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Everything you need to know before buying real estate is included in our Colombia Property Pack
As of September 2025, Colombia's Airbnb market presents compelling opportunities for foreign investors seeking profitable short-term rental investments. Colombian cities like Medellín, Bogotá, and Cartagena have established themselves as prime destinations for digital nomads and tourists, creating strong demand for quality short-term accommodations.
The Colombian short-term rental market offers net yields ranging from 6% to 10% for well-managed properties in premium locations, significantly outperforming traditional long-term rentals. However, success requires careful location selection, regulatory compliance, and professional property management to navigate the competitive landscape and evolving regulations.
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.
Colombian Airbnb investments can generate net yields of 6-10% in prime locations like El Poblado and Laureles in Medellín, with top-performing properties achieving gross revenues of $17,000+ annually.
Operating costs typically consume 30-45% of gross rental income, and all hosts must register with Colombia's National Tourism Registry (RNT) to operate legally as of 2025.
| City | Best Neighborhoods | Average Nightly Rate | Typical Occupancy | Net Yield Range |
|---|---|---|---|---|
| Medellín | El Poblado, Laureles | $55-$100 | 65-75% | 6-10% |
| Bogotá | Chapinero, La Candelaria | $33-$70 | 41-67% | 5-8% |
| Cartagena | Getsemaní, El Laguito | $84+ | 56% | 7-9% |
| Cali | San Antonio, El Peñón | $45-$80 | 45-65% | 6-8% |
Which Colombian cities and neighborhoods offer the highest Airbnb demand?
Medellín leads Colombia's Airbnb market with El Poblado and Laureles neighborhoods generating the strongest rental demand as of September 2025.
El Poblado attracts premium-paying guests seeking modern amenities, upscale dining, and nightlife, while Laureles appeals to digital nomads and longer-term visitors looking for authentic local experiences at better value rates. Both neighborhoods consistently achieve occupancy rates of 65-75% for well-managed properties.
Bogotá's Chapinero and La Candelaria districts rank second for Airbnb demand, offering a mix of historic charm and urban sophistication that attracts both business travelers and tourists. Cartagena's Getsemaní and El Laguito neighborhoods command premium rates due to their beachfront locations and colonial architecture, making them ideal for luxury short-term rentals targeting international tourists.
Cali's San Antonio and El Peñón areas show growing demand, with San Antonio popular among travelers seeking bohemian culture and El Peñón attracting upscale guests. Santa Marta and Barranquilla also demonstrate consistent short-term rental demand, though at lower volume than the primary markets.
The key difference lies in guest profiles: El Poblado and Getsemaní command premium rates for luxury accommodations, while Chapinero and Laureles attract guests seeking authentic local experiences at moderate price points.
What types of properties perform best for Colombian Airbnb rentals?
One and two-bedroom apartments in full-service buildings with amenities like pools, gyms, and 24-hour security deliver the strongest Airbnb performance in Colombian markets.
Modern lofts and recently renovated spaces attract younger travelers and digital nomads who prioritize contemporary design and reliable internet connectivity. These properties typically achieve 15-20% higher nightly rates compared to basic apartments in the same neighborhoods.
Luxury penthouses and villas with private terraces, jacuzzis, or panoramic city views command the highest average daily rates (ADRs) in premium areas like El Poblado and Cartagena's Old Town. However, these properties require significantly higher initial investments and may experience longer vacancy periods between bookings.
Studios perform well in high-demand areas for budget-conscious travelers, but two-bedroom units offer the best balance of rental income potential and guest appeal for families and groups. Properties with dedicated workspace areas have become increasingly valuable since 2024, as remote workers comprise a growing segment of Colombia's visitor market.
It's something we develop in our Colombia property pack.
How much do properties cost in Colombia's top Airbnb neighborhoods?
| Neighborhood | 1-Bedroom Price (USD) | 2-Bedroom Price (USD) | Price per m² (USD) |
|---|---|---|---|
| El Poblado, Medellín | $75,000-$250,000 | $120,000-$350,000 | $1,500-$2,500 |
| Laureles, Medellín | $50,000-$180,000 | $100,000-$280,000 | $1,200-$1,800 |
| Envigado, Medellín | $48,000-$150,000 | $95,000-$250,000 | $1,100-$1,500 |
| Getsemaní, Cartagena | $90,000-$350,000 | $160,000-$500,000 | $1,900-$3,200 |
| Chapinero, Bogotá | $65,000-$200,000 | $110,000-$270,000 | $1,200-$2,000 |
| San Antonio, Cali | $45,000-$120,000 | $80,000-$200,000 | $900-$1,400 |
| El Laguito, Cartagena | $120,000-$400,000 | $200,000-$600,000 | $2,200-$3,500 |
What are the average nightly rates for Colombian Airbnb properties?
Medellín's premium neighborhoods achieve nightly rates of $55-$100 for standard 1-2 bedroom properties, with luxury listings commanding $151+ per night as of September 2025.
