What is the average rental yield in Antioquia?

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Yes, the analysis of Antioquia's property market is included in our pack

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THE LATINVESTOR

A team specialized in real estate investing in LATAM countries

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Antioquia. If you'd like to learn more about us, you can check our presentation page.

What are the current average rental yields in Antioquia overall?

As of September 2025, rental yields in Antioquia range from 5-8% for long-term rentals, with the overall average sitting at approximately 6.5%.

Short-term vacation rentals deliver significantly higher returns, often reaching 8-15% in prime areas and up to 18% in top tourist markets like Guatapé and El Peñol.

The Medellín metropolitan area, which forms the core of Antioquia's property market, consistently delivers yields between 6-8% for well-located properties. These returns are competitive with other major Colombian cities such as Bogotá (6-10%) and Cali (5-7%).

Foreign investors typically achieve yields on the higher end of these ranges when they invest in well-managed properties in established neighborhoods like Laureles, Sabaneta, and parts of El Poblado.

The variation in yields largely depends on property management quality, location selection, and whether investors choose traditional long-term rentals or venture into the short-term vacation rental market.

How do yields differ by property type such as apartments, houses, and luxury units?

Different property types in Antioquia produce varying yield patterns, with smaller apartments generally outperforming larger luxury units on a percentage basis.

Property Type	Typical Gross Yield (Long-term)	Short-term/Airbnb Yield	Key Characteristics
Small apartments (Bello)	5-6%	7-10%	Entry-level market, stable demand
Modern apartments (Laureles)	6-8%	10-15%	High expat demand, excellent transport
Luxury apartments (Poblado)	4-6%	8-12%	Premium market, lower yields but appreciation
Country houses (Guatapé)	4-5%	12-18%	Tourist hotspot, seasonal variation
Student units (Medellín)	7-9%	N/A	University proximity, consistent demand
Rural estates (Rionegro)	5-7%	9-13%	Airport proximity, emerging market

Student housing units near universities consistently deliver the highest long-term yields at 7-9%, driven by steady demand and lower vacancy rates.

Luxury properties in El Poblado typically yield 4-6% for long-term rentals but offer stronger capital appreciation potential and can achieve 8-12% through well-managed short-term rentals.

How do yields vary by specific areas or neighborhoods within Antioquia?

Neighborhood selection significantly impacts rental yields, with Laureles and Sabaneta currently offering the strongest returns in the Antioquia market.

Laureles delivers yields of 6-8% for long-term rentals, driven by its excellent metro connectivity, expat-friendly environment, and strong demand from both local professionals and international residents.

Sabaneta provides yields of 6-7%, benefiting from its position as an emerging neighborhood with lower entry costs and growing popularity among young professionals and families.

Downtown Medellín can yield up to 8% for commercial and mixed-use properties, though investors need to carefully evaluate the area's ongoing urban renewal projects and security considerations.

El Poblado and Envigado, despite being prestige areas, yield 4-6% for long-term rentals due to higher property prices, but they excel in short-term rental markets with proper management and high-end amenities.

How does property size or surface area impact rental yields?

Smaller units typically generate higher percentage yields than larger properties, though larger units command higher absolute rental prices.

Studios and one-bedroom apartments in areas like Laureles can achieve 6-8% yields because their lower purchase prices allow for better yield ratios, even with modest rental income.

Two and three-bedroom apartments offer moderate yields of 5-7% but attract longer-term tenants, particularly families and expat professionals seeking more space.

Large luxury estates and country houses may yield only 4-6% on investment due to their high purchase prices, but they can achieve exceptional short-term rental returns of 12-18% in tourist areas like Guatapé.

It's something we develop in our Colombia property pack.

What is the typical total purchase price including fees and closing costs?

Property prices in Antioquia vary significantly by location and type, with apartments averaging COP 6,320,785 ($1,200) per square meter and houses averaging COP 5,555,963 ($1,050) per square meter as of September 2025.

New luxury developments in El Poblado exceed COP 11 million per square meter ($2,000+), while emerging areas like Sabaneta offer opportunities below COP 4 million per square meter ($750).

Buyers typically pay 2-3% of the purchase price in closing costs, including notary fees, registration, taxes, and legal representation. For a $200,000 property, expect $4,000-6,000 in additional fees.

Property transfer taxes add approximately 1% of the purchase price, while notary and registration fees account for another 1-2% of the total transaction cost.

Foreign buyers should budget an additional $2,000-3,000 for legal representation and due diligence processes, particularly for complex transactions involving rural properties or new developments.

What are the average ongoing taxes, maintenance, and other expenses for these properties?

