Panama is a major beneficiary of globalization, with the country sitting between North and South America and trade routes between the Atlantic and Pacific oceans.

"Panama is forecast to be one of the fastest growing economies in Latin America in the coming years and is uniquely placed to reflect the growth of world trade as all types of shipping pass through its famous canal," said Barnes.

As the country's economy grows, Panama City has seen new hotels and restaurants crop up. Property investors are taking notice.

Barnes said the city is especially attractive for people looking to buy a place and then rent it out, predicting smart landlords could see annual returns in excess of 8% a year.

"Demand for rental property should remain strong given the likely strength of the economy and number of people coming to the city to work," she said.

The price for a typical two-bedroom apartment ranges from $200,000 to $500,000.