Authored by the expert who managed and guided the team behind the Colombia Property Pack
Yes, the analysis of Cartagena's property market is included in our pack
Running an Airbnb in Cartagena offers attractive returns for savvy investors. The coastal Colombian city delivers strong rental yields of 6-12% annually, with premium properties in Old Town and GetsemanĂ commanding $120-$300 per night during peak tourist seasons.
The market shows solid fundamentals with year-round demand from international visitors drawn to Cartagena's colonial architecture, beaches, and vibrant culture. Initial investment typically ranges from $125,000-$200,000 for a well-located apartment, plus $7,000-$15,000 for furnishing and setup.
If you want to go deeper, you can check our pack of documents related to the real estate market in Colombia, based on reliable facts and data, not opinions or rumors.
Cartagena's Airbnb market offers strong investment potential with 6-12% annual returns, driven by consistent tourist demand and premium location advantages in historic neighborhoods.
Successful properties require initial investments of $125,000-$200,000 plus furnishing costs, generating monthly net income of $1,200-$2,600 for well-managed units in prime locations.
| Investment Aspect | Amount/Range | Details |
|---|---|---|
| Property Purchase Price | $125,000-$200,000 | 2-bedroom apartment in prime areas |
| Furnishing & Setup | $7,000-$15,000 | Complete operational setup |
| Monthly Gross Income | $1,700-$2,600 | Based on 58% average occupancy |
| Monthly Operating Costs | $400-$1,000 | Self-managed properties |
| Annual ROI | 6-12% | Cash-on-cash returns |
| Average Occupancy Rate | 45-58% | Seasonal variations apply |
| Management Fees | 20-30% | Professional management companies |
What kind of property is best suited for Airbnb in Cartagena and what is the average purchase price?
Two-bedroom apartments in Cartagena's historic neighborhoods offer the best Airbnb investment potential as of June 2025.
The most profitable properties are located in Old Town (Centro HistĂłrico), GetsemanĂ, and Bocagrande, where tourists prioritize colonial charm, vibrant nightlife, and beach access. Properties featuring unique amenities like private pools, rooftop terraces, or sea views command premium rates and maintain higher occupancy throughout the year.
As we reach mid-2025, the median price per square foot in Cartagena stands at COP 602,702 for apartments and COP 552,295 for houses. A typical 2-bedroom apartment spanning 80-100 square meters costs approximately COP 480-600 million, translating to $125,000-$150,000 USD at current exchange rates.
Houses in prime locations near the historic center or beachfront areas range from $200,000 to $500,000 depending on size, condition, and specific amenities. Premium properties with exceptional features can exceed these ranges significantly.
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How much does it cost to furnish and set up a fully operational Airbnb rental in Cartagena?
Furnishing a 2-bedroom Airbnb apartment in Cartagena requires an investment of $7,000-$15,000 for complete operational readiness.
This budget covers essential furniture, appliances, kitchenware, quality linens, and decorative elements that create an appealing guest experience. For larger 3-bedroom properties, expect costs to range from $10,000-$20,000 to achieve the same standard of furnishing.
Beyond basic furnishing, operational setup adds another $1,000-$2,000 to your initial investment. This includes cleaning supplies, safety equipment, smart locks for convenient guest access, basic maintenance tools, and welcome amenities that enhance guest satisfaction.
Professional photography and listing optimization services typically cost $200-$500 but prove essential for attracting bookings and commanding higher rates. Quality photos directly impact your property's booking performance and ability to compete with other listings in Cartagena's competitive market.
What are the typical nightly rates for similar Airbnb listings in the same neighborhood?
| Neighborhood | Property Type | Nightly Rate Range |
|---|---|---|
| Old Town/Centro HistĂłrico | 2-bedroom apartment | $120-$300 |
| GetsemanĂ | 2-bedroom apartment | $120-$280 |
| Bocagrande | 2-bedroom apartment | $90-$250 |
| El Laguito | 2-bedroom apartment | $90-$220 |
| La Boquilla | 2-bedroom apartment | $70-$150 |
| Luxury Properties (all areas) | Premium amenities | $200-$400+ |
What is the average occupancy rate for Airbnb properties in Cartagena across low and high seasons?
