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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 rental market offers attractive opportunities for both investors and tenants, with major cities showing strong yields and growing demand.
Average monthly rents vary significantly across Colombian cities, with Bogotá and Medellín commanding the highest prices, while cities like Cali and Bello offer more affordable options for both renters and investors seeking higher rental yields.
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.
Colombia's rental market shows robust growth with average yields of 7% nationally, ranging from 5.71% in Cartagena to 8.25% in Bogotá as of Q2 2025.
Monthly rents span from $285 for a one-bedroom in Cali to over $1,400 for luxury three-bedroom units in premium Bogotá and Medellín districts.
| City | 1-Bedroom Rent (USD) | Average Rental Yield | Investment Profile |
|---|---|---|---|
| Bogotá | $427-$505 | 8.25% | Strong expat demand, stable yields |
| Medellín | $510-$926 | 7.78% | Digital nomad hotspot, premium growth |
| Cartagena | $684 | 5.71% | Tourism-driven, high appreciation |
| Cali | $285 | 7.31% | Affordable entry point, steady returns |
| Barranquilla | $388 | 7.00% | Consistent performance, emerging market |
| Pereira | $380 | 7.27% | Coffee region growth, strong fundamentals |
| Santa Marta | $522 | 6.8% | Coastal tourism, seasonal demand |
What's the current average monthly rent in Colombia for each major city?
As of September 2025, monthly rental prices across Colombian cities show significant variation based on location and property type.
In Bogotá, one-bedroom apartments in city center areas rent for $427-$505 monthly, while two-bedroom units range from $617-$653, and three-bedroom properties command $1,068-$1,409. Medellín shows higher premium pricing with one-bedroom units ranging from $510-$926, two-bedroom apartments from $735-$1,163, and three-bedroom properties from $926-$1,424.
Cali offers more affordable options with one-bedroom apartments at $285, two-bedroom units at $309, and three-bedroom properties at $688. Barranquilla maintains moderate pricing with one-bedroom units at $388, two-bedroom apartments at $363, and three-bedroom properties at $593.
Cartagena, driven by tourism demand, shows one-bedroom rents at $684, two-bedroom units at $664, and three-bedroom properties at $792. Pereira offers competitive rates with one-bedroom apartments at $380, two-bedroom units at $477, and three-bedroom properties at $570.
Luxury apartments and houses in premium districts of major cities can far exceed these averages, often reaching $2,000-$5,000 monthly in top neighborhoods.
How does rent vary between apartments, houses, and luxury properties?
The Colombian rental market shows distinct pricing patterns across different property types.
Apartments represent the most common rental option, particularly one-bedroom and two-bedroom units favored by city dwellers, young professionals, and the growing digital nomad population. These units typically offer the best value per square meter and highest occupancy rates.
Houses generally show lower price per square meter compared to apartments but command higher total rents due to their larger size. Family-oriented tenants prefer houses, particularly in suburban areas of major cities. Houses typically attract longer-term tenants and show more stable occupancy patterns.
Luxury properties in premium districts command significantly higher rents, ranging from $2,000-$5,000 monthly and beyond. These properties are concentrated in top neighborhoods like Usaquen and Chapinero in Bogotá, El Poblado and Laureles in Medellín, and Bocagrande in Cartagena.
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What's the typical price difference by property size, like studios, two-bedroom units, or large family homes?
Property size significantly impacts rental pricing across Colombian cities, with clear patterns emerging in September 2025.
Studios and one-bedroom apartments range from $260-$505 monthly, representing the most affordable entry point for renters and investors. These units typically measure 30-50 square meters and attract young professionals, students, and digital nomads.
Two-bedroom apartments range from $363-$653 monthly, offering better value for small families or roommate situations. These units generally provide 50-80 square meters of living space and show strong rental demand in urban centers.
Three-bedroom and large family homes range from $593-$1,409 monthly for standard properties, with luxury houses substantially higher. These properties typically exceed 80 square meters and attract family tenants seeking longer-term arrangements.
Larger units often deliver higher gross rental yields in many Colombian cities, particularly when targeting family tenants or corporate housing arrangements. The price per square meter generally decreases as unit size increases, making larger properties attractive for yield-focused investors.
What's the breakdown of total rental cost including fees, taxes, and maintenance charges?
Total rental costs in Colombia extend beyond base rent to include several mandatory and optional expenses.
| Cost Component | Amount/Range | Frequency |
|---|---|---|
| Base Monthly Rent | $285-$1,424+ (varies by city/property) | Monthly |
| Maintenance/HOA Fees | COP 200,000-800,000 ($50-200) | Monthly |
| Property Taxes | 0.3%-1% of assessed value | Annual |
| Income Tax on Rent | 3.5%-39% (progressive rates) | Annual |
| Property Insurance | COP 500,000-1,500,000 ($125-375) | Annual |
| Utilities | COP 200,000-400,000 ($50-100) | Monthly |
| Luxury Property Maintenance | COP 1,500,000+ ($375+) | Monthly |
Maintenance and HOA fees vary significantly by city and property type. In Bogotá, fees range from COP 3,000-8,000 per square meter monthly, while other cities typically charge COP 2,000-5,000 per square meter. Luxury properties may exceed COP 1.5 million monthly for maintenance.
