Insights on Oceanfront Investments

Article by Michael Davidson. August 1, 2025                             August 2025 Issue Vol. 35, No. 8

This issue of Ocean Property Turns to Panama

This month, the spotlight is on what investors and business leaders are calling the new real estate gold rush: Panama. At the heart of this surge lies the Pearl Islands, an archipelago just 30 miles south of Panama City. Long admired for their pristine waters and abundant marine life, these islands are now attracting international attention as one of the hottest destinations for eco-development, luxury tourism, and high-net-worth retreats.

Beachfront Property in Panama’s Pearl Islands: The New Gold in Real Estate

The Pearl Islands of Panama (Las Perlas) are rapidly gaining recognition as one of the most attractive locations in Latin America for private island ownership, beachfront property, and oceanfront real estate investment. Just 30 miles from Panama City, this archipelago offers a rare combination of tropical beauty, stable property rights, unparalleled tax incentives, and easy international access, making it a focal point for property investments.

Overview

Oceanfront property trends show continued high demand, driving strong property value appreciation due to limited supply—especially for modern, luxury, and renovated homes. The global shift to remote work has fueled interest in coastal and island living, increasing the appeal of these properties as both lifestyle and investment assets. Buyers today prioritize beachfront and oceanfront homes with office space and strong internet, while climate change impacts and rising construction costs are influencing design choices toward sustainable, eco-friendly features. This trend is evident in the Pearl Islands, where demand for beachfront villas, oceanfront estates, eco-developments, and private island properties continues to climb.

A Tropical Archipelago With Global Appeal

Proximity: Only a 15-minute flight or 90-minute ferry ride from Tocumen International Airport (PTY).

Eco-Tourism: Whale watching, snorkeling, scuba diving, and world-class sportfishing.

Exclusivity: Opportunities to buy a private island in Panama with full beachfront and oceanfront access.

The Ritz-Carlton is developing the first five-star resort in the Pearl Islands, a strong signal of long-term confidence in luxury tourism and high-end real estate. Historically, global luxury brands catalyze beachfront property appreciation by increasing visibility and infrastructure.

Reports indicate Panama’s island real estate has appreciated over 60% in recent years, with further growth expected as tourism expands and supply remains limited. Key drivers include a stable, dollarized economy, foreigner-friendly property laws (including titled beachfront/oceanfront parcels), and expanding eco-luxury hospitality. These real estate insights reveal a promising future for investors in the region.

A Small Few Notable Islands in the Pearl Archipelago Advertised for Sale on the Island Magazines

Isla de Puercos — ~100 hectares with multiple sandy beaches, oceanfront coves, and elevated ridge-lines; a natural harbor ideal for yacht access, marina concepts, or boutique resort.

Corona del Rey on Isla del Rey, Pearl Islands— ~1,740 acres of oceanfront/beachfront on the archipelago’s largest island; over 5 kilometers of ocean and white beaches is scale for eco-resorts, luxury villas, marinas, and conservation corridors; positioned to benefit from regional momentum, including Ritz-Carlton’s arrival and other notable developments.

Gibraleon Island 92 hectares (227 acres) of white beaches. Potential for private retreat, eco-development, and marina.

We believe that when these large properties are sold, only small parcels will be available in the future.

Why Analysts Call It “The New Gold”

Scarcity: Finite supply of private islands and titled oceanfront land.

Appreciation: Rising international visibility + limited inventory.

Dual Value: Lifestyle paradise and a durable long-term asset.

Global Access: Connectivity makes buying an island in Panama simpler than in remote chains.

Many real estate experts agree that the Pearl Islands stand at the threshold of a remarkable transformation. World-class resorts, eco-conscious projects, and luxury communities are rapidly reshaping the landscape, elevating the islands into one of the world’s most coveted destinations. Each new development fuels international interest while steadily pushing property values higher. Momentum is accelerating, and forward-thinking investors are already moving to secure their positions.

The Pearl Islands: From Pirate Treasure to Modern Paradise

Few places in the Americas sparkle with as much history—and actual pearls—as Panama’s famed Pearl Islands (Islas de las Perlas). Just 30 miles off the coast of Panama City, this archipelago of more than 200 islands and islets has been a crossroads for fortune seekers, conquistadors, pirates, and, more recently, eco-minded investors and celebrities looking for property investments.

A History Drenched in Adventure

The story begins in the early 1500s when Spanish explorers “discovered” the islands. They were dazzled by the abundance of pearls harvested by the Indigenous people, which gave the islands their name. Soon, the Spanish crown claimed them, and pearls from these waters adorned European royalty for centuries.

But wealth attracts trouble. The islands became a favorite hideout for pirates, including the notorious Henry Morgan, who prowled Panama’s coasts. Over the years, the Pearl Islands were fought over, forgotten, rediscovered, and eventually developed into a blend of rustic fishing villages and exclusive retreats. In the 20th century, they gained global fame as the exotic backdrop for TV shows like Survivor, and more recently, as a playground for the world’s wealthy yacht owners and eco-developers seeking real estate insights.

Today’s Allure

The Pearl Islands remain wild and stunning, with white-sand beaches, turquoise waters, and forests teeming with wildlife. Many are protected eco-reserves, but pockets of private land still offer opportunities for those with vision. Development has been carefully weighed against conservation, making the islands a rare blend of natural sanctuary and luxury destination.

Across the Water: Modern Panama City

While the Pearl Islands hold the romance of history, Panama City—just a short boat or plane ride away—anchors them to the 21st century.

Skyline & Economy: Once a sleepy colonial outpost, Panama City now boasts a glittering skyline that rivals Miami or Singapore. Fueled by the Panama Canal’s global trade hub and a booming services sector, the city has transformed into one of Latin America’s most cosmopolitan capitals.

Healthcare: Panama has become a surprising medical tourism destination. The city offers world-class hospitals (many affiliated with U.S. institutions like Johns Hopkins), English-speaking doctors, and modern care at a fraction of U.S. costs. For investors or retirees considering the Pearl Islands, this means access to excellent healthcare is only an hour away.

Infrastructure: Panama has invested heavily in infrastructure. A modern metro system, expanded highways, and a state-of-the-art Tocumen International Airport connect the capital to the rest of the world. Fiber optic internet, reliable utilities, and banking systems have made it a regional hub for business and finance.

A Place Where Old Meets New

This unique combination makes the Pearl Islands especially desirable. Imagine: you can spend the morning fishing in waters once sailed by buccaneers, relax on an untouched beach in the afternoon, and be back in a bustling metropolis with fine dining, luxury shopping, and first-class medical care by evening.

The Pearl Islands are no longer just about pearls—they’re about opportunity, exclusivity, and the perfect balance between nature’s wild beauty and modern convenience.

Conclusion

With unmatched natural beauty, excellent accessibility, and the legal stability Panama is known for, the Pearl Islands are evolving from hidden gem to gold-standard tropical investment. Backed by the brand validation of Ritz-Carlton and supported by Panama City’s modern infrastructure, world-class healthcare, international banking, and one of the busiest airports in Latin America, the islands offer more than just paradise. They represent a secure, well-connected opportunity for investors, eco-developers, and private buyers alike. Combining beachfront and oceanfront living with long-term appreciation potential, the Pearl Islands stand as a rare chance to claim a stake in the future of Panama’s luxury market.