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Barranquilla's rental market offers attractive returns for real estate investors in 2025.
As of September 2025, the average rental yield in Barranquilla stands at 6-7%, with prime neighborhoods like El Prado delivering yields up to 9%. This Colombian coastal city presents a compelling investment opportunity with lower entry costs compared to Bogotá or Medellín, while maintaining strong rental demand from professionals, students, and expats. The combination of steady infrastructure development, growing population, and strategic Caribbean location makes Barranquilla an increasingly attractive destination for yield-focused property investors.
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Barranquilla delivers gross rental yields of 6-7% on average, with net yields of 4.5-5.5% after expenses. Prime neighborhoods like El Prado can achieve yields up to 9%, while smaller apartments typically outperform larger properties.
The city maintains low vacancy rates around 4%, with strong demand from professionals and expats driving rental prices. Commercial properties offer the highest potential yields at 8-10%, though with increased risk compared to residential investments.
| Property Type | Average Yield (%) | Typical Price Range (USD) |
|---|---|---|
| 1BR Apartment (Center) | 5.3-6.5 | $90,000-$120,000 |
| 2BR Apartment (Prime) | 6.5-7.5 | $120,000-$180,000 |
| Houses (Mid-market) | 6-8 | $160,000-$250,000 |
| Commercial Retail | 8-10 | $180,000-$400,000 |
| Luxury Properties (El Prado) | 7-9 | $200,000-$500,000 |
| Short-term Rentals | 6.5-8 | $80,000-$200,000 |
| Ocean-view Properties | 7-9 | $250,000-$600,000 |
What are the current average rental yields in Barranquilla overall?
The average rental yield in Barranquilla stands at 6-7% as of September 2025.
According to multiple market sources, Barranquilla's gross rental yields typically range from 4.86% to 7.04% citywide, with the overall average settling around 6%. This aligns closely with Colombia's national average rental yield of approximately 7%.
Prime neighborhoods and well-positioned properties can achieve yields above the citywide average, reaching up to 9% in the most desirable locations. The yield range reflects the diversity of Barranquilla's property market, from affordable residential areas to high-end commercial districts.
As of September 2025, these yields remain stable compared to previous years, supported by steady population growth, infrastructure development, and increasing demand from both local and international renters.
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How do rental yields differ between apartments, houses, and commercial properties?
Apartments deliver yields of 6.5-7%, houses achieve 6-8%, while commercial properties can reach 8-10% in prime locations.
Apartments, particularly smaller units in central areas, consistently generate yields in the 6.5-7% range. One-bedroom and studio apartments tend to outperform larger units due to higher demand and lower purchase prices relative to rental income. City center apartments typically yield slightly more than those in suburban areas.
Houses and single-family properties show more variation, with yields ranging from 6-8% depending on location and size. Ocean-view homes and properties in high-demand districts like El Prado can achieve yields at the top of this range (7-9%). Larger houses outside the center may have lower yields due to higher purchase prices without proportional rent increases.
Commercial properties offer the highest potential yields but come with increased risk. Retail and office spaces in prime locations can yield 8-10%, while standard commercial areas typically generate 6-8%. Mixed-use projects are becoming increasingly attractive, combining higher retail yields with steady residential demand.
What are the yields in the most popular neighborhoods and how do they compare?
El Prado leads with yields of 7-9%, while the city center averages 5.5% and outer areas can reach 7.5%.
| Neighborhood | Rental Yield (%) | Property Type Focus |
|---|---|---|
| El Prado | 7-9 | Luxury apartments, houses |
| Riomar | 6.5-8 | Modern condos, commercial |
| City Center | 5.5-6.5 | Apartments, offices |
| La Victoria | 4.9-5.5 | Affordable housing |
| Norte Centro Historico | 5-6 | Mixed residential |
| Outer Districts | 6.5-7.5 | Houses, new developments |
| Oceanfront Areas | 7-9 | Vacation rentals, luxury |
How does property size affect rental yields in Barranquilla?
Smaller properties consistently deliver higher yields than larger ones in Barranquilla's rental market.
Studio and one-bedroom apartments typically yield 6.5-7.5%, significantly outperforming larger properties. This occurs because smaller units have lower purchase prices relative to their rental income potential, and they face stronger demand from young professionals, students, and single renters.
Two-bedroom apartments generally yield 6-7%, representing the middle ground in the size-yield relationship. These properties attract small families and professional couples, maintaining steady demand while requiring moderate initial investment.
Larger properties, including three-bedroom apartments and houses, often yield 4.5-6% due to higher acquisition costs without proportional rent increases. While these properties may appreciate more in value over time, their immediate rental returns are typically lower.