Property taxes in Antioquia range from 0.3-1.5% of the cadastral value annually, which is typically lower than market value. A $200,000 apartment typically incurs $800-$1,200 per year in property taxes.

Homeowners association (HOA) fees vary dramatically by property type and amenities, ranging from $50 per month for basic buildings to $400+ per month for luxury developments with extensive facilities.

Utility costs average $100-150 per month for standard units, rising to $300 for luxury properties with higher consumption patterns and premium services.

Maintenance costs remain economical compared to North American or European standards, with skilled labor readily available at competitive rates throughout the Antioquia region.

Insurance typically costs 0.1-0.3% of property value annually, while property management services charge 8-12% of rental income for full-service management.

How do mortgage costs affect the net yield compared to buying in cash?

Mortgage rates in Colombia currently range from 8-12% for local residents, with slightly higher rates for foreign borrowers in 2025.

Cash buyers avoid interest costs and complex paperwork processes, typically achieving 2-4 percentage points higher net yields compared to leveraged purchases.

Mortgage financing reduces net yields significantly due to interest payments, particularly when investors make lower down payments and carry higher loan-to-value ratios.

Foreign investors often find it challenging to secure favorable mortgage terms, making cash purchases the preferred option for international buyers seeking optimal yields in the Antioquia market.

Local financing options exist for foreigners with Colombian income sources, but the additional documentation and approval processes can extend transaction timelines significantly.

What is the difference in yields between short-term rentals like Airbnb and long-term rentals?

Short-term vacation rentals consistently outperform traditional long-term rentals, delivering 8-15% yields in prime areas compared to 5-8% for conventional rentals.

Rental Strategy	Expected Yield	Management Requirements	Occupancy Considerations
Long-term furnished	5-8%	Minimal, passive income	Stable, predictable
Short-term (Airbnb)	8-15%	Active management required	Seasonal variation
Tourist hotspots (Guatapé)	12-18%	Intensive management	High seasonal demand
Corporate housing	6-9%	Moderate management	Stable business demand
Student housing	7-9%	Low to moderate	Academic calendar dependent

Tourist destinations like Guatapé can achieve exceptional yields up to 18% for well-managed short-term rentals, but require active management and incur higher operational expenses.

Short-term rentals demand professional management, frequent maintenance, and compliance with local regulations, which can consume 15-25% of gross rental income.

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 some example rental yields for different property types and price ranges?

Concrete examples demonstrate the yield potential across different property segments in the Antioquia market as of September 2025.

Property Type	Purchase Price (USD)	Monthly Rent (Long-term)	Monthly Revenue (Airbnb)	Yield Estimate
Studio (Laureles)	$100,000	$500-$650	$900-$1,500	6-8% (LT), 12-15% (STR)
2BR apartment (Poblado)	$225,000	$1,000-$1,600	$2,000-$2,800	4-7%
Country house (Guatapé)	$300,000	$1,100-$1,400	$3,000-$7,000	4-5% (LT), 12-18% (STR)
Modern apartment (Sabaneta)	$150,000	$750-$950	$1,200-$1,800	6-7%
Luxury penthouse (Poblado)	$450,000	$1,800-$2,500	$3,500-$5,000	4-6%

A $100,000 studio in Laureles generates $500-650 monthly rent for long-term tenants, achieving 6-8% yields, while the same property can produce $900-1,500 monthly through short-term rentals.

Country houses in tourist areas like Guatapé demonstrate the dramatic difference between rental strategies, with long-term yields of 4-5% jumping to 12-18% for vacation rentals during peak seasons.

What are the typical renter profiles in Antioquia and how do they impact demand?

Antioquia attracts diverse renter profiles, each creating distinct demand patterns that influence rental yields and property selection strategies.

Expats, digital nomads, and retirees favor furnished, metro-accessible apartments in neighborhoods like Laureles and Poblado, driving consistent demand for modern one and two-bedroom units.

Local professionals and families seek mid-sized apartments and townhouses with good school access, particularly in emerging areas like Sabaneta and Envigado.

University students create steady demand for affordable studios and shared accommodations near academic institutions, supporting yields of 7-9% for appropriately located properties.

Tourists prefer luxury and well-managed short-term rentals in Poblado, Laureles, and scenic areas like Guatapé, enabling premium pricing for properties with high-end amenities and professional management.

What are the vacancy rates in different areas and property types, and how do they affect yields?

Vacancy rates vary significantly across Antioquia, with prime tourism and expat areas achieving occupancy rates up to 92.8% in locations like El Poblado during Q1 2025.

Well-managed Airbnb properties typically maintain 70-85% occupancy rates, though this figure includes seasonal variations that can impact annual yields.

