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Cartagena offers some of the most attractive rental yields in Colombia, with average returns ranging from 5.7% to 7.6% across different property types and neighborhoods.
The historic coastal city presents exceptional opportunities for both long-term and short-term rental investments, with yields reaching up to 16.6% in emerging districts and premium tourist areas like Bocagrande and the Walled City delivering consistent returns between 10-15% for vacation rentals.
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As of September 2025, Cartagena's rental market delivers gross yields between 5.7% and 16.6%, with short-term rentals significantly outperforming long-term leases in tourist-heavy neighborhoods.
Property prices average €1,829 per square meter citywide, with total acquisition costs reaching 10-12% of purchase price when including taxes, fees, and legal expenses.
| Property Type | Average Yield | Price Range (€/m²) | Best Strategy |
|---|---|---|---|
| Studio Apartment | 7.1% - 7.5% | 1,000 - 1,400 | Short-term rental |
| 1 Bedroom Apartment | 7.5% - 13% | 1,100 - 2,100 | Tourist rental |
| 2 Bedroom Apartment | 5.6% - 8.3% | 1,200 - 2,200 | Mixed strategy |
| 3 Bedroom Apartment | 6.2% - 8.3% | 1,300 - 2,100 | Long-term rental |
| 4+ Bedroom Apartment | 3.6% - 5.5% | 1,800 - 2,200 | Luxury long-term |
| Houses | 4% - 8% | 1,400 - 2,200 | Family rentals |
| Luxury Properties | 6% - 12% | 4,000 - 4,500 | Premium tourism |
What are the current average rental yields in Cartagena by neighborhood and district?
Cartagena's rental yields vary significantly across neighborhoods, with the citywide average ranging from 5.71% to 7.6% as of September 2025.
The highest-performing areas include emerging districts where certain apartments achieve yields up to 16.66%, particularly when managed as short-term vacation rentals. Central neighborhoods like Bocagrande and Manga typically deliver solid returns between 6% and 8% for traditional long-term rentals.
Tourist-focused areas including the Walled City, Getsemaní, and La Boquilla consistently produce the top yields for short-term rentals, often reaching 10% to 15% or higher during peak tourism seasons. These historic and coastal neighborhoods benefit from strong demand from international visitors seeking authentic Colombian experiences.
Emerging neighborhoods with proper property management can achieve yields between 8% and 10%, especially for modern apartments targeting young professionals and digital nomads. The key factor determining yields in these areas is proximity to business districts and transportation links.
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How do rental yields differ between apartments, houses, and luxury properties?
Studio and one-bedroom apartments deliver the strongest rental yields in Cartagena, with studios averaging 7.1% to 7.5% and one-bedroom units achieving 7.5% to 13% gross returns.
Two and three-bedroom apartments perform moderately well, generating yields between 5.6% and 8.3%, making them suitable for both investment strategies and owner-occupier purchases. These mid-size units attract families and longer-term tenants, providing more stable income streams.
Larger apartments with four or more bedrooms typically produce lower yields between 3.6% and 5.5%, though they command higher absolute rents. These properties work best for investors seeking capital appreciation rather than maximum rental returns.
Houses generally yield between 4% and 8%, with performance varying widely based on location and condition. Properties in established residential areas with gardens and parking tend to attract families willing to pay premium rents.
Luxury properties in areas like Cabo de Palos can achieve impressive yields between 6% and 12%, particularly when positioned for high-end tourism or executive rentals targeting international business travelers.
What is the average purchase price per square meter for different property types in Cartagena?
The citywide average purchase price in Cartagena stands at €1,829 per square meter as of September 2025, with significant variations across different neighborhoods and property types.
| Area/Property Type | Price per m² (€) | Typical Property Range |
|---|---|---|
| Mar Menor de Cartagena | 2,240 | Premium coastal properties |
| Historic Centre | 2,107 | Colonial apartments |
| Alameda | 1,679 | Mixed residential |
| Pedanías Noroeste | 888 | Emerging areas |
| Cabo de Palos (Luxury) | 4,480 | Ultra-premium properties |
| Studio Apartments | 1,000-1,400 | Tourist areas |
| Standard Apartments | 1,100-2,200 | 1-3 bedrooms |
What is the typical total purchase cost including closing fees, taxes, and other acquisition costs?
Total acquisition costs in Cartagena typically range from 10% to 12% of the property purchase price, representing a significant additional expense that investors must factor into their calculations.
