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Property prices in Cali are experiencing moderate growth in 2025, with apartments appreciating by 6.99% in the first quarter.
As Colombia's third-largest city continues to attract foreign investment and benefit from declining interest rates, Cali's real estate market shows resilience despite being more affordable than Bogotá and Medellín. The city's southern neighborhoods are leading the price surge while offering investment opportunities for both local and international buyers.
If you want to go deeper, you can check our pack of documents related to the real estate market in Colombia, based on reliable facts and data, not opinions or rumors.
Property prices in Cali increased by 6.99% in Q1 2025, with houses outperforming apartments at 4.92% versus 3.39% quarterly growth.
Despite nominal increases, real price growth remains modest at 1.58% when adjusted for inflation, making Cali the most affordable among Colombia's three largest cities.
| Property Type | Average Price per m² (2025) | Year-on-Year Change |
|---|---|---|
| Apartments | COP 3,750,000-3,800,000 | +6.99% |
| Houses | COP 2,800,000-2,900,000 | +4.92% |
| Premium Areas (Ciudad Jardín) | COP 4,410,000-4,556,818 | High appreciation |
| VIS Housing Cap | COP 213.5 million | +9.5% |
| Rental Yields | 3.88%-8.62% | Stable |
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.
What are the current property prices in Cali as of June 2025?
Property prices in Cali remain the most affordable among Colombia's major cities as we reach mid-2025.
The median price for apartments in Cali currently stands at COP 3,750,000 to 3,800,000 per square meter, while houses average COP 2,800,000 to 2,900,000 per square meter. Premium locations like Ciudad Jardín command higher prices, reaching up to COP 4,556,818 per square meter for apartments.
These prices make Cali significantly more affordable than Medellín, where properties average COP 4,566,000 per square meter, and Bogotá at COP 5,028,000 per square meter. For international buyers, this translates to approximately $950-$1,150 USD per square meter for apartments in Cali, compared to over $1,200 in other major Colombian cities.
The city's competitive pricing continues to attract both local buyers and international investors, with 30% of property purchases now coming from foreign buyers. Despite the relatively lower prices, certain neighborhoods are experiencing rapid appreciation, particularly in the southern districts where modern infrastructure and amenities drive demand.
Current market conditions show 85% of residential properties in Cali now feature modern kitchens, reflecting developers' focus on contemporary amenities to attract buyers in this competitive market.
How much have property prices increased in Cali during the first half of 2025?
Property prices in Cali have shown robust growth in the first half of 2025, outpacing many other Colombian cities.
In the first quarter of 2025, new house prices in Cali increased by 6.99% compared to the previous quarter, marking one of the highest quarterly increases among major Colombian cities. When looking at year-over-year performance through May 2025, nominal prices rose by 8.85%, though real growth adjusted for inflation was more modest at 1.58%.
Houses have notably outperformed apartments in terms of price appreciation. House prices rose 4.92% quarter-over-quarter in Q1 2025, while apartments increased by 3.39%. This divergence reflects shifting buyer preferences and the relative scarcity of houses compared to apartment developments.
The strong price growth in early 2025 follows a challenging 2024 when real prices actually declined by 2.1% after adjusting for inflation. The current rebound is driven by improved economic conditions, with inflation falling from 9.28% in 2023 to around 5.2% in 2024, and projected to reach 3.8-5% by the end of 2025.
These price increases position Cali as a recovering market that's gaining momentum after several years of stagnation, offering opportunities for investors who enter before prices catch up to other major Colombian cities.
Which neighborhoods in Cali are experiencing the fastest property price growth in 2025?
The southern and western neighborhoods of Cali are leading the city's property price surge in 2025.
Ciudad Jardín and Pance in the south remain the top performers for value appreciation, driven by luxury developments, high-quality infrastructure, and strong demand from upper-income buyers. Properties in Ciudad Jardín are projected to reach COP 4,410,000 to 4,536,000 per square meter, reflecting the area's status as Cali's most exclusive residential district.
