Panamanian Real Estate Market: Key Opportunities for International Investors in 2025
In the dynamic global economic landscape, Panama consistently emerges as a focal point for international investors and entrepreneurs. Its real estate sector, in particular, has demonstrated remarkable resilience and appeal, even in the face of economic uncertainties. Far from stagnating, the real estate investment market in Panama has been strengthened by the confidence of foreign buyers, who not only keep sales afloat but also drive new projects and consolidate the country as a primary destination for tax residency and strategic investment. This article delves into the reasons behind this boom and what it means for those looking to establish themselves or invest in the isthmus in 2025.
The Resilience of the Panamanian Real Estate Market: A Focus for Investors in 2025
The year 2025 has been a turning point for the Panamanian real estate sector. Despite global challenges and local concerns about the continuity of regimes like preferential interest rates, the property inventory that had accumulated in previous years has been almost entirely depleted. This phenomenon is a clear indicator of the market’s robustness and is largely attributed to the constant influx of international buyers.
The geopolitical situation in various Latin American regions, combined with the rising cost of living in developed markets like the United States and Canada, has catalyzed the migration of capital and talent to Panama. As Esteban Ripoli, director of Expo Inmobiliaria Acobir, points out:
“The geopolitical situation in Latin America, coupled with the increase in the cost of living in the United States and Canada, is driving buyers to the country.”
These external factors, combined with the country’s intrinsic advantages, have positioned real estate investment in Panama as an attractive and secure option for those seeking stability and growth.
The Qualified Investor Program: Your Route to Residency in Panama
One of the main drivers behind foreign interest in buying property in Panama is the Qualified Investor Program. This program, designed to attract foreign capital, offers a direct path to permanent residency for foreigners who make direct investments in the country. Investment options include:
- Acquisition of real estate.
- Investments in the Panamanian stock market.
- Fixed-term deposits in local banking institutions.
The impact of this program is undeniable. Information from the Ministry of Commerce and Industries (MICI) reveals that an impressive 83% of all certificates granted correspond to investments in the real estate sector. This highlights the popularity of buying property in Panama as a foreigner not only for its intrinsic value but also as a bridge to a new life in the isthmus.
Between July 2024 and July 2025, over 500 new qualified investor certificates were approved, representing an amount exceeding 100 million dollars. This figure contrasts sharply with the 17 million and 55 million dollars reported in 2021 and 2022, respectively, demonstrating exponential growth. The diversity of nationalities among applicants is notable, with increasing interest from citizens of various regions worldwide who see Panama as a strategic opportunity for their future and their capital. To better understand residency options, you can explore our guide on how to get residency in Panama.
Incentives and Future: The New Preferential Interest Law
The Panamanian real estate sector benefits not only from residency programs but also from regulatory frameworks that encourage investment and homeownership. A clear example is the new Preferential Interest Law (Law 468), which will come into effect in January 2026. This regulation establishes subsidized rates for mortgage loans on new homes, with variations depending on the property’s value and the region of the country. While the specific details of the tiers and discounts are adjusted to different price ranges, the spirit of the law is clear: to facilitate access to housing and stimulate the market.
Currently, there is also a project in the National Assembly that seeks to extend these preferential interest rates to the purchase of used properties, an initiative that Acobir’s president, Sarita Hanono de Hamui, views with optimism:
“Expectations are positive for 2026. There are issues that need to be resolved, such as the increase in the minimum wage, which would help a significant sector of the population acquire their own home. Hence the importance of the Expo Inmobiliaria Acobir fair, which will be held next January, because it will be the first developed under the new preferential interest rate regime.”
These measures demonstrate the commitment of the Panamanian government and sector guilds to maintain a favorable environment for real estate investment in Panama, benefiting both local and international buyers.
Beyond the Capital: Areas of Interest for Real Estate Investment in Panama
Although Panama City remains an investment epicenter, the interest of foreign buyers has diversified towards other gems of the country. Esteban Ripoli notes that regions such as the Azuero Peninsula, with emerging destinations like Pedasí and Playa Venao, as well as the popular beach area of Coronado, are experiencing significant growth in demand. Boquete, a mountain tourist destination, also attracts those seeking a different climate and an exuberant natural environment.
A growing trend is the acquisition of properties with a dual purpose: residency and income generation. Many investors leverage their properties for tourist or long-term rentals when not in the country, thereby generating additional profitability. This strategy is especially attractive in areas with high tourism potential, adding another layer of value to real estate investment in Panama.
Furthermore, the sector is seeing the development of planned communities, such as those projected in Panama Norte, which offer modern infrastructure and an integrated lifestyle, attracting investors looking for security and comfort.
Why Panama? Key Attractions for Buying Property as a Foreigner
The key question for any investor is: why Panama? Ernesto Orillac, managing partner of Motta Orillac Advisors, highlights several decisive factors:
- Global Connectivity: Its strategic geographical position and Tocumen International Airport make it a hub of the Americas, with excellent air connections.
- Use of the US Dollar: The dollarization of the Panamanian economy provides monetary stability and eliminates exchange rate risk for many investors.
- Security: Panama is perceived as a safe and stable country in a sometimes volatile region.
- Quality of Life and Cost: Despite its development, the cost of living in Panama remains competitive compared to other developed markets, offering a high quality of life.
The buyer profile has also expanded. It is no longer just retirees or ‘baby boomers’ who seek properties, but also a significant number of active professionals who invest in the Panamanian real estate sector, either as a long-term strategy or as an asset for their future retirement.
In fact, Panama is consistently ranked as one of the best retirement destinations worldwide. The 2025 Annual Global Retirement Index, conducted by International Living, places Panama in first position, surpassing popular destinations such as Costa Rica, Portugal, Italy, and Spain. Among its main attractions are its visa regime, low cost of living, and generous discounts for retirees. This combination of factors makes real estate investment in Panama an extremely attractive proposition.
Conclusion: Panama, a Promising Future for Real Estate Investment
The Panamanian real estate market in 2025 is not just a safe haven for capital but a dynamic platform for growth and obtaining residency. The confluence of incentive policies, an attractive residency program, sustained demand from international buyers, and the country’s inherent advantages such as connectivity, dollarization, and security, solidify it as a top-choice destination. For those looking to diversify their portfolio, obtain a second residence, or settle in a prosperous environment, buying property in Panama as a foreigner offers an unparalleled opportunity.
At Panamaway.com, we understand the complexities and opportunities of this vibrant market. If you are considering real estate investment in Panama as part of your strategy to obtain tax residency or wish to explore the best options for your future, our team of experts is ready to guide you through every step of the process. Contact us today for personalized advice and take the first step towards your new life in Panama.