Maximizing ROI: Tips for Investing in Commercial Real Estate in Casco Viejo, Obarrio & Chanis
Panama City is quickly becoming one of Latin America’s most dynamic markets for commercial real estate. Whether you're investing for passive income, capital appreciation, or to launch your own business, choosing the right neighborhood — and strategy — makes all the difference.
This article explores three of the most talked-about areas for commercial investment:
Casco Viejo (also known as
San Felipe),
Obarrio, and
Chanis. Each offers unique benefits, challenges, and ROI potential.
Why Invest in Commercial Real Estate in Panama City?
Panama's strong economic fundamentals, investor-friendly tax policies, and U.S. dollar-based economy make it an attractive destination for real estate investors.
With growing demand for retail, office, hospitality, and mixed-use developments, commercial spaces in
Casco Viejo,
Obarrio, and
Chanis offer exciting opportunities for both local and foreign investors — if you know how to maximize the return on your investment.
Casco Viejo (San Felipe): Charm, Tourism, and Premium Rents
Casco Viejo is a historic district with limited supply and high demand. Its colonial-era buildings, boutique hotels, and vibrant nightlife attract thousands of tourists every week.
Tips to Maximize ROI in Casco Viejo:
- Target Short-Term Rentals or Hospitality: High daily rates and occupancy levels can outperform traditional retail.
- Use Tax Incentives: Government programs encourage restoration in specific zones like Santa Ana, reducing upfront cost.
- Preserve the Architecture: Maintaining historical authenticity adds market value and rental appeal.
- Invest in Visibility: Rooftop bars, art galleries, and restaurants thrive when positioned for walk-by foot traffic.
ROI Considerations:
- Higher upfront costs for restoration
- Strong long-term appreciation due to limited inventory
- Excellent for luxury-focused businesses or tourist-dependent concept.
Obarrio: High Foot Traffic and Business-Friendly Infrastructure
Obarrio is Panama City's financial and commercial hub. Its dense mix of banks, embassies, offices, and luxury condos provides a built-in customer base.
Tips to Maximize ROI in Obarrio:
- Lease to Corporate Tenants: Stable, long-term leases offer predictable returns.
- Invest in Modern Amenities: Properties with elevators, parking, and fast internet command premium rents.
- Focus on Vertical Space: Multi-floor buildings offer more rentable square meters per lot.
- Stay Close to Transit: Metro and main artery proximity can raise lease value.
ROI Considerations:
- Higher lease rates = strong cash flow potential
- Ideal for medical offices, legal firms, coworking spaces, and retail brands
- Lower maintenance/renovation burden compared to Casco.
Chanis: A Rising Zone with Lower Barriers to Entry
Chanis offers an emerging opportunity for commercial investors priced out of other areas. With residential growth and evolving infrastructure, the zone is ripe for small-to-mid scale ventures.
Tips to Maximize ROI in Chanis:
- Get in Early: Prices are still accessible; potential for appreciation is high.
- Offer Mixed-Use Spaces: Combine commercial ground floors with residential upstairs for dual-income streams.
- Target Local Services: Think clinics, salons, cafes, or convenience businesses.
- Monitor Zoning Changes: Stay ahead of development trends to pick strategic plots.
ROI Considerations:
- Lower purchase cost = faster break-even point
- Room to grow with the neighborhood
- Strong potential for flipping or mid-term rental income
5 Investment Tips for Higher Returns in Any Zone
No matter the location, these principles will help you protect and grow your investment:
- Do Your Due Diligence – Check property title, permits, and zoning before purchasing
- Understand the Market – Know who your tenants or customers will be
- Invest in Quality Renovation – The right finishes and infrastructure attract better tenants
- Partner with Local Experts – Local agents and attorneys know how to navigate regulations
- Plan for the Long Term – ROI in real estate is built over time through appreciation and incom
Ready to Invest in Panama City's Top Commercial Zones?
Whether you’re drawn to the historic beauty of Casco Viejo, the professional energy of Obarrio, or the emerging promise of Chanis, Panama City offers diverse opportunities for commercial real estate investors.
Let FCA Group help you find the right commercial space, negotiate the best deal, and position your investment for maximum return. Browse available commercial properties or Get in touch with our investment team to start building your portfolio in Panama City.
