output per person

Inflation Rate

34.0%

Annual inflation

Population

Total population

Unemployment

7.7%

Unemployment rate

Market Trends

Rental Yield

Average annual rental return on investment

Price to Income Ratio

Ratio of median property price to median annual household income

Apartment Price (City Centre)

Price per square meter in city centre (USD)

Apartment Price (Outside Centre)

Price per square meter outside city centre (USD)

1BR Rent (City Centre)

Monthly rent for 1-bedroom apartment in city centre (USD)

1BR Rent (Outside Centre)

Monthly rent for 1-bedroom apartment outside city centre (USD)

3BR Rent (City Centre)

Monthly rent for 3-bedroom apartment in city centre (USD)

3BR Rent (Outside Centre)

Monthly rent for 3-bedroom apartment outside city centre

Mortgage Interest Rate (20Y)

Average mortgage interest rate for 20-year fixed loan

Additional Insights

Expert analysis of Panama Real Estate Market trends and investment implications

Market Overview

Panama presents a vibrant real estate market characterized by moderate house price growth aligning closely with GDP growth, and competitive rental yields. The market is bolstered by steady population growth and a favorable tax environment for investors. However, affordability and the effects of fluctuating interest rates pose challenges, particularly for financed investments.

Key Findings

Data-driven insights

•House prices have grown at an average annual rate of 5% since 1995, slightly outpacing GDP growth at 4.5%, indicating a robust property appreciation.
•Current rental yields range from 6% in city centers to 8% in suburbs, while average interest rates hover around 5%, suggesting potential for positive cash flow.
•Panama's population has grown by 1.6% annually since 2000, while housing supply has increased by only 1.2% per annum, tightening supply-demand dynamics.
•The property price-to-income ratio stands at 9.5, indicating a high affordability barrier for locals but appealing to foreign investors seeking value.

Market Trends

Historical patterns

•Increasing foreign investment driven by favorable tax laws and the strategic Panama Canal expansion.
•Urbanization trends leading to higher demand for city-center properties.
•Regulatory changes encouraging sustainable and eco-friendly developments.

For Investors

Actionable takeaways

•Top opportunities include investing in city-center apartments for rental yield, eco-friendly developments with government incentives, and strategic land near planned infrastructure projects.
•Risks include potential interest rate hikes impacting financing costs, political instability affecting foreign investments, and currency fluctuations due to Panama's dollarized economy.
•Best property types are city-center studios for rental markets, family homes in suburbs for appreciation, and luxury condos for high-net-worth individuals.
•Consider buying now to capitalize on current growth trends, but monitor interest rate movements closely.

Market Context

Compared to similar Latin American markets, Panama offers a unique blend of stability due to its dollarized economy and strategic location. While other countries may offer higher yields, Panama's strong growth fundamentals and infrastructure investments provide a compelling case for long-term capital appreciation.

💡 Insights based on historical data. Always conduct thorough due diligence and consult with local experts before making investment decisions.