Airbnb and short rental in Panama City

Rental options

There are 3 main rental options in the city: regular apartments, short-term apartments, and shared apartments.

Standard apartment - minimum 1 year rent contract

Regular apartments usually come with furniture, and most of them are ready to live. You must get an internet connection and a TV subscription. Regular apartments are a good medium-term solution, the standard rent contract in Panama is 1 year and can be renewed at the discretion of the owner and the tenant.

Ready to live, short-term apartment

Short-term apartments are very expensive, but they could be used when you arrive for the first time in Panama and can be rented for weeks or months. They are a good short-term solution when you just move to Panama, instead of staying in a hotel. Short-term apartments are fully furnished with internet and utilities already connected. You can just move in, without losing time. You can find short-term apartments on these websites:

Single Room in a shared apartment

Renting a single room in an apartment could be a good solution if you're looking for something cheap. These kinds of apartments are fully furnished with utilities and an internet connection. Finding a room in a shared apartment could be more difficult if you just moved to Panama. You should ask your network and/or visit Facebook groups.

Here you can find all the information on how to find an apartment in Panama City.

Invest through Airbnb - Panama City

Here you can find all the information on how to buy an apartment in Panama City.

Market Landscape

Panama City, Panama, is emerging as a vibrant hub for short-term rentals, offering a diverse array of Airbnb options that cater to various tastes and budgets. From luxurious high-rise apartments in bustling neighbourhoods to quaint cottages nestled in serene settings, the city provides a rich tapestry of accommodations for travelers. Popular areas for Airbnb rentals include the historic Casco Viejo, known for its colonial architecture and vibrant nightlife, and modern districts like San Francisco and Bella Vista, which blend urban convenience with local charm.

Investment Potential

For real estate investors, Panama City presents a lucrative opportunity. The median property price in the city is approximately $177,000, making it relatively affordable compared to many other major cities. Airbnb rentals in Panama City generate an average monthly income of $2,650, with a high occupancy rate of 54.6%. The cash-on-cash return for Airbnb investments stands at an impressive 13.0%, with a cap rate of 17.2%, indicating strong profitability. The city's property values have appreciated by 14.2%, outpacing the national average and highlighting the potential for capital gains.

Economic and Regulatory Environment

If you choose to buy an apartment for renting it under Airbnb, take into account that according to Panamanian law, the minimum rental period is 45 days! Panama City's thriving economy and favorable regulatory environment further bolster its appeal for short-term rental investments. The city enjoys a robust tourism industry, with its attractive beaches, rich cultural heritage, and vibrant urban life drawing visitors from around the world. The local government, in collaboration with platforms like Airbnb, has implemented measures to ensure responsible hosting and compliance with local regulations. Initiatives such as the Airbnb City Portal provide tools for local authorities to manage short-term rentals effectively, ensuring that the benefits of tourism are balanced with community needs.

Tourist Attractions

Panama City offers a plethora of attractions that make it a desirable destination for tourists. Visitors can explore the historic Casco Viejo, with its cobblestone streets and beautifully restored buildings, or visit the iconic Panama Canal, one of the world's greatest engineering marvels. The city also boasts a vibrant dining scene, bustling markets, and a range of outdoor activities, from hiking in the nearby rainforest to relaxing on the Pacific and Caribbean beaches.

Conclusion

Panama City is an increasingly attractive market for both Airbnb guests and investors. Its diverse range of rental options, strong investment returns, supportive regulatory environment, and rich cultural and natural attractions make it a prime destination for short-term rentals. As tourism continues to flourish, Panama City is poised to remain a top choice for travelers and a profitable venture for property investors.

For more detailed information on specific Airbnb listings and investment opportunities in Panama City, please visit the following sources:

Sources & Foot Notes

[1] Trip101 - Airbnb Panama City [2] Hostaway - Best Airbnb Markets [3] Airbnb City Portal