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What will happen in Cali’s real estate market? Will prices rise or fall? Is Cali becoming a new hotspot for foreign investors? How are local government policies and taxes shaping the real estate landscape in 2025?
We’re frequently asked these questions because of our deep involvement in this market. Through our collaborations with notaries, real estate agents, and clients purchasing properties in Cali, we’ve gathered firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts specific to Cali.
Our goal is simple: 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.
1) Property values in Cali will rise as foreign buyers target emerging tech districts
Foreign buyers are zooming in on Cali's tech districts, and it's shaking up property values.
Cali is becoming a hotspot for tech startups, with 8% of Colombia's new ventures setting up shop here in 2023. This boom is fueled by government initiatives that are turning Cali into a tech hub, offering infrastructure upgrades and tax breaks to lure in businesses.
With Cali's tech scene on the rise, the city is seeing a surge in foreign investment in real estate. The buzz around Cali's potential as a tech destination is catching international eyes, and investors are eager to get in on the action.
Infrastructure is getting a facelift in Cali's tech districts, with road expansions and improved public transport making the area more accessible. This is not just about convenience; it's a magnet for more foreign investment, driving up demand for both office and residential spaces.
As more tech companies set up in Cali, the demand for property is climbing, and so are the prices. The city's tech-friendly vibe and strategic location are making it a prime spot for investors looking to capitalize on the tech boom.
Media outlets are shining a spotlight on Cali, showcasing its potential as a tech powerhouse. This coverage is not just boosting the city's profile but also attracting more international investors eager to tap into the growing market.
Sources: Golden Harbors, BBVA Spark
2) Foreign investment in Cali's luxury real estate will drop as investors look for cheaper options
Cali's luxury real estate market is facing a potential decline in foreign investment.
One big reason is Colombia's economic instability, which has led to a 28% drop in foreign direct investment in the first half of 2024. This is the worst decline since 2021, making investors cautious about putting their money into the country. The City Paper Bogota
Another concern is the rising crime rates in Colombia. The National Liberation Army (ELN) has been attacking oil and gas infrastructure, worsening the security situation. While we don't have specific crime data for Cali, the overall safety concerns in the country could make foreign investors think twice about investing there.
Cali is also up against tough competition from other Latin American cities like Quito, Cordoba, and Panama City. These cities offer more affordable luxury real estate options, making them attractive to investors. For instance, property prices in Quito are much lower at $1,215 per square meter compared to Cali. Nearshore Americas
Investors are looking for cost-effective opportunities, and cities like Quito are catching their eye. The affordability of these locations is a big draw, especially when compared to Cali's higher property prices.
With these factors in play, Cali might see a shift in foreign investment as investors seek more affordable and secure options elsewhere in Latin America.
Sources: The City Paper Bogota, Nearshore Americas
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) Foreign buyers will drive demand for eco-friendly properties in the city
Interest in eco-friendly living is on the rise worldwide, driven by environmental awareness and the need for sustainable practices.
European investors are particularly keen on sustainable investments, eyeing smaller cities like Pereira. Here, property prices are lower, and economic growth is being fueled by real estate investments. This isn't just a European trend; it's a global shift towards responsible living.
Colombia's real estate market is a hot spot for foreign investors, thanks to its political and economic stability. The market is expected to hit USD 2.12 trillion by 2024, showing strong international interest. The Colombian government is also pushing for greener construction with its National Sustainable Construction Policy, offering subsidies for eco-friendly projects.
Cali is making waves with its eco-friendly property developments. The city is tackling climate change with nature-based solutions, like eco-smart homes, which are gaining popularity. These homes are attractive due to government incentives and their success in reducing flood damage. Media coverage is boosting Cali's reputation as an eco-friendly destination, drawing in international buyers.
Foreign buyers are increasingly seeking eco-friendly properties, boosting the city's real estate market. The combination of government support, media attention, and proven benefits makes these properties highly desirable.
As more people look to reduce their carbon footprints, the demand for sustainable living options continues to grow. This trend is reshaping real estate markets, with cities like Cali leading the way in eco-friendly developments.
