Panama City: The Emerging “Singapore of the Americas”

For decades, Panama City was viewed as a small regional capital centered around the canal.

Today, it has quietly become something very different.

In this episode, Ronan McMahon explores the remarkable transformation of Panama City into one of the most important emerging global hubs in the Americas—a center of finance, trade, infrastructure, and international business that increasingly draws comparisons to places like Singapore and Hong Kong.

Drawing on more than 20 years of on-the-ground experience in Panama, Ronan breaks down:
• how the canal reshaped the country’s future
• why multinational corporations and global capital continue flowing in
• the infrastructure projects driving long-term growth
• where wealth is concentrating inside the city
• and what it actually costs to own prime real estate in districts like Costa del Este, Santa Maria, and Ocean Reef today

He also explains why Panama City isn’t the right fit for everyone—and why, for the right investor or internationally minded buyer, this may still be one of the most compelling long-term real estate stories in the world today.

If you’re interested in discovering global markets before they fully hit the mainstream radar, this episode is for you.

Transcript

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This is Panama City, the emerging Singapore of the Americas. But over the past two decades, something's been happening here. Quietly, this city has been transforming into a true global hub, a center of finance and trade, where capital flows, where multinationals base themselves, and where serious wealth is being created. I've been coming here for more than 20 years. I made my first overseas investment in this city. And I can tell you, this story is far from finished. In fact, what we've seen so far is just the first phase of a much bigger transformation. Welcome to our newest episode of the Ronan McMahon Report. In this video, I'm going to walk you through how Panama transformed over the past two decades, where it's headed next, and how much it costs to own in the city's premier districts today. I first came to Panama City in 2004. Back then, it was a sleepy regional capital, but I could see something was building. A year later, I made my very first overseas investment right here. And I've been coming back ever since, tracking one of the most remarkable city transformations ever in the world. In a moment, I'll show you where I'd focus in Panama City today. But first, here's what makes the city so compelling. Panama shouldn't be this important. It's a small country, just over 4 million people, but it sits at a key crossroads of global trade. The Panama Canal is one of the world's great trading arteries, linking the Pacific and the Atlantic. Around 270 billion in goods passes through it every year. Just to put that in perspective, that includes roughly 40% of all US container traffic. This is one of the most critical pieces of infrastructure on the planet. But for most of the 20th century, Panama didn't fully benefit from it. The United States built the canal and controlled it until 1999. Then it was handed back to Panama. And that's when everything changed. That's when the real story of modern Panama begins. After the handover, Panama started investing heavily in itself and in its future. It expanded the canal, adding a third lane, doubling capacity, driving record revenues. It built the only metro system in Central America. It turned Panama City's airport into the region's key hub, now handling more than 20 million passengers a year. At the same time, it opened its doors to global business, tax incentives, easy visa options, a stable, dollar-based economy, pro-business policies, and capital poured in. Today, more than 80 international banks and over 200 multinational companies operate here. This is where global firms base their Latin America operations. As money flowed in, the city transformed. Panama City now has one of the biggest skylines in the world, bigger than Los Angeles, Miami, or Beijing. The city today is roughly three times the size it was in 1990. But the real change isn't just size. It's the quality of what's been built here. When I first came to Panama City, it was edgy, a backwater. Casco Viejo, the historic district, was still run down. The transformation since then is incredible. Today, Casco Viejo is one of the most atmospheric neighborhoods anywhere on my global beach. You'll find boutique hotels, rooftop bars, fine dining, designer stores, a Sophie Tell charging up to $1,000 a night. And you'll see the same pattern across the city today. This has become a wealthy, vibrant place with luxury retail, supercar on the streets, and world-class hospitals and international schools. There's even a man-made island community with the most prestigious real estate in the entire region. This is one of the most remarkable city transformations anywhere in the world. And it's still accelerating. What's happening in Panama City isn't random. It's the result of a very deliberate strategy, one that's used before to build some of the most important cities in the world, places like Hong Kong or Singapore. But here's the difference. Panama is early. It's still building. Billions are flowing into infrastructure and new mega projects. The metro is expanding. A new $2 billion bridge is rising over the canal. A major cruise terminal has opened. This is a country still investing aggressively in its future. At the same time, the city is growing fast. The country's population has gone from 3.3 million in 2010 to more than 4.3 million today. And it's on track to hit nearly 6 million by 2050. More than half of those people live in and around Panama City. That's creating something I call the big squeeze. Demand for property in the city is rising steadily, but supply is constrained. To the south, you have the Pacific Ocean. To the north, protected forests around the canal. To the west, the canal itself. Growth is being pushed into a narrow corridor to the east near the airport. So you have a powerful imbalance. Rising demand, limited supply. And that's what drives long-term real estate appreciation. Now here's what's interesting. Despite all of this, the infrastructure, the capital flows, the population growth, you can still buy high-quality real estate in the best areas of Panama City in the $300,000 to $400,000 range. That's a fraction of what you pay in cities like Singapore or Hong Kong, where comparable real estate runs into the millions. In a moment, I'll show you some sample listings and walk you through the rental market. And this is where the story really starts to get interesting. But first, let's step back and cover a few basics about buying in Panama. One of the first