Neighborhoods of Panama City, Panama: A Local-Inspired Guide to Where to Stay and Explore

Discover the diverse barrios that make up Panama’s vibrant capital.

Panama City isn’t a place you experience in a day—it’s a city you get to know block by block, neighborhood by neighborhood. From sleek towers overlooking the Pacific to cobbled streets lined with colonial charm, each barrio has its own distinct personality. Whether you’re planning a visit or considering a longer stay, here’s a real-talk guide to some of the city’s most notable neighborhoods.

Casco Viejo – Historic, Hip, and Full of Soul

Casco Viejo, the city’s historic district, is a blend of crumbling facades and beautifully restored mansions. Narrow streets open up to surprise plazas, and rooftops offer cocktails with skyline views. Expect to find art galleries, boutique hotels, hidden coffee shops, and some of the best nightlife in the city. It’s lively, photogenic, and perfect for both lazy afternoons and dancing till 2 a.m.

• Vibe: Romantic, artsy, alive with history.

• Great for: First-time visitors, nightlife lovers, photographers.

San Francisco – Local Living with a Pulse

San Francisco is one of the city’s most livable areas—walkable, leafy, and full of independent restaurants, bakeries, and small businesses. It’s where locals hang out, offering a grounded, less touristy experience. You’ll find everything from Pilates studios to skate parks, and Parque Omar provides a vast green space for relaxation.

• Vibe: Cool and casual, with a community feel.

• Great for: Digital nomads, families, long-stay travelers.

Obarrio – Business Meets Boutique

Obarrio is the city’s polished heart, filled with banks and office towers, but also home to stylish hotels, tucked-away cafés, and excellent restaurants. It’s clean, walkable, and centrally located, making it convenient for both business and leisure. Nearby, Soho Mall offers high-end shopping with brands like Louis Vuitton and Burberry, as well as a movie theater.

• Vibe: Smart, sleek, city-core energy.

• Great for: Business travelers, shoppers, those seeking a central but relaxed atmosphere.

El Cangrejo – Creative and Diverse

El Cangrejo has soul. It’s a bit scrappier than Punta Pacifica or Obarrio, but that’s part of its charm. You’ll find funky architecture, great local food, murals around every corner, and a blend of people from all walks of life. It’s walkable, energetic, and has a touch of grit that makes it feel authentic. Keep an eye out for a Diablo Rojo, an old U.S. school bus painted and converted into a private city bus.

• Vibe: Eclectic, artsy, full of character.

• Great for: Culture-seekers, solo travelers, expats.

Punta Pacifica – High-Rise Luxury by the Water

Punta Pacifica is all about luxury. Think glass towers, private clinics, doormen, and stunning ocean views. It’s not the place for colonial charm or backpacker budgets, but if you want high-end convenience and don’t mind being a bit removed from the city’s cultural heart, this could be your spot.

• Vibe: Upscale, modern, polished.

• Great for: Luxury travelers, medical tourism, long-stay expats.

Costa del Este – Quiet, Green, and Gated

A 15-minute drive from the city center (without traffic), Costa del Este feels almost suburban. It’s meticulously planned, green, and very family-friendly. It’s also home to many expats and corporate headquarters. If you’re coming to Panama to work remotely, move with family, or just want peace and quiet with city access, this is where many international families settle.

• Vibe: Suburban calm with city convenience.

• Great for: Expats, families, extended stays.

Amador Causeway – Ocean Views and Breezy Days

The Amador Causeway is Panama City’s front porch—laid-back, scenic, and the place locals go to breathe a little. It connects a series of small islands and offers sweeping views of both the ocean and the city skyline. Built using rocks excavated during the construction of the Panama Canal, the causeway was completed in 1913 and initially served as a strategic military defense post. Today, it’s a popular spot for biking, visiting the Biomuseo (designed by Frank Gehry), or enjoying a meal with a view. From here, you can also catch ferries to Taboga Island and some of the Pearl Islands.

• Vibe: Coastal, relaxed, made for weekend wandering.

• Great for: Sunset strolls, families, low-key days.

Final Thoughts on Panama City’s Neighborhoods

Panama City is often underestimated—it’s more than a stopover, more than a canal. It’s a mosaic of cultures, styles, and energies. Whether you’re hunting down history, craving ocean air, or just need a good place to put your feet up and explore, there’s a neighborhood here that will feel like yours.

Pack light. Stay open. And maybe book a few extra nights—you’ll probably want them.