Authored by the expert who managed and guided the team behind the Colombia Property Pack
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What are the strongest trends shaping Bogotá’s real estate market? Are property values on the rise or decline? Is the city still attracting international investors? How are local policies and taxes influencing real estate decisions in 2025?
These are the questions we hear every day from industry professionals, potential buyers, and sellers across Bogotá. Maybe you’re curious about these topics too.
We stay closely connected with local experts and enthusiasts, exploring Bogotá’s real estate landscape daily. That’s why we crafted this article: to deliver clear insights, thorough analysis, and a comprehensive view of the market’s trends and dynamics.
Our aim is straightforward: to make sure you feel well-informed and confident about the market without needing to search elsewhere. If you think we’ve missed something or could improve, we’d love to hear from you. Please share your feedback or comments, and we’ll strive to enhance this content for you.
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1) Bogotá’s property prices will rise moderately due to limited supply and high demand
In Bogotá, residential property prices are on the rise due to high demand and limited supply.
As the city grows, more people are moving in, which means the demand for housing is increasing. This influx of new residents is pushing property prices up. The challenge is that there's not much land available for new developments, especially in central areas, which keeps the supply tight.
Government reports point out that there's a housing shortage in Bogotá, particularly in upper-middle-class neighborhoods. These areas already have high property prices, and the shortage is making them even higher. Rental properties are also in high demand, with occupancy rates soaring, which further drives up property prices.
International investors are showing growing interest in Bogotá's real estate market. The devaluation of the Colombian peso makes it attractive for them, especially when it comes to high-end properties. This adds another layer of demand, contributing to the overall increase in property prices.
Looking ahead, experts predict that by 2025, property prices could rise by 3% to 7% from 2024 values. This projection is based on the current trends of high demand and limited supply, which are expected to continue.
For those considering buying property in Bogotá, it's important to understand that the market is competitive. With limited options and high demand, prices are likely to keep climbing, making it a potentially lucrative investment.
Sources: Global Property Guide, Colombia.co, Fitch Ratings
2) Bogotá’s rental yields will rise as more people choose renting over buying due to high property prices
Property prices in Bogotá are climbing, making homeownership a challenge for many.
In the heart of the city, prices per square meter range from COP 5,000,000 to COP 8,000,000, with luxury spots going beyond COP 10,000,000. This trend has been especially evident in 2023 and 2024.
Because of these steep prices, more folks are opting to rent. The rental market is hot, with vacancy rates hovering around 3% to 5%, showing a strong demand for rental homes and naturally pushing up rental yields.
Neighborhoods like Chapinero and Usaquén are buzzing with young professionals and students, adding to the rental demand. These areas have seen a 10% jump in property values over the past year, which is great news for rental yields.
Surveys reveal that renters are keen on areas with better connectivity. New transport options, like the Bogotá Metro Line 2, are making these areas more attractive, further supporting higher rental yields.
Sources: Coliving.com, The Wandering Investor
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.
3) Luxury property yields will drop as rental demand moves to more affordable options
In Bogotá, rental demand is shifting away from luxury properties.
Luxury areas like Zona G and La Cabrera are seeing higher vacancy rates, even though the city's overall vacancy is low. This means fewer people are choosing high-end rentals, likely due to changing economic conditions that make these properties less attractive.
Rental prices for luxury apartments are dropping, signaling a decrease in demand. When demand falls, property owners often cut prices to lure tenants, which in turn reduces rental yields for these properties.
There's a noticeable shift towards mid-range and affordable housing, driven by local professionals and a growing expatriate community. These groups are looking for more budget-friendly living options, as surveys show a preference for affordable rentals due to stagnant wages and rising living costs.
Economic reports highlight a widening income gap in Bogotá, meaning fewer people can afford luxury rentals. This pushes more renters towards affordable options, further decreasing demand for high-end properties.
Additionally, the construction of affordable housing and government incentives are making budget-friendly options more accessible. This has led to a shift away from luxury rentals, as more people find suitable housing within their means.
Source: Schalkenbach
4) Bogotá’s rents will increase moderately as more residents move to the city
Bogotá's population has grown to 7.94 million in 2023, making it a bustling hub in Latin America.
