Authored by the expert who managed and guided the team behind the Colombia Property Pack
Yes, the analysis of Bogotá's property market is included in our pack
Are you considering investing in Bogotá's real estate market? Curious about the trends that will shape property values in 2025? Want to know how economic shifts might impact your buying decision?
We will lay down recent insights. Here, no guesswork, we rely only on solid data.
Actually, we know this market inside and out. We keep tabs on it regularly, and all our discoveries are reflected in the most recent version of the Colombia Property Pack
This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.
1) Rental yields in Bogotá will rise as more people choose renting over buying due to high property prices
In Bogotá, property prices have been climbing steadily, making it a hot topic for potential buyers.
For example, the average price per square meter has hit around $3,500 USD, showing a noticeable 5% increase from last year. This is especially true in upper-middle-class areas, where prices range from COP 5 million to COP 8 million per square meter. As these prices rise, more people are looking at renting as a more budget-friendly option.
In the city center, a one-bedroom apartment rents for COP 1,500,000 to COP 2,500,000 per month, while suburban areas offer slightly cheaper options. This shift towards renting is also seen in the rental yields, which are healthy, ranging from 5% to 7% annually in popular districts.
The gap between renting and buying has grown over the years. From 2005 to 2020, real house prices in Colombia more than doubled, outpacing household income growth. This makes owning a home less feasible for many, pushing more Colombians towards renting.
Rapid urbanization and population growth in Bogotá have also played a role. With about five million people living in informal settlements, many residents are choosing rentals due to affordability issues and the lack of affordable housing options.
Sources: Urbanet, The Latinvestor, Global Property Guide
2) Residential property prices in Bogotá will grow moderately as the city expands
Bogotá's residential property prices are on a steady rise as the city continues to expand.
With more people moving to Bogotá, the demand for housing is climbing. By 2035, a large chunk of Colombians will likely call cities like Bogotá home, which means more folks hunting for houses. This growing demand makes it unlikely for prices to take a nosedive.
As the city stretches its boundaries, urbanization is a key player in boosting property prices. The government is also stepping up with projects like expanding the TransMilenio bus system and building the Bogotá Metro. These improvements make certain neighborhoods more appealing, which can drive up property values.
Looking back, Bogotá's property market has been on a roll. From 2005 to 2020, property values shot up by 262%, showing a solid growth pattern. This historical trend suggests that the upward trajectory is likely to continue.
Foreign investors are also eyeing Bogotá's real estate. With stable economic growth and low inflation, investors from North America and Europe are increasingly interested. This influx of foreign capital is another factor that could keep property prices climbing.
Overall, residential property prices in Bogotá are expected to grow moderately as the city keeps expanding. The combination of local demand, urban development, and foreign investment paints a promising picture for the market.
Sources: The Latin Investor, Colombia.co, The Latin Investor
Everything you need to know is included in our Pack for Bogotá
3) Property prices in central Bogotá will decline as people move to the suburbs
People in Bogotá are increasingly choosing to live in the suburbs rather than the city center.
In recent years, the population in Bogotá's suburbs has been growing faster than in the central areas. By 2040, these suburbs are expected to house 1.78 million people, showing a clear preference for these areas. This shift is largely due to significant investments in infrastructure, like the expansion of the TransMilenio public transportation system, which has made commuting much easier.
As more people move to the suburbs, property prices there have been rising, reflecting the increased demand. Meanwhile, central Bogotá is experiencing a decline in property prices. This change is partly because remote work has allowed people to prioritize more spacious living conditions over being close to the city center.
Improved transportation links between the suburbs and the city center have made it more convenient for people to live further out while still enjoying city amenities. Urban planning policies, such as the 2019 Bogotá City Master Plan, have encouraged suburban expansion by promoting development around public transportation nodes.
For those considering buying property, the central areas of Bogotá will likely see a slight decline in property prices as more people move to the suburbs. This trend is expected to continue as the city invests in infrastructure and urban planning that supports suburban living.
