Panama: rental yields are good

  Last Updated: July 12, 2023
PANAMA - Apartments COST ($) YIELD (p.a.)
TO BUY MONTHLY RENT
East Coast  
Studio & 1-Bedroom $290,000 $1,790 7.41%
1-Bedroom $290,000 $2,000 8.28%
2-Bedroom $500,000 $2,700 6.48%
3-Bedroom $1,033,100 $4,500 5.23%
San Francisco  
Studio & 1-Bedroom $185,000 $1,100 7.14%
2-Bedroom $199,000 $1,200 7.24%
3-Bedroom $307,600 $1,600 6.24%
4+Bedroom $650,000 $3,500 6.46%
Pacific Point  
Studio & 1-Bedroom $300,000 $1,550 6.20%
2-Bedroom $460,000 $2,300 6.00%
3-Bedroom $550,000 $2,725 5.95%
4+Bedroom $1,250,000 $5,000 4.80%
Balboa Avenue  
Studio & 1-Bedroom $245,000 $1,450 7.10%
2-Bedroom $318,000 $1,800 6.79%
3-Bedroom $447,500 $2,500 6.70%
4+Bedroom $640,000 $2,800 5.25%
Santa Maria  
2-Bedroom $359,887 $3,200 10.67%
3-Bedroom $826,000 $4,200 6.10%
4+Bedroom $1,250,000 $10,500 10.08%
Bella Vista  
Studio & 1-Bedroom $141,000 $1,150 9.79%
2-Bedroom $232,500 $1,350 6.97%
3-Bedroom $343,550 $1,700 5.94%
4-Bedroom $810,000 $3,800 5.63%
El Cangrejo  
Studio & 1-Bedroom $165,000 $1,000 7.27%
2-Bedroom $209,000 $1,150 6.60%
3-Bedroom $294,000 $1,450 5.92%
4+Bedroom $349,000 $3,200 11.00%
Coco del Mar  
Studio & 1-Bedroom $220,000 $1,400 7.64%
2-Bedroom $266,000 $1,500 6.77%
3-Bedroom $430,000 $2,200 6.14%
4+Bedroom $525,000 $2,200 5.03%
Panama avg. Rental Yields 6.93%
PANAMA OESTE - Apartments COST ($) YIELD (p.a.)
TO BUY MONTHLY RENT
Panam Oeste (all locations)  
Studio & 1-Bedroom $160,000 $850 6.38%
2-Bedroom $234,500 $1,200 6.14%
3-Bedroom $348,000 $1,550 5.34%
4+Bedroom $497,000 $1,900 4.59%
Panama Oeste avg. Rental Yields 5.61%
COCLÉ - Apartments COST ($) YIELD (p.a.)
TO BUY MONTHLY RENT
Coclé (all locations)  
Studio & 1-Bedroom $145,000 $1,300 10.76%
2-Bedroom $299,000 $1,450 5.82%
3-Bedroom $370,000 $2,000 6.49%
4+Bedroom $712,500 $3,000 5.05%
Coclé avg. Rental Yields 7.03%
All yields are gross - i.e., before taxes, repair costs, ground rents, estate agents fees, and any other costs. Net yields (what you´ll really earn) are typically around 1.5% to 2% lower.
Source: Global Property Guide Definitions: Data FAQ See also: Update Schedule

The gross yields in Panama - the rental return earned on the purchase price of a rental property, before taxation, vacancy costs, and other costs - are good, by international standards. Yields range from 4.59% to 11.00% with an average of 6.52%.

There isn´t much difference, in terms of yield, between beachfront and further back. The Beachfront is more expensive, but you get better rent. Smaller apartments do tend to yield more.

Round trip transaction costs are low in Panama. See our Residential property transaction costs analysis for Panama and Residential property transaction costs in Panama compared to the continent.