Buying Pre-Construction vs Resale Property in Panama: Pros and Cons for Foreigners

Understanding Pre-Construction in Panama

Everyone who sees property purchase as an investment strategy should consider pre-construction Panama real estate as an option. In the process, many questions may arise, especially when the strategy includes a residency application. 

It is widely known that, in the country of the canal, it’s possible to obtain permanent residency by buying real estate, so let’s delve into the different approaches. 

What Is Pre-Construction?

Some developers launch the initiatives before they start building. This is convenient for both parties as buyers access a lower price, and the developer gathers funds. In this circle, in which one side feeds the other, mutual benefits can be found and seized. Furthermore, this stage can entail payment plans as well. 

Benefits of Investing in Pre-Construction Real Estate in Panama

Thus, when the buyer obtains his/her unit in a few years or months, he/she will have spent less than current buyers. Some payment plans are designed in such a way that you can cover the remaining installments once the property is ready and available for rent. Thus, this income covers part of the monthly payments. 

Key Pre-Construction Developments in Panama

Urban Pre-Construction Developments in Panama City

Choosing urban developments is a decision that will place you in the heart of a cosmopolitan city. The city center is peculiar as it is older than the Laws of the Indies (established in 1573). Hence, you won’t find an organized grid structure. Streets and avenues wander disorderly, and there are practically no sidewalks. The difference is evident when we compare it to Casco Viejo, the colonial quarter, which was built after the Laws of the Indies were outlined in 1673. 

The downtown area is better when toured by car and is home to the city’s most relevant areas: Calle 50, Via España, Via Argentina, Via Venetto, Cinta Costera, Multicentro, and Multiplaza. Living here places you near everything if you are willing to compromise on walking spaces.

Mountain Pre-Construction Projects in Panama

Panama has a suburban district called Cerro Azul, known for its forested slopes covered with lush vegetation, cascades, and a lake. Many choose Cerro Azul because it is considerably cooler than the city; however, we don’t have any available projects here at the moment.

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Beachfront Pre-Construction Properties in Panama

Ocean views you can get both in the city center and the suburbs, but beaches only in the suburbs. Currently, there are at least two pre-construction opportunities with ocean views, one in Punta Pacifica (downtown) and the other one near Panama Pacifico (approximately 50 minutes away from downtown depending on traffic). 

Nevertheless, the Punta Pacifica project is about to start immediately, so if you want preconstruction prices, contact the Mundo team ASAP and try to enter as soon as possible. Keep in mind that we can’t guarantee you a spot. 

Featured Properties

Punta Pacifica: ideal for elite living and medical tourism

This project’s strength is focused on medical tourism opportunities, as it's close to relevant clinics. As for the project itself, it's in an elite area offering both urban views and coastal panoramas. The zone is mostly residential, with a marina nearby and luxury, navy-themed restaurants. 

Spectacular views of the canal

If you haven't been to the Canal, you are missing a lot. The magic of spending an evening watching the massive vessels standing in line is priceless. In the complex itself, you will find social areas, a gym, a pool, a private beach club, and a Skydeck with telescopes. 

Branded residencies in Playa Bonita

This one is still in the pre-sale instance, which is ideal for investors or those who are thinking about long-term residence. Its strongest advantage is that it's branded by a world-famous hospitality company, thus assuring quality under the highest standards. 

Investment Opportunities in Panama

Current Market Trends

Branded residencies are becoming more popular among tourists, who are increasingly choosing the coziness and flexibility of an apartment over a hotel. Investing in this residency could mean that you're getting yourself a magnet for tourists and short-term visitors.

It's worth noting that tourism is not the isthmus’s main industry: it's business and finance. This means that short-term rental encompasses a wide niche, including those who come for conferences, short business trips, or business contracts lasting a few months.

Factors Driving Investment Growth

The Central American country has consistently positioned itself as a business-friendly environment for decades. It means it's fertile soil for companies to establish headquarters and for expats to thrive. This creates a boom to accommodate all these new residents and visitors.

Another vital aspect is migration, as Panama proposes several programs, making residency amply available.

Here are some of the available programs:

• Qualified investor through real estate
• Qualified investor through the stock market
• Qualified investor through a fixed-term deposit
• Friendly nations (through real estate or establishing a company with substance)
• Pensionado visa (through a lifetime pension regardless of age)
• Remote worker (through having an income derived abroad)
• Reforestation visa (through investment in land and growing teak wood)
• Self-solvency visa (through real estate or fixed-term deposit)

Pre Construction Vs Resale Regarding Residency 

It is important to highlight a key difference between these alternatives because it's directly related to residency.

When applying to Friendly Nations through real estate, preconstruction projects are not viable, as a property must be duly registered to qualify. On the other hand, those who apply through Qualified Investor can do it with a preconstruction development only if they pay $300,000 upfront. The rest of the cost can be financed as pleased.

How to Choose the Right Pre-Construction Project

Researching Developers

Entering a preconstruction deal is not without risk; there can be delays, failure to deliver, or failure in meeting the promised quality standards. Therefore, it's important to choose reliable developers. In Panama, we work with a development company that has been active for four decades and has built more than nine hotels and 160 projects. 

It is imperative to research the developer and find out what they have actually delivered in the past. 

