Authored by the expert who managed and guided the team behind the Colombia Property Pack
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What will happen in Bogotá’s real estate market? Will prices rise or fall? Is Bogotá still a prime location for foreign investors? How is Colombia’s government shaping real estate policies and taxes in 2025?
We’re frequently asked these questions because we’re deeply engaged in this market. Through our collaborations with notaries, real estate agents, and clients purchasing properties in Bogotá, we’ve gathered firsthand insights.
That’s why we crafted this article: to deliver clear answers, insightful analysis, and a comprehensive perspective on market predictions and forecasts.
Our aim is straightforward: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.
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1) Rental yields in Bogotá will rise as more people choose to rent because property prices are increasing
Bogotá's property prices have been on the rise, making it a hot topic for potential buyers.
In the city's upscale neighborhoods, prices per square meter have jumped to between COP 5 million and COP 8 million. This increase is pushing more people to consider renting as a viable option. For those looking at the city center, renting a one-bedroom apartment costs between COP 1,500,000 and COP 2,500,000 per month, while the suburbs offer a bit of relief with slightly lower prices.
The shift towards renting isn't just about preference; it's about necessity. Real house prices in Colombia have more than doubled since 2005, leaving many unable to keep up with the pace of rising costs compared to their income. This affordability gap is a key reason why renting is becoming more popular.
Bogotá's rapid urbanization is another factor at play. The city is growing fast, and with it, the urban population is swelling. Many newcomers find themselves in informal settlements, unable to afford homeownership. The economic challenges, like the devaluation of the Colombian peso, only add to the difficulty of buying a home, making renting a more attractive option.
As more people opt to rent, rental yields in Bogotá are expected to increase. This trend is a direct result of the rising property prices and the growing demand for rental properties. Investors are taking note, seeing the potential for higher returns in the rental market.
For those considering buying property in Bogotá, it's essential to understand these dynamics. The city's real estate landscape is changing, and with it, the opportunities for investment. Understanding the local market trends can provide a competitive edge in making informed decisions.
Sources: Urbanet, Global Property Guide
2) Property prices in central Bogotá will dip slightly as more people relocate 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
We made this infographic to show you how property prices in Colombia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
3) Interest in homes with office spaces will grow as remote work becomes more popular
The rise of remote work is reshaping the real estate market, especially in cities like Bogotá.
In recent years, over 80% of companies in Colombia have embraced remote work policies, leading to a surge in demand for homes with dedicated office spaces. This shift is largely due to the increasing number of remote workers and digital nomads flocking to urban tech hubs.
Many remote workers find that having a specific area for work boosts productivity, making homes with dedicated workspaces highly desirable. Real estate listings now often highlight features like high-speed internet and modern office setups to attract these buyers.
The market has also seen a rise in sales of home office furniture and equipment, indicating a strong interest in creating functional work environments at home. Social media and media outlets frequently discuss the advantages of having a dedicated workspace, further fueling this trend.
In Bogotá, properties with home office spaces are becoming increasingly popular, as more people seek to balance work and life in a single location. This trend is particularly evident in areas with robust tech infrastructure, where remote work is more prevalent.
As remote work continues to grow, the demand for homes that can accommodate this lifestyle is expected to rise, making it a key consideration for potential buyers in the coming years.
Sources: Avila Latino America, Nucamp
4) Demand for properties in La Candelaria will grow as it becomes a hub for tourism and culture
The demand for properties in La Candelaria is on the rise as it becomes a hotspot 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 vibrant cultural scene, is at the heart of this boom.
Known for its rich history and lively atmosphere, La Candelaria is drawing tourists eager to explore its unique offerings. The neighborhood's cultural and historical attractions are not just boosting foot traffic but also increasing business activity, making it a promising area for investors looking to capitalize on this growth.
The Colombian government is actively investing in La Candelaria, focusing on restoration projects that provide incentives for property restoration and preservation. These urban development plans emphasize historic preservation, enhancing the neighborhood's appeal and making colonial buildings even more attractive for investment.
Adding to the excitement, new cultural festivals and events are turning La Candelaria into a lively hub. This vibrant atmosphere is naturally fueling the demand for properties, pushing property values upward as more people seek to be part of this dynamic community.
For those considering investing in property, La Candelaria offers a unique opportunity. With its blend of history, culture, and government support, the area is poised for growth, making it an attractive option for both local and international buyers.
Source: Bogotá Government
5) Rents in Bogotá will keep rising steadily due to population growth outpacing 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 thriving, with yields between 5% and 7% annually, hinting that rents will keep climbing.
Developers in Bogotá are having a tough time building new homes. They’re up against rising construction costs, which makes it hard to meet the housing demand. This shortage of available properties is a real challenge.
As the city grows, the pressure on the housing market intensifies. The limited supply of new homes means that finding a place to rent is getting tougher. This situation is pushing rents higher, making it a competitive market for renters.
For those looking to invest, Bogotá’s real estate market offers promising returns. The steady population growth and housing crunch suggest that property values and rents will continue to rise. It’s a dynamic market with plenty of opportunities.
So, if you’re considering buying property in Bogotá, keep an eye on these trends. The city’s growth and housing challenges are shaping a unique real estate landscape.
