Panama Real Estate Investment: Expert Insights on Legal Airbnb, Boquete, and Panama City

Panama has become a magnet for global investors and expats seeking stability, growth, and lifestyle. The country uses the US dollar, eliminating currency risk. Political stability and a business-friendly government have fueled consistent GDP growth - 4.5% last year according to the Ministry of Economy and Finance. 'We are seeing a huge wave of people coming to Panama looking not just for investment properties but for a plan B,' says Liz Larroquette. The cost of living is significantly lower than in North America, and world-class healthcare at a fraction of the price is a major draw. Austin Hess adds, 'I can write the doctor at 9:00 at night if I have a major concern and get an answer. It is incredible to feel that connected and taken care of.' With 95 direct flight destinations from Tocumen International Airport, Panama is a global hub for travel.

Short-term rental regulations are tightening across Panama. According to Austin Hess, '85 to 95% of those listings on Airbnb.com are going to be removed once the legislation passes the regulatory laws.' This means properties with the official short-term rental license - like the Uptown project in Bay Vista and Pino Alto in Boquete - will become rare and highly valuable. Investing in a legal Airbnb building gives you resort-style amenities, on-site property management, and the ability to rent out your unit when you are not using it. 'Having a company that regulates and sets a standard on price, cleanliness, and overall management is so important,' Austin emphasizes. The private foundation he manages has already invested in a Burn project with this license.

Liz and Austin highlight two main areas: Panama City's Bay Vista / Uptown neighborhood and Boquete in the highlands. The Uptown project is located in the heart of the entertainment district along Avenida Balboa, where the government has invested $44 million to underground power lines and widen sidewalks. This area is popular with medical tourists (a children's hospital is being built nearby), digital nomads, and short-term renters. 'Uptown is going to revolutionize the neighborhood,' says Austin. In Boquete, the Pino Alto project targets mountain lovers and long-term renters. 'Boquete is the coolest part of Panama - up in the mountains with limited inventory,' Liz explains. The lack of supply combined with high demand from retirees and lifestyle seekers makes Boquete a strong market for both short-term and long-term rentals.

Major infrastructure projects are underway that will significantly impact real estate appreciation. A new bridge over the Panama Canal will open up the Playa Bonita area. A new metro line (tunnel under the canal) is being built. The new cruise ship terminal has capacity for 10,000 people. Most importantly for Costa del Este investors, a new entry-exit point is being constructed. 'That exit point coming out of Costa del Este back to the city is an absolute game-changer,' says Austin. 'Right now at certain times it is very difficult to get out of Costa del Este. Once it comes into effect, property appreciation will really increase.' These projects make areas like Costa del Este and Playa Bonita more accessible and attractive.

Empresas Bern is Panama's largest developer with over 45 years in business. They are also the country's largest hotel group, owning brands like Westin, Crowne Plaza, Holiday Inn, and Intercontinental. This experience is invaluable for investment properties, especially Airbnb units. 'You can go to a building that is 15, 20 years old and it is still well-maintained - that is quality product that ages well,' says Austin. For investors looking for a hands-off approach, Bern's on-site property management ensures consistent pricing and service. 'At DoPanama, the number one thing we sell is protection - giving people confidence that they are being looked after,' Austin adds.

Panama's Fast-Track Residency program allows investors to obtain residency within one to two months by making a $300,000 real estate investment. Liz notes that many pre-construction projects offer 4% interest on the deposit during construction. 'It is like a time deposit, but at the end you get a higher-valued apartment,' she says. Nalini Navarro Guardia, DoPanama's legal director, is available to guide clients through the immigration and bank account opening process. This program is a major incentive for investors who also want a Plan B or a retirement home.