Panama City has been our base of operations and one of our top recommended real estate markets for decades. If you’re not already invested here, 2025 may be the year to change that.
Rents are climbing fast—up by as much as 15% in some neighborhoods. This is driven by corporate relocations and Panama’s growing appeal among would-be expats. In the first half of 2025 alone, more than 18,400 new residency applications were filed—a 40% jump over the same period in 2024.
For investors, this translates into strong cash flow potential. In the right spots, double-digit rental yields are still achievable. The key is knowing where to look.
Panama City is not a single, uniform market. It’s made up of administrative units called corregimientos, which are further divided into boroughs. Prices, demand, and returns can vary dramatically from one to the next.
To maximize your results, you need to thin-slice your search, focusing on the sub-markets with the best value and upside.
Here’s where I see the strongest opportunities in 2025…
Costa Del Este
A 740-acre master-planned neighborhood, Costa del Este is unlike anything else in Panama City. Modern homes and sleek apartment buildings line palm-shaded streets, with parks, schools, restaurants, malls, hospitals, and shopping centers within walking distance.
Safe, clean, and turn-key, Costa del Este attracts the employees of multinational corporations (plus their families) who are relocated to Panama and work nearby.
It’s among Panama City’s most sought-after business and residential addresses, with strong investment potential. Prices are among the highest in the city at around $3,500 per square meter, but demand is strong.
Bella Vista And El Cangrejo
In the heart of the city yet distinctly residential, Bella Vista and its enclave, El Cangrejo, are exceptionally popular with expats. They’re walkable and well-connected with various Metro stops.
Via Argentina—a lively avenue that runs through Bella Vista—is lined by shops, restaurants, bars, breweries, cafés, and more. Everything you need for day-to-day living is within walking distance, including a big U.S.-style grocery store, Pricesmart (Central America’s Costco).
With their friendly, community feel and proximity to the city center, these neighborhoods are seeing prices from $2,300 per square meter, plus rapidly rising rents.
Avenida Balboa
This iconic 2-mile waterfront boulevard, running from Casco Viejo to Punta Paitilla, feels like Miami with its glittering skyline and ocean views. At its base lies the Cinta Costera—a lush promenade perfect for walking, cycling, or simply enjoying the breeze.Marbella, one of Avenida Balboa’s neighborhoods, offers luxury living at $3,000 to $4,000 per square meter (or even higher). It attracts wealthy Panamanians and expats, including businesspeople, politicians, professionals from the finance and logistics sectors, and real estate investors. It’s where Kathleen Peddicord and Lief Simon stay when in Panama City.
San Francisco
Follow Avenida Balboa northeast to reach San Francisco, a thriving commercial and residential hub that’s been developing and modernizing since the 70s. Many of Panama City’s most important places, buildings, and amenities are located here, including:
- Punta Pacífica and Punta Paitilla—two of the exclusive and expensive enclaves
- Landmarks, like the JW Marriott Panama (previously Trump International), Atlapa Convention Center, Multiplaza Mall, Hotel Las Americas, and more
- Parque Omar, the Central Park of Panama City
- Calle 50, Panama City’s financial artery
San Francisco is a bustling neighborhood that attracts middle-class and upper-middle-class folks with its assortment of shops, cafés, restaurants, and nightlife venues. The price per square meter ranges from $1,500 to $3,000.
Calle Uruguay
A short but vibrant stretch in the city’s business district, Calle Uruguay has long been known for dining and nightlife. While its entertainment scene has spread to nearby neighborhoods, its real estate remains in high demand.
Close to Avenida Balboa, the Cinta Costera, and public transport, it offers residential property starting at around $3,000 per square meter. A $44 million urban renewal project to widen sidewalks, add greenery, and bury cables is underway and promises to enhance its value.
Panama Pacífico
Just 15 minutes west of the city across the Bridge of the Americas and Panama Canal, Panama Pacífico is a growing master-planned community of homes, businesses, schools, shops, and cafés. It offers tax, labor, and legal incentives for companies and even has its own international airport on the site of the former Howard Air Force Base.
The area is poised for significant appreciation, with a new bridge over the canal in the works and the closest swimmable beaches to Panama City nearby. For both lifestyle buyers and investors, it’s a market to watch.
To smooth travels and successful property buys,
Sophia Titley
Editor, Overseas Property Alert