Panama’s real estate market will fall by 2.8% in 2025, but apartments will grow by 11%

• 10 February, 26

The Panamanian real estate market closed 2025 with a contractionary performance in aggregate terms, but with a clear internal recomposition that reveals where demand is shifting.

According to figures from the National Institute of Statistics and Census (INEC) of the Comptroller General of the Republic , the total number of registered properties decreased by 2.8% in 2025. The result consolidates a year of adjustment in the sector, marked by less dynamism in certain segments and expansion in others.

The main factor explaining the overall decline was the drop in non-horizontal property transactions, which fell 6.5% during the period. Within this group—which includes individual houses and land—the most affected component was mortgages, with a contraction of 13.5%. This was compounded by a 6.4% decrease in property transfers and a 4.2% drop in new construction, indicating reduced activity in both sales and new developments under this model.

The weakening of mortgages in this segment suggests a more cautious credit and financial environment. The purchase of single-family homes, generally associated with larger loan amounts, appears to have been affected by more demanding economic conditions or by households’ decisions to postpone purchases.

In contrast, horizontal properties—mainly apartments under a horizontal property regime—grew by 11.1% in 2025. This advance was driven by a 15.4% increase in mortgages, an 11.0% increase in transfers, and a 6.1% increase in properties created.

The upturn in this segment indicates that, despite the global market slowdown, a dynamic niche with absorption capacity exists. The greater growth in mortgages for horizontal properties reveals that credit is being channeled toward vertical projects, possibly due to more affordable prices, strategic locations, and lower maintenance costs compared to traditional housing.

From an economic perspective, the year’s results show a market in transition rather than in crisis. The 2.8% contraction does not reflect a general collapse, but rather an adjustment with a redistribution of market share among housing types.

The differentiated performance also sends signals to developers, banks, and authorities: demand seems to be shifting towards vertical developments, which could influence urban planning, the future supply of projects, and the credit strategy of financial institutions.

The evolution of interest rates, consumer confidence, and job creation capacity will be key variables in determining whether the market manages to recover aggregate growth in 2026 or deepens this structural segmentation.

This article is written by Solaya, powered by Mercan Asia — an insights platform focused on global residency, citizenship-by-investment, and real estate trends. If you’re interested in more insights like this, explore further on SOLAYA ASIA.