For new properties, buyers face VAT plus stamp duty totaling approximately 11.2% of the purchase price. Resale properties incur transfer taxes of around 7%, making them potentially more cost-effective for investment purposes.
Legal fees typically add another 1% to the total cost, while notary and registration expenses contribute an additional 1% to 2%. These professional services are essential for ensuring proper title transfer and legal compliance.
Additional costs may include property surveys, inspections, and insurance setup, though these are generally minor compared to the main tax obligations. Foreign investors should also budget for currency exchange costs and international banking fees.
When calculating investment returns, these upfront costs effectively increase the total investment by 10-12%, which directly impacts the actual yield calculations and payback periods for rental properties.
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What is the average mortgage interest rate and how does financing impact the yield?
Colombian mortgage rates are projected at approximately 7% for 2025, representing a significant decrease from the 9.75% rates experienced in 2023.
However, bank lending rates for real estate investments typically run higher at around 14% as of March 2025, with foreign investors often facing additional premiums due to perceived higher risk profiles. Local buyers may access subsidized government rates for certain property types and income brackets.
Financing dramatically impacts net yields, as the cost of borrowing can consume 2-4 percentage points of gross rental returns. For properties with 7% gross yields, a 14% interest rate makes leveraged investment financially challenging without significant down payments.
Conservative investors typically require gross yields of at least 10-12% to achieve positive cash flow when using bank financing at current Colombian rates. This math favors cash purchases or properties with exceptional rental performance in tourist areas.
The financing landscape continues evolving, with government initiatives aimed at reducing borrowing costs for residential property investment, particularly in tourism-dependent coastal cities like Cartagena.
How much can properties earn from short-term rentals compared to long-term rentals?
Short-term vacation rentals in Cartagena significantly outperform traditional long-term leases, with annual revenues averaging €17,000 to €18,000 for well-managed properties.
Airbnb properties typically achieve 190 to 204 nights booked annually, representing 52% to 56% occupancy rates during normal market conditions. Average nightly rates range from €83 to €92, with premium units in Bocagrande commanding up to $99 per night.
Short-term rental yields commonly double long-term rates, particularly during peak tourism seasons when nightly rates can increase by 50% or more. However, these higher returns come with additional management complexity and seasonal revenue fluctuations.
Long-term rentals provide more predictable income streams, with city average rents at €8 to €8.30 per square meter monthly. After management fees, long-term properties typically deliver net yields around 5%, compared to gross yields of 5.7% to 8%.
The trade-off involves higher gross returns from short-term rentals against increased management fees of 20-25% of gross income, plus cleaning, maintenance, and marketing costs that can significantly impact net returns.
What are example rental yields for various combinations of property type, size, and location?
| Location | Property Type | Purchase Price (€) | Monthly Rent (€) | Gross Yield (%) |
|---|---|---|---|---|
| Historic Centre | 1-bed colonial apartment | 210,000 | 1,100 | 6.3 |
| Bocagrande | 2-bed beachfront apartment | 160,000 | 950 | 7.1 |
| Manga | 3-bed family apartment | 150,000 | 900 | 7.2 |
| Emerging area | Studio loft | 84,000 | 500-600 | 7.1+ |
| Getsemaní | Renovated colonial house | 280,000 | 1,800 | 7.7 |
| La Boquilla | Beachfront villa | 320,000 | 2,200 | 8.3 |
What are the typical profiles of tenants or guests for different rental types in Cartagena?
Long-term rental tenants in Cartagena consist primarily of Colombian professionals, expatriates, and the growing digital nomad community, particularly those working in IT and remote positions.
Family tenants typically seek upgraded neighborhoods with good schools and amenities, driving demand for 2-3 bedroom apartments in established residential areas. These tenants value stability and are willing to pay premium rents for quality properties with parking and security.
The student market near universities provides consistent demand for smaller, affordable units, though yields may be lower due to price sensitivity and higher turnover rates. Student tenants typically prefer furnished accommodations close to campus.
Short-term rental guests include international tourists attracted to Cartagena's heritage sites, cultural attractions, and beaches. These visitors typically stay 3-7 nights and prioritize location, amenities, and authentic experiences over price.
Colombian domestic travelers and business visitors form another important segment for vacation rentals, particularly during local holidays and corporate events. Digital nomads seeking temporary accommodations of 1-3 months represent a growing niche between traditional long and short-term categories.
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 the current vacancy rates broken down by property type and area?