The size effect is particularly pronounced in central areas where space is at a premium and rental demand for compact, well-located units remains strong throughout the year.
What is the average total purchase price including fees for different property types?
Total acquisition costs range from $85,000 for small apartments to over $250,000 for luxury properties, including 6-8% transaction fees.
| Property Type | Base Price (USD) | Total with Fees (USD) |
|---|---|---|
| 1BR Apartment (Center) | $80,000-$110,000 | $85,000-$120,000 |
| 2BR Apartment (Prime) | $110,000-$170,000 | $120,000-$185,000 |
| Typical House | $110,000-$185,000 | $120,000-$200,000 |
| Commercial Unit | $75,000-$230,000 | $80,000-$250,000 |
| Luxury Property | $185,000-$465,000 | $200,000-$500,000 |
| Ocean-view Home | $230,000-$555,000 | $250,000-$600,000 |
Transaction costs in Barranquilla include legal fees, stamp duty, notary costs, and registration fees, totaling 6-8% of the purchase price. Round-trip costs (buying and selling) typically remain below 10%, making the market relatively cost-efficient for investors.
What taxes, recurring costs, and mortgage expenses typically apply to rental properties?
Annual property taxes range from 0.3-1% of cadastral value, with total recurring costs representing 1.5-3% of yearly rental income.
Property tax in Barranquilla is calculated on the cadastral value and typically ranges from 0.3% to 1% annually. This is generally lower than property taxes in many developed markets, making ongoing ownership costs manageable for investors.
Homeowners association fees for apartments range from $50-$200 monthly, depending on amenities and building quality. Luxury properties with pools, gyms, and 24-hour security command higher fees, while basic apartment buildings have minimal charges.
Income tax on rental profits follows Colombian tax brackets, ranging from 10% to 33% depending on the income scale and investment structure. Property investors can often deduct maintenance, management, and depreciation expenses.
Mortgage rates in September 2025 are approximately 10-12% for fixed-rate loans, with rates trending downward toward 8% by the end of 2025. Vacancy provisions, insurance, and property management typically cost an additional 1.5-3% of annual rental income.
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What are the current average rents for short-term versus long-term rentals?
Long-term rentals for one-bedroom apartments average $330-$450 monthly, while short-term rentals generate approximately $7,000 annually.
Long-term rental prices in Barranquilla vary significantly by location and property quality. One-bedroom apartments in city center locations typically rent for $330-$450 monthly, while larger two and three-bedroom apartments in upscale areas command $500-$1,000 monthly depending on specific location and amenities.
Short-term rentals through platforms like Airbnb average $35-$60 nightly, generating approximately $7,000 in annual income for well-managed properties as of 2024-2025. Short-term yields are typically higher than long-term rentals but involve increased vacancy periods, cleaning costs, and management time.
The choice between short and long-term rental strategies depends on property location, target market, and investor involvement level. Properties near business districts and tourist attractions perform better as short-term rentals, while residential areas suit long-term leasing strategies.
Seasonal variations affect short-term rental income, with peak tourist seasons in December-January and June-August generating higher nightly rates and occupancy levels.
Can you give example rental yields for different property types and sizes?
A $90,000 one-bedroom apartment generating $400 monthly rent delivers a 5.3% gross yield, while commercial properties can exceed 10%.
| Property Example | Purchase Price (USD) | Monthly Rent (USD) | Gross Yield (%) |
|---|---|---|---|
| 1BR Apartment (Center) | $90,000 | $400 | 5.3 |
| 2BR Apartment (El Prado) | $120,000 | $650 | 6.5 |
| House (Mid-market) | $160,000 | $950 | 7.1 |
| Office (1,000 sqft) | $180,000 | $1,600 | 10.6 |
| Luxury Condo (Oceanfront) | $250,000 | $1,800 | 8.6 |
| Studio (Student Area) | $65,000 | $350 | 6.5 |
| Retail Space (Prime) | $200,000 | $2,000 | 12.0 |
Who are the main renter profiles in Barranquilla and how do they influence yields?
Young professionals and expats drive demand in prime areas, while students and families sustain affordable segment rental activity.
Professionals and expatriates represent the highest-value renter segment, typically seeking modern, secure units in central and upscale areas. This demographic pays premium rents for well-located properties with amenities, supporting the highest and most stable yields in neighborhoods like El Prado and Riomar.
University students and young professionals create strong demand in affordable neighborhoods, though with higher tenant turnover rates. This segment drives rental activity in areas surrounding educational institutions and business districts, supporting steady yields despite more frequent tenant changes.
