Editorial contribution: Joyce Barr-

How Affordable Is Panama’s Cost Of Living for Expats?

The cost of living in Panama, specifically housing costs can be affordable- especially dependent on where you live. “Cost of living in Panama City these days?, not quite so much.  Panama City, like most city centers worldwide, has experienced gentrification and rising rent prices, mainly through the influx of expats moving into neighborhoods such as Casco Viejo, Belle Vista and Albrook  just six to seven years ago were  affordable neighborhoods.

So, just how affordable is it for expats to live in Panama?  Is it more affordable to purchase or rent?  The answer to both these questions will majorly depend on your budget and lifestyle preferences.

Where housing costs are not an issue, a huge inventory exists of fully appointed, convenient to everything locations to choose from. Panama City would have the best offerings, but beachside and mountain communities like Coronado and Altos del Maria respectively also have value-rich properties for rent and/or purchase.

I share locations I am most familiar with for budget- conscious expats who are looking for a comfortable, yet more affordable lifestyle.

Panama City’s Most Affordable Neighborhoods

1.Obarrio, El Cangrego.  Two contiguous neighborhoods located in the heart of Panama City.  Both are vibrant and bustling with nightlife, upscale eateries and retail/banking and business areas situated in skyscrapers, including the iconic screw building and city parks where you can find a sculpture of Albert Einstein’s head.  Most importantly, affordable rentals can be found here as well, for example, a one bedroom in Obarrio,  535+ square feet for about $375; or in El Cangrego, $600 for a nicely appointed apartment with a community pool.

2. Marbella.  One bedroom, 1.5 bath apartments with over 1,000 square feet in this neighborhood will have average rents of $1200 per month and up.  It is a more affluent area, a major financial hub that is situated off Avenida Balboa, with views of the bay and the very popular Cinta Costera.

Although housing costs have increased in these neigborhoods, they are still great city areas in which to reside. Many apartments come fully furnished with utility costs on average of $250-$300 depending on your usage of A/C.

Both neighborhoods are extremely convenient for entertainment, as well as fine dining,  So if you are able to find something that suits you financially, any of these locations would be an ideal choice due to its convenience to shopping and entertainment- added value toward enjoying a vibrant city lifestyle.

For more affordable options, these two areas adjacent to the city are worth considering:

3. San Miguelito, is a city within Panama’s metropolitan area as well as a district capital populated by locals of middle-class socio-economic backgrounds. Located outside the city and close to the airport, a great area for retirees looking to stretch their retirement savings.  Near Tocumen International, the country’s main airport, San Miguelito is a Panamanian neighborhood, an excellent opportunity for non-native Spanish speakers wanting to integrate into the local Panamanian culture.

Brisas Del Golf is another area outside the city in San Miguelito district that is a fast-growing community currently integrated with both locals and a growing expat community.

Residential homes will likely be the type of housing you will encounter in both these neighborhoods.  The affordability factor is the key issue in this district which serves primarily middle-class income households.

Affordable Housing in Oeste Panama Province

Outside Panama Province, across the bridge you will also find affordable housing opportunities.  Not meant to be an exhaustive list, these locations have satisfactory infrastructure with nearby shopping and public facilities to go along with its affordable cost of living:

4.   Arraiján, is a city within Arraiján District, the first district in Panama Oeste Province across the Bridge of Americas.  It offers plenty of affordable residential homes

and plenty of shopping

5.  Vacamonte, located within Arraiján District has both single-family residential and condominiums affordable to locals and expats on a budget.  There is even an affordable

beachfront community Playa Dorada Residential and Beach Club where I resided during the pandemic in 2020.  For an attractive, affordable beach community this is it.  I enjoyed a 2 bedroom, 2 bath condo on the beach for a modest $600 per month.

6.   La Chorrera, a city within La Chorrera district is also the capital of Panama Oeste Province located about 19 miles southwest of Panama City.  It is one of the largest cities in

Panama and today, as it was back in the day, a vibrant hub of commerce.  Average rent for a 2-bedroom 2 bath unit would be approximately $300 per month or less.