El Peñón and Santa Teresita in the west are experiencing exceptional growth due to their exclusivity, proximity to nature, and tourist appeal. These neighborhoods have become particularly popular for short-term rental investments, with rental yields ranging from 3.88% to 8.62%.
In contrast, traditionally popular areas like La Flora and Santa Mónica in the north are seeing price stagnation or even slight declines due to shifting demographics and affordability concerns. This represents a significant shift in Cali's real estate dynamics.
It's something we develop in our Colombia property pack.
| Neighborhood | 2025 Price Trend | Key Growth Drivers |
|---|---|---|
| Ciudad Jardín/Pance | Strong Upward ↑↑ | Luxury developments, premium schools, modern infrastructure, gated communities |
| El Peñón/Santa Teresita | Strong Upward ↑↑ | Tourist appeal, exclusivity, short-term rental demand, proximity to entertainment |
| Granada/Normandía | Moderate Upward ↑ | City center location, commercial activity, urban renewal projects |
| San Fernando/San Antonio | Stable → | Affordable housing options, traditional neighborhoods, steady local demand |
| La Flora/Santa Mónica | Stagnant/Declining →↓ | Affordability issues, shifting demographics, competition from newer areas |
What are the latest mortgage rates affecting Cali's property market in June 2025?
Mortgage rates in Colombia have declined significantly, boosting affordability in Cali's property market.
The central bank's policy rate has dropped from 9.5% at the end of 2024 to a projected 5.8-7% by the end of 2025, making this the fifth consecutive rate cut since December 2023. This translates to mortgage rates that are now at their lowest level since November 2022, significantly improving buying power for potential homeowners.
For a typical property purchase in Cali, the lower rates mean substantial savings. On a COP 200 million mortgage (approximately $50,000 USD), the reduction in rates from 9.5% to 6.5% saves buyers roughly COP 500,000 per month in interest payments.
Banks like Banco de Occidente and BBVA Colombia are offering competitive financing options, with 60% of residential property transactions in Cali now being financed through banks. These institutions provide flexible terms catering to diverse buyer profiles, from first-time homeowners to international investors.
The improved financing conditions are particularly beneficial for middle-income buyers, with data showing that the proportion of buyers with incomes above COP 4 million per month has increased by 15.5% in 2025, and 80% of buyers now have savings or severance funds available for down payments.
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How does foreign investment impact property prices in Cali during 2025?
Foreign investment is increasingly shaping Cali's property market, though its impact remains more moderate than in Medellín.
As of 2025, approximately 30% of property buyers in Cali are international investors, attracted by the city's favorable climate, competitive housing costs, and growing infrastructure. This represents a significant increase from previous years and reflects Cali's emergence as a destination for foreign capital.
Valle del Cauca, the region containing Cali, received over $528 million in investment and reinvestment in 2023, making it the third most attractive region in Colombia for foreign investment. The tech sector boom, with 8% of Colombia's new startups setting up in Cali, has particularly caught international attention.
Foreign investment has diversified Cali's property offerings and spurred new luxury developments, particularly in premium neighborhoods. However, unlike Medellín where 25% of new properties are bought by foreigners, Cali's foreign investment impact has not yet caused widespread affordability issues for locals.
Government initiatives offering infrastructure upgrades and tax breaks to attract businesses are further boosting international interest. The combination of these factors positions Cali as an emerging hotspot for foreign real estate investment while maintaining relative affordability.
What types of properties are seeing the biggest price increases in 2025?
Houses are outperforming apartments in Cali's 2025 property market, reversing historical trends.
Single-family houses have seen price increases of 4.92% in Q1 2025, compared to 3.39% for apartments. This shift reflects changing buyer preferences post-pandemic, with more families seeking space and private outdoor areas. The relative scarcity of houses compared to high-rise apartment developments also contributes to stronger price appreciation.