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Evaluating Project Locations

When it comes to the project itself, it's vital to consult the building timeline and the estimated delivery; otherwise, the investment plan may be jeopardized. Location must be evaluated according to the person's needs and the rental potential. 

Understanding Financing Options

This must be discussed from the beginning. To show you how things work, we will explain how plans work in general. 

It's possible to enter the program by paying a percentage, generally 10%, and the following percentages are paid in different periods, usually within six months or a year. When construction starts, the buyer pays another share, and then the rest is completed in installments, generally within two years. 

There are also extremely convenient financing plans, whose installments can be covered once the apartment is rented.

Disclaimer: the information in this article may be outdated at the time of reading, hence consult with certified professionals. This article does not constitute real estate or investment advice. 

Resources and Guides

Panama Real Estate Guides

If you're looking for a developer or guide, we strongly recommend you contact the Mundo team. We can give you websites to navigate real estate opportunities, but you won't have access to the exclusive units we're offering, shoulder to shoulder with the developer. 

Panama Real Estate Market Update – Q2 2025

Last year, we could see how the trends are shifting to higher rental rates across Panama City, mostly led by foreigners or foreign residents. This will mean that long-term rental will be on demand, and rental in general will become more profitable.

As buyers prefer newly built apartments over resale, the construction costs are increasing, reaching between 6000 and 8000 dollars per square meter, while the market in general enjoys appreciation. 

Crypto and Real Estate in Panama: What You Need to Know in 2025

Even though the country of the canal has been showing an interest in opening up to crypto, the proposed legislation was vetoed. On the other hand, we are seeing improvements as some relevant banks are now officially offering services for turning crypto into fiat money. 

The central American country has always been flexible, with no central bank and with a currency based on the US dollar; nevertheless, the lack of a regulatory framework may cause issues.

Although technically it is possible to buy real estate with crypto assets, it would require finding a buyer that accepts them and a financial structure that supports the transaction. For instance, there are no escrow accounts in cryptocurrency. 

At the end of the day, it would require a great deal of trust from both parties, and finding the right means. 

7 Things to Do in San Francisco, Panama City

San Francisco is one of the coziest neighborhoods, offering a tranquil environment a few minutes away from downtown. Its most attractive feature is Parque Omar (Omar Park), the city’s largest green area, offering activities, jogging trails, healthy food, and lots of greenery. Here are some of the things you can enjoy in San Francisco:

• Try a Zumba lesson in Parque Omar
• Buy a delicious natural juice in one of the booths
• Bike, walk, or jog across the trail
• Exercise outdoors with the devices available in the park for free
• Try different lessons depending on availability (like yoga)
• Open an account (some of the most important banks have branches in Via Porras)
• Enjoy international cuisine in restaurants (like sushi, Venezuelan arepas, and others)

Best Beaches in Panama: Caribbean Side

Isla Grande near Portobelo

From the city of Portobello, you can take a boat to Isla Grande and experience the crystal-clear waters of the Caribbean. Having been there personally and visited these places, the author of this article can tell you that Portobello has a magic like nowhere else, palpitating the “Cristo de Portobello celebration” (which takes place in October) throughout the year.

San Blas for a rustic experience and connection to nature

San Blas is an archipelago in the Caribbean run by its native people: the kunas. They do a great job at maintaining the tropical nature intact and shaping a unique experience in which you are in close connection with nature, far away from roads, traffic, pollution, and towering edifices.

Bocas del Toro for luxury accommodation and natural adventures 

Bocas del Toro is close to the border with Costa Rica, one hour away from the capital by plane, and eight hours by bus. Here's where you'll find the typical facilities of a tropical destination, including all kinds of hotels, restaurants, pubs, tours, and adventure tourism.

What Panama’s Corredor del Caribe Highway Means for You

Another fantastic coastal retreat is Costa Arriba, east of Colon. Sadly, this area has remained undeveloped due to poor accessibility. Traffic is a major issue, so tourists go to places where they can avoid it.

Recently, a new route has been built: The Corredor del Caribe, offering an alternative path to avoid congested thoroughfares. Besides paying a visit, this might be an investment opportunity as it's still undeveloped.

Where to Find a Stunning Beachfront Property in Panama

Places like Costa Arriba might be attractive for those who are willing to put in an effort and wait until the area grows. However, if you don't want to do that, there are plenty of coastal properties already available by the beach and near the capital. 

Mundo has two options when it comes to beach properties: one in a pre-sale stage, and the other one with ready-to-use units that are fully furnished and with turkey delivery. 

Conclusion: Start Investing in Panama Pre-Construction

To sum up, Panama is clearly still blooming when it comes to real estate. With the average rental price increasing, a promising income awaits. Yet construction costs are also increasing, which means the sooner you enter, the higher the profit margin. Another clear trend is that newly built units are ranking higher than resale. 

Mundo is closely connected to one of the best developers, and we will gladly show you the properties in detail. When it comes to attracting foreigners, the country of the canal is number one in the region, and it's unique in Latin America when it comes to financial stability and a dollar-based economy. This is an advantage that puts it above giants like Sao Paulo, Buenos Aires, and Mexico City. 

If you want to learn more about Panama real estate, don't hesitate and write us a message.

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