The earthquake and buying property in Panama
Short answer: The 9 October earthquake (magnitude 7.7 per USGS) hit rural Azuero hardest and left Panama City with minor reported damage. It does not tell you whether a specific building is safe. Ask for the structural plans, the code it was designed under, a soil study and the latest inspection report.
First, the people: there were no deaths and about thirty minor injuries, but thousands of families are in shelters or outdoors, and the official collection centre in Panama City is Parque Omar (provincial governorates collect elsewhere). If you are buying in Panama, or thinking about it, this note is about what the quake does and does not change. Nothing here is a safety guarantee.
Step 1: know what actually happened
At 12:56 on 9 October a magnitude 7.7 earthquake struck the Azuero Peninsula (7.5 per Sinaproc and the University of Panama). By 12 October, authorities counted more than 1,280 homes, 619 schools and 44 churches with damage, mostly in Coclé, Veraguas and Los Santos, and 305 aftershocks in the first 56 hours. Our Chart of the Week #4 shows how fast the count has grown and why it is still preliminary.
Panama City felt a lower intensity (about 5 against 7 near the epicentre, per architect Carlos Solís). Officials reported minor damage in four buildings in Panamá province, the Metro reopened after two days, and the main Canal bridges stayed open. An older ward of the Santo Tomás Hospital was evacuated.
Step 2: read the building’s code history, not just its age
Panama’s structural code has changed several times, and what a building had to meet depends on the version. Newsroom Panama traces it from the first legal code in 1985 to the current 2021 version, in force since April 2023. A permit date and the code a building was designed under are different questions, and the second is the one to ask.
| Code version | What it changed | What to take from it |
|---|---|---|
| Before 1985 | No legal seismic code (a 1976 engineers’ code had no force of law) | Ask for an engineer’s assessment; plans may not exist. |
| 1985 (REP-84) | First legal code, published 23 January 1985; no formal seismic design required for single-family homes | Homes of this era may have no seismic design. |
| 1994 (REP-94) | Stricter standards for single-family homes; seismic coefficients from local earthquake data | Better for houses, still old. |
| 2004 (REP-2004) | Sensors required in new buildings over 15 floors or 5,000 m² | Tall towers from this era feed data to the Technological University. |
| 2014 (REP-2014) | Incorporated the Pedro Miguel and Limón fault studies done for the Canal expansion | Capital-specific fault risk is in the design basis. |
| Since 30 Apr 2023 (REP-2021) | Current code, adopted by the engineering board (JTIA Resolution 020-2022) | Ask which code the building was designed under, not just when it was built. |
Step 3: five questions to put in writing before you pay
1. Which version of the structural code was the building designed under, and where are the approved structural plans? 2. Was there a soil study, and what foundation was used? 3. Has a licensed engineer inspected the building since 9 October, and can you see the report? 4. For a unit in a condominium: what does the building’s administration say about inspections of common structure, facade, stairs, tanks and joints? 5. What does the insurance policy cover for earthquake, and has the insurer changed terms since the quake?
The engineers’ society (SPIA) advises inspections even when no damage is visible, especially for older and high-rise buildings, and says occupants should leave a building with cracks, tilting or falling material until a professional clears it.
Step 4: match the place to the risk you are taking
The reported damage clusters in older and self-built stock: churches, adobe and block homes, rural schools. Some beach hotels in Azuero were also damaged. If your plan is land, a finca or a beach rental in the interior, the soil and slope matter as much as the building, and Solís warns against building on hillsides, riverbanks, floodplains or filled mangroves. If your plan is a recent tower in the capital, the questions above are still worth asking; they are simply easier to answer for newer buildings with plans on file.
Step 5: what the earthquake does not change
It does not change the investor-visa rules, the tax questions or the price math in our other notes. It may change how buyers and insurers behave, but we have no price, sales or insurance data since 9 October, and we will not guess. We will update this note when verified data exists.
Related: Chart of the Week #4: the count keeps growing, From 9.4% gross to what you keep.
Common questions
Is it safe to buy property in Panama after the earthquake?
No source can answer that for every building. Most reported damage is rural, and Panama City reported minor damage, but engineers ask every building to be inspected. Ask for plans, the code version, a soil study and the latest inspection report.
Which building code applies in Panama?
The current structural code is REP-2021, in force since 30 April 2023. Older buildings were designed under earlier versions (1985, 1994, 2004, 2014), so ask which version a specific building used.
Should I wait to buy until the market reacts?
We cannot say. There is no verified price or sales data since the quake. Use the time to do the inspection and insurance checks you would want anyway.
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