Real estate market prices in Panama
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Panama Real Estate Market Prices

Throughout this year, the trend of Panama real estate market prices has been downward for different reasons. Let’s analyze them!

First: Inventory of luxury properties and medium-high level.

In the post-Covid-19 pandemic market, there is a high inventory of luxury houses, apartments, and new properties aimed at medium-high and high levels.

Additionally, we find the Panama real estate market prices resales of second properties. For this reason, we could find property listings in Panama City, Colon, beaches, mountains, and inside the country with more than a year without selling.

Also, in the critical period of the pandemic, many small and medium-sized entrepreneurs lost their working capital and resorted to selling fixed assets to inject capital into their companies.

Second: The requirements to obtain mortgages.

After the loss of jobs of many professionals, banks adapted their policies to the new economic perspectives present. For this reason, they increased buyers’ risk sharing by the amount of the down payment.

Banks have also focused on markets for middle professionals with stable activities, such as health workers, teachers, professors, government employees, and public forces.

Third: Banks increase interest rates.

Interest rate increases in the past year have affected the demand for upper-mid-range properties.

According to the consumer protection policies in Panama, there is a debt limit for buyers. By increasing bank interest rates, and increasing the initial payment to be subject to a mortgage, the ability to purchase properties oriented to the medium and medium-lower levels.

This situation has not impacted the medium and medium-low Panama real estate market prices. The reason is that in Panamanian government applies a preferential interest regime to this market. This interest regime is a subsidy, granting an incentive to banks for the first home.

To obtain the benefit real estate developer must have received the occupancy permit before December 31, 2022. This incentive applies for Panamanian and residents to properties up to US$180,000.

Loans granted until August 1, 2024, apply for this incentive.

See the table below:

Comparative Table of the Preferential Interest Regime

Discount interest market ratePeriod (years)RenewableProperty ValueTypeOccupation PermitUntil
4%10No$45,000 until $120,000dwelling31/12/22August 2024
4%10No$45,000 until $80,000dwelling01/01/23August 2024
3%10No$80,000 until $120,000dwelling01/01/23August 2024
2%5No$120,000 until $150,000plurifamiliar01/01/18August 2024
1.5%5No$150,000 until $180,000plurifamiliar01/01/18August 2024


Fourth: New Constructions.

Since the end of 2018, the market for buying and selling properties in Panama’s real estate market price show signs of slowing down. This situation, coupled with the COVID-19 pandemic, contributed to the increasing our country’s inventory of real estate.

At the end of 2021, the government presented measures for economic reactivation post-COVID-19. Also, the government included an extension for two years of bank incentives to subsidize interest rates.

Additionally, the developers of real estate projects reactivated the projects under construction stopped by COVID-19. Also, the projects suspended during the pandemic restarted construction and promotion. For this reason, the supply in the market increases.


In conclusion, we are in a good moment where investors can always take advantage of and make investments in fixed assets. This is as long as we have the capital to make the investments with the appropriate advice and knowledge of the market.

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