Also coming of interest is Chame. Located very near to Nuevo Gorgona and Coronado beach communities this area is a little less congested at present with affordable deals to acquire.

Escaping the hustle and bustle of the city, a growing number of expats are moving into these communities where they can integrate easily. Public transportation back and forth from Panama City is nominal, around $3-$4 per day.

Affordable Housing in Chiriqui Province

Chiriqui, the breadbasket of Panama is situated far inside the country west toward Costa Rica and is responsible for much of the country’s food production.  David, its capital is the second largest city in Panama and is one of many locations in the province that offers plenty of affordable housing options.

Chiriqui, as does other inland provinces, attract foreign residents because of the lower cost of housing, (especially those homes with acreage.) The advantages of lower housing costs make it extremely possible to live on as little as $1,000 per month, especially in rural cities where there are few expats.  In the inland rural areas, average rents for a one-bedroom, one bath, furnished studio or apartment can vary from $245 to $575. Add to that $200-$275 per month for food, and $120 or so per month for utilities, maybe less, again depending on location, for combined electric, cable, and Wi-Fi. You can see how it is possible to cover basic living expenses for less than $1,000 per month.  Granted, many of the amenities and conveniences for shopping and entertainment may not be available in some areas; as well as keeping in mind there will always be trade-offs or sacrifices made at this price point.

You Could Stop Here.  And Pick up For Part 2.

Places In Panama To Live Comfortably for Less Than 1K A Month!

If you are a single retiree or expat living with a budget of $1,000 per month, you’re probably wondering if you can have both affordability and comfort.  Believe it.  You can live modestly on a budget of $1,000 per month and comfortably!  As earlier mentioned Chiriqui Province is a location where you are able to cover your total housing expense for less than $1,000 per month.  Here are a couple of locations I can recommend:

7. David, the capital of Chiriqui Province is in the western part of the country. It is a hardworking industrious city with year-round commercial activity, a solid middle class and a low unemployment rate.

Housing in David is affordable for both home and apartment rentals. A modest housing could get you value. E.g.,  It would not be hard to rent a 1 or 2 bedroom for $300-550 including water, trash.

8.  Volcán, located in the highlands of Panama’s only volcano Mt. Baru, for a while previously overlooked, is now becoming a well-known area for its affordability and quaint lifestyle.

Rental opportunities for modest budgets are also available in Volcán.  You can be sure to find a 1 or 2 bedroom for less than $400.

Places I find that are most “affordable” will generally have less in overall value- certainly true for the amenities that are offered. Even basic amenities that we take for granted like hot water are not to be assumed to be automatically available at the affordable price point. There will be times when you may have to negotiate for it!  So, caveat emptor is the rule of the day when considering one’s comfort against the costs of inconvenience when it is lacking.

If you are a new resident to Panama or perhaps a perennial snowbird soaking up the dry season a few months each year, what is your best option?  Should you rent or buy? Generally speaking, purchasing real estate in Panama is easy enough if you have resources for the cash payments required.  Mortgages, especially for retirees, are difficult to secure.  But rent or buy?  Which is the better option?  The short and quick answer for foreigners and newly minted expat residents would be– rent first, buy later after proper due diligence to seek out the best deal, because on the flip side, it will be much more difficult to sell.

Whether you rent or buy, of the many good things about Panama is the wide range of choice in the level of comfort a retiree can experience with their retirement dollars. Since one’s retirement budget will dictate the housing budget it seems reasonable that securing affordable housing with as much value as possible becomes an important task.  And, while the housing budget may dictate as it relates to affordability, you will still desire convenience and all the amenities.  So, why it may be affordable in terms of cost, the more salient question might be… will it be comfortable enough as well?

Fortunately for retirees and expats here in Panama, there are plenty of options to create a unique, stylish lifestyle for both the budget-conscious and the budget free.  Whether it be as a beachcomber, city-high rise dweller or a nature-loving mountaineer, the cost of living for a budget-free or a budget-conscious expat will still be less than anything comparable you would find in the U.S.