Short-term rental properties in Cartagena experience vacancy rates of approximately 44% to 48%, corresponding to the 52% to 56% occupancy rates typically achieved by well-managed Airbnb properties.
Prime tourist areas including Bocagrande and the Old City maintain stronger occupancy rates, with vacancies around 30% for quality properties during normal tourism seasons. These areas benefit from consistent international visitor flow throughout the year.
Long-term rental vacancy rates vary significantly by neighborhood and property quality, though exact data remains limited. Established residential areas with good infrastructure typically experience lower vacancy rates due to stable local demand.
Luxury properties face higher vacancy rates due to limited target market size, but when occupied, they command premium rents that can offset longer marketing periods. These properties require specialized marketing and management to minimize vacancy periods.
Emerging neighborhoods may experience higher initial vacancy rates as markets develop, but early investors often benefit from lower purchase prices that compensate for temporary rental challenges during area gentrification.
What are the main ongoing expenses for landlords, from maintenance to management fees, and how do they affect net yield?
Property management fees represent the largest ongoing expense for Cartagena rental properties, typically consuming 20% to 25% of gross rental income for short-term rentals, plus additional cleaning and maintenance costs.
Long-term rental management fees usually range from 8% to 12% of monthly rent, covering tenant screening, rent collection, and basic maintenance coordination. Self-managing landlords can eliminate these costs but must invest significant time and local knowledge.
Maintenance and repairs typically cost 1% to 3% of property value annually, with coastal properties requiring additional expenses for saltwater corrosion protection and humidity control. Historic properties may face higher preservation and renovation costs.
Utility costs, property taxes, insurance, and community fees can add another 2% to 4% annually to operating expenses. These fixed costs remain regardless of occupancy rates, making consistent rental income crucial for profitability.
When combined, total operating expenses typically reduce gross yields by 3 to 5 percentage points for long-term rentals and 5 to 8 percentage points for short-term rentals, highlighting the importance of achieving strong gross returns to maintain positive cash flow.
How have average rents and yields changed compared to five years ago and compared to last year?
Cartagena's rental market has experienced significant growth over the past five years, with yields improving due to increased tourism and infrastructure development attracting more investors and tenants to the market.
Luxury properties in areas like Cabo de Palos have seen remarkable appreciation, with prices increasing 39.6% year-over-year, though this rapid growth may indicate market overheating in premium segments.
Compared to last year, rental rates have generally increased 5% to 7% across most property types, driven by inflation and growing demand from both domestic and international renters. Tourist areas have experienced the strongest rent growth due to recovering travel patterns.
Five-year trends show consistent yield improvements as Cartagena established itself as a premier Caribbean tourism destination. The city's UNESCO World Heritage status and improved infrastructure have supported both capital appreciation and rental demand.
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What are the forecasted rents and yields for one, five, and ten years from now, and how do they compare with similar cities in Colombia and Latin America?
Short-term forecasts for 2026 indicate price growth will moderate to 8% to 10% annually, with rents expected to rise 5% to 7% as the market stabilizes after recent rapid appreciation.
Five to ten-year outlook remains favorable due to expected tourism growth, continued infrastructure development, and increasing digital nomad influx. These factors should support both capital appreciation and rental demand through 2035.
Compared to other Colombian cities, Cartagena offers lower absolute yields than Bogotá or Medellín (which typically achieve 8% to 9%), but provides superior capital appreciation potential and stronger tourism premiums that enhance total returns.
Within Latin America, Cartagena positions itself as a premium investment destination similar to other historic coastal cities. The combination of cultural heritage, beach access, and growing international recognition creates exceptional investment appeal.
Long-term success will depend on continued government support for tourism infrastructure, political stability, and maintaining the city's cultural authenticity while accommodating growth. Current trends suggest Cartagena will remain among Colombia's most attractive real estate markets.
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 represents one of Colombia's most compelling real estate investment opportunities, combining strong rental yields with significant capital appreciation potential in a world-class tourism destination.
Success requires careful property selection, understanding of local management requirements, and realistic expectations about the additional costs and complexity involved in maximizing returns from both short-term and long-term rental strategies.
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Sources
- Best Yield Finder - Cartagena
- Global Property Guide - Colombia Rent Yields
- The Latinvestor - Cartagena Price Forecasts
- The Latinvestor - Cartagena Property
- Airbtics - Annual Airbnb Revenue Cartagena
- Indomio - Cartagena Real Estate Market
- CEIC Data - Colombia Bank Lending Rate
- The Latinvestor - Colombia Real Estate Market