questions people always ask is: Can foreigners buy real estate in Panama? Yes, and it's straightforward. There are no restrictions on foreign ownership, you don't need residency, you don't need citizenship, you don't need a local partner. You can own in your own name or use a corporate structure if that suits you. This is a very open market, very accessible market. Now, as with any overseas purchase, you'll want a good local attorney guiding you through the process. But structurally, this is one of the simplest markets in the world to buy real estate as a foreigner. For me, the play here is simple. Own the best real estate in the neighborhoods where corporate executives, multinational employees, and wealthy international buyers want to be. This is a strategy I've been recommending for years. Let me show you what that looks like on the ground. At the very top end of the market, you have Ocean Reef. This community is made up of two man-made islands off downtown Panama City. I remember when the developer behind Ocean Reef, Alfredo Aleman, first told me about this project years ago. It sounded hugely ambitious, but he's achieved his vision. This is the most prestigious community not just in Panama City, but in the entire region. Ocean Reef is almost fully built out now. Prices are much higher than when I first started recommending it. But this is blue chip real estate, the kind that families hold for generations, that appreciates over time and that attracts consistent rental and resale demand. Here's an example of a listing on Ocean Reef today. This two-bed condo is in the Palms community on the islands. It spans around 1,500 square feet, has a private balcony, and includes access to amenities like a pool, viewing deck, sauna, and co-working. It was listed for just under a million dollars. You don't need to spend that kind of money to play this market well. Ocean Reef lies just off Punta Pacifica, the traditional center of wealth in the city. Now a new area has emerged, Costa del Este. Two decades ago, Costa del Este didn't exist. It has been purpose-built in that time, including on land reclaimed from the sea, as a new modern district for the multinationals flocking to Panama. Today, it has become the city's core business district. It's home to most of the multinational headquarters in Panama. For many people moving to Panama City, this is where they want to live. Here's what it costs to own in the district. This penthouse is in one of Costa del Este's established residential areas. It has three bedrooms across 2,000 square feet. Amenities include a swimming pool, gym, and playground. It's listed at $324,000. Owning in Costa del Este is a strong play, but there's another I like even better. Right next door to Costa del Este sits one of the most exclusive neighborhoods in all of Panama, Santa Maria. The 700-acre gated master plan community is a sanctuary for Panama's elite. It's got an 18-hole Jack Nicholas golf course, a five-star Marriott Luxury Collection Hotel, a commercial area with gourmet food and wine stores, and Panama City's Top Country Club. Santa Maria's location is perfect. The city is growing around it. Costa del Este is on your doorstep. The airport is close by, and Santa Maria has all the amenities of a five-star resort. Prices here rise into the millions, but you'll also find some surprisingly affordable options given the quality of the lifestyle offer. I've been highlighting Santa Maria for many years. In 2020, I recommended pre-construction condos here in a building called Ocean House when prices started from around $238,000. Today, prices are in the $400,000 range, but that still represents compelling value to own in Santa Maria. Here's an example. This two-bed condo in the Ocean House building is spread over a thousand square feet. The building's amenities include a gym, yoga area, co-working pool, and paddle court. It's listed for $440,000. Here's how the rental market works in Panama City. Short-term rentals are restricted in most residential buildings. So this is not an Airbnb market, but this is still a place where you can generate outstanding income. Panama City attracts a constant flow of high-earning professionals, executives, multinational employees, expats relocating for the high quality lifestyle, low taxes, and warm tropical weather. They all need somewhere to live, but not just anywhere. They want quality. They want amenities. They want to be close to the business districts. So when you own in places like Costa del Este or Santa Maria, you're positioned directly in front of that demand. And that's where the opportunity is. The right property in these areas can deliver gross rental yields in the 8 to 12% range. For long-term rentals, that's very strong by global standards. In today's world, wealth flows through a small number of places. Cities that sit at the crossroads of trade, capital, and movement. True global hubs. Singapore is one that's a tiny country, but it's positioned along one of the busiest shipping routes on Earth. Hong Kong, the gateway to China. New York, the financial heart of the US. These are places where global wealth converges, where capital flows in and stays. Panama City is now entering this group. It sits at a natural crossroads, North America and South America, the Pacific and the Atlantic, but more importantly, it's following the right playbook, investing heavily in infrastructure, creating a business-friendly environment, making it easy for capital and people to move in and stay. And it's staying committed to this model year after year. That's what builds a global city. And that's what's happening here. We're now seeing the early effects: population growth, rising demand, pressure on prime land, a skyline that continues to evolve. This is a city that's still early in a long-term transformation. Panama City isn't for everyone. It's a dense, fast-moving city, it's busy, there's traffic, and the weather can be a challenge. The humidity is real, it never gets cold. If you want four seasons, crisp autumns, cold winter air, this isn't your place. Likewise, if your plan is to own a place you can rent short term when you're not using it, this isn't that market either. But if you're looking for an investment property in a stable, business-friendly country with huge long-term growth potential, or you want a lifestyle base in a city with world-class healthcare exceptional connectivity and a quality of life that compares with far more expensive global capitals, then Panama City is a place you should be looking at closely. And if you want more breakdowns like this, cities that are early in that kind of transformation, just subscribe. We're in these markets constantly. And I'll keep sharing what we're seeing on the ground. I'll see you in the next episode.