Panama Property Q4 2026: Inventory at a Nine-Year Low and Prices on the Move

Updated 25 September 2026 · 6 min read

Panama has spent the last decade digesting a construction boom, and the hangover is ending. Developer inventory hit its lowest level in nine years in early 2026, sales of new apartments are growing at double-digit rates, and rents in Panama City are rising well ahead of inflation. Because Panama uses the US dollar, the shift comes with a twist: when the Federal Reserve raised rates this month, it moved Panamanian borrowing costs too.

Prices: a K-shaped market

Panama City’s average asking price is about $1,881 per m² (Global Property Guide, up 6.8% year on year in its latest reading). But the average hides a split: new and well-managed buildings are appreciating strongly, while older stock is flat, and in some neighbourhoods falling.

Sales and inventory: the oversupply is clearing

Money: a dollar economy in a rising-rate world

1. The Fed hiked on 16 SeptemberThe FOMC raised the target range by 25 basis points to 3.75%–4.00%, a unanimous decision, citing elevated inflation. Panama has no central bank of its own and uses the US dollar, so US rates feed directly into local funding costs.
2. Mortgages are expensive and shrinkingThe average non-preferential housing loan rate was 6.23% in May 2026. New mortgage lending fell about 20% between January and May, according to La Estrella, after the government scrapped the $10,000 first-home bonus and shortened the preferential-rate benefit.
3. Activity is shifting to developers and cashWith bank credit tighter, buyers lean on developer payment plans and their own capital, which favours pre-construction and foreign buyers who are not relying on Panamanian mortgages.

Rules: the investor visa has changed

Foreigners can generally buy titled property in Panama on the same basis as locals, and the dollar removes currency risk. The bigger news is the residency route. On 8 September 2026, Executive Decree 17 updated the Qualified Investor regime:

• New properties, first sale: $300,000 minimum.
• Second-hand properties: $500,000 minimum.
• Fixed-term deposits at Banco Nacional de Panamá or Caja de Ahorros: $500,000 minimum.

Between July 2025 and June 2026, Panama issued 268 qualified investor certificates backed by $113.6 million, up from 193 certificates and $90.1 million a year earlier.

Rents and yields: strong, but compressing

Average asking rents for apartments in Panama City reached $14.70 per m² in June 2026, up 13.5% year on year. Gross yields averaged 7.57% in April, down from 7.83% a year earlier as prices rose faster than rents. The national average is 6.94%. Agencies such as Panama Equity quote lower figures of 5% to 6% for typical city condos once costs are considered, so model your own numbers.

Demand has a tailwind from tourism: international visitor arrivals rose 16.4% in the first four months of 2026, supporting short-term rental demand, though regulation of short-term rentals still needs watching.

What to watch in Q4 2026

• Fed and US rates: further moves feed straight into Panamanian mortgages and developer financing.
• Visa rules: how Decree 17 is applied to new versus second-hand purchases.
• Inventory: whether developers keep launching or ration supply as stock falls.
• Housing policy: the effect of the removed first-home subsidies on entry-level sales.
• Rents: whether double-digit growth cools as prices catch up.

What it means for you

Panama real estate market: your questions

Sources: Global Property Guide, Panama residential market · Panama Equity, Q1 2026 report · Panama Equity, Panama City update, July 2026 · La Estrella, housing reform · Federal Reserve, FOMC statement, 16 Sep 2026 · Infobae, qualified investor regime · La Estrella, Decree 17 · Rio Times, the October 15 deadline claim · TheLatinvestor, foreign buyers. General information only, not financial, tax or legal advice.