Within the apartment segment, luxury units in premium areas like Ciudad Jardín and Granada command the highest prices per square meter, reaching up to COP 4,556,818. These high-end apartments, particularly studios and 1-2 bedroom units targeting young professionals and investors, are appreciating faster than standard apartments in peripheral areas.
Properties with modern amenities are seeing particularly strong demand. The fact that 85% of residential properties in Cali now feature modern kitchens demonstrates how contemporary features drive value. Swimming pools, another sought-after amenity, add approximately $100 USD per month in maintenance costs but significantly boost property values.
The commercial real estate sector, including office spaces in business districts like Ciudad Jardín and El Peñón, is also experiencing increased demand as Cali's tech sector expands.
How do current government housing policies affect Cali's property prices in 2025?
Government housing policies in 2025 are creating mixed effects on Cali's property market.
The Mi Casa Ya program continues to support low and middle-income buyers, though with reduced scope. The government cut 50,000 subsidies to address budget constraints for 2025, dealing a significant blow to the subsidized housing segment. However, the VIS (social housing) price cap increased to COP 213.5 million, up 9.5% following minimum wage adjustments.
Subsidies now reach up to 30 SMMLV (COP 42.7 million), helping sustain demand in the low-income segment. Local government in Cali is expanding improvement subsidies, targeting lower-income neighborhoods with 520 subsidies worth over COP 17 million for home improvements.
These policy changes have shifted more buyers toward the non-subsidized (No VIS) segment, contributing to price increases in the middle-market properties. While subsidies help maintain affordability for some, the overall reduction in government support has created upward pressure on prices.
The net effect is that while entry-level housing remains somewhat accessible through remaining subsidies, the reduced government intervention is allowing market forces to drive prices higher across most segments. This particularly benefits existing property owners and investors while challenging first-time buyers.
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.
What are the price forecasts for Cali properties through the end of 2025?
Property prices in Cali are expected to continue moderate growth through the end of 2025.
Analysts predict annual price appreciation in the 3-7% range for the remainder of 2025, driven by continued economic stability and infrastructure improvements. This represents sustainable growth rather than a speculative bubble, with most experts seeing no risk of a market crash given Colombia's strong economic fundamentals.
The combination of declining interest rates, growing foreign investment, and Cali's expanding tech sector supports continued price appreciation. Infrastructure projects including road expansions and public transport improvements in tech districts are creating additional upward pressure on prices in affected areas.
However, several factors will moderate price growth. The reduction in housing subsidies, potential political uncertainty, and competition from other Latin American cities like Quito (where prices are $1,215 per square meter) may cap excessive appreciation.
For specific neighborhoods, Ciudad Jardín and Pance are projected to see prices reach COP 4,410,000 to 4,536,000 per square meter by year-end, while more affordable areas will likely see slower but steady growth. Overall, Cali's market appears positioned for continued stability with modest gains.
How does Cali's property price growth compare to Bogotá and Medellín in 2025?
Cali's property market is growing steadily but remains significantly more affordable than Colombia's other major cities.
While Cali saw an 8.85% nominal price increase year-over-year (1.58% real), this growth is moderate compared to Medellín's market-leading 10.3% annual increase. Bogotá maintains steady growth at 5.7% annually. However, the absolute price differences are striking - Cali's average of COP 3.75-3.8 million per square meter compares to Medellín's COP 4,566,000 and Bogotá's COP 5,028,000.
This price gap represents both an opportunity and a challenge. For investors, Cali offers better value and potential for appreciation as the gap narrows. For the local market, it reflects lower average incomes and less international investment compared to the other cities.
The detailed comparison reveals important nuances in our Colombia property pack.
Over the past five years, Cali has experienced periods of stagnation and even real-term price declines, including a -2.1% real decline in 2024. This contrasts with more consistent growth in Bogotá and Medellín, though it also suggests Cali may be poised for a catch-up rally as economic conditions improve.
What risks could cause property prices to fall in Cali during 2025?
Several risk factors could potentially slow or reverse Cali's property price growth in 2025.
