Is it worth it buying property in Cali (Colombia) in 2025?

Authored by the expert who managed and guided the team behind the Colombia Property Pack

Everything you need to know before buying real estate is included in our Colombia Property Pack

Who is the author of this content?

THE LATINVESTOR

A team specialized in real estate investing in LATAM countries

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Cali (Colombia). If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At The Latinvestor, we explore the Colombian real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Cali, Bogotá, and Medellín. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What types of properties can you buy in Cali right now?

Cali's property market offers diverse options across all price ranges as of September 2025.

Modern apartments dominate the market, particularly in high-rise buildings with security and amenities in sought-after areas like Granada, Ciudad Jardín, and Comuna 17. Prices range from COP 175,000,000 ($43,500) for smaller units to COP 749,000,000 ($200,000) for larger, high-end apartments.

Traditional houses are available in both single-family and townhouse styles, with prices spanning from COP 350,000,000 ($87,000) to COP 2,200,000,000 ($570,000) in upscale neighborhoods like Ciudad Jardín. Mid-range and affordable housing in neighborhoods such as San Fernando, San Antonio, and Melendez appeal to locals, young professionals, and first-time buyers.

Commercial and retail spaces are also available in central and developing zones, typically priced around COP 258,330,000 ($65,000).

The market shows particularly strong inventory in newly developed properties with modern amenities and good security systems.

Is it cheaper to buy or rent in Cali in 2025?

Buying property in Cali is generally more cost-effective than renting for long-term residents and investors in 2025.

Cali offers some of Colombia's highest rental yields, averaging 7.32%, which makes property ownership attractive for investment purposes. Rental prices have been rising in newly developed and modernized areas, making ownership more appealing for long-term residents who want price stability.

For investors, buying is particularly smart when targeting mid-range and developing neighborhoods with strong rental demand. The combination of rising rents and property appreciation makes ownership financially advantageous over time.

Renting remains the better option for expats unsure about their stay duration or those seeking maximum flexibility. Short-term residents benefit from rental flexibility without the commitment and transaction costs of property ownership.

The break-even point between buying and renting typically occurs after 3-4 years of ownership, depending on the specific neighborhood and property type.

How have property prices changed and what's the forecast?

Cali's property market has shown consistent growth with clear trends emerging across different segments.

Property prices increased by 7% in 2023, with new house prices rising 4.76% year-over-year in Q2 2025. This steady growth reflects strong underlying demand and economic expansion in the region.

The luxury market experienced a correction due to oversupply, with prices in high-end zones like Pance and Ciudad Jardín adjusting downward. This creates opportunities for buyers seeking premium properties at more competitive prices.

The forecast for 2025-2030 shows continued moderate price increases, with hot neighborhoods like Valle del Lili expected to see annual growth around 10% due to infrastructure improvements. Demand is projected to outpace supply, especially in affordable and mid-range segments.

Colombia's broader property market is predicted to grow, driven by economic expansion and urban migration patterns favoring major cities like Cali.

What are the main real estate trends in Cali right now?

Several key trends are shaping Cali's real estate market in 2025.

Strong demand for mid-range and newly developed properties with modern amenities and security systems drives the current market. Buyers increasingly prioritize properties with comprehensive security features and community amenities.

Rising rental yields in southern and developing neighborhoods reflect improved infrastructure and safety measures. These areas offer the best combination of affordability and growth potential for investors.

The luxury segment faces oversupply and price corrections, creating opportunities for buyers to purchase high-end properties at more competitive prices than in previous years.

Growing popularity of southern and developing areas stems from infrastructure improvements and enhanced safety measures implemented by local authorities.

It's something we develop in our Colombia property pack.

How does the property buying process work in Colombia?

The Colombian property buying process follows a structured legal framework with specific steps.

Start by finding a property through real estate portals, agents, or property project websites. Make an offer and negotiate price and terms with the seller, typically through a local real estate agent who understands market conditions.

Conduct thorough due diligence by checking the property title, outstanding debts, and legal status through a notary or real estate lawyer. This step is crucial to avoid future legal complications.

Sign a "Promesa de Compraventa," which is a binding pre-sale contract requiring a deposit. This contract legally commits both parties to the transaction and outlines specific terms and conditions.

