Jeff Barton, Managing Director of Punta Pacifica Realty, says new pre-construction developments in Panama are priced between $3,500 and $5,000 per square meter, about 40% higher than resale units built between 2010 and 2020. Despite this steep premium, buyers are increasingly choosing new construction, motivated by factors that go well beyond traditional price-per-square-meter calculations.
“New properties range from $3,500 to $5,000 per square meter,” Barton says. “Compared to resale market offerings, the gap is clear.” He notes that buyers are not deterred because they see advantages in new developments.
Buyers in Panama’s pre-construction market are no longer focused solely on finding the lowest price per square meter, Barton explains. Instead, they are weighing whether a project offers features or amenities that set it apart from the growing pool of similar properties. For many, the goal is to avoid being stuck with a “commodity” unit that will face heavy competition at resale.
“If you’re buying into something just because of price, there’s probably going to be a lot of competition in the future when you go to resell,” Barton says. “But if you’re buying into something very unique, that has an offering the other buildings don’t have, or has a link to the community that the other buildings don’t have, that’s going to create value and upside appreciation.”
This marks a shift from previous cycles, when buyers chased price arbitrage and often ended up with properties that struggled to stand out. Today’s buyers are more focused on long-term resale prospects and are wary of inventory that could be difficult to sell in a crowded market.
According to Barton, the first question buyers now ask is not about price, but about the developer’s reputation and experience. “The most important thing whenever you’re looking at a new development, especially pre-construction, is who’s developing it and what history do they have?” he says. “Flashy brochures are easy to make, but high-quality buildings are not.”
This emphasis on developer pedigree reflects hard lessons from earlier market cycles. Buyers who relied on marketing materials or low prices in the past sometimes faced delayed construction, poor build quality, or projects that failed to deliver on promised amenities. These experiences have created a more cautious, discerning buyer base, for whom a proven developer is the primary safeguard against risk.
Flexible payment plans also support higher pre-construction prices. Barton explains that buyers rarely pay the full amount upfront. “When people are getting involved in pre-construction properties, they’re not being required to put down the full 100%,” he explains. “It’s typically staggered somewhere between 30 to 50% over several years, and that also is a way that buyers feel more comfortable that even though the price is higher, they’re able to have an easier and more flexible payment plan.”
This flexibility allows buyers to spread payments over three to five years instead of making a lump-sum purchase. Some find paying $4,500 per square meter over four years more manageable than $3,500 per square meter in cash today, especially when the property’s unique features are expected to increase in value.
Developers are responding to buyer priorities with distinctive designs, amenities, and finishes. “Developers are becoming more innovative, offering unique architecture, amenities, and finishes,” Barton says. As a result, these properties can command higher prices because they offer something existing resale inventory cannot.
For many buyers, the decision to pay a premium is not just about square footage, but about securing a specific lifestyle or investment thesis that they believe will hold or increase value over time.
Changing buyer behavior is reshaping Panama’s pre-construction market. Projects that compete only on price may struggle as buyers grow more selective and supply increases. Developments that offer genuine differentiation and are backed by reputable developers are capturing the most demand and achieving the strongest price appreciation.
The same dynamic explains why resale inventory from 2010 to 2020 has shown little price movement. Barton notes that these buildings “don’t differentiate themselves from the others,” resulting in a commodity market with many options at similar prices. Without unique features or a compelling story, these properties cannot command premiums, even at a lower price per square meter.
For buyers, Barton’s analysis signals that focusing only on price per square meter may be shortsighted. In a market where true differentiation is driving both demand and value, paying more for a unique property from a proven developer may deliver better long-term results than settling for a cheaper, undistinguished unit.
Looking ahead, the success of new developments in Panama will likely depend less on undercutting the competition and more on delivering meaningful, lasting value that can’t be easily replicated. As buyers become more sophisticated and supply continues to expand, the market rewards those who prioritize quality, innovation, and strong developer reputations over short-term savings.
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