El Poblado properties consistently achieve the highest rates in Medellín, with well-positioned luxury apartments earning $120-$200+ per night during peak seasons. Laureles offers better value positioning with nightly rates of $45-$80 for quality properties, attracting longer-stay guests and digital nomads.
Bogotá's short-term rental market shows more conservative pricing, with median nightly rates of $33 across all property types, while top-performing listings in Chapinero achieve $51-$70 per night. Premium properties in upscale areas can reach $100+ during high-demand periods.
Cartagena commands the highest rates in Colombia, with median nightly rates of $84 and premium beachfront or colonial properties achieving $150-$300+ per night during peak tourist seasons. Santa Marta properties average $83 per night, though occupancy rates remain lower at 36%.
Seasonal variations significantly impact rates, with December-March and August showing 15-25% rate premiums, while June-July typically see 10-20% rate reductions in most markets.
What occupancy rates can investors expect throughout the year?
Well-managed Airbnb properties in Colombia's top markets achieve annual occupancy rates of 47-75%, with significant seasonal variations affecting monthly performance.
Medellín's best-performing properties in El Poblado and Laureles consistently achieve 65-75% occupancy rates, while median performers reach 47%. Professional property management and competitive pricing strategies typically add 10-15 percentage points to occupancy compared to amateur hosts.
Bogotá shows more variable occupancy patterns, with median rates of 41% across all properties but top-quartile listings achieving 67% occupancy. The capital's business travel component provides more consistent year-round demand compared to leisure-focused markets.
Peak season months (December-March, August) typically boost occupancy rates by 10-15 percentage points above annual averages, while low season periods (June-July, September-November) see corresponding decreases. Cartagena experiences the most pronounced seasonality, with occupancy swinging from 70%+ during peak months to 35-40% during low season.
Properties targeting digital nomads and longer-term stays achieve more stable occupancy throughout the year, though at potentially lower nightly rates than tourist-focused accommodations.
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What gross rental income can properties generate monthly and annually?
A well-positioned 1-bedroom property in El Poblado generates gross monthly revenues of $701-$1,425, with top-performing listings achieving $2,882+ monthly as of September 2025.
Annual gross revenue for quality Medellín properties ranges from $8,400 for median performers to $17,100+ for professionally managed listings in prime locations. Two-bedroom properties typically generate 40-60% higher gross revenues due to higher nightly rates and appeal to larger groups.
Bogotá properties show more conservative revenue potential, with prime 2-bedroom units generating $411-$779 monthly ($5,000-$9,400 annually) for median to top-quartile performance. Premium properties with exceptional management can reach $1,300+ monthly.
Cartagena's luxury market offers the highest revenue potential per property, with beachfront and colonial properties achieving $1,500-$3,000+ monthly during peak seasons, though annual averages moderate due to pronounced seasonality. Santa Marta properties typically generate $600-$1,200 monthly depending on location and property quality.
Revenue optimization requires dynamic pricing strategies, professional photography, and responsive guest communication to achieve top-quartile performance levels in any market.
What are the main operating costs for Colombian Airbnb properties?
Total operating costs typically consume 30-45% of gross rental income for Colombian Airbnb properties, with platform fees, management, and utilities representing the largest expense categories.
Airbnb platform fees range from 3-20% of booking revenue, though the standard host-only fee structure in Colombia averages around 15%. Professional property management services charge 10-25% of booking revenue, but often increase occupancy and rates enough to justify the expense.
Cleaning costs range from $15-$30 per turnover for basic properties, with luxury units requiring $40-$60 per cleaning. Most successful hosts charge separate cleaning fees to guests, making this cost-neutral to revenue. Utilities including electricity, water, and high-speed internet typically cost $70-$120 monthly for small units, rising to $200+ for large or luxury properties with pools and premium amenities.
HOA and building administration fees range from $50-$150 monthly depending on building amenities and services. Annual maintenance and repairs typically require $300-$1,000 budgets for normal wear and tear, with higher amounts needed for luxury properties or high-turnover situations.
It's something we develop in our Colombia property pack.
How do gross yields translate into net yields after expenses?
Colombian Airbnb properties typically generate gross yields of 8-12% in prime markets, translating to net yields of 6-9% after operating expenses for well-managed properties.
A typical calculation for a $120,000 property generating $12,000 annual gross rent produces a 10% gross yield. After operating costs of 35-40% ($4,200-$4,800), the net yield ranges from 6-6.5%. Top-performing properties with professional management often achieve net yields of 8-10% through higher occupancy rates and revenue optimization.
El Poblado properties purchased at median prices and operated professionally typically deliver 7-9% net yields, while Laureles properties can achieve 8-10% due to lower purchase prices relative to rental income potential. Cartagena's luxury market shows more variable results, with net yields ranging from 5-8% depending on seasonality management and property positioning.
Premium properties requiring higher initial investments may show lower percentage yields but generate higher absolute cash flow. Investors should factor in Colombian peso depreciation trends and potential currency exchange considerations when calculating returns for USD-based investors.
Properties targeting longer-term stays (weekly/monthly rates) often achieve higher net yields through reduced turnover costs and more stable occupancy, though potentially at lower gross revenue levels.
