Buying a property in Bogotá: a complete guide

All sources have been thoroughly verified for credibility. Furthermore, a local real estate expert has reviewed and approved the final article.

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

Ever thought of investing in real estate in Bogotá? You're not alone!

Many people are captivated by Bogotá's vibrant culture and dream of owning a modern apartment or a stylish colonial house in the city.

Does it make sense from a financial perspective, though? Are property prices increasing in Bogotá? How much does it cost? Should I buy property in La Candelaria or Chapinero? Are there any hidden fees? Which place will give me the best yields?

In this article, everything is sorted out for you.

At TheLatinvestor, we've really dug into this market. Actually, we have condensed all our findings in a pack. Get it now.

In this article, we're happy to share useful information with you.

How's the real estate market in Bogotá?

Is the property market going up or down? People have different ideas. Us? We rely on the latest data and stats for accurate answers.

Property types

In Bogotá, you can find various types of properties for sale.

These include apartments, houses, and condos. Apartments are like flats and are usually located in buildings with multiple units. Houses offer more space and often have a yard or garden. Condos are similar to apartments but might offer extra amenities like gyms or pools.

Whether you're looking for a cozy apartment, a spacious house, or a convenient condo, Bogotá has a range of property options to explore.

Buying or renting?

(If you're purchasing for personal use and not for renting)

If Bogotá is your city of choice, the decision of buying or renting a property in this energetic Colombian capital awaits you.

Without a doubt, it's better to buy if you want to build long-term wealth and have a stable place to live in Bogotá.

To make a good decision, consider the property price-to-rent ratio. It's like a measure of how much rental income you'll need to afford the property at its current value.

According to Numbeo, the property price-to-rent ratio in Bogotá is around 20.44, which is around the world average.

In simple terms, it would typically require 20 years of rental payments, on average, to buy a property in Bogotá.

Property prices in Bogotá

On average, according to the last data from Dane, Colombia, buying a property in Bogotá will cost you around $1,660 per square meter.

Obviously, there is a huge spread. The value of a square meter for a penthouse in Zona T might differ from an apartment in Chapinero. We actually offer a more in-depth analysis in our pack for buying property in Bogotá and in Colombia.

To give you a better idea, it means that, instead of buying an apartment in New York, you can get 8 properties in Bogotá.

However, housing prices in Bogotá are higher (29%) than in Medellín.

The most expensive neighbourhoods in Bogotá are probably Usaquén and Chapinero, while the cheapest ones are likely Ciudad Bolívar and Kennedy.

Trends

First and foremost, we have to acknowledge that Colombia is, today, a relatively stable country. The last Fragile State Index that has been reported for this place is 78.4.

Don't overlook this while weighing the pros and cons of buying a property in Bogotá.

However, this modest figure is only temporary, as Colombia's economy is expected to soar by 10.5% in the coming 5 years, resulting in an average GDP growth rate of 2.1%.

If you want to invest in real estate in Bogotá it's a good thing because a growing economy (usually) leads to higher incomes for citizens, enabling them to invest in real estate, which boosts demand and prices for properties.

Also, in Colombia, the average GDP per capita has changed by 8.5% over the last 5 years. It's a good number.

According to this data point, property prices in Bogotá might go higher in 2024 and also later on.

Looking for more updated data? We've done a big-picture study to find out if it's a good idea to purchase property in Colombia right now.

Buying property in Bogotá

Buying real estate in Bogotá can be difficult due to the lack of reliable and up-to-date information available. That's why we have created the pack to buy property in Bogotá and in Colombia.

Buying process

In the pack of documents we have built, we've covered everything about buying a property, from the contacts you'll need to the taxes that need to be paid, and even where to look for available properties.

Now, we're presenting a simpler version to make it easier for you to understand and follow along.

