Panama real estate market price trends for buy-sale and rent news & updates. Before investing, you need to be informed. Search websites, review trends, and try to find all the necessary information to be close to the reality of the market. Also, consider visiting the locations of your interest and identifying published advertising.
The Panama Real Estate Market Price Trend
has been downward for different reasons. Let’s analyze them!
First: Panama Real Estate Market Prices 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 search property listings in Panama City, Colon, beaches, mountains, and inside the country for 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 Panama Real Estate Market Prices 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 City real estate market prices. The reason is that the 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 from a real estate developer must have received the occupancy permit before December 31, 2022. This incentive applies for Panamanians and residents to properties up to US$180,000.
Loans granted until August 1, 2024, apply for this incentive.
The Law 468 of 2025 object is which replaces Law 3 of 1985, with the aim of facilitating access to housing.
See The Table Below:
Establishes a preferential interest rate regime on certain mortgage loans, and dictates other provisions
Region 1 | |||||
| Preferential | Provinces | Interest Rate Subsidy | Maximum Home Price | Subsidy Validity | |
Section N° 1 | Panama & Panama Oeste | 5.0% | Until 50,000 | 8 years (96 months) | |
Section N° 2 | Panama & Panama Oeste | 4.5% | 50,001 until 80,000 | 7 years (84 months) | |
Section N° 3 | Panama & Panama Oeste | 4% | 80,001 until 120,000 | 4 years (60 months) | |
| Region 2 | |||||
| Section N° 1 | Colon and provinces | 5% | Until 50,000 | 8 years (96 months) |
Section N° 2 | Colon and provinces | 5.5% | 50,001 until 80,000 | 8 years (96 months) | |
Section N° 3 | Colon and provinces | 4% | 80,001 until 120,000 | 5 years (60 months) | |
Comparative Table Of The Panama Real Estate Market Of Preferential Interest Regime
Establishes a preferential interest rate regime on certain mortgage loans, and dictates other provisions
Fourth: The Panama Real Estate Market Prices Of The New Constructions.
Since the end of 2018, the market for buying and selling properties in the Panama real estate market prices has shown 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 panama city panama real estate market increases.
Conclusion Of The Panama Real Estate Market Prices
In conclusion, we are in a good moment where investors can always take advantage of and make investments in fixed assets. Furthermore, this is as long as we have the capital to make the investments with the appropriate advice and knowledge of the market. Also, the new developments start to increase the prices and the demand for new constructions starts to grow.