Income tax on rental income starts with 3.5% withholding tax, then applies progressive income tax rates up to 39% marginal rate for residents on higher incomes. Non-residents face a flat 35% tax rate on rental income.
How do financing and mortgage costs affect profitability for a property investor?
Colombian mortgage financing significantly impacts property investment profitability due to current interest rate levels.
As of September 2025, Colombian mortgage rates range from 14%-16% annually for fixed-rate loans, representing some of the highest borrowing costs in Latin America. These elevated rates substantially impact cash flow for leveraged property investments.
High mortgage rates reduce the attractiveness of leveraged purchases compared to all-cash acquisitions. Investors must achieve rental yields significantly above financing costs to maintain positive cash flow, making Colombia more suitable for cash-rich investors.
For leveraged investments to remain profitable, properties must generate gross rental yields of at least 16%-18% to cover mortgage payments, maintenance costs, taxes, and provide reasonable returns. This requirement limits profitable opportunities to high-yield properties in emerging neighborhoods or premium short-term rental locations.
All-cash investors enjoy significant advantages in the Colombian market, capturing the full 6%-9% gross rental yields without financing costs. This dynamic has increased cash buyer activity and compressed yields in prime locations as competition intensifies.
What are the most profitable locations in Colombia right now for rental income?
Several Colombian cities and neighborhoods stand out for rental income profitability in September 2025.
Bogotá's Usaquen and Chapinero districts deliver consistent yields with strong demand from expats, international professionals, and corporate tenants. These areas benefit from excellent infrastructure, safety, and proximity to business districts, supporting premium rents and low vacancy rates.
Medellín's El Poblado and Laureles neighborhoods capitalize on the digital nomad boom and growing international tourism. El Poblado particularly benefits from modern amenities, safety, and vibrant nightlife, achieving yields above 7% for quality properties.
Cartagena remains the top choice for short-term rental investments, with strong tourism driving both rental income and capital appreciation. Centro Histórico and Bocagrande areas show particularly strong performance for vacation rental properties.
Emerging markets including Barranquilla, Pereira, and Santa Marta offer higher entry yields and fast-growing regions with lower acquisition costs. These cities provide opportunities for investors seeking higher returns with moderate risk profiles.
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What's the current rental yield for each property type and area, and how do they compare?
Colombian rental yields vary significantly by city and property type as of Q2 2025.
Bogotá leads with average gross rental yields of 8.25%, with yields ranging from 6%-9.9% depending on specific location and unit size. Premium neighborhoods like Usaquen and Chapinero typically achieve the higher end of this range due to strong tenant demand.
Medellín shows average yields of 7.78%, with El Poblado prime properties achieving over 7% gross yields. The city benefits from growing international attention and digital nomad influx supporting rental demand.
Cali demonstrates yields of 7.31% across the wider city area, offering attractive returns for investors seeking more affordable entry points. The city's growing economy and infrastructure development support steady rental demand.
Barranquilla maintains consistent yields of 7.00%, representing stable performance in an emerging market. The city's strategic location and growing business sector support rental fundamentals.
Cartagena shows lower yields at 5.71% due to higher property acquisition costs, though waterfront areas show lower yields while tourist core areas achieve higher returns. The city's tourism-driven market creates seasonal variations in performance.
National average yields approximately 7% in Q2 2025, with net yields typically 1.5%-2% lower after accounting for costs, taxes, and maintenance expenses.
How have rents and yields changed over the past 5 years and over the past year?
Colombian rental markets have experienced significant changes over both five-year and recent periods.
Over the past five years since 2020, property prices have increased approximately 60% nationally, outpacing rental growth in many markets. Bogotá has seen annual rental increases of 6%-7%, while Medellín experienced 7%-8% annual growth, and Cartagena achieved 10%-12% annual increases.
Short-term rental demand surged nearly 20% in 2023, with supply following to meet increased tourist and business travel. Tourism-focused locations led this growth, particularly benefiting Cartagena, Medellín, and selected Bogotá neighborhoods.
In the past year, rental yields have experienced slight compression from 7.24% in Q1 2024 to 7.03% in Q2 2025 as property prices rose faster than rental rates. This trend reflects increased investor competition and market maturation in prime locations.
Rental rate growth has generally remained strong but hasn't fully kept pace with property price appreciation, creating yield compression in established markets. Emerging neighborhoods and cities continue to offer better yield opportunities as they attract new tenant demand.
What's the forecast for rents and yields over the next 1, 5, and 10 years?
Colombian rental market forecasts show continued growth with some yield moderation expected.
Over the next year through September 2026, rents and property prices are expected to rise 6%-10% in key cities. Rental yields are likely to remain stable but face continued pressure as property price appreciation outpaces rental growth.