Living in the suburbs offers more space and a quieter environment, which many find appealing. With the ongoing improvements in transportation and infrastructure, suburban living is becoming increasingly attractive for those who want the best of both worlds—space and city access.
Sources: UN Habitat, Global Property Guide, C40 Case Studies
4) Remote work will drive demand for properties with home office spaces
Remote work is reshaping how we think about home spaces, especially in 2023 and 2024.
In Bogotá, there's a noticeable buzz in the real estate market as more people seek homes with dedicated office spaces. This trend is largely driven by the influx of remote workers and digital nomads who are flocking to the city. The appeal of Bogotá isn't just its vibrant culture but also its growing reputation as a hub for remote work.
Across Colombia, the shift to remote work is undeniable. Over 80% of companies now offer remote work options at least once a week. This change has made having a home office not just a luxury but a necessity for many. As a result, properties with these features are in high demand.
Colombian remote workers report feeling more productive when they have a dedicated workspace. This has led to a boom in the sales of home office furniture and equipment, as people are eager to create efficient work environments at home. Real estate listings in Bogotá are now emphasizing features like dedicated workspaces and high-speed internet to meet this growing demand.
For those considering a move, Bogotá offers a unique blend of urban excitement and the convenience of remote work-friendly homes. The city's real estate market is adapting quickly, with more properties highlighting their suitability for remote work. This shift is not just a trend but a reflection of how work-life balance is evolving in Colombia.
Sources: Avila Latino America, The Latinvestor, Nucamp
5) Property demand in La Candelaria will rise as it becomes a tourism and cultural hub
The demand for properties in La Candelaria is on the rise as it becomes a hub for tourism and cultural activities.
In 2023, Bogotá welcomed over 12 million tourists, marking a 10.1% increase from the previous year. This upward trend continued into early 2024, with international visitors increasing by 8.8% compared to the same period in 2023. La Candelaria, with its charming colonial architecture and lively cultural scene, is at the heart of this boom.
La Candelaria is gaining attention as a cultural hotspot, drawing tourists eager to explore its unique offerings. The neighborhood's rich history and vibrant attractions are not only boosting foot traffic but also sparking business activity, making it a promising area for investors looking to capitalize on the growing interest.
The Colombian government is actively investing in La Candelaria, focusing on restoration projects and offering incentives for property preservation. These efforts are part of a broader urban development plan that emphasizes historic preservation, enhancing the neighborhood's appeal and making its colonial buildings even more attractive for investment.
With these initiatives, La Candelaria is becoming a focal point for those interested in cultural tourism. The area's blend of history and modernity is creating a unique environment that appeals to both tourists and potential property buyers. Investors are taking note of the neighborhood's potential, as the demand for properties is expected to grow alongside its cultural significance.
As La Candelaria continues to evolve, it offers a unique opportunity for those looking to invest in a neighborhood that is both historically rich and forward-looking. The combination of government support, cultural vibrancy, and increasing tourist interest makes it a compelling choice for property investment.
Sources: Bogotá Government, The Latin Investor
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6) Rents in Bogotá will rise steadily due to population growth and insufficient housing supply
Bogotá's population is booming, surpassing 8 million by the end of 2024.
With more people flocking to the city, the demand for housing is skyrocketing. Even though there’s been a 15% bump in new housing units over the last two years, it’s still not enough to keep up. The rental market is hot, with yields between 5% and 7% annually, showing that housing availability is under serious pressure.
Developers in Bogotá are having a tough time keeping up with the demand for new homes. Construction costs are climbing, making it harder to build enough properties. This struggle is a big reason why there’s a shortage of available housing.
As the city grows, the housing market is feeling the squeeze. Rents in Bogotá are expected to rise steadily as the population continues to grow and the supply of housing struggles to keep pace.
Sources: The Latin Investor, CEIC Data, World Bank Blogs
7) Property prices in Bogotá's outskirts will rise significantly as new developments attract buyers
The outskirts of Bogotá are poised for a property price boom as new developments draw in buyers.
