Investing in Casco Viejo, Panama: The Ultimate Guide to Short-Term Rental Gold

🏛️ What Makes Casco Viejo So Special?

Let’s start with this: Casco Viejo is not your average neighborhood. It's a UNESCO World Heritage Site with European-style plazas, rooftop bars, cobblestone streets, and centuries-old buildings.

Here’s why short-term rentals thrive here:

• Tourists LOVE staying in the historic center

• It’s walkable, photogenic, and full of boutique cafés, nightlife, and museums

• There's a hard cap on how much real estate can be developed, keeping supply limited

• It attracts both leisure travelers and business tourists

In short? Casco Viejo has built-in scarcity + high demand = $$$ for investors.

💸 Short-Term Rental Market Snapshot in Casco Viejo

Here’s where things get juicy for Airbnb hosts and investors.

Average Nightly Rates:

• $125–$300+ per night for a 1-bedroom or loft in a renovated building

• $400–$800 per night for high-end 2–3 bedroom units or luxury penthouses

Occupancy Rates:

• Ranging from 60% to 85% year-round

• Peak seasons: November to April, but events (Carnaval, Panama Jazz Festival, weddings) keep it steady

Monthly Gross Income Potential:

• 1BR/Loft: $2,500–$4,500/month

• 2BR+: $5,000–$8,000/month

And with Panama’s growing tourism (over 2 million visitors annually and climbing), demand isn’t slowing down.

🏗️ Real Estate Investment Types in Casco Viejo

You’ve got options, depending on your budget and appetite for renovation:

1. Fully Renovated, Turnkey Apartments

• Move-in ready with colonial finishes and modern amenities

• Located in buildings already zoned for Airbnb

• Prices: $250,000 to $700,000+

👉 Best for: Hands-off investors wanting immediate income

2. Fixer-Uppers in Colonial Buildings

• Much cheaper to buy, but require heavy permits and historic preservation compliance

• ROI can be massive if done right

• Grants and tax incentives available

👉 Best for: Experienced investors with a trusted local architect and legal team

3. Boutique Hotel or Multi-Unit Buildings

• High barrier to entry but HUGE upside

• Potential to convert into a branded short-term rental property

👉 Best for: Groups or high-capital investors eyeing long-term growth

📜 Legal Stuff You Gotta Know

Before you list your colonial gem on Airbnb, here’s what’s up legally:

• Zoning is key: Only certain buildings/areas within Casco are legally allowed to operate short-term rentals.

• Tourism License: Required for legal operation. These can take time to obtain but are easier with a licensed property manager.

• Historic Preservation Rules: All renovations must preserve original architecture. No knocking down walls willy-nilly.

• Condo Association Approval: If you're buying in a multi-unit building, make sure the HOA allows short-term leasing.

🎯 Pro tip: Work with a local lawyer and property manager who knows Casco’s rental and renovation regulations inside out.

MORE valuable information about investing in Casco Viejo, in our next article

See our current listings in Casco Viejo on this website