Panama’s property market is telling two very different stories this year. Figures presented last week at a forum run by ACOBIR, the Panamanian association of real estate brokers and developers, show residential sales across the country fell 13% in the first half of 2026. In the same six months, sales to foreign buyers rose 17.7% to $712 million. If you are watching Panama from Canada, the United States, Europe or Australia, that second number is the one worth paying attention to.
What the new numbers actually say
The figures came out of a conversation organised by ACOBIR on Panama’s competitiveness against other property markets in the region, with data presented by the consultancy Indesa. Here is the first half of 2026 against the first half of 2025:
| Indicator, first half of 2026 | Figure | Change |
|---|---|---|
| Residential sales | $695 million | down 13% |
| Homes up to $120,000 | not given | down 28.3% |
| Higher priced homes | not given | down 6.2% |
| Commercial sales | $50.5 million | down 26.6% |
| Sales to foreign buyers | $712 million | up 17.7% |
| Construction permits approved | $597.6 million | residential permits up 14.1% |
Despite the dip, the projections shared at the forum put the sector on course to grow 4% to 5% in 2026.
Why local sales are down and foreign sales are up
The fall is mostly a local affordability story. Infobae’s report describes a mismatch between what is being built and what Panamanian households can afford to pay, and it shows up most clearly in the cheapest homes. Panamanian families buying their first home depend heavily on mortgages and on the preferential interest scheme, so higher rates hit them first.
Foreign buyers are in a different position. Many buy with cash or with equity from a home back in Canada or the United States, and they are buying for reasons that have little to do with Panamanian mortgage rates: a US dollar economy, a territorial tax system, residency routes tied to property, and Panama City’s connections to the rest of the Americas. Speakers at the forum pointed to exactly those advantages. Rodolfo Sabonge of the Ministry of Economy and Finance said investor confidence rests on fiscal certainty, financial and political stability and legal security, and cited a cut in the fiscal deficit of 2.5 percentage points of GDP in a single year.
It is not only buyers. Panama’s immigration service resolved 34,951 residency applications between January and September 2026, approving 97.2% of them, and 2,923 of the approvals went to US citizens, according to official figures reported by Infobae.
What it means if you are thinking of buying
There is room to negotiate in parts of the market. When local sales slow, some sellers and developers become more flexible on price, payment plans and what is included. That is most true outside the busiest segments.
The well-located condo is still where the activity is. One Panama City brokerage’s October update reports developer inventory at a nine-year low and the $180,000 to $300,000 range as the busiest part of the market, with gross rental yields of about 5% to 6% on well-located condos. That is a single firm’s read of the market rather than official data, but it matches what we see on the ground in areas like San Francisco, El Cangrejo, Obarrio and Costa del Este.
Do your homework on the building, not just the price. Title review, the condominium’s finances and the developer’s track record matter more than a headline discount. This is where most buyers get caught out, and it is the part we make sure gets done before you commit, not after.
The residency angle: new Qualified Investor rules
Property and residency are closely linked in Panama, and the rules changed this autumn. Executive Decree 17 of 2026, published in the Official Gazette on September 16, replaced the 2020 rules for the Qualified Investor route, which grants permanent residency directly. Under the new decree, as summarised by Panamanian lawyers:
- New property bought from the developer: at least $300,000
- Resale property: at least $500,000
- Securities: at least $500,000
- Fixed-term deposit: $750,000 at a private bank, or $500,000 at Banco Nacional de Panamá or Caja de Ahorros
- The investment must be held for five years
The decree also sets deadlines: 15 business days for the Ministry of Commerce and Industries to certify the investment and 30 calendar days for the immigration service to decide. Investments completed before September 16 may still be filed under the old rules if the application goes in within six months of the decree taking effect.
The new versus resale distinction is now a $200,000 question. If residency is part of your plan, confirm whether a property counts as a first sale before you sign anything. For most buyers below that level, Friendly Nations ($200,000 in property or a three-year fixed deposit, plus a personal account holding $5,000) or Pensionado are the routes to look at. Our residency check gives you a first idea in four questions.
Hear it live on Webinar Wednesdays
Every Wednesday at 8 PM Panama time we run a free live webinar on Zoom with a different guest each week, and you can bring your own questions. Next Wednesday, November 4, our guest is Mitch Bubb, who works in international real estate sales in Panama, on secure, profitable real estate for international buyers. Save your seat.
If you would rather talk to me directly, message me on WhatsApp at +1 416-400-8634 or request a free consultation.
Related reading: Mortgage Options for Foreigners Moving to Panama City from Canada · Buying Real Estate in Ontario vs Panama City · How the Everything Panama Team Helps You Move to Panama
Sources
- TVN Noticias, “Mercado inmobiliario en Panamá: ventas residenciales caen 13 % en el primer semestre de 2026”, October 20, 2026: https://www.tvn-2.com/nacionales/mercado-inmobiliaria-panama-ventas-residenciales-compradores-bienes-raices_1_2267119.html
- Infobae, “Panamá busca consolidar su atractivo inmobiliario en América Latina pese a la caída de las ventas”, October 21, 2026: https://www.infobae.com/panama/2026/10/21/panama-busca-consolidar-su-atractivo-inmobiliario-en-america-latina-pese-a-la-caida-de-las-ventas/
- Infobae, “Colombianos y venezolanos lideran permisos de residencia en Panamá durante 2026”, October 25, 2026: https://www.infobae.com/panama/2026/10/25/colombianos-y-venezolanos-lideran-permisos-de-residencia-en-panama-durante-2026/
- Legal 500 (Quijano & Associates), “Panama Updates Its Permanent Residency Regime For Qualified Investors”: https://www.legal500.com/intelligence/panama/finance-and-banking/panama-updates-its-permanent-residency-regime-for-qualified-investors
- Nubia Legal, “Panama Overhauls Qualified Investor Residency: What Executive Decree 17 of 2026 Changes”, October 7, 2026: https://nubia.legal/en/news/panama-qualified-investor-residency-executive-decree-17-2026
- Panama Properties, “Panama City Real Estate Market Update: October 2026”: https://www.panama-properties.com/post/panama-city-real-estate-market-update-october-2026