One big reason for this is the expansion of infrastructure projects that are making these areas more accessible. New roads and public transport systems, like the expansion of Carrera Séptima and the new Calle 13, are transforming these outskirts into attractive spots for potential buyers. Imagine cutting your commute time significantly; that's what these projects promise.
There's also a growing demand for affordable housing. In 2024, more people started looking for budget-friendly options outside the city center. This shift is largely due to a growing middle class seeking better living conditions. The Colombian government is backing this trend with initiatives like a $150 million loan to finance housing subsidies, making suburban living more appealing.
Improved transportation links are another game-changer. The Western Commuter rail will soon connect suburban towns like Facatativá and Mosquera to Bogotá in just 45 minutes. This means you can enjoy the perks of suburban life while still having quick access to urban amenities. It's a win-win for those who want the best of both worlds.
Real estate developers are also seeing the potential. Both local and international investors are pouring money into these areas, driving up property prices. They recognize the economic opportunities that come with these suburban developments, and they're eager to capitalize on them.
With all these factors in play, it's no wonder that the outskirts of Bogotá are becoming a hot spot for property buyers. The combination of improved infrastructure, government support, and strategic investments is setting the stage for a significant increase in property values.
Sources: The Latin Investor, Bogotá Government, Inter-American Development Bank
8) High-end property demand will rise driving up prices in premium neighborhoods
In Bogotá, luxury property sales have surged, with prices jumping over 10% in 2023.
One reason for this boom is the devaluation of the Colombian peso against the US dollar, making the city a hot spot for foreign investors. These investors are particularly drawn to the luxury real estate market, fueling the demand for high-end properties.
Neighborhoods like Chapinero and Santa Barbara are especially popular. Consumer surveys reveal a strong preference for upscale living in these areas, which are favorites among international buyers.
Foreign interest isn't just about the currency advantage. Bogotá offers a vibrant lifestyle, with cultural attractions and modern amenities that appeal to those seeking luxury.
As more foreign investors enter the market, the demand for high-end properties continues to rise, pushing prices up in premium neighborhoods.
With Bogotá's unique blend of culture and opportunity, the trend of increasing luxury property sales is expected to persist.
Sources: Global Property Guide, Colombia.co
Everything you need to know is included in our Property Investment Pack for Bogotá
9) Virtual reality tours will revolutionize property viewing and transform buyer interactions in Bogotá real estate
Virtual reality tours are revolutionizing how we view properties, especially in recent years.
In Colombia, the AR & VR market is booming, with projections showing 22.6 million users by 2029. By 2024, 42.1% of the population will be using this technology, indicating a widespread familiarity with virtual reality. Surveys reveal that over half of adults have already taken a virtual tour, and 67% of home buyers want virtual tours when browsing listings. This shift shows that virtual tours are quickly becoming a standard expectation in property viewing.
Thanks to technological advancements, virtual reality is now more accessible and affordable. High-quality tours can be experienced on smartphones and tablets, making it easier for potential buyers to explore properties. In Bogotá, the rise in internet access and smartphone use further supports this trend, allowing buyers to engage with virtual tours from virtually anywhere.
Sources: Two Reality, Statista, PhotoUp
10) An aging population will boost demand for accessible senior-friendly housing in Bogotá
The aging population in Bogotá is on the rise, with those over 60 jumping from 6.8% in 2000 to 14.2% in 2023.
As people live longer, with life expectancy still above 74 years, there's a growing need for homes that are easy to navigate. Think no-step entries and elevators, which make life simpler for seniors.
In Bogotá, 11% of the population depends on care services, many of which are unpaid. This highlights a gap in accessible housing, emphasizing the need for senior-friendly options.
With more seniors, the demand for accessible and senior-friendly housing is set to increase. This is a key consideration for anyone looking to invest in Bogotá's property market.
Developers have a chance to cater to this demographic by creating homes that meet these needs, potentially tapping into a growing market.
