Article written: October 23, 2026
Foreign buyers closed $712 million in Panama property purchases in the first half of 2026, up 17.7% from a year earlier, while total residential sales fell 13% to $695 million. The figures come from the consultancy Indesa and were presented this week at a panel organized by ACOBIR, the Panamanian Association of Real Estate Brokers and Developers.
The data shows a two-speed market. International demand is growing, concentrated in higher-priced vertical projects in Panama City. Local demand, especially for homes under $120,000, is still adjusting to the end of the housing bonus and the overhaul of the preferential interest regime.
Panama Real Estate Sales, First Half of 2026
| Indicator (Jan to Jun 2026) | Value | Change vs. H1 2025 | Implied H1 2025 |
|---|---|---|---|
| Sales to foreign buyers | $712 million | +17.7% | about $605 million |
| Total residential sales | $695 million | -13.0% | about $799 million |
| Residential sales, units up to $120,000 | n/a | -28.3% | n/a |
| Residential sales, units above $120,000 | n/a | -6.2% | n/a |
| Commercial sales | $50.5 million | -26.6% | about $68.8 million |
| Approved construction permits (all types) | $597.6 million | Residential permits +14.1% | n/a |
Implied H1 2025 values are calculated from the reported percentage changes. Sources: Indesa data presented at ACOBIR, as reported by La Estrella de Panamá, TVN and Infobae.
How Can Foreign Sales Exceed Total Residential Sales?
The foreign-buyer figure ($712 million) is larger than the total residential figure ($695 million). None of the published reports explain the gap, and Indesa’s full methodology was not released with the presentation.
The most likely explanation is a difference in scope. The foreign-buyer series may cover a broader set of transactions, such as commercial property, resale units or a wider geography, while the residential figure tracks a narrower segment. Until Indesa publishes the full breakdown, the two numbers should be read as separate indicators of direction rather than as parts of the same total.
The direction is consistent across sources. 4S Real Estate’s first-half 2026 market report estimates that more than 45% of demand in the premium vertical segment comes from foreign buyers.
Who Is Buying: Foreign Demand by Country of Origin
Colombia and the United States remain the main source markets, according to the panel. Speakers also pointed to growing interest from Chinese buyers, and ACOBIR president Katherine Reyes Espino cited emerging demand from Germany. Country-level dollar amounts for 2026 were not released.
For reference, Indesa’s nationality breakdown for the first half of 2023, the most recent detailed one found in published reports, looked like this:
| Nationality (H1 2023) | Purchases | Share of foreign sales |
|---|---|---|
| Colombia | $73 million | 19% |
| Venezuela | about $56 million | 14% |
| United States | $38 million | 10% |
| Spain | $27 million | 7% |
| China | $24 million | 6% |
Foreign sales have grown substantially since then. Indesa reported $386 million in foreign purchases in the first half of 2023, compared with $712 million in the first half of 2026, an increase of about 84% over three years. The 2023 and 2026 series may not be fully comparable in scope.
Residency demand points the same way. Panama’s Qualified Investor program issued 268 certifications between July 2025 and June 2026, up 38%, with $113.6 million in declared capital, 87.3% of it directed to real estate, according to 4S Real Estate.
Why Sales of Homes Under $120,000 Fell 28.3%
The steepest decline was in the segment that depends most on subsidized mortgage financing. Three policy changes explain most of it:
- End of the Bono Solidario de Vivienda. The $10,000 housing bonus expired on June 30, 2024, and MIVIOT confirmed it would not be renewed.
- Reform of the preferential interest regime. The law was amended three times in 2025, including Law 468 in April and Law 481 in September. The definitive regime took effect on January 1, 2026, and during the changes buyers, banks and developers waited for the final rules.
- Household purchasing power. 4S Real Estate cited unemployment of 10.4% as a factor in the slowdown. INEC’s August 2026 survey shows it has since fallen to 8.5%.
4S Real Estate data shows horizontal (single-family) home sales falling from 4,737 units in 2024 to 2,866 units in 2025, a drop of about 40%. The first quarter of 2026 recorded 1,292 units, close to half of all of 2025, which suggests the segment has started to recover under the new rules.
Developers’ association Convivienda reported that 81% of 2025 home sales were priced at $120,000 or less. That concentration is why a slowdown in this bracket pulls down the national total even while the foreign-driven upper segments hold up better.
Prices and Inventory in Panama City
4S Real Estate’s first-half 2026 report places the demand equilibrium range for vertical projects at $2,500 to $4,000 per square meter. Reference prices vary widely by neighborhood:
| Market / area | Price per m² (2026) |
|---|---|
| Primary market, Santa Ana (Casco Antiguo) | $4,626 |
| Primary market, Pedregal (lowest) | $2,045 |
| Secondary market, Juan Díaz | $2,587 |
| Secondary market, Panama City average | $1,726 |
| Horizontal (houses), most areas | $850 to $1,200 |
Vertical inventory stands at 243 projects on the market with 25,477 units, of which 6,781 remain available. Bella Vista and San Francisco hold about 38% of available inventory. One- and two-bedroom units account for 85% of vertical sales.
The Supply Pipeline: Residential Permits Up 14.1%
Approved construction permits reached $597.6 million in the first half, with residential permits up 14.1%. More supply is coming even as local sales contract.
Panelists warned that new supply needs to match local purchasing power. Mayela Sánchez, director of market research at 4S Real Estate, recommended functional, well-located, mixed-use projects that combine housing, work and services. If new launches skew toward the premium segment, foreign demand will carry more of the absorption.
Outlook for 2026
Panelists projected 4% to 5% growth for the real estate sector in 2026. Rodolfo Sabonge, director general of National Planning at the Ministry of Economy and Finance, tied investor confidence to fiscal certainty, financial and political stability, and legal security. He pointed to a reduction of 2.5 percentage points in the fiscal deficit as a share of GDP within one year.
For international buyers, the data points to strong competition in premium vertical projects in areas such as Costa del Este, Punta Pacifica and Casco Antiguo. The weaker local segments, particularly resale homes and properties around the $120,000 threshold, may offer more room to negotiate while the market adjusts.
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