This is the step-by-step process to purchase a property in Bogotá:

1. Define your budget and requirements for a property in Bogotá, Colombia.
2. Find a reliable Colombian real estate agent familiar with the Bogotá market.
3. Review available properties and visit them to assess their condition and location.
4. Conduct due diligence, including checking the Registro Nacional de Catastro and obtaining the Certificado de Tradición y Libertad (property history certificate).
5. Negotiate the price and terms with the seller, considering the Colombian property valuation.
6. Draft a purchase agreement, known as a Contrato de Promesa de Compraventa.
7. Secure a mortgage loan or financing through a Colombian bank, if needed.
8. Hire a notary public, known as a notario, for the closing process.
9. Obtain the Paz y Salvo, a document confirming the property is free of debts and obligations.
10. Sign the final deed, Escritura Pública, at the notary's office, transferring ownership.
11. Pay all applicable taxes, including the Registro Nacional (property registration tax) and the Impuesto de Notaría (notary tax).
12. Register the property in your name with the Public Registry Office, completing the purchase process in Bogotá.

Also, if you're not from the country, you might want to check our article on how to buy property as a foreigner in Colombia.

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Where to find a property

Explore these websites to find properties in Bogotá.

• Home Inmobiliaria - A real estate company that aims to optimize the buying and selling process, satisfying customers' real estate needs.
• Property Finder - A real estate platform based in Medellín, Colombia, offering listings, investment opportunities, developments, and services for buying and selling properties.
• Realigro - Realigro is a global real estate search engine that allows users to find homes for sale in Colombia and provides information on the country's real estate market.
• Expat - Expat.com is an online platform that provides housing listings and classifieds for buying, selling, and renting properties in Colombia.
• Point 2 - Point2 is a real estate platform that provides listings of homes for sale, rentals, and commercial properties in Colombia.

Also, know that we have included contacts of real estate agencies, property lawyers, moving companies, expats communities and more in our pack for buying property in Colombia.

Which properties for which budget?

As mentioned before, the average price per sqm in Bogotá is $1,660. A one-bedroom property (60 sqm) would cost around $100,000, and a two-bedroom (85 sqm) would be about $141,000.

However, the amount you pay for a property can be different based on its characteristics and where it's found.

Housing prices in the top areas of Bogotá are usually at a premium. A house in Usaquén could be around $310,000, and a residence in Chapinero might cost about $370,000.

On the other hand, certain areas are friendlier to your budget. You may find a condominium in Kennedy for $50,000, or one in Bosa priced only at $40,000.

We give a more detailed pricing list in our full pack for buying property in Colombia.

Common mistakes

Here are the main pitfalls specific to buying a property in Bogotá, Colombia:

• Failing to verify land rights with Indigenous or Afro-Colombian communities can lead to disputes.
• Overlooking the risk of volcanic eruptions, floods, or landslides in certain areas.
• Not considering the impact of unpredictable weather patterns, such as El Niño or La Niña.
• Underestimating the complexities of dealing with historical preservation regulations in heritage areas.
• Ignoring the potential for informal settlements (estratos) nearby, affecting property value and security.
• Overlooking the significance of the "stratum" classification system that impacts utility costs and services.
• Not understanding the intricacies of the Colombian legal system and property rights for foreigners.
• Failing to assess the property's proximity to conflict-prone regions, affecting safety and investment stability.

We don't want this to happen to you, so we have included a full checklist for your property investment in our pack of documents. Avoid these mistakes and save a lot of money.

Everything you need to know is included in our Colombia Property Pack

Living in Bogotá

Living in Bogotá is a vibrant and exciting experience, with a great variety of cultural activities, excellent dining options, and a strong real estate market.

Cost of living

The cost of living in Bogotá is generally considered to be lower than other major cities in Latin America. Prices for groceries, transportation, and housing are all lower than in cities such as Rio de Janeiro, Buenos Aires, and Mexico City.

Here are some examples to better understand the cost of living in Bogotá:

• Rent for a one-bedroom apartment in Usaquén neighborhood: $800/month.
• Monthly public transportation card (SITP card): $25.
• "Bandeja Paisa" lunch for two at a traditional restaurant: $30.
• "Aguardiente" bottle: $15.
• Groceries at Paloquemao market: $90/week for a family of four.
• Basic utilities for an 85m² apartment with Codensa: $80/month.
• Ticket to a cultural event at Teatro Mayor Julio Mario Santo Domingo: $20.
• "Avena" drink at a street vendor: $2.

