PanExpats
Sign Up

New-home permits surge in Panama City

More new homes are getting the green light in Panama City. Building permits in the eight municipalities tracked by the national statistics institute, INEC, covered 1,227,975 square metres of new construction from January to August 2026, 33.6% more than in the same months of 2025, according to INEC's preliminary figures. The declared value of all permitted work, including additions and repairs, rose 22.6% to B/.820.8 million (INEC).

Where the growth is

  • Panama district approved 630,467 square metres of residential construction, up 48.1% and about half of all the new area permitted in the eight municipalities (INEC). Nexo says it is the highest January to August total in INEC's series, which starts in 2020.
  • Permits covered 6,730 new housing units across the eight municipalities, up 53.8%. Panama district accounted for 4,636 of them (INEC).
  • In Panamá Oeste, Arraiján approved 838 homes and La Chorrera 463. Together that is almost three times last year's total, but about a quarter of the 5,041 approved in the same months of 2024 (INEC, Nexo).
  • Commercial and other non-residential space in Panama district fell 28.6%, to 147,171 square metres (INEC).
  • Aguadulce, Chitré, David, La Chorrera and Santiago together permitted 232,347 square metres, about 3% less than last year (INEC, Nexo).
  • August alone brought 197,106 square metres, 169.3% more than in August 2025 (Nexo, citing INEC).

A permit is not a finished home

A permit approves plans before work starts. It says nothing about when an apartment will be ready. Cement and ready-mix concrete, which are bought during construction, are growing more slowly: from January to July, grey cement sales rose 9.6% and ready-mix concrete 4.7% (Nexo, citing INEC). INEC's permit figures leave out public works and cover only these eight municipalities, not the whole country.

Buyer incentives now in force

Since 1 September, under Law 546, the first sale of a new home is exempt from the property transfer tax (ITBI) on the first $120,000 of the price, as long as the deed is signed within two years of the occupancy permit. Homes up to $200,000 pay a reduced rate on the part above $120,000 (MEF). Since 17 September, the AbonoPaTi programme has offered a one-off, non-refundable $3,000 toward the down payment on a new main home priced up to $80,000 and bought with a mortgage. The $3,000 is credited toward the home's price (MEF). September's permits will be the first with both measures in place. INEC's calendar shows the January to September figures due on 30 October.

What it means for expats

If you rent in Panama City, a bigger pipeline of approved housing points to more new apartments in the next few years, though it will not change your lease or this year's asking rents. If you are thinking of buying off-plan, more projects mean more choice, but check the developer's permit, its delivery record and the contract's completion date, since a permit is only the first step. If you are looking in Arraiján or La Chorrera, new-home approvals are recovering from a very weak 2025 but remain far below 2024. Before you sign for a new home, ask your lawyer whether the sale qualifies for the ITBI exemption. Under the law the ITBI is the seller's tax, and lawyers and tax advisers say a contract clause shifting it to the buyer is void (La Prensa, EY). AbonoPaTi is tied to the preferential-interest mortgage rules, so ask your bank whether you are eligible.

Sources

  • INEC - Buildings, area and value of private construction based on permits, eight districts, January to August 2025-26: 1,227,975 m2 (+33.6%); value B/.820,778,027 (+22.6%); Panama district residential 630,467 m2 (+48.1%); 6,730 housing units (+53.8%); Arraiján 838 and La Chorrera 463 units; Panama district non-residential 147,171 m2 (-28.6%) - Sep 2026 (preliminary figures)
  • INEC - Monthly economic indicators, value of construction based on permits, January to August 2025-26 - 1 Oct 2026
  • Nexo - Permits up 33.6% to August; highest January to August for Panama district housing since 2020; August +169.3%; interior towns -3%; cement +9.6% and ready-mix +4.7% (January to July) - 6 Oct 2026 (23:58 Panama, upd. 7 Oct)
  • Nexo - Arraiján and La Chorrera: 1,301 homes with permits to August vs 5,041 in 2024 - 7 Oct 2026 (23:45 Panama)
  • INEC - Publication calendar: January to September 2025-26 permit figures due 30 Oct 2026 - Oct 2026
  • MEF - President signs Law 546: ITBI exemption on the first B/.120,000 for the first sale of new homes; reduced scale up to B/.200,000; 2-year (30-month transitional) window - 31 Aug 2026
  • MEF - AbonoPaTi: B/.3,000 non-refundable subsidy, new main home up to B/.80,000, Executive Decree 35 of 17 Sep 2026 - 18 Sep 2026
  • La Prensa - Opinion by Osvaldo Lau C. on Law 546: shifting the ITBI to the buyer is void, and the buyer can claim it back - 5 Sep 2026
  • EY - Tax alert on Law 546: any contract term imposing on the buyer the ITBI that legally falls on the seller is null - 2026