With more people flocking to the city, the demand for housing is naturally on the rise. The city's District Development Plan 2024-2028 is set to boost its appeal even further. Key projects like extending the Bogotá Subway to 100th Street aim to improve mobility and air quality, making the city more livable and connected.
These improvements are not just about convenience; they make Bogotá a magnet for new residents. As the city becomes more attractive, the demand for rental properties is expected to grow. This is especially true in areas near business districts and universities, where people want to live close to work and study.
Looking at past trends, property values in Bogotá have seen a 35% increase in January 2023 alone. This upward trend is likely to continue, leading to a moderate rise in rents. The city's growing population and infrastructure upgrades are key drivers of this trend.
Real estate market reports back this up, showing strong demand for rentals. Areas close to business hubs and educational institutions are particularly in demand, as they offer convenience and accessibility. This makes them prime spots for potential property buyers.
As Bogotá continues to develop, it's clear that the city's appeal is only going to increase. With ongoing projects and a growing population, the rental market is set to remain robust, offering opportunities for both investors and residents.
Sources: Statista, CMS Law, The Rio Times
5) Property interest in San Cristóbal will decline due to ongoing security concerns
San Cristóbal is seeing a drop in property interest due to rising crime rates.
In 2023, the National Police noted a jump in crimes, with 670 extortion cases, marking a 3.6% increase from the previous year. Daily, 403 people were mugged in Bogotá, and San Cristóbal is one of the areas feeling the impact.
High-profile crimes, like armed robberies in local eateries, have fueled a sense of insecurity. A survey in July 2023 showed that 52% of residents felt unsafe, even in affluent areas like San Cristóbal, which is a red flag for potential buyers.
The media keeps spotlighting San Cristóbal's security woes, from armed robberies to extortion, which can scare off investors. The first half of 2023 saw an 11% rise in homicides in Bogotá, adding to the worries of those considering buying property.
Potential buyers are wary, as the ongoing crime wave is hard to ignore. The perception of danger, especially in areas like San Cristóbal, is a major deterrent.
With crime stories making headlines, the appeal of investing in San Cristóbal is dwindling. The area's reputation for safety is taking a hit, making it less attractive for property seekers.
Sources: Dragonfly Intelligence, The City Paper Bogotá
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6) Properties with outdoor spaces will become more popular as residents seek fresh air and nature access
Since 2020, there's been a 50% surge in demand for homes with outdoor spaces like balconies, terraces, or gardens.
People are craving fresh air and natural light, which are known to boost well-being. This trend is expected to keep growing through 2025 as more folks prioritize these features.
In neighborhoods with outdoor spaces, rental prices have climbed, with the average place costing $75 per night. In 2023, over 5.7 million nights were booked in these areas, showing a clear preference for homes that offer a slice of nature.
Real estate agents are catching on, highlighting outdoor features in their listings. This shift in marketing shows just how important these spaces have become in residential properties.
In Bogotá, urban gardening and community green spaces are booming. Projects like Bogotá es Mi Huerta are turning the city into a sustainable haven, reflecting the growing trend of integrating nature into urban living.
As residents seek mental health benefits, properties with outdoor spaces are becoming more popular. This is especially true in cities where access to nature is limited, making these features a hot commodity.
Source: Earth Island Journal
7) Demand for rental properties near universities will rise due to the growing student population
The growing student population in Bogotá is driving up the demand for rental properties near universities.
Universities like the Universidad Nacional de Colombia are seeing a surge in enrollment, with 57,058 students currently attending. This influx means there's a big need for housing options close to campus.
However, Bogotá faces a shortage of purpose-built student accommodation (PBSA), with existing facilities serving less than 10% of students. This gap forces many students to either find private rentals or stay at home, pushing up the demand for rentals near universities even more.
The introduction of the Digital Nomad Visa in 2022 has also brought international students and remote workers to Bogotá. This has increased the need for short-term rentals in urban areas, especially those close to universities.
With more international students and professionals arriving, the demand for rental properties continues to grow. This trend is particularly noticeable in areas surrounding major universities.
Sources: Top Universities, ICEF Monitor
8) Property interest in Bogotá's central neighborhoods will rise with new bike lanes and pedestrian-friendly initiatives
In Bogotá, property values have surged in areas with new bike lanes and pedestrian zones.