Neighbourhoods

We want to show information in an easy-to-understand way. So, we made a table that lists the different areas of Bogotá. For yields, prices and rents, check our property pack.

Life in Bogotá

Bogotá is the economic and industrial center of Colombia. It is home to a large number of multinational companies and has a well-developed financial system, with a large number of banks, insurance companies, and other financial institutions.

What expats usually like the most in Bogotá is its vibrant cultural scene, with plenty of museums, galleries, and theatres, as well as its vibrant nightlife with plenty of bars, clubs, and restaurants.

Also, you have to know that Bogotá's high altitude results in cooler temperatures, and it faces air quality concerns due to vehicle emissions.

A good point for a property investor - Bogotá has a mass rapid transit (MRT) system called TransMilenio, which consists of a network of dedicated bus lanes and over 140 stations.

Access to healthcare in Bogotá is generally good, with a wide range of public and private healthcare options available.

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Renting out in Bogotá

For those aiming to buy property solely for renting out and earning income.

Long-term

Tenant Profiles in Bogotá

If you decide to buy and rent out to long-term tenants, you should target young professionals, students, and families who are looking for affordable housing in Bogotá. Additionally, there is also a growing number of expats and digital nomads seeking short-term rentals in the city.

Here is a little summary table we've made for you.

Rental yields

Nowadays, rental yields in Bogotá are usually below 5%. It's not much. A good rental yield is usually around 7% or higher. Maybe, you knew it already.

Rental yields in Bogotá are typically higher for properties located in up-and-coming neighborhoods, such as Chapinero, Teusaquillo, and Usaquén, due to their close proximity to the city center and the growing demand for rental units in these areas. Additionally, properties with multiple bedrooms and bathrooms tend to have higher rental yields due to the higher demand from larger families.

For further explanation and a more detailed breakdown, you can check the reports and analyses we have made.

Finally, be aware that rental incomes in Bogotá are taxed at 26%, which is average.

Short-term

You could also decide to rent short-term to business travelers, digital nomads, or students visiting Bogotá for a short period of time. Tourists and other travelers are also potential tenants for short-term rental in Bogotá.

If you decide to go with that option, look for properties in the La Candelaria and Chapinero neighborhoods, as they are popular for short-term rentals due to their close proximity to the city center and tourist attractions.

You will have some competition though - there are around 15,000 Airbnb listings in Bogotá. The average daily rate is at $39.

You have the opportunity to generate some additional income stream then. According to online testimonials and analytics platform like AirDNA, Guesty and Inside Airbnb, people who offer short-term rentals in Bogotá can make around $400 per month. Also, the average occupancy rate is estimated at 52%.

Is it worth buying real estate in Bogotá then?

Buying property in Bogotá is a solid choice if you're looking for long-term stability and wealth building. The property market in Bogotá offers reasonable price-to-rent ratios, indicating that owning property can be more financially beneficial than renting in the long run.

Colombia's growing economy and rising GDP per capita suggest that property values in Bogotá are likely to appreciate, providing potential for profit. Plus, the diverse range of property types means you can find the perfect fit for your lifestyle.

On the flip side, buying property in Bogotá might not be ideal if you're planning a short-term stay, have a limited budget, or prioritize high rental yields. Renting can be a more cost-effective and flexible option for short stays, and upscale neighborhoods may be beyond your budget.

Additionally, Bogotá's rental yields are often below 5%, which could disappoint investors seeking better returns. It's crucial to carefully consider your financial goals, length of stay, and budget before diving into the property market in Bogotá.

Conduct thorough research and consult with local experts to make an informed decision that aligns with your unique circumstances.

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The content provided here is for informational purposes only and does not imply endorsement or advice. While we strive for accuracy, we do not guarantee the completeness or reliability of the information, including text, images, links, or other elements in this material. Following the content and analyses presented here does not assure specific outcomes. For guidance tailored to your individual circumstances, it is recommended to consult with a professional, such as a lawyer, accountant, or business advisor.