Political instability remains a primary concern, with potential policy changes that could deter investment and affect market confidence. The ongoing armed conflict in Colombia, with groups like the ELN attacking infrastructure, creates security concerns that could make foreign investors reconsider Cali as an investment destination.
Macroeconomic shocks pose another significant risk. If inflation spikes above the projected 3.8-5% range or if the central bank is forced to raise interest rates again, it could severely impact affordability and dampen demand. Rising construction costs and supply chain disruptions already pressure developers' margins.
Competition from other Latin American cities presents a growing challenge. Cities like Quito offer luxury real estate at just $1,215 per square meter, significantly below Cali's prices, potentially diverting international investment.
The reduction of 50,000 housing subsidies has already impacted the lower-income segment, and further cuts could destabilize this important market segment. Additionally, new tax measures on real estate transactions implemented in 2025 increase the cost burden on buyers and could slow transaction volumes.
How is population growth affecting property demand and prices in Cali?
Cali's steady population growth continues to underpin property demand, though at a more moderate pace than the previous decade.
The metro area population reached 2,917,000 in 2025, representing a 0.93% increase from the previous year. While this growth rate is slower than historical averages, it still translates to approximately 27,000 new residents annually, all requiring housing.
Urbanization trends amplify this demand. Since 2005, Colombia's urban population has surged by 37.2%, with cities like Cali absorbing much of this migration. Internal displacement due to ongoing conflict continues to drive people toward larger cities, with Cali being a primary destination for those seeking safety and economic opportunity.
The demographic shift is qualitative as well as quantitative. The proportion of buyers with incomes above COP 4 million per month increased by 15.5% in 2025, indicating a growing middle class with greater purchasing power. Additionally, Cali's emergence as a tech hub attracts younger, educated professionals who drive demand for modern apartments in central locations.
This combination of steady population growth, urbanization, and improving buyer demographics provides a solid foundation for continued property price appreciation, even as the growth rate moderates compared to boom years.
What makes Cali's property market attractive for investors in mid-2025?
Cali presents a compelling investment opportunity for both local and international buyers in 2025.
The city offers Colombia's best value proposition among major cities, with property prices 25-45% lower than Bogotá and Medellín while maintaining strong fundamentals. Rental yields ranging from 3.88% to 8.62% provide attractive returns, particularly in tourist-friendly neighborhoods suitable for short-term rentals.
Cali's growing tech sector, hosting 8% of Colombia's new startups, creates sustainable demand for both residential and commercial properties. Government initiatives including infrastructure upgrades and tax incentives for businesses strengthen the investment case.
For international investors, the combination of a favorable climate, relative safety compared to other regions, and the same property rights as locals makes Cali particularly attractive. The fact that 30% of buyers are now international demonstrates growing confidence in the market.
Bank financing availability, with 60% of transactions financed through mortgages at historically low rates, enhances accessibility. The market's current phase - recovering from previous stagnation but not yet overheated - offers good entry timing for investors seeking appreciation potential.
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.
Yes, property prices in Cali are going up moderately in 2025, with quarterly growth of 6.99% and strong performance in premium neighborhoods.
While real growth remains modest at 1.58% after inflation adjustment, the combination of declining interest rates, foreign investment, and economic stability supports continued appreciation. Cali offers Colombia's best value among major cities, making it attractive for investors seeking growth potential at reasonable entry prices.
Sources
- 17 forecasts for real estate in Cali (Colombia) in 2025 – TheLatinvestor
- 7 stats for the Cali (Colombia) real estate market in 2025 – TheLatinvestor
- Real Estate Market in Colombia Review 2025
- Colombia Residential Real Estate Market Analysis 2024
- Safely Buying Property In Colombia 2025
- Colombia's Home Prices Rise in 2024 Despite Sluggish Sales
- Yes, property prices will rise in Colombia in 2025 – TheLatinvestor
- 9 statistics for the Colombia real estate market in 2025 – TheLatinvestor