Since 2023, the city has seen a quadrupling of bike use on main roads, making these neighborhoods more appealing to both residents and investors. This shift is not just about convenience; it's about creating vibrant, accessible communities where people want to live.
People are drawn to areas that offer a healthier lifestyle, and Bogotá's initiatives like the Ciclovía program are a big part of that. Walkability is strongly linked to property demand, and the city's efforts to create pedestrian-friendly zones have led to higher property values.
Rental prices have also climbed in these areas, reflecting a higher demand for housing. The increased foot traffic and business activity, fueled by the success of Ciclovía, show how these initiatives support local businesses by bringing more people into the neighborhoods.
These changes are not just about transportation; they're about transforming the urban landscape. Pedestrian-friendly initiatives are reshaping Bogotá, making it a more desirable place to live and invest.
As Bogotá continues to expand its cycling infrastructure, expect these trends to grow. New bike lanes are boosting property interest in central neighborhoods, making them hotspots for future development.
Sources: ITDP, Transformative Mobility, The City Fix, World Economic Forum
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.
9) Bogotá will see rising demand for accessible housing due to an aging population
Bogotá is seeing a rise in its elderly population, which is reshaping the housing market.
By 2031, Colombia will have around 10 million seniors, a 41% jump from 2021. This means more homes need to be designed with older adults in mind. As people live longer, with life expectancy hitting 74.90 years in 2023, the demand for accessible housing is growing.
Older adults often need homes with features like elevators and no-step entries for safety and ease. In Bogotá, there's a noticeable shortage of such accessible housing, which is becoming a pressing issue as the population ages.
Colombians generally prefer owning homes, seeing them as stable investments. This cultural preference further highlights the need for more accessible housing options. Real estate market analyses show a trend towards properties with accessibility features, indicating a gap that needs addressing.
With the aging population, the demand for these types of homes is only going to increase. The current shortage in Bogotá's housing market presents an opportunity for developers to cater to this growing demographic.
Sources: Bloomberg Linea, Global Data, Metropolis
10) Smart home technology will be a major selling feature in new residential projects in Bogotá
Smart home technology is becoming a big deal in Bogotá, with the market expected to hit over USD 1 billion by 2028.
People in Colombia are really getting into home automation, and it's not just about the cool factor. Smart appliances are growing by over 10% annually from 2024 to 2029, driven by the need for convenience and energy savings. Imagine controlling your lights or thermostat with just your voice—Google Assistant and Alexa are making that a reality.
More than 70% of Colombians know about smart home tech, and this awareness is turning into a preference for homes with these features. Smart thermostats and automatic lighting are becoming key selling points in the real estate market. These features not only save time but also make life a lot easier.
In Bogotá, having a tech-enabled home is becoming a must-have for many buyers. Real estate agents are noticing that homes with smart features sell faster and often at a premium. It's not just about luxury; it's about making everyday life simpler and more efficient.
As more people experience the benefits of smart home technology, the demand is only going to grow. Homeowners are increasingly looking for properties that offer these modern conveniences, making it a smart investment for developers.
So, if you're thinking about buying property in Bogotá, consider the advantages of a smart home. It's not just a trend; it's the future of living in the city.
Sources: Statista, Bonafide Research, Light Now Blog
11) Demand for eco-friendly homes in Bogotá will rise with the trend towards sustainable living
Sustainable living is gaining momentum in Bogotá as people become more aware of climate change.
The city has set ambitious goals, like achieving carbon neutrality by 2050, and is actively working on projects such as the District Development Plan to tackle environmental issues. This plan is a big deal because it shows Bogotá's commitment to a greener future.
In Colombia, there's a noticeable rise in the sales of eco-friendly building materials. From 2024 to 2029, this market is expected to grow by more than USD 1 billion, indicating a strong demand for sustainable construction. The government is backing this trend with incentives that promote sustainable building practices and energy-efficient standards for new constructions.
People are also leaning towards energy-efficient homes. By 2023, over 20% of new buildings in Colombia were certified under the IFC's EDGE program. This shows a clear consumer preference for homes that are not only eco-friendly but also help save on utility bills.