Complete the final sale signing at a notary office with a purchase deed, full payment, and official registration. The new owner's title must be officially registered with the local land registry to complete the legal transfer.

The entire process typically takes 30-60 days from offer acceptance to final registration, depending on the complexity of due diligence and financing arrangements.

Where can you find properties and which agencies are reliable?

Multiple channels exist for finding properties in Cali, each offering different advantages.

Online portals like Realtor.com, FazWaz, Properstar, and Realestate.com.au provide extensive, up-to-date listings with detailed property information and photos. These platforms offer good filtering options by price, location, and property type.

Local real estate agencies with good reviews, physical presence, and clear legal processes are essential for international buyers. Look for agencies with bilingual staff or those with specific experience serving expat clients.

Development projects offer new construction options, but buyers should check project ratings for facilities, security, and build quality before committing. Visit show units and verify developer credentials and financial stability.

Word-of-mouth recommendations from other expats and property investment forums provide valuable insights into reliable agents and agencies with proven track records.

Always verify agent credentials and licensing status before engaging their services, especially for significant property transactions.

What can you get for different budgets in Cali?

Budget Range (USD)	Property Type	Location/Features
$40,000 - $60,000	Small 1-2 bedroom apartment	Lower-mid range neighborhoods, basic amenities
$80,000 - $130,000	2-3 bedroom apartment or small house	Comfortable areas, good security, community amenities
$200,000 - $300,000	Modern apartment or townhouse	Upscale areas, new construction, premium amenities
$300,000 - $500,000	Large house or luxury apartment	Premium neighborhoods, extensive amenities, views
$500,000+	Luxury houses or penthouses	Ciudad Jardín, Pance, exclusive neighborhoods
$1,000,000+	Estate-style properties	Gated communities, extensive grounds, luxury finishes

What are the biggest mistakes to avoid when buying?

Several critical mistakes can cost buyers significant money and create legal problems.

Skipping due diligence on property titles and legal issues ranks as the most expensive mistake. Always verify clear title, check for liens or debts, and confirm zoning compliance before purchasing.

Paying large deposits without secure, legally binding contracts exposes buyers to potential fraud or seller default. Use properly drafted "Promesa de Compraventa" contracts and work with licensed notaries.

Failing to verify actual property condition through professional inspections can result in expensive surprise repairs. Hire qualified inspectors to assess structural, electrical, and plumbing systems.

Overpaying in the oversupplied luxury segment wastes money that could be better invested in growing neighborhoods. Research comparable sales and market conditions before making offers.

Not accounting for transaction costs, taxes, and currency exchange risks can significantly impact your total investment. Budget for legal fees, notary costs, registration fees, and potential currency fluctuations.

How much does it cost to live in Cali as a homeowner?

Living costs in Cali remain affordable compared to most international standards as of September 2025.

A single person can expect monthly living expenses around $590, including utilities, food, transportation, and entertainment. This covers a comfortable lifestyle without luxury spending.

Families of four typically spend $1,138-$1,190 per month for all living expenses, including utilities, healthcare, food, education, and entertainment. These costs exclude mortgage payments but include property taxes and homeowner association fees.

Property taxes and HOA fees vary by area and building type but remain modest by international standards. Expect monthly HOA fees between $30-$150 depending on building amenities and services.

Utility costs including electricity, water, gas, and internet typically range from $80-$150 per month for a family home, depending on usage and property size.

Healthcare costs are significantly lower than North American or European standards, with high-quality private healthcare available at reasonable prices.

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.

Which areas of Cali are best to buy in?

Area Type	Neighborhoods	Pros	Cons
Affordable	San Antonio, San Fernando	Colonial charm, trendy, expat friendly, cultural attractions	Some street safety concerns, noise levels
Upcoming	Melendez, El Caney, Valle del Lili	Growing rapidly, affordable entry, improving amenities, infrastructure development	Still developing, ongoing construction, limited services
Upscale Established	Ciudad Jardín, Pance	Exclusive, safe, high amenities, green spaces, established infrastructure	Expensive, price volatility, oversupply issues
Upscale Central	Granada, Normandía	Restaurants, nightlife, expat popular, walkable, cultural scene	Noise, traffic congestion, parking challenges
Investment Focus	South Cali zones	High rental yields, growing demand, infrastructure improvements	Longer commutes, fewer established amenities

What is life like as an expat in Cali?