Sources: Bloomberg Linea, Global Data, SDGs UN
11) Improved public transportation will boost suburban living appeal and increase property values
Improved public transportation is making suburban living more appealing by slashing commute times.
Take Bogotá's Metro Line 1, for instance. It's set to cut travel from the north to the south of the city to just 27 minutes. This means you can live in the suburbs and still have a quick trip to work, giving you more time at home or the office.
Property values are also on the rise in areas with better transit. In Bogotá, upgrades like the TransMilenio BRT and TransMiCable have already boosted property prices in places like Ciudad Bolivar. Better transport makes these areas more desirable, leading to higher demand and prices.
Surveys show people prefer suburban living when transport is good. Neighborhoods such as Chapinero and Usaquén are gaining popularity among young professionals and expats because of improved connectivity. This trend indicates that as public transport gets better, more folks will flock to the suburbs, pushing property values even higher.
In Bogotá, the impact of public transport on property values is clear. With the ongoing improvements, suburban areas are becoming hotspots for those seeking a balance between city work and suburban life.
As public transportation continues to evolve, expect suburban living to become even more attractive, with property values reflecting this shift.
Sources: IISD, The Latin Investor
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12) Smart home technology will be a standard in new developments attracting tech-savvy buyers
By 2025, smart home technology will be a standard feature in new developments.
In Colombia, the smart home market is booming, with projections suggesting it could surpass USD 1 billion by 2028. This surge is largely due to tech-savvy consumers who are eager to embrace the convenience and security that smart homes offer. The demand for smart appliances is also on the rise, with expectations of over 10% annual growth from 2024 to 2029.
Colombian homebuyers are increasingly drawn to technology-integrated living spaces. Many are willing to invest more in homes with smart features, driven by the promise of enhanced convenience and time savings. This trend isn't just local; globally, a significant number of buyers are actively seeking smart homes.
The tech scene in Colombia is vibrant, with startups and tech firms pouring resources into smart home solutions. These companies are crafting smart devices and applications that cater to local needs, which is further boosting the adoption of smart home technology. Government initiatives, particularly those promoting smart city projects, are also pivotal, as they often incorporate smart home technologies into urban planning.
Real estate developers are teaming up with tech companies to make smart home technology more accessible. These partnerships streamline the integration of smart features into new properties, making it easier for buyers to embrace these innovations. In Bogotá, the rise in internet and smartphone use provides a strong base for the widespread adoption of smart devices, enhancing daily life.
Sources: Market.us, Bonafide Research, Exploding Topics, Kings Research, Statista
13) Stricter environmental regulations will boost demand for eco-friendly properties in Bogotá
Stricter environmental regulations in Bogotá are set to boost the demand for eco-friendly properties.
By 2023, more than 20% of new buildings in Colombia were certified under the IFC's EDGE program, highlighting a strong shift towards sustainable construction. This shows that both developers and consumers are already favoring eco-friendly options. The Colombian government has been proactive, implementing a National Sustainable Construction Policy aimed at reducing greenhouse gas emissions by 2030 and achieving carbon neutrality by 2050. These policies include incentives that make sustainable buildings more appealing to environmentally conscious buyers, further driving demand for eco-friendly properties.
Consumer preferences are also shifting towards eco-friendly homes. In 2023, surveys revealed that 70% of home buyers in Colombia were interested in smart homes, which often come with eco-friendly features. This growing interest in sustainable living is supported by increased media coverage of climate change impacts, which has heightened awareness and demand for properties that align with these values.
In Bogotá, the push for eco-friendly properties is not just a trend but a response to stricter regulations. The city is becoming a hub for sustainable living, with developers keen to meet the rising demand. Buyers are increasingly looking for homes that offer energy efficiency and reduced environmental impact, making eco-friendly properties a hot commodity.
Local developers are responding by incorporating green technologies and sustainable materials into their projects. This not only meets regulatory requirements but also appeals to a growing market of environmentally conscious buyers. The demand for such properties is expected to rise as more people become aware of the benefits of sustainable living.
