2024 Panama Real Estate Market Forecast

1. Influence of the US Economy on Panama

Panama's real estate market is closely tied to the US economy. Despite current positive trends in the US, issues like inflation and a widening partisan divide could impact Panama, especially with many Americans considering relocation to Panama due to healthcare costs, politics, housing costs, and crime.

‍2. 2024 Panama Presidential Election

The election year in Panama could bring changes, with the possibility of an upset by the Lombana/Chen ticket. The outcome could significantly impact the political and economic landscape, influencing the real estate market.

3. Rising Property Rental Prices in Panama City

Key areas like Costa del Este and Santa Maria are seeing rent increases due to corporate relocations and reduced new condo supply. Expectations are for a 5-10% increase in rental prices in 2024 in these areas.

4. Growth in Short-term Rentals and Airbnb

The high season for tourism in Panama boosts demand for short-term rentals. Beach areas, despite a decline in rents due to factors like mining stoppages, remain popular for Airbnb listings.‍

5. Decreasing Property Inventory in Panama City

There's a significant reduction in completed inventory and new projects, leading to a likely continuation of strong sales and property price appreciation keeping pace with inflation.‍

6. Hot Neighborhoods for Real Estate

Casco Viejo, Costa del Este, and El Valle are prime areas for property appreciation in 2024, driven by factors like tourism, corporate relocations, and reduced condo supply.

7. Challenges and Opportunities in Beach Real Estate

The market faces challenges like oversupply and the impact of the mining industry slowdown, but there is potential growth post-2025 with the completion of road projects.

8. Luxury Real Estate Market Dynamics

The luxury segment faces an oversupply, but long-term attractiveness remains due to a reduction in new projects. Opportunities exist in distressed inventory, particularly in areas like Santa Maria and Punta Pacifica.

9. Impact of External Factors

The Panama real estate market is less influenced by domestic factors like the convention business or mining industry stoppage and more by international dynamics, particularly those related to the US.

10. Overall Market Outlook for 2024

Expect increasing rents and a gradual reduction in inventory in Panama City. The completion of infrastructure projects, particularly roads, will be key to the market's future, along with factors like hotel occupancy and unemployment.

This forecast provides insights into the trends and issues expected to shape Panama's real estate market in 2024, reflecting the interplay between local dynamics and international influences.