How do short-term rental returns compare to long-term rentals?
Short-term rentals in Colombia's prime markets typically outperform long-term rentals by 1-3 percentage points in net yield, though with significantly higher management requirements and regulatory complexity.
Long-term rental properties in premium areas like El Poblado and Laureles generate net yields of 5-8%, providing stable monthly cash flow with minimal management overhead. Short-term rentals in the same areas achieve 6-10% net yields but require active management, dynamic pricing, and guest services.
The income variability differs substantially between strategies. Long-term rentals provide predictable monthly income with annual rent increases, while short-term rentals experience seasonal fluctuations and can face sudden demand drops due to external factors like regulatory changes or economic conditions.
Time investment represents a crucial difference: long-term rentals require minimal ongoing attention after tenant placement, while successful short-term rentals demand daily communication, regular property maintenance, and continuous market optimization. Professional management services can bridge this gap but reduce net yields by 10-25%.
Regulatory risks also favor long-term rentals, as Colombian cities increasingly scrutinize short-term rental operations while traditional rentals face minimal regulatory oversight.
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 are Colombia's tax and regulatory requirements for Airbnb hosts?
All Colombian Airbnb hosts must register with the National Tourism Registry (RNT) operated by FONTUR to operate legally, as mandated by Law 2068/2020.
The RNT registration process requires submitting property documentation, tax identification numbers, and compliance certificates. Operating without RNT registration can result in fines up to 2,000 times Colombia's monthly minimum wage (approximately $500,000+ USD as of 2025).
Building approval represents another critical requirement, as many residential buildings operating under horizontal property regimes require written approval from the owners' assembly (Law 675/2001). Some buildings explicitly prohibit short-term rentals in their bylaws, making property selection crucial for legal compliance.
Tax obligations include Colombian income tax on rental revenues for both Colombian residents and foreign investors. VAT (19%) may apply to short-term rental income, and several cities impose additional tourist taxes on guests. Foreign investors should consult Colombian tax professionals to understand withholding requirements and double taxation treaty benefits.
Local municipal regulations vary by city, with Cartagena, Bogotá, and Medellín implementing additional zoning restrictions, guest registration requirements, and minimum stay policies in certain areas.
What future restrictions could impact Colombian Airbnb profitability?
Colombian cities are actively developing new regulations that could significantly impact short-term rental profitability, with Cartagena, Bogotá, and Medellín leading restrictive policy discussions as of September 2025.
Proposed restrictions include designated tourist zones limiting Airbnb operations to specific areas, minimum stay requirements of 3-7 nights in residential neighborhoods, and increased taxation on short-term rental income. Some municipalities are considering guest registration systems requiring detailed visitor documentation and reporting to local authorities.
Building-level restrictions are becoming more common, with newer residential developments increasingly prohibiting short-term rentals in their governing documents. This trend particularly affects luxury buildings in prime areas where many international investors prefer to purchase.
Environmental and noise concerns are driving neighborhood-level opposition to short-term rentals in residential areas, potentially leading to more restrictive zoning policies. Some areas are considering caps on the percentage of units that can operate as short-term rentals within specific buildings or blocks.
Investors should monitor municipal government websites and local real estate associations for regulatory updates, as changes can significantly impact property values and rental income potential with limited advance notice.
What realistic profits and investment recovery timeframes should investors expect?
A $200,000 two-bedroom apartment in El Poblado operating at 75% occupancy can generate $11,200 annual net profit, representing a 5.6% net yield with an 18-year investment recovery period at current market conditions.
This calculation assumes $18,000 gross annual rental income ($66 average nightly rate), $6,800 in operating expenses (38% of gross income), resulting in $11,200 net annual profit. Skilled operators managing properties hands-on often achieve 10-15% higher net yields through cost optimization and revenue maximization.
Faster recovery periods of 10-13 years are achievable through professional management, premium property positioning, and market appreciation. Properties purchased below market value or in emerging neighborhoods may accelerate returns through capital appreciation combined with rental income.
Monthly cash flow for the example property averages $933, though seasonal variations create monthly swings from $600-$1,400 depending on time of year. Investors should maintain cash reserves of 3-6 months operating expenses to manage seasonal fluctuations and unexpected maintenance costs.
It's something we develop in our Colombia property pack.
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.
Colombian Airbnb investment remains highly profitable in 2025 for well-prepared investors who prioritize legal compliance and professional management.
Success requires careful neighborhood selection, thorough regulatory compliance, and realistic expectations about seasonal income variations and ongoing management requirements.
Sources
- Arepas del Gringo - Best Colombian Airbnb Locations
- Airbtics - Best Airbnb Markets in Colombia
- AirROI - Medellín Market Report
- Everyplace - Medellín Rental Strategy Comparison
- AirROI - Bogotá Market Analysis
- Airbtics - Bogotá Annual Revenue Data
- The Wandering Investor - Medellín Cap Rate Analysis
- Everyplace - Medellín Airbnb Regulations