Panama real estate market:
When it comes to understanding the economics of Panama, you have to first understand the demographics. There are mainly 2 groups in Panama, the very rich, and the very poor.  While, middle class does exist in Panama, it is too small of a group to make a difference.  The one thing you are sure to notice in Panama, is the many fancy cars and the abundance of expensive apartment buildings.  

Interesting enough, the demographics of Panama, create a very interesting economy, and opportunities as well.  Take for example a rich guy who buys a fancy SUV, or a Lexus for $70.000.  After driving the car for only 2-3 years, our rich friend will generally trade his car for a new one.  However, because middle class is such a small group, and all other rich people only buy new cars, used cars in great conditions are cheap in Panama. 

The same story repeats itself in the real estate market, and especially when it comes to apartments. Apartments in Panama are the number one choice for most Panamanians who prefer to live in the city close to where the action is.  Like cars, rich folks, always move into newer, bigger, better, and fancier apartments.  However, because the upscale resale market is limited, there are generally very few people who can afford to buy a $300-600k apartments, or pay $3000-$6000 in rent.  Aside from a small number of top paid foreign executives, few can afford such high rent apartments. So, depending on where you are, it is often a lot cheaper to rent an apartment than to buy it.  In fact, I personally paid $1000 a month rent on a huge 3000 SF $400K house.   

Now, the above is not always the case, and depends on the building and the area. Some building are hot, and some are not.  Some areas are better than others, and as a rule, the older the building, the cheapest it is going to be.  

Another important aspect of the Panamanian economy is the fact that historically, apartments have not been a good investment in Panama. Regardless of what your local real estate agent is likely to tell you.  Know this, historically, luxury apartments have been selling for an average of $1000 a meter, and currently with the new real estate boom, Punta Pacifica is going as high as $1700.  However, go and check older buildings, and you will discover that 7-10 year old apartments go for an average of $750 a meter, and continue to lose value with age falling to as low as $500 for really old apartments.  

Now, I do not know if the real estate market will change, considering the influx of new Expats coming into Panama.  The fact however is that currently new buildings are selling well, but the old buildings are not.  In fact, while no one seem to have reliable statistics, the general consensus is that Panama city older high rises are about 30% vacant. So, it appears that the new Expats are generally buying the new buildings.