Sources: Inspired Homes, Golden Harbors
4) Property values in Cali's historic neighborhoods will rise as more foreign buyers invest
Foreign buyers are increasingly targeting Cali's historic neighborhoods, driving up property values.
In 2023, Colombia welcomed a record number of non-resident tourists, highlighting a growing foreign interest in its real estate market. Cali alone attracted 640,331 international visitors, making it one of the most visited cities in the country. This influx of visitors is a clear sign that Cali is on the radar for those looking to invest in property.
The Colombian government has made it easier for non-residents to buy property, offering them the same rights as locals. This policy aims to attract more foreign investment, and it's already paying off in cities like Cartagena and Medellín. Cali's real estate market is more affordable compared to Bogotá and Medellín, making it an appealing choice for foreign buyers looking for value.
Infrastructure improvements in historic areas like Pance and Ciudad Jardín are making these neighborhoods more attractive. These upgrades not only enhance the quality of life but also boost investment potential. Efforts to preserve cultural and architectural heritage in these areas are drawing interest from foreign buyers who appreciate their unique character.
Foreign buyers are particularly interested in Cali's historic neighborhoods, where property values are on the rise. The combination of affordability, improved infrastructure, and cultural preservation makes these areas highly desirable. This trend is expected to continue, further driving up property values as more international investors enter the market.
Sources: Medellin Advisors
5) Mid-range rental yields in Cali will rise steadily as young professionals keep up demand
Cali is buzzing with young professionals thanks to booming job opportunities in tech and services.
With more multinational companies setting up shop in Cali, there's a growing need for housing for their employees. This trend is likely to continue, pushing up demand for mid-range rentals. Many young professionals in Cali are choosing to rent rather than buy, mainly because home ownership costs are rising.
Urban migration to Cali is on the rise, driven by economic prospects and better infrastructure. This movement is fueling a steady demand for rentals, especially in the mid-range market. Infrastructure upgrades and urban projects are making Cali even more appealing to young professionals.
These developments are not just about convenience; they are reshaping the city's landscape. Young professionals are drawn to Cali's vibrant lifestyle and career opportunities, which means rental properties are in high demand. The city's transformation is a magnet for those seeking a dynamic place to live and work.
As Cali continues to evolve, the rental market is set to benefit. The influx of young talent and the city's ongoing improvements are creating a perfect storm for property investors. Mid-range rentals are becoming increasingly attractive as more people flock to the city.
For those considering investing in Cali, the signs are promising. The city's growth and the preferences of its young residents suggest that rental yields will remain strong. Cali's appeal is only set to grow, making it a smart choice for property investment.
Sources: Global Property Guide, The Wandering Investor
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6) Affordable housing prices in Cali will rise steadily as demand exceeds supply
Cali's affordable housing market is on the rise as demand continues to outstrip supply.
With a growing population, Cali's numbers hit 2,890,430 in 2024, showing a steady annual increase. This means more people are looking for homes, driving up demand. The city's urbanization is also a factor, with about 10,000 people per square mile packing into the area. This density is a magnet for those seeking city life and its perks.
The real estate scene is buzzing, with a stable economy and foreign investments adding fuel to the fire. The gap between what's available and what's needed is widening, pushing prices higher. In 2023, residential property prices jumped by 7% per square meter, and this trend isn't slowing down.
Land is scarce, making it a hot commodity for developers. As they vie for the limited space, prices naturally climb. Add to that the rising costs of construction materials and labor, and it's clear why housing prices are on the upswing. Developers are likely to pass these costs onto buyers, further inflating prices.
For those eyeing a property in Cali, it's a competitive market. The combination of limited land, increasing construction costs, and a growing population means that affordable housing is becoming a premium. If you're considering a move, it's wise to act sooner rather than later.
As the city continues to grow and attract new residents, the demand for housing will only intensify. This dynamic is shaping Cali's real estate landscape, making it a challenging yet potentially rewarding market for buyers.
Sources: Macrotrends, World Population Review
7) Rental yields in Cali will rise as demand for rental properties grows
Rental yields in Cali are on the rise as more people look for places to live.
