The Upside of Downturns: Exploring Panama’s Affordable Real Estate

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As we highlighted in our previous report, the past couple of years have been tough for Panama. Political turmoil, issues with the Panama Canal, and the closure of one of the world’s largest copper mines have taken their toll on the economy.

Yet, despite these political and economic headwinds, Panama remains one of the most livable countries, offering fantastic weather, a favorable tax system, and an enviable quality of life. 

And the good news, these very challenges have made the real estate market more accessible than ever.

Here’s why:

  • Excellent Value: While property markets in the U.S. and Mexico surged (60% and 37% respectively over five years in dollar terms), Panama’s market has remained stagnant. Adjusted for inflation, prices have effectively dropped by 25%.
  • Long-Term Potential: Despite current challenges, Panama’s fundamentals remain strong. In the long run, the country is still on an upward trajectory.
  • Affordable Luxury: Ocean-view condos in Panama City and beach homes are now within reach, averaging just $2,000 per square meter ($188 per sq. ft.) or less.

Additionally, Panama offers a streamlined path to residency for Western citizens. Through the updated Friendly Nations Visa, an investment of just $200,000 in local real estate grants you residency. This means you can not only diversify your assets internationally but also check off another critical item on your internationalization checklist.

We’ve explored a variety of real estate options in Panama City and three highly popular locations outside the capital where expats thrive—from beachfront surf towns to serene mountain retreats.

Just like with stocks, the best time to invest in a country is when it’s undervalued. We believe Panama has moved past the point of maximum pessimism, making this the great moment for buyers seeking opportunities in an overlooked market.

Explore why Panama is not just a destination but an investment in your future.

In our recent report, we argued that many countries, like stocks, go through cycles. At times, they are popular and highly sought after; at other times, they are overlooked by the investors, and even resented. We believe that Panama today is much closer to the bottom of its cycle than the top. Political turmoil in…

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