Deciding whether to buy or rent property in Panama depends on personal, financial, and lifestyle circumstances. Each option has its advantages and challenges. Below is a detailed comparison and analysis of the trends in the Panamanian real estate market.

Comparison Between Buying and Renting

Stability vs Flexibility:

Buying: Provides long-term stability and security. As an owner, you are not subject to changes in rental terms or the possibility of the owner selling the property.

Renting: Offers greater flexibility and lower initial costs. It is ideal for those seeking mobility or those who cannot make a large initial investment.

Future Investment vs Absence of Long-Term Commitments:

Buying: It is a future investment. Although it involves long-term financial commitments, the effort translates into personal wealth.

Renting: Allows avoiding long-term commitments and is less costly in terms of maintenance and repairs.

Long-Term Costs and Benefits:

Buying: Owners can benefit from certain tax deductions and the possibility of generating passive income by renting out the property.

Renting: Offers lower financial risk and the ability to allocate money for other purposes.

New Trends in the Panamanian Real Estate Market

In recent years, there has been sustained growth in the demand for both rental and sale properties, driven by the prosperous economy and the presence of multinational companies.

There is a growing interest in properties with specific characteristics, such as central location, modern amenities, and flexible financing options.

Rent Prices and Growth in the Last 5 Years in Panama City

The average rent price in Panama in 2019 was approximately $1,352.48, with properties rented at higher prices, up to $4,150.00.

There has been an increase in rental discounts, indicating a favorable trend for tenants.

Sale Prices and Growth of Properties (Apartments) in the Last 5 Years in Panama City

Property prices have experienced a steady increase, especially in high-demand areas such as Panama City, Casco Viejo, and Costa del Este.

This growth is due to the country's economic growth, foreign investment, and the development of urban projects.

Deciding between buying or renting in Panama depends on multiple factors. While buying is a long-term investment that offers stability and tax benefits, renting provides flexibility and lower financial responsibilities. The trends in the real estate market in Panama indicate sustained growth in both rental and sale prices, making this country an attractive destination for both investors and residents alike.