With the metro area population of Cali hitting 2,917,000 in 2025, there's been a steady increase of 0.93% from the previous year. This growth means more folks are hunting for homes, naturally boosting rental demand. Cali's charm isn't just in its salsa music; it's in its growing opportunities and vibrant lifestyle that attract newcomers.
Urbanization is another big player here. Since 2005, Colombia's urban population has surged by 37.2%. This shift means cities like Cali are bustling more than ever. As people flock to urban areas, the need for rental properties in these buzzing centers keeps climbing. Cali, with its mix of modernity and tradition, is a top choice for many.
Internal migration adds another layer to this demand. The ongoing armed conflict in Colombia has displaced many, pushing them towards larger cities like Cali. These individuals are in search of new beginnings and, of course, places to stay. This influx further fuels the rental market.
For those considering investing in Cali, the city's dynamic growth and increasing demand for rentals make it a promising spot. The combination of population growth, urbanization, and migration creates a perfect storm for rising rental yields. Cali's real estate market is not just about numbers; it's about the stories of people finding new homes and opportunities.
Sources: Macrotrends, Urbanet
8) Smart home features will become standard in new builds, affecting property values
Smart home technology is rapidly gaining popularity in Colombia, especially in cities like Cali.
By 2028, the smart home market in Colombia is expected to exceed USD 1 billion, driven by tech-savvy consumers and urbanization. This shift shows that smart home features are becoming mainstream and highly desirable.
Colombian buyers are increasingly interested in smart appliances for their convenience and energy efficiency. With rising disposable incomes and changing lifestyles, smart home features are now a must-have in property listings.
Globally, the smart home market is booming, with projections reaching USD 633.2 billion by 2032. In places like the U.S., smart home features have already become standard, boosting property values. This trend is likely to impact property values in Colombia too.
In Cali, real estate developers are teaming up with tech companies to include smart home technology in new projects. These collaborations make it easier for buyers to embrace smart solutions, increasing the attractiveness of new developments.
Case studies in Cali show how smart home hubs can integrate various devices, enhancing comfort and productivity for homeowners. Smart home technology is set to become a standard feature in new developments, influencing property values.
Sources: Bonafide Research, Statista, Exploding Topics
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) Demand and prices for eco-friendly homes will rise as they become more popular
Eco-friendly homes are gaining traction in Colombia, driven by a mix of environmental goals and government support.
In 2023 and 2024, Colombia committed to slashing carbon emissions by 51% by 2030, aiming for carbon neutrality by 2050. This push is making people more aware of climate change, nudging them towards eco-friendly homes as a personal contribution to these ambitious targets.
The Colombian government is backing this shift with initiatives that make sustainable living more accessible. They've made it easier to get financing for homes with renewable energy solutions, which lightens the financial load for those interested in going green.
Green building projects are on the rise, thanks to green building codes introduced in 2015. Banks like First Bancolombia are offering innovative finance products, such as green bonds, to support these energy-efficient projects. This trend shows a solid foundation for eco-friendly homes in the future.
Eco-friendly homes are not just a trend but a growing market segment. With government support and financial products tailored for sustainability, the demand for such properties is expected to rise, potentially driving up prices.
As more Colombians become environmentally conscious, the appeal of eco-friendly homes is likely to increase. This shift is not just about saving the planet but also about making smart investments in properties that align with future trends.
Sources: UNDP Climate Promise, Green Finance LAC, IEA
10) Property prices in Ciudad Jardín will rise significantly as it attracts more high-income buyers
The Ciudad Jardín area in Cali is becoming a magnet for high-income buyers.
In recent years, there's been a 19.7% jump in luxury home listings, signaling a strong interest from affluent buyers. This increase isn't just numbers; it's a sign that more people with deep pockets are eyeing this neighborhood.
What makes Ciudad Jardín so appealing? It's the high-end amenities and services that draw people in. The area boasts prestigious private schools and upscale shopping centers, offering residents top-notch education and luxury shopping and dining experiences. For families seeking a luxurious lifestyle, these features are hard to resist.