Blue-collar workers and growing families sustain demand in emerging residential districts and outer areas. While rental rates are lower, these areas often offer attractive yields due to more affordable purchase prices and steady, long-term tenant relationships.
Short-term renters and tourists boost yields for centrally located, well-managed vacation rental properties. This segment is particularly important for oceanfront and historic district properties during peak tourism seasons.
Each renter profile affects turnover rates, management requirements, and achievable rents, with higher-income segments generally providing more stable and profitable rental relationships.
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What are the current vacancy rates in each main property segment and area?
Citywide vacancy averages 4%, with prime areas maintaining rates under 3% and peripheral areas experiencing 5-7% vacancy.
El Prado and other premium neighborhoods maintain the lowest vacancy rates at under 3%, reflecting strong demand from high-income renters and limited supply of quality properties. These areas benefit from proximity to business centers, quality amenities, and established infrastructure.
The city center maintains moderate vacancy rates around 4-5%, balancing good accessibility with older building stock and varying property quality. Commercial properties in prime city center locations typically experience lower vacancy than residential units.
Peripheral and developing areas experience higher vacancy rates of 5-7%, though this varies significantly based on infrastructure development and transportation links. New developments in these areas may face initial higher vacancy until the neighborhood establishes itself.
Seasonal variations affect vacancy rates, particularly for short-term rentals and properties targeting tourists or temporary workers. The university calendar also influences vacancy in student-oriented areas.
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How do gross yields translate into net yields once all expenses are considered?
Gross yields of 6-7% typically translate to net yields of 4.5-5.5% after accounting for all property-related expenses.
The transformation from gross to net yields involves deducting property taxes (0.3-1% annually), homeowners association fees ($50-$200 monthly for apartments), property management costs (if applicable), insurance, and maintenance reserves. These expenses typically reduce gross yields by 1.5-2.5 percentage points.
Income tax on rental profits further impacts net returns, with rates ranging from 10-33% depending on income levels and investment structure. However, investors can often deduct legitimate property expenses, including depreciation, maintenance, and management costs.
Vacancy provisions represent another significant factor, with the citywide 4% average vacancy rate effectively reducing annual income. Well-located properties in prime areas with vacancy rates under 3% preserve more of their gross yield potential.
Short-term rentals face additional expenses including cleaning, utilities, platform commissions, and higher management costs, often resulting in net yields 0.5-1% lower than comparable long-term rentals despite higher gross income potential.
Currency exchange considerations may affect international investors, though Colombia's relatively stable peso reduces this risk compared to more volatile emerging markets.
Which property types and areas currently offer the smartest investment choices based on yield trends, past changes over the last 1 and 5 years, forecasts for 1, 5, and 10 years, and comparisons with other similar large cities?
Prime apartments in El Prado and emerging mixed-use developments offer the best combination of current yields and future appreciation potential.
Based on 1-5 year historical data, Barranquilla yields have remained steady or improved slightly due to infrastructure development, job growth, and population increases. The city has outperformed many Colombian markets in yield stability while maintaining lower entry costs than Bogotá or Medellín.
Forecasts for 2025-2026 suggest continued yield growth of 0.5-1% for high-demand segments, driven by ongoing urban development projects and Caribbean coast tourism growth. Prime residential areas like El Prado and Riomar are expected to lead this growth.
5-year projections (2025-2030) indicate relative yield stability with moderate appreciation potential in new development corridors. Infrastructure investments, including port expansion and urban renewal projects, support positive medium-term outlook for well-positioned properties.
10-year forecasts suggest continued stability with gradual yield compression as the market matures, following patterns seen in other major Colombian cities. However, Barranquilla's strategic Caribbean location provides unique advantages for sustained growth.
Compared to Bogotá and Medellín, Barranquilla offers competitive yields with lower entry costs and strong growth potential. While Bogotá and Medellín sometimes post higher absolute yields, Barranquilla provides better risk-adjusted returns for yield-seeking investors preferring mid-sized city dynamics.
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.
Barranquilla's rental market presents compelling opportunities for property investors seeking steady yields in Colombia's growing Caribbean coast region.
The combination of affordable entry prices, stable yields of 6-7%, and strong rental demand from diverse tenant profiles creates an attractive investment environment for both domestic and international buyers looking for yield-focused real estate opportunities.
Sources
- Barranquilla Real Estate Market Analysis
- Barranquilla Price Forecasts
- Global Property Guide - Colombia Rent Yields
- Global Property Guide - Colombia Price History
- Global Property Guide Twitter Analysis
- Numbeo - Barranquilla Property Investment
- Oikos Constructora - Mixed Use Projects Colombia
- Airbtics - Barranquilla Airbnb Revenue Data