The Panama real estate market, and its growing diversity, has been a hot topic of discussion for those looking to relocate to or invest in Panama. With a growing supply of residential properties in the areas of the country that are outside of the capital, many expats have decided to ditch city living for a slower, quieter pace of life. While this is certainly not a new trend, it’s one that more and more people consider thanks to remote work, improved infrastructure, and the growth of more expat-friendly communities in places where they didn’t exist before. In this blog post we’ll look at what makes city living attractive, what makes suburban living attractive, and what makes rural, country living attractive for those looking to get into either buying or renting Panama real estate.
Living in Panama City
For the sake of this comparison, let’s look at what life is like in Panama City and what the real estate market offers there. While Panama has several cities with good opportunities for property investment or relocation, the capital city is where most people choose to invest or live when looking for an urban hub. Panama City is a global capital with many advantages that even the region’s largest comparable hubs don’t have. It is one of the few places in the country with adequate public transportation. It has a number of walkable neighborhoods such as Casco Viejo and El Cangrejo where a car is not needed at all. It has incredible museums such as the Biodiversity Museum (“Biomuseo”), more school choices, a large international airport, and world-class dining and shopping that all add to the city appeal when it comes to quality of life.
Properties in Panama City are, on average, more expensive than in most of the rest of the country, barring some wealthy suburban enclaves and some luxury retirement or vacation home destinations in rural areas. This can be a bit of a barrier for those looking to invest in Panama real estate, or relocation to Panama. Outside of price, there’s also the question of space. On average, space in Panama City’s most developed urban districts is limited due to development. There are many beautiful, large condo towers with luxury apartments that fulfill large space needs, but you will pay a premium for this that you won’t if you live elsewhere in the country. Conversely, if trying to rent or buy property at a lower price point, one of the things you’ll have to sacrifice is space.
Panama Real Estate in Rural or Semi-Rural Areas
For many people looking to retire in Panama, rural and semi-rural areas are the ideal target for renting or buying real estate. Since the boom of remote work and so-called “digital nomads”, the appeal to living in these areas has grown significantly, due to the more relaxing pace and pricing it brings. On sheer volume alone, Panama City will always have more immigrants and expats than rural areas, but that doesn’t mean that city living is for everyone. Living outside of the city offers easy and direct access to the country’s vast and diverse nature. Areas like Coronado offer beachfront living and a slow pace of life with relatively good amenities just a short drive away from residential developments. Areas like Boquete and El Valle offer a rural, mountain lifestyle, with the added appeal of modern spas, good restaurants, and curated outdoor activities/excursions available for both residents and visitors.
Space in rural Panama, even at a lower price point in the real estate market is plentiful. Prices for goods, services, and properties in the aforementioned towns are now comparable to the city, however space is still much more abundant and cost-effective from a real estate perspective. This is a huge part of the appeal to living outside of the city. Suburban areas of Panama City also offer these advantages, although properties may actually be cheaper in many instances, depending on whether marketed as “luxury” or not. The downsides to living in rural or suburban Panama tend to be isolation in the smaller towns, and lack of easily accessible services in the less tourist-friendly towns. Transportation is the other caveat. If you live practically anywhere outside of Panama City or in rural Panama, you will need a car to do even the most basic errands.
Weigh Your Options Before Making a Decision
Overall, non-urban areas of Panama are worth the real estate investment if you value space, privacy, and a quiet lifestyle. If price is your number one concern, you’ll find that both the city and non-city offerings are relatively comparable, adjusted for space and location. The drawbacks of the city are noise, traffic congestion, and limited space, however the benefits to these can offset that if you set your expectations properly. Regardless of what your gut tells you, visiting Panama in person to explore both the urban and non-urban options of Panama real estate is a great idea. If you can, try to spend a week in the city, and a week in one or two of your desired rural or suburban location to see if the lifestyle seems to match your needs.
For more help on how to decide where to live or invest in Panama, please contact us here.