Real estate in Bogotá is catching on, with more developments incorporating green technologies. A prime example is the LEED Platinum towers on Avenue 26, which boast features like recycled content, solar panels, and green roofs, setting a new standard for sustainable living in the city.
Sources: Bona Fide Research, gb&d Magazine, S&P Global
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12) Mid-range property yields will stay stable by attracting a wide range of tenants
Mid-range property yields in Bogotá are holding steady thanks to a mix of appealing factors for tenants.
One big reason is the rising rental demand from the growing middle class. This group is on the lookout for homes that balance comfort and affordability, which is exactly what mid-range properties offer. In neighborhoods like Chapinero and Usaquén, rental prices have either stayed the same or gone up, showing that demand is strong and steady.
The middle class in Bogotá is expanding rapidly, supported by macroeconomic factors and government policies that focus on improving health, education, and reducing poverty. This demographic shift is a key driver behind the stable property yields. Renters in these areas are not looking for luxury; they want basic amenities like security, easy access to public transport, and nearby grocery stores.
These preferences are reflected in the low vacancy rates of 3% to 5% in well-connected neighborhoods, indicating that mid-range properties are consistently occupied. The focus on essential amenities over luxury finishes aligns with what tenants are seeking, making these properties a reliable investment.
Chapinero and Usaquén are particularly popular because they offer a good mix of what renters want. The consistent demand in these areas is a testament to their appeal. The stable rental prices and low vacancy rates suggest that mid-range properties will continue to attract a broad tenant base.
With the middle class growing and government policies supporting this trend, mid-range properties remain a solid choice for both renters and investors. The combination of affordability, essential amenities, and strategic location keeps these properties in demand.
Source: Oxford Business Group
13) Mid-range rental prices will steadily rise due to ongoing demand
Bogotá's mid-range rental prices have been steadily climbing due to consistent demand.
With a population growth of 1.3% in 2024, Bogotá now boasts over 11 million residents. This surge, fueled by economic stability and foreign investment, has significantly increased the need for housing. As more people flock to the city, the demand for rental properties continues to rise.
The city is also attracting a diverse crowd, including expatriates and local professionals, especially remote workers. These individuals are drawn to central neighborhoods offering mixed-use spaces, further driving up rental demand. The influx of people seeking job opportunities has made Bogotá a hotspot for those looking to rent.
In central areas, the scarcity of new housing developments is another factor pushing rental prices higher. Neighborhoods like Chapinero and Zona T, known for their upscale vibe, are experiencing higher rents due to limited supply. This scarcity is making these areas even more desirable, contributing to the upward trend in rental costs.
Historical data reveals a 10% increase in property values and rental prices in popular areas like Chapinero and Usaquén over the past year. This trend highlights the ongoing demand and limited availability in these sought-after neighborhoods.
As Bogotá continues to grow and attract new residents, the rental market remains competitive. The combination of population growth, job opportunities, and limited housing supply ensures that mid-range rental prices will keep rising.
Source: Macrotrends
14) La Candelaria will draw more investors as tourism in the historic district grows
La Candelaria is drawing more investors as tourism in the historic district continues to grow.
In 2023, Bogotá welcomed a record number of tourists, with many choosing La Candelaria as their destination. This influx of visitors signals a strong demand for boutique residences, offering a golden opportunity for investors looking to capitalize on the area's charm and appeal.
The hotel occupancy rate in Bogotá, especially in La Candelaria, hit 65.15% from January to October 2023. This increase from the previous year underscores the district's rising popularity among tourists, making it a promising spot for investment in hospitality and real estate.
Moreover, the Colombian government is actively investing in infrastructure and the preservation of historic sites in La Candelaria. This support is enhancing the district's cultural and historical significance, making it even more attractive to visitors and investors alike.
The vibrant cultural scene, coupled with the emergence of new local businesses, is boosting foot traffic and business activity in La Candelaria. This lively atmosphere is a magnet for investors, eager to tap into the district's growing economic potential.
With the government's backing and a thriving cultural environment, La Candelaria is poised to become a hotspot for investment. The district's unique blend of history and modernity is drawing attention from those looking to invest in a dynamic and evolving area.
Sources: Bogotá Government, Online Marketplaces
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.