June 2024 Panama City Market Update with Ruben and Kent

Hey there! If you are looking for up to date statistics, insight and information on the Panama real estate market, you’ve found it. This month’s topics ranged from Panama City’s dynamic real estate scene to current trends, top buildings, and preconstruction projects. From current prices to rental trends and where all the newcomers are flocking from, we’ve got you covered. Get ready for a deep dive into everything shaping Panama City’s dynamic real estate market! Check out the written version of the June 2024 Panama City Market Update with Ruben and Kent below, and we also have the video which you can watch here.

What are Buyers Looking For?

Many buyers in the market are looking for properties where they can see themselves living for several years. They prioritize prime locations along with good deals. These buyers want homes that are both affordable and conveniently located to ensure a solid investment financially and in terms of quality of life. Location is crucial in their decision-making process, as they seek a place that meets their long-term needs and lifestyle preferences, whether it’s close to schools, workplaces, or amenities.

Which buildings are receiving more frequent showings?

Ruben often shows buildings in Costa del Este, including The Regent known for luxury, as well as preconstruction projects like Nogal and Generation Tower, valued for their flexibility. In Santa Maria, people are looking at Ocean House which is already built and move-in ready. For those interested in pre-construction, Oceana and The Ivy are popular choices offering a middle ground with smaller layouts (157 m2) and three bedroom floor plans.

Prices

Costa del Este’s preconstruction market typically features prices around $3,000 per square meter. Buyers can expect upscale offerings such as spacious balconies, stunning views, and various amenities. This price range ensures access to luxurious living spaces characterized by modern design and premium finishes, appealing to those seeking both luxury and refinement in housing.

In Costa del Este, preconstruction prices have remained stable in the past year, set by developers without major changes. Meanwhile, preowned property prices have steadily risen since 2022. Ruben credits this increase to the careful oversight of Costa del Este’s committee, which approves new projects and manages inventory absorption effectively.

As for rentals in Avenida Balboa, San Francisco, prices have remained relatively stable since the beginning of this year and likely since the middle of last year. Owners have had limited room for negotiation, providing more opportunities for individuals seeking lower prices per square meter due to available inventory.

Movement in Costa del Este during the Last 12 Months

Expats tend to move towards the end of the year or in the first quarter of the year. That’s why there’s not much activity around this time of year (June) as people are more likely to move later in the year. Right now, there’s more housing options available in places like Costa del Este, including buildings like The Regent and Parkside, which are usually not as easy to find. You might see a few units in these buildings that were not available earlier in the year. At the beginning of the year, there was a waitlist of people eager to see what properties would open up.

Where are People Coming From?

In the last six months, there’s been a noticeable increase in Brazilians and Colombians moving to Panama, alongside more South Americans. Particularly, Colombian buyers are increasingly interested in investment properties with Airbnb licenses. These properties are attractive for their potential to generate income through short-term rentals. This trend suggests a changing real estate landscape in Panama, with more people from neighboring countries looking for opportunities in the property market.

More Brazilians, Colombians, and South Americans are moving to Panama, showcasing the lively real estate market. Colombian buyers are driving a trend in the region’s property sector, showing a particular interest in investment properties with Airbnb licensing. Panama is becoming a popular destination for both locals and international investors. With continuous developments, it remains an attractive place for residency and investment ventures.