The property market in Panama differs significantly from many European markets in several respects.

Anyone wishing to purchase a property in Panama should be aware of a few particularities in order to have realistic expectations and make informed decisions.

Different methods of calculating square metres

One thing that surprises many buyers is the calculation of living space.

In Panama, square metre measurements are often defined differently from those in many European countries.

In many projects, the stated floor area includes not only the actual living space, but also:

balconies and terraces
corridors and communal areas (pro rata)
in some cases even the building’s technical areas

This means that two flats with the same stated floor area may, in practice, appear to be different sizes.

It therefore makes sense for buyers to look not only at the square metreage, but also at:

actual room sizes
floor plan
the ratio of internal to external surface area

A buyer’s market

The Panamanian property market is currently a classic buyer’s market in many segments.

This means:

there is a wide range on offer
buyers have a choice
prices are often negotiable

In Panama City in particular, there is a wide range of flats available, built in different years and across various price brackets.

For buyers, this is generally a comfortable situation.

Sales periods can be long

One of the market’s distinctive features, however, is the sometimes long time taken to sell a property.

Particularly in the high-end segment, it can take some time to find a buyer.

For properties in the seven-figure range, sales periods of two to three years are not uncommon.

For buyers, this means:

there is often room for negotiation
patience often pays off
it’s worth comparing several properties

Significant differences in build quality

Another important point is the wide variation in build quality.

In Panama, there are:

buildings of the highest quality, meeting international standards
solid mid-range projects
but also buildings of a significantly lower standard

This applies, among others, to:

construction work
materials
soundproofing
technical equipment

Careful selection is therefore crucial.

Location remains the most important factor

As in most international property markets, location plays a central role in Panama too.

In Panama City, residential areas can vary greatly – both in terms of infrastructure and quality of life.

Among the most popular residential areas for international buyers are:

Punta Pacífica
Costa del Este
Bella Vista

Each of these areas has its own character and appeals to different lifestyles.

Our approach

Gerdom & Partner does not sell property and receives no commissions from developers or estate agents.

Our role is to support clients in

understanding the market
developing realistic expectations
and making informed decisions.

After all, a property should always fit your long-term life plans – not just a short visit.

The 8 most common mistakes when buying property in Panama

The property market in Panama offers many attractive opportunities. At the same time, it differs significantly from European markets in a number of respects.

People who aren’t aware of these differences often make decisions too quickly.

The following mistakes are the ones we encounter most frequently in practice.

1. Buying during a short holiday

Many prospective buyers visit Panama for just a few days and decide to buy a property in that time.

The problem:

Panama has a wide variety of living environments.

A neighbourhood that seems attractive during a short stay can feel quite different in everyday life.

2. Relying on a single source of information

Many buyers deal exclusively with estate agents or property developers.

That’s understandable, as they are often the first point of contact.

At the same time, however, they naturally have a commercial interest.

A second, independent perspective is therefore often helpful.

3. Overestimating the floor area

As mentioned before, square metre measurements in Panama may be calculated differently from those in Europe.

The stated area often also includes:

balconies
communal shares
technical areas

The actual living space may therefore appear smaller than expected.

4. Underestimating build quality

Panama has many modern high-rise buildings, but the build quality is not always on a par with European standards.

Key points include, for example:

soundproofing
the quality of technical installations
construction work in detail

A careful check is therefore advisable.

5. Accepting a price too quickly

The market in Panama is, in many segments, a buyer’s market.

This means:

Prices are often negotiable.

Patience can therefore pay off.

6. Underestimating how long a sale takes

Properties can remain on the market for a long time, particularly in the high-end segment.

For properties in the seven-figure range, sales periods of two to three years are not uncommon.

For buyers, this means:

There is often room for negotiation.

7. Focusing only on the property

Many buyers focus solely on the building or the flat.

However, just as important are:

the surroundings
infrastructure
the long-term development of the location

8. Lack of an overall strategy

Buying a property should always be considered as part of your overall life plan.

Questions that may be relevant here:

How often is the property used?
Is it a main residence or a second home?
Is the location a good long-term fit for your lifestyle?

Our approach

Gerdom & Partner does not sell property and receives no commissions.

Our role is to help clients understand the market and make informed decisions.

How the property market in Panama really works

The property market in Panama has experienced dynamic growth over the last two decades.

Numerous new residential high-rises and urban districts have sprung up, particularly in the capital, Panama City.

Today, the market presents a much more varied picture.

A market with a wide range of options

There is a wide range of flats and apartments available, particularly in the urban segment.

This applies to:

brand new buildings
young buildings
older high-rise buildings

For buyers, this means a comfortable situation with plenty of opportunities to compare.

Different market segments

The property market can be broadly divided into several segments.

Premium urban segment

For example, in

Punta Pacífica
Costa del Este

There are many modern high-rise buildings here that meet international standards.

Central residential areas

For example

Bella Vista

These neighbourhoods offer a mix of older buildings and new developments.

Beach and mountain regions

There are other popular places to live outside the capital.

For example:

Coronado
Boquete

These regions are often used as second homes.

Price negotiations are common

Unlike in some European markets, price negotiations are common in Panama.

The price initially quoted is often not the final purchase price.

Patience can be an advantage

As many properties remain on the market for a long time, buyers have the opportunity to compare different properties and take their time deciding.

Particularly in the high-end segment, patience can lead to better results.

Conclusion

The property market in Panama offers many opportunities, but requires a good understanding of local particularities.

Anyone who knows the market and prepares their decisions carefully will find attractive opportunities here.

Gerdom & Partner

As an independent relocation advisory, we support clients in

understanding the market
developing realistic expectations
and making informed decisions.