The five-year outlook through 2030 anticipates potential yield compression if property prices continue outpacing rental growth. However, Bogotá, Medellín, and Cartagena are expected to see strong capital and rental appreciation driven by infrastructure improvements and continued foreign investment.
The ten-year forecast shows high confidence in continued growth in major cities, supported by urbanization trends, steady expat inflows, and growing tourism. However, yields may compress to 5%-6% in mature districts as markets develop and price appreciation continues.
Short-term rental markets are expected to maintain over 20% annual growth in key markets, especially Cartagena, Medellín, and Bogotá, driven by increasing international tourism and business travel recovery.
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's the difference in returns and risks between short-term and long-term rentals in Colombia?
Short-term and long-term rental strategies in Colombia offer distinct risk-return profiles for property investors.
Short-term rentals typically generate higher per-night income but face seasonal demand variation and higher operational complexity. Gross returns can often double long-term rental income in prime tourist locations, particularly in Cartagena, Medellín, and central Bogotá.
Occupancy rates for short-term rentals range from 35%-60% depending on season and location, creating income volatility. Platform fees, cleaning costs, utilities, and higher maintenance requirements reduce net returns significantly compared to gross income.
Long-term rentals provide lower monthly income but offer greater stability and predictability. Occupancy rates typically exceed 85% in top districts, with longer lease terms reducing turnover costs and vacancy periods.
Risk profiles differ substantially between strategies. Short-term rentals face regulatory risks, platform policy changes, damage from frequent turnover, and economic sensitivity affecting tourism. Long-term rentals primarily risk non-payment issues and longer vacancy periods during tenant transitions.
Operating costs vary significantly, with short-term rentals requiring professional management, frequent cleaning, platform fees (typically 15%-20%), and higher utility costs. Long-term rentals involve lower management costs but face lease-related legal requirements and tenant protection regulations.
What are the typical renter profiles and what's the vacancy rate by area and property type?
Colombian rental markets serve diverse tenant populations with varying vacancy patterns across property types and locations.
Urban apartments primarily attract young professionals, digital nomads, and expatriate workers, particularly in tech, finance, and international business sectors. One-bedroom and two-bedroom units in city centers show strongest demand from this demographic.
Houses typically appeal to families, both domestic and international, seeking longer-term arrangements with more space and privacy. These properties generally attract stable, longer-term tenants but may experience longer vacancy periods between leases.
Luxury properties serve executives, diplomats, international corporate employees, and affluent local professionals. This segment shows lower turnover but requires longer marketing periods to find qualified tenants.
Vacancy rates in Bogotá and Medellín range from 6%-10% for standard apartments, with prime districts often achieving lower vacancy rates due to strong demand. Short-term and Airbnb properties show occupancy rates from 35%-60%, varying significantly by season and specific location.
Tourist-focused areas in Cartagena and coastal cities experience seasonal vacancy fluctuations, with peak seasons achieving high occupancy but shoulder periods showing increased availability.
It's something we develop in our Colombia property pack.
How do average rents and yields in Colombian cities compare to other similar-sized cities worldwide?
Colombian rental markets offer compelling value compared to similar-sized international cities.
Monthly rents in Colombian cities remain significantly lower than major Latin American or global markets, typically costing one-third to one-fifth of comparable properties in Mexico City, Madrid, or New York. This affordability attracts international tenants and digital nomads seeking cost-effective urban living.
Rental yields of 6%-9% for Colombian apartments substantially exceed yields in major global cities where returns often fall below 3%. New York, London, and Paris typically show gross yields of 2%-4%, making Colombia highly attractive for yield-focused international investors.
Operating costs and taxes in Colombia remain moderate compared to developed markets, though higher than some emerging market alternatives. Property taxes of 0.3%-1% annually compare favorably to many international markets.
Currency considerations affect international investors, with peso depreciation potentially offsetting some yield advantages for foreign currency investors. However, local peso returns remain strong for domestic and resident investors.
Colombia offers some of the best rental yields in the Americas for urban property investors, combining reasonable acquisition costs, strong rental demand, and favorable yield spreads compared to international alternatives.
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.
Colombia's rental market presents exceptional opportunities for both investors and renters, with yields significantly above global averages and growing demand in major urban centers.
While yields may face gradual compression as markets mature, the combination of affordable entry costs, strong rental demand, and ongoing economic development positions Colombia as a premier rental investment destination in Latin America.
Sources
- Global Property Guide - Colombia Rental Yields
- Travel Venture Four - Cost of Living Colombia 2025
- Expat Focus - Colombia Property Rental Prices
- MG Legal Group - Colombia Property Investment Guide 2025
- Latin Exclusive - Luxury Homes Colombia
- The LatinVestor - Bogotá Apartment Maintenance Fees
- Global Property Guide - Colombia Taxes and Costs
- Trading Economics - Colombia Lending Interest Rate
- CEIC Data - Colombia Bank Lending Rate
- BMA Business - Best Places to Buy Property 2025