Standard long-term rental apartments experience 7-13% vacancy rates, with lower vacancy in high-demand neighborhoods like Laureles and higher vacancy in outlying areas.

Luxury and rural estates often face higher vacancy rates due to their limited target market, with income frequently depending on seasonal tourism patterns.

It's something we develop in our Colombia property pack.

What is the breakdown from top-line rent to gross yield to net yield including all costs?

Understanding the progression from gross rent to net yield reveals the true profitability of Antioquia rental properties.

Consider a prime Medellín apartment generating $1,500 gross monthly rent ($18,000 annually) on a $225,000 purchase price, producing an 8% gross yield.

Annual expenses typically include HOA fees ($2,400), property taxes ($1,000), and management costs ($2,500), totaling approximately $5,900 in operational expenses.

This reduces net annual income to $12,100, resulting in a 5.4% net yield for leveraged purchases or 6.2% for cash buyers who avoid financing costs.

Additional considerations include vacancy allowances (typically 5-10% of gross rent), maintenance reserves, and potential management fees that can further impact net returns.

What are the smartest property choices right now for maximizing yield?

Several property types and locations currently offer optimal yield opportunities in the Antioquia market for September 2025.

1. **Laureles and Sabaneta apartments**: These neighborhoods provide steady occupancy and strong long-term yields of 6-8% with excellent metro connectivity.2. **Short-term rental properties in Poblado, Laureles, and Guatapé**: Well-managed vacation rentals can achieve 10-18% yields with proper management and marketing.3. **Student housing near universities**: Properties targeting university students consistently deliver 7-9% yields with predictable demand patterns.4. **Emerging zones like Sabaneta and La Estrella**: Lower entry costs combined with area appreciation potential offer attractive risk-adjusted returns.5. **Small to medium-sized modern apartments**: These properties balance affordability with rental demand, avoiding the lower yields of luxury segments while maintaining quality standards.

Professional property management becomes crucial for maximizing yields, particularly for short-term rentals that require active marketing and guest services.

How have rents and yields changed compared to five years ago and compared to last year?

The Antioquia rental market has experienced moderate growth over the past five years, with yields slightly declining from previous highs of 7.5-8% to current ranges of 5-8%.

Property prices have risen faster than rents in top areas over the five-year period, compressing yields particularly in luxury segments of El Poblado and Envigado.

Between 2024 and 2025, rents increased 3-5% across most property types, while prices rose 3-7%, resulting in stable to slightly lower net yields for luxury properties.

Short-term rental markets have remained more resilient, with tourism recovery supporting higher yields for well-positioned vacation rental properties throughout the region.

Emerging neighborhoods have shown the strongest yield preservation, benefiting from lower initial property prices and growing demand from both local and international renters.

What is the forecast for yields in one year, five years, and ten years?

One-year forecasts suggest stable yields of 5-8% for 2026, with property appreciation expected to slow as new supply enters popular neighborhoods.

Five-year projections indicate potential for modest rent increases driven by continued foreign investment and urban development, though yields will depend on market recovery and regulatory stability.

Ten-year outlook remains positive for Antioquia compared to other major Latin American cities, but global economic conditions and local political stability will significantly influence longer-term trends.

Short-term rental markets may face increased regulation over the next decade, potentially impacting yields for vacation rental properties while benefiting traditional long-term rental investments.

It's something we develop in our Colombia property pack.

How do Antioquia's yields compare to other similar major cities?

Antioquia's rental yields compare favorably to other major Colombian cities, with Medellín's 6-8% returns matching or exceeding Bogotá's 6-10% yields.

Compared to Cali's 5-7% yields, Antioquia offers similar returns but with stronger appreciation potential and lower overall living costs for property management.

International comparisons show Antioquia's yields exceeding many major Latin American markets, with higher returns than Mexico City (3-5%) and competitive with emerging markets in Brazil and Argentina.

Cartagena offers comparable yields but with higher volatility due to tourism dependence, while Antioquia provides more diverse economic drivers supporting rental demand.

Bogotá may offer slightly higher gross yields in some segments, but Antioquia's cost of living advantage (7% lower than Bogotá) creates better net returns for investors managing their own properties.

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.

Sources

1. The LatInvestor - Antioquia Price Forecasts
2. The LatInvestor - Antioquia Property Market
3. AirROI - Antioquia Market Report
4. Global Property Guide - Colombia Price History
5. Frontiers in Sustainable Cities
6. Medellin Guru - Real Estate Guide
7. Medellin Advisors - Property Ownership Guide
8. Primavera Realty - Airbnb Analysis