Cali offers an attractive lifestyle for international residents with a growing expat community.

The city hosts a large, friendly international community, especially concentrated in trendy and artistic neighborhoods. Expats find established networks and regular social events that ease the transition to Colombian life.

Spanish language skills are essential for daily life, as English is limited outside upscale areas and international businesses. Investing in language learning significantly improves the living experience and access to services.

Cali's warm, vibrant culture centers around strong music, food, and festive traditions. The city is famous for salsa dancing, diverse cuisine, and year-round cultural events that create an engaging social environment.

Growing lifestyle, nightlife, and wellness scenes cater to international tastes while maintaining authentic Colombian character. The city offers modern amenities alongside traditional cultural experiences.

It's something we develop in our Colombia property pack.

What about long-term rental income and yields?

Cali's long-term rental market offers excellent returns for property investors in 2025.

Rental yields average between 3.9% and 8.6% depending on area, property type, and condition. The city-wide average of 7.32% ranks among Colombia's highest, making it attractive for income-focused investors.

The best areas for long-term rentals include South Cali neighborhoods like Valle del Lili and El Caney, plus mid-range zones in Melendez. These areas offer strong tenant demand and rising rental rates.

Typical tenants include a mix of locals, young professionals, and students seeking affordable rent, good security, and modern amenities. University proximity and business district access drive consistent demand.

Rental rates have been increasing in newly developed and modernized areas, supporting both current yields and future rental growth. Professional property management services are available but not always necessary for small portfolios.

Long-term rental investment works best when targeting properties under $200,000 in growing neighborhoods with improving infrastructure and safety measures.

How about short-term rentals like Airbnb?

Short-term rental opportunities in Cali target specific guest segments and locations for optimal returns.

1. **Best performing areas**: South Cali neighborhoods like Ciudad Jardín and Valle del Lili attract business travelers, while central historic districts like San Antonio appeal to tourists and cultural visitors.2. **Target guests**: Business travelers, tourists, and digital nomads seeking convenience, safety, and good amenities. Properties near business districts, cultural attractions, and transportation hubs perform best.3. **Yield expectations**: Short-term rentals often generate higher yields than long-term rentals but require more active management and marketing. Occupancy rates vary seasonally and depend heavily on property location and quality.4. **Regulatory requirements**: Registration as a tourism provider may be required depending on local regulations. Check specific condominium and HOA rules, as some buildings restrict short-term rentals.5. **Management considerations**: Success requires consistent guest communication, professional cleaning, maintenance coordination, and dynamic pricing strategies. Consider professional management services for multiple properties.

Based on everything, is buying in Cali worth it in 2025?

Buying property in Cali in 2025 offers strong value across different investment strategies and personal situations.

For long-term residents, buying makes financial sense if you plan to stay at least 3-4 years and want price stability plus the ability to customize your living space. The combination of rising rents and property appreciation favors ownership over renting.

Investment opportunities are particularly attractive in mid-range and developing neighborhoods with strong rental yields averaging 7.32%. Focus on properties under $200,000 in areas with improving infrastructure for the best risk-adjusted returns.

Resale and profit potential varies significantly by market segment. Avoid the oversupplied luxury market and focus on growth areas like Valle del Lili for better appreciation prospects. Short-term profit expectations should be modest given transaction costs.

The key to success lies in understanding specific market zones, conducting thorough due diligence, and carefully monitoring transaction and administrative costs. Work with experienced local professionals and maintain realistic expectations about returns and timelines.

It's something we develop in our Colombia property pack.

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.

Sources

1. Realtor.com - Cali Valle del Cauca Properties
2. FazWaz - Cali Properties for Sale
3. Realestate.com.au - Cali Properties
4. Golden Harbors - Colombia Real Estate Market
5. The Latinvestor - Cali Real Estate Trends
6. Global Property Guide - Colombia Rent Yields
7. Cali Adventurer - Family Budget 2025
8. eSales International - Colombia Property Market Outlook
9. Expatis - Housing in Colombia
10. Global Property Guide - Colombia Price History