Panama Real Estate Market Update – Q2 2025

We’re halfway through 2025, but to be honest, it feels like January was a lifetime ago. A lot has happened in six months here in Panama!. Another high season has come and gone, and the data (and the deals) are telling a very interesting story.

City Rental Demand is Driving the Market

Let’s start with the rental market, because that’s where the action is.

Neighborhoods like El Cangrejo, Marbella, Costa del Este, and Coco del Mar have seen rents climb by as much as 15% year-over-year. We’re seeing this across both newer buildings like Luxor 400 and Arcadia, as well as legacy towers like JW Marriott Ocean Club Residences, where furnished rental inventory is moving in under 20 days on average.

Yes, corporate relocation still plays a role. But the bigger factor? Panama’s rising popularity among foreign residents.

Residency Applications Are Booming

Here’s the number that really jumped out:
Between January and June, Panama processed 18,415 new residency applications—up nearly 40% from the same time last year. The approval rate is 94%, and the top five nationalities year to date are:

• Colombia
• Venezuela
• United States
• Nicaragua
• China

For context, China alone submitted 1,177 Friendly Nations Visa applications in Q1. Canada came in 6th overall, according to the National Immigration Service.

Panama is back on the map in a big way.

What About Property Prices? Are We Finally Seeing Movement?

This is the question we’ve been asking for years: Will rising rents lead to real price appreciation?

In our opinion—yes. And here’s why:

• Vacancy rates are dropping (from 35 days in December to 20 as of July 2025)
• Rental returns are rising (our managed portfolio is seeing +12% higher rents compared to last year)
• The gap is widening between resale and new construction, with new construction pushing the limits
• Construction costs are up, and developers are finally passing those increases along to buyers

The result? New price records are being set:

• Deici by Marjalizo is approaching $6,000/m²
• Ocean Reef projects are now asking $8,000/m² and up

It’s been a long time coming, but we’re calling it: Residential appreciation in Panama City is starting to show up.

Where Are the Deals Right Now?

If you’re a buyer, two time windows to watch in pre-construction are:

1. Just before ground breaks
2. Just before delivery, when final deposits are due

The following projects are delivering in the next 90 days:

• Alexa
• The Hub
• Be Living
• Tribu
• Dovle
• MORE
• Armonía

Look for resellers unable to close and developers looking to close out their books on the project. Contact us if you are interested in pursuing, as we have a few early buyers who are looking to get out in several of the buildings mentioned above as well as a few not listed. 

Projects Outperforming the Market

The average project in Panama sells 8 units per month. Here are the outliers currently outperforming that trend:

Cavarosa

Passage

Amara

Costanera Aqua

Bioma

Construction has now kicked off on:

• Amara
• Bioma
• A19
• Allure
• Seaside

Developer of the Quarter: The Velopers

This firm has changed the game. Their launch of Victory Sport in Coco del Mar, with its iconic rooftop social space and bold design, put them on the map. Now, projects like Bioma and Cavarosa are nearly sold out, years ahead of delivery.

They’ve nailed the formula: smart marketing, stylish product, and smart timing. We’re watching what they do next, very closely.

The Wild Card: Amador

The Amador Causeway saw a huge wave of pre-construction activity last year—over 400 new condos planned across five projects. But that momentum has slowed.

The culprit?

Delays in environmental approvals, likely tied to the location’s proximity to the Canal.

It’s a waiting game over there for now but the good news is that the first development in Amador, Cavarosa, has started construction. Here’s to hoping projects like Passage follow suit.

What’s Happening Outside the City

Caribbean Coast: Portalmar Leads the Way

This is the biggest news for Panama’s Caribbean side in over a decade.
Portalmar has officially broken ground on Towers 1 and 2, along with the hotel and beach club. Phase 1 is 87% sold out, with Tower 3 launching soon.
Delivery is projected for early 2027, and this could be a game changer for the region.

Pacific Coast: Holding Steady

The Playa Caracol area is heating up again. Developer GLP is pushing forward with new housing communities following the successful launch of their Margaritaville Hotel, currently under construction.

That said, beach condo rentals aren’t seeing the same demand as the city. Prices remain flat, averaging $2,200/m² in San Carlos and Coronado. The exception is Buenaventura, where new releases are priced 10–15% higher than existing resale units.

Projects underway on the Pacific coast:

• Margaritaville, Playa Caracol

• Fragata, Ensenada

Final Thoughts: Winds at Panama’s Back

We’re bullish heading into the second half of 2025.

• The US dollar is weakening, making Panama more affordable to international buyers
• WestJet is launching direct flights from Calgary starting this December. Great news for our Canadian readers, eh?
• And as of last week, Panama is officially off the FATF gray list

Foreign buyer interest is up. Inventory remains limited in many sectors. Developers are responding.

We haven’t said this in a while, but it’s starting to feel like a seller’s market is on the horizon—at least in select areas.

Want to discuss your Panama strategy? Whether you’re buying, selling, or just exploring options, we’re here to help you navigate it all.

—
Kent Davis
Panama Equity Real Estate