Rental ROI: the best areas of Panama City to invest

When it comes to investing in rental real estate in Panama City, the choice of area is the most determining factor in the final ROI. Not all areas behave the same: some offer higher returns through vacation rentals, others through long-term corporate leases.

Punta Pacífica leads the gross profitability ranking, with premium units reaching between 8% and 10% per year. Corporate and diplomatic demand is constant and rental prices remain high due to the scarcity of new projects in the area.

Costa del Este is the preferred area for executives and expat families. The average rental for a 3-bedroom apartment is around $2,800–$3,500 per month, with very low vacancy periods. Estimated net profitability is 7–9% per year.

San Francisco offers an interesting combination: more accessible entry prices and good mixed demand (residential + corporate). It is ideal for investors looking to diversify with lower tickets while maintaining returns of 6–8%.

For short-term vacation rentals (Airbnb/VRBO), the Casco Viejo area and oceanfront properties in Coronado present the best seasonal returns, though with greater occupancy variability. We always recommend analyzing the investment profile before choosing the rental modality.