Cartagena's Airbnb market maintains a median annual occupancy rate of 58%, with significant seasonal variations affecting profitability.
High season periods from December through April and June through July see occupancy rates of 70-85% for well-positioned properties. These months coincide with North American winter travel patterns and European summer holidays, driving strong demand for short-term rentals.
Low season months including May and August through November experience reduced occupancy rates of 40-55%. During these periods, properties must compete more aggressively on pricing while maintaining service quality to attract the smaller pool of travelers.
Top-performing properties with exceptional locations, amenities, and management achieve occupancy rates exceeding these averages, while below-average properties may struggle to reach even 45% annual occupancy. Property quality, pricing strategy, and active management directly influence occupancy performance.
What monthly gross income can I realistically expect based on average rates and occupancy?
Well-managed 2-bedroom apartments in Cartagena generate monthly gross income of $1,700-$2,600 based on current market conditions.
Using conservative estimates with average nightly rates of $100-$150 and the median 58% occupancy rate, monthly calculations show: $100 per night Ă— 30 days Ă— 58% occupancy equals $1,740 monthly gross income, while $150 per night under the same conditions generates $2,610 monthly.
Premium properties in peak locations during high season can achieve $3,000-$4,000 monthly gross income, though these results require exceptional properties, professional management, and optimal market timing. Most investors should plan for the more conservative $1,700-$2,600 range for realistic financial planning.
Seasonal variations significantly impact monthly performance, with high season months potentially doubling low season income. Successful operators balance peak season pricing optimization with competitive low season rates to maintain year-round cash flow.
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What are the monthly operating expenses including utilities, cleaning, maintenance, platform fees, and management costs?
Monthly operating expenses for self-managed Airbnb properties in Cartagena range from $400-$1,000, increasing to $700-$1,500 with professional management.
Utilities including electricity, water, gas, and internet typically cost $100-$300 monthly depending on property size and guest usage patterns. Cleaning expenses vary with turnover frequency, averaging $50-$150 per guest checkout, though many hosts pass this cost to guests as a cleaning fee.
Routine maintenance, pool service, and property upkeep require $100-$300 monthly budgeting for unexpected repairs and regular maintenance. Platform fees consume 3% of gross income for host-only fee structures, or 14-16% under split fee arrangements where guests also pay platform fees.
Professional property management companies charge 20-30% of rental income for comprehensive services including guest communication, cleaning coordination, maintenance oversight, and pricing optimization. Insurance coverage typically costs $50-$150 monthly for appropriate liability and property protection.
Are there any local taxes, licensing fees, or legal regulations that affect short-term rentals in Cartagena?
Short-term rental operators in Cartagena must comply with specific licensing requirements and tax obligations as of 2025.
All properties rented for periods under 30 days require registration with Colombia's National Tourism Registry (RNT) and must comply with local municipal regulations. This registration process ensures properties meet basic safety and operational standards for tourist accommodation.
Income tax obligations follow Colombia's progressive rate structure from 0-39%, with allowable deductions for property-related expenses including maintenance, utilities, and platform fees. VAT at 19% may apply if gross earnings exceed specific thresholds, though tourism services to Colombian residents remain temporarily exempt until end of 2025.
Municipal Industry and Commerce Tax (ICA) applies at rates of 0.4-1.38% of gross earnings depending on the specific municipality. Some condominium buildings restrict short-term rentals through internal regulations, making pre-purchase verification with building administration essential for investment planning.
How long does it typically take for a property to break even and start generating positive cash flow?
Airbnb properties in Cartagena can achieve positive cash flow immediately when net rental income exceeds all monthly expenses including mortgage payments.
For financed properties, positive cash flow depends on loan terms and down payment size rather than total investment recovery. A property generating $2,000 monthly gross income with $800 in expenses produces $1,200 net income, which often covers mortgage payments on properly leveraged investments.
All-cash investors face a different calculation where capital recovery requires significantly longer timeframes. A $160,000 total investment (property plus furnishing) generating $1,200 monthly net income needs approximately 133 months or 11+ years for complete capital recovery, though cash flow remains positive from the start.