Sources: CEIC Data, World Bank Blogs
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6) Property prices in Bogotá's outskirts will rise significantly as new developments draw in buyers
The outskirts of Bogotá are poised for a significant rise in property prices as new developments draw in buyers.
One major reason is the expansion of infrastructure projects that are boosting connectivity. New roads and public transport systems, like the expansion of Carrera Séptima and the new Calle 13, are making these areas more appealing. This improved accessibility is a game-changer for potential buyers who are looking for convenience.
There's also a growing demand for affordable housing outside the city center. In 2024, many people started seeking budget-friendly options due to demographic shifts, such as a burgeoning middle class. The Colombian government is backing this trend with initiatives like a $150 million loan from the Inter-American Development Bank to fund housing subsidies, which is expected to energize the suburban real estate market.
Transportation links are another big draw. The Western Commuter rail will soon connect areas like Facatativá and Mosquera to Bogotá in just 45 minutes, making these suburbs more accessible and attractive. This kind of connectivity is a huge plus for anyone considering a move to the outskirts.
Real estate developers are also taking notice. Both local and international investors are pouring money into these areas, recognizing their economic potential. This influx of investment is naturally driving up property prices, as developers see the opportunity for growth.
With all these factors in play, the outskirts of Bogotá are becoming a hot spot for property buyers. The combination of improved infrastructure, government support, and increased investment is setting the stage for a property boom in these suburban areas.
Sources: Bogotá Government, Inter-American Development Bank
7) High-end property prices will rise as demand grows 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
8) Virtual reality tours will change property buying by becoming a common tool for viewing homes
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
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Colombia. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
9) Demand for senior-friendly housing in Bogotá will grow as the population ages
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
10) Better public transport will boost suburban living appeal, affecting 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, making suburban life a breeze for city workers. This kind of convenience is a game-changer for those considering a move out of the city.
When transit gets better, property values in those well-connected areas often see a boost. In Bogotá, upgrades like the TransMilenio BRT and TransMiCable have already hiked up property values in places like Ciudad Bolivar. The shorter travel times and enhanced quality of life make these neighborhoods hot spots.
Surveys reveal that people lean towards suburban living when transportation is top-notch. This trend is pushing up property values in areas like Chapinero and Usaquén, which are becoming magnets for young professionals and expats. They're on the hunt for homes near efficient transit, driving demand and prices up.
These groups are not just looking for a place to live; they want easy access to the city without the hassle. As a result, neighborhoods with good transport links are seeing a surge in popularity and property value.
With these improvements, suburban areas are not just more accessible but also more desirable, making them prime real estate for those seeking a balanced lifestyle.
Sources: IISD, Bank Information Center
11) Tech-savvy buyers will be drawn to new developments as smart home technology becomes standard
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
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12) Demand for eco-friendly properties in Bogotá will rise due to stricter environmental regulations
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 clear shift towards sustainable construction. This shows that both developers and consumers are already favoring eco-friendly options.
The Colombian government is actively promoting sustainable building practices. They've rolled out a National Sustainable Construction Policy to cut greenhouse gas emissions by 2030 and aim for carbon neutrality by 2050. This policy offers incentives that make sustainable buildings more attractive to eco-conscious buyers, further fueling the demand for green properties.
Consumer preferences are also leaning towards sustainability. 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 smart and sustainable living solutions suggests that stricter regulations will align with consumer desires, boosting the demand for properties that meet these standards.
In Bogotá, the push for eco-friendly properties is not just a trend but a response to both regulatory changes and consumer demand. The city's real estate market is adapting to these shifts, with more developers incorporating sustainable features into their projects.
As Bogotá continues to tighten its environmental regulations, the appeal of eco-friendly properties is expected to rise. Buyers are increasingly looking for homes that not only meet regulatory standards but also offer sustainable living solutions.
Source: Constructive Voices
13) More foreign investors will enter Bogotá’s real estate market as the city becomes more internationally recognized
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
14) Luxury property prices in Bogotá will rise as more foreign buyers enter the market
Foreign buyers are flocking to Bogotá's luxury real estate market, pushing up prices in upscale neighborhoods.
One big reason is the 40% devaluation of the Colombian peso against the US dollar since 2015, making Bogotá more attractive to international investors. This currency shift has opened doors for foreign buyers looking for value in a vibrant city. As a result, there's been a noticeable uptick in foreign investment in Bogotá's real estate scene.
Luxury property developments are popping up all over Bogotá, with new homes, penthouses, and villas designed to lure high-end buyers. This boom in luxury properties signals a growing demand in the market. In fact, property prices in upper-middle-class neighborhoods are climbing, showing how the appetite for luxury is driving up costs.
The city is also seeing an influx of expatriates and international professionals, adding fuel to the fire. Many expats are buying local properties, drawn by Bogotá's lively urban vibe and the ease of living in areas that blend residential and commercial spaces. This expanding expat community is expected to keep shaping the luxury market.
For those considering a move, Bogotá offers a unique mix of culture, convenience, and opportunity. The city's appeal is not just in its properties but also in its lifestyle, which is increasingly catching the eye of global buyers. As more international professionals settle in, the demand for luxury living spaces is only set to rise.
With these trends, Bogotá's high-end real estate market is becoming a hotspot for foreign investment. The combination of currency advantages, new developments, and a growing international community is creating a perfect storm for rising property values in the city's most sought-after areas.
Sources: Global Property Guide, James Edition
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.