As Bogotá continues to enforce stricter environmental regulations, the real estate market is likely to see a significant shift towards eco-friendly properties. This trend is driven by both government policies and changing consumer preferences, making it a promising area for investment.
Sources: The Latin Investor, Constructive Voices
14) Luxury rental yields will stay stable as demand for high-end rentals grows
In Bogotá, rental yields in the luxury market have stayed stable thanks to several key factors.
Over the past couple of years, more expatriates and wealthy professionals have been moving to the city, drawn by Bogotá's expanding economic opportunities and better infrastructure. This trend has made the city a hotspot for high-end living, especially in neighborhoods like Chapinero and Usaquén.
The Colombian government, along with big companies, has been actively offering incentives to lure foreign investment and talent. This strategy has significantly increased the demand for luxury rentals, with property values in upscale areas rising by about 10%, which suggests that rental prices are either stable or on the rise.
Vacancy rates for luxury rentals in Bogotá are impressively low, hovering between 3% and 5%. This low rate is a strong indicator of robust demand, particularly in neighborhoods that are well-connected and rich in amenities.
The growing community of expatriates is a major driver of this demand. They're attracted to Bogotá not just for its modern living spaces but also for the business opportunities it offers.
With these dynamics in play, the luxury rental market in Bogotá is expected to remain strong, as the demand for high-end rentals continues to be fueled by these factors.
Sources: The Latin Investor, Global Property Guide, The Latin Investor
Everything you need to know is included in our Real Estate Pack for Bogotá
15) Foreign investors in Bogotá's real estate will increase as the city gains global recognition
Bogotá is catching the eye of foreign investors as it gains international recognition.
In 2023, Bogotá was named South America's Leading Business Travel Destination, which is already drawing more international attention and investment. This title highlights the city's appeal, from its hotel infrastructure to its convention centers, making it a hot spot for foreign investors.
The Colombian real estate market is on the rise, with projections to hit USD 2.12 trillion by 2024, and Bogotá is a major player in this growth. Residential real estate is booming, with a projected volume of USD 1.63 trillion in 2023, showing strong demand from foreign investors. Big names like Engel & Völkers are already in the mix, signaling growing interest.
The Colombian government is rolling out the red carpet for foreign investors with policies that make property ownership easier. Bogotá's high rankings in global city lists for livability and investment potential are also a big draw. The city is in the top 3 for MICE tourism in Latin America and the Caribbean, making it a prime spot for business and tourism.
With these factors in play, Bogotá is becoming a magnet for international real estate firms and investors. The city's growing reputation and strategic location are key reasons why more foreign investors are looking to Bogotá as a promising investment destination.
Sources: Bogotá Government, Engel & Völkers, Golden Harbors
16) Foreign buyers will target Bogotá's luxury market and drive up high-end area prices.
Foreign buyers are eyeing Bogotá's luxury market, pushing up prices in upscale areas.
Why the buzz? Well, foreign investment in Bogotá's real estate is booming. The Colombian peso has dropped about 40% against the US dollar since 2015, making the city a hot spot for international buyers. This currency shift means you get more bang for your buck, and who doesn't love a good deal?
There's also a wave of new luxury developments popping up. Think sleek penthouses and chic villas designed to lure in high-end buyers. This surge in luxury properties signals a growing demand. Even neighborhoods that cater to the upper-middle class are seeing price hikes, showing just how much luxury demand is influencing the market.
And let's not forget the expats. Bogotá is becoming a magnet for international professionals who are snapping up local properties. They're drawn to the city's lively urban vibe and the ease of living in areas that blend residential and commercial spaces. This influx of expats is a key player in the luxury market's growth.
With more expatriates settling in, the luxury market is expected to keep climbing. These international buyers are not just passing through; they're investing in Bogotá's future. Their presence is reshaping the city's high-end real estate landscape.
Sources: Global Property Guide, James Edition, The Latin Investor