The distinction between cash flow and capital recovery is crucial for investment planning. While cash flow can begin immediately with proper financing, full investment recovery depends on long-term appreciation, tax benefits, and consistent rental performance over many years.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Colombia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
What is the average ROI (return on investment) for Airbnb properties in Cartagena over 1, 3, and 5 years?
Cartagena Airbnb properties deliver annual cash-on-cash returns of approximately 9% based on current market conditions.
Using realistic figures of $14,400 annual net income on a $160,000 total investment, investors achieve 9% yearly returns before considering property appreciation or tax benefits. This calculation focuses solely on rental income performance rather than total investment returns including capital gains.
Over multiple years, cumulative returns reach approximately 27% after three years and 45% after five years, excluding property appreciation and reinvestment benefits. Well-managed properties in premium locations often exceed these averages, while properties with poor management or unfavorable locations may underperform.
Total investment returns including property appreciation, tax benefits, and compounding effects can significantly exceed cash-on-cash calculations. Cartagena's real estate market has shown consistent appreciation trends, though future performance depends on broader economic conditions and tourism market development.
How does Airbnb profitability compare to long-term rental income in Cartagena for the same type of property?
Airbnb properties in Cartagena typically generate double the gross income of equivalent long-term rentals, though with higher operating expenses and management requirements.
A 2-bedroom apartment earning $1,200-$2,000 monthly net income through Airbnb would generate only $600-$1,200 monthly gross income as a long-term rental. This significant income differential makes short-term rentals attractive despite increased complexity and operational demands.
Long-term rentals offer stability, lower management costs, and reduced vacancy risk, while Airbnb investments provide higher income potential at the cost of seasonal fluctuations, active management requirements, and regulatory compliance obligations.
The choice between strategies depends on investor preferences for hands-on management, risk tolerance for income variability, and local market conditions. Many successful investors use Airbnb during high seasons and long-term leases during low seasons to optimize returns while maintaining cash flow stability.
What risks should I consider—seasonal tourism fluctuations, legal changes, property damage, or neighborhood trends?
1. **Seasonal Tourism Fluctuations**: Cartagena experiences significant seasonal demand variations with occupancy dropping 30-40% during low season months of May and August through November.2. **Regulatory Changes**: Short-term rental regulations continue evolving in Colombia, with potential future restrictions on licensing, taxation, or operational requirements affecting profitability.3. **Property Damage Risk**: Short-term guests present higher property damage risk compared to long-term tenants, requiring comprehensive insurance coverage and security deposit policies.4. **Neighborhood Tourism Trends**: Tourist preferences and safety perceptions can shift, affecting specific neighborhood demand and property values over time.5. **Currency Exchange Risk**: International investors face peso-dollar exchange rate fluctuations affecting both property values and rental income conversion.Do I need a property management company and what percentage of rental income do they usually charge in Cartagena?
Professional property management proves highly beneficial for non-local investors and those preferring hands-off investment approaches.
Cartagena property management companies typically charge 20-30% of gross rental income for comprehensive services including guest communication, reservation management, cleaning coordination, maintenance oversight, and pricing optimization.
Management services become particularly valuable for international investors who cannot provide immediate responses to guest needs, local language support, or emergency maintenance coordination. The cost often justifies itself through improved occupancy rates, higher guest satisfaction scores, and reduced owner stress.
Self-management remains viable for local investors with available time and Spanish language skills, though professional management allows for true passive income and often delivers superior financial results through optimized pricing strategies and operational efficiency.
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Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Cartagena's Airbnb market offers compelling investment opportunities for those willing to navigate the operational complexities of short-term rentals.
Success requires careful property selection, adequate capitalization for furnishing and operations, and either dedicated personal management or professional service providers to maximize returns.
Sources
- Jones Around The World - Best Airbnb Cartagena
- Hichee - Cartagena Vacation Rentals
- AirROI - Cartagena Market Report
- Properstar - Cartagena House Prices
- George Panel - Airbnb Furnishing Costs
- Airbtics - Cartagena Annual Revenue
- Airbnb - Colombia Tax Guide 2023
- Medellin Guru - Airbnb Hosting Colombia