Panama uses the US dollar, welcomes foreign buyers on equal terms with locals and has an apartment market in Panama City that has worked through years of oversupply. The Panama real estate market 2026 offers some of the highest gross yields in the Americas, with real caveats. Below is how the indicators read; stock is listed on the Panama property page.
Prices and rents
Survey prices in 2023 put city-centre apartments at about $2,519 per m², up about 8% from $2,333 in 2022. We do not use the outside-centre price series because the latest observation dates from 2020. A 90 m² central flat therefore costs in the region of $227,000 on average, though Punta Pacifica or Costa del Este towers cost more and older districts less.
Rents in 2023 were about $881 a month for a one-bedroom in the centre and about $597 outside it; three-bedrooms rented for about $2,034 (centre) and $1,450 (outside). The price-to-income ratio was 11.1 in 2024 (10.2 in 2023). Salary averages are volatile in our database, so we lean on the ratios. For asking prices, check cheap property in Panama and under $100k.
Yield: attractive, with caveats
Gross rental yield in the city centre was 8.7% in 2024, down from 9.1%, and the price-to-rent ratio was 11.4. That is high by international standards. But Panama City has absorbed a wave of high-rise supply over the last decade, and listing prices are often well above transaction prices. Vacancy, condominium fees and a long gap between inquiry and signing eat into returns.
A realistic net yield is often 5-6% for a well-managed, well-located unit with credible tenants such as expatriates, corporate transferees and Canal-related professionals. Higher figures usually involve distressed pricing or lenient assumptions.
| Indicator | Value | Year |
|---|---|---|
| Gross rental yield, city centre | 8.7% | 2024 |
| Price-to-rent ratio | 11.4 | 2024 |
| Price-to-income ratio | 11.1 | 2024 |
| Price per m², city centre | $2,519 | 2023 |
| 20-year mortgage rate | 6.3% | 2023 |
Read more (3 more sections)Show less
Economy and credit
GDP grew 4.4% in 2025 (2.7% in 2024) to about $90.5 billion, with GDP per capita near $19,790. Prices fell slightly (-0.2% inflation in 2025), government debt rose to about 58% of GDP (2024), and unemployment was about 8.4%. The Canal, ports, logistics, banking and tourism sustain the economy, and Panama's dollarised system removes exchange-rate risk for dollar-based investors.
The 20-year mortgage rate was 6.3% in 2023 (5.8% in 2022). Population is about 4.57 million, growing 1.2% a year. The top income tax rate is 25% and the ITBMS (VAT) is 7% in our data. Banks are mainly happy to lend to foreigners with documented income and a sizeable deposit; see financing in Panama.
Foreign buyers, residency and risks
Foreigners have the same property rights as Panamanians, with some limits on land near borders and certain coastal strips. Titles are registered in the Public Registry, and a lawyer should run a title search. Investment in real estate has supported residency routes such as the Friendly Nations and qualified-investor programmes; check the current thresholds, as they have been revised. Our Panama buying guide covers process and costs.
- Oversupply. Some towers and segments are slow to let or resell.
- Off-plan risk. Choose developers with a record, and check that deposits are held in trust.
- Governance and perception. Corruption scores have been middling; verify documentation independently.
- Fiscal and credit rating pressure. Rising debt and rating changes affect borrowing costs.
- Climate. Humidity, flooding and maintenance demand attention.
A dollar economy gives Panama stability; the oversupply gives buyers leverage in negotiation.
Outlook
Moderate growth, a dollarised economy and a pipeline of infrastructure support the case, while supply overhang and rising public debt keep price gains modest. Investors can also explore land, houses and commercial property. Compare risk and return with other Latin American markets in the analysis hub.
Last updated 8 October 2026