Another factor is the growing expatriate community in Ciudad Jardín. International buyers are increasingly attracted to the area, with a noticeable demand for modern, high-rise apartments. The city's charm and the ease of purchasing property as a foreigner, thanks to government incentives, make it an attractive option for those from abroad.
These government incentives are a game-changer, offering non-residents the same property rights as locals. This policy simplifies the buying process for foreigners, making Ciudad Jardín even more appealing to international investors.
With these elements in play, it's clear that Ciudad Jardín will continue to draw high-income buyers, pushing property prices upward as demand grows.
Source: Golden Harbors
11) Demand for affordable rentals near universities will grow as the student population increases
The city's growing student population is boosting the demand for affordable rentals near universities.
Universities like Universidad Icesi are seeing a surge in enrollment, especially in popular fields like business and engineering. This means more students are looking for housing close to their campuses.
With Universidad Icesi expanding its campus in the affluent Barrio Pance, it's clear they're gearing up for even more students. This expansion often results in increased demand for nearby housing since students prefer living close to their studies.
Globally, students are leaning towards off-campus housing, which further fuels the need for affordable rentals in these areas. In Colombia, there's a notable shortage of student housing, highlighting the urgent need for more options.
This shortage isn't just a local issue; it's a challenge many countries face, where purpose-built student housing is lacking. As demand rises, so do rental prices near universities, making affordable housing solutions crucial.
Sources: EduRank, ISEP Study Abroad, Forum REIIF, PR Newswire
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12) Property values in Normandía will rise as it becomes popular with tech professionals
The Normandía neighborhood in Cali is becoming a hotspot for tech professionals, which is set to boost property values.
In recent years, Cali has been making waves in the tech world. Etix Everywhere has set up a Tier IV data center, underscoring the city's ambition to be a tech hub. This move is a magnet for tech companies and their employees.
The fintech scene in Cali is thriving, with over 300 companies already in the game. This boom is pulling in more tech talent, especially software developers, who are eyeing neighborhoods like Normandía for their next home.
The Colombian government is rolling out the red carpet for tech startups with tax cuts and income tax reductions. This makes Cali even more appealing for techies, who are likely to flock to areas like Normandía for its tech-friendly vibe and amenities.
While there's no specific data on tech professionals moving to Normandía, the trend in cities like Medellín and Bogotá suggests Cali could be next. This influx would naturally push up property values in sought-after spots like Normandía.
Sources: Colombia One, Nucamp
13) Property values in San Antonio will rise as it becomes a cultural hub for artists and creatives
San Antonio is on the rise as a cultural hotspot, drawing in artists and creatives.
Property values are climbing, with median home prices jumping by 4% to around $320,000. This isn't just happening by chance. Neighborhoods like Alamo Heights and Stone Oak are becoming favorites for families and professionals, adding to the buzz.
Art lovers are flocking to San Antonio, thanks to its booming art scene. The area is alive with museums and galleries, like Ruby City, which showcases contemporary art. Public art displays and cultural events are also celebrating the city's rich heritage, making it a magnet for creatives.
Artist residencies and workshops are popping up, offering unique opportunities for artists to connect with the community. Camino Al Arte is one such place, drawing contemporary artists from various fields and enriching the neighborhood's cultural vibe.
These creative spaces are not just about art; they're about building a community where artists can thrive and collaborate. This dynamic environment is a big draw for those looking to immerse themselves in a vibrant cultural scene.
As San Antonio continues to evolve, it's clear that the neighborhood's appeal is only growing, making it an exciting place for potential property buyers.
Sources: The Luxury Playbook, Visit San Antonio, Camino Al Arte
14) Property values in Granada will rise as it gains fame as a culinary hotspot
The Granada neighborhood in Cali, Colombia, is becoming a hot spot for food lovers.
In 2023 and 2024, Cali saw a boom in tourism, with many visitors flocking to the city for its vibrant food scene. This surge in interest has put Granada on the map as a culinary destination. Travel guides and blogs are buzzing about the area, drawing attention to its unique dining experiences.
Granada is now home to a variety of new restaurants and cafes, each offering something special to cater to the growing demand. Evendo highlights the best spots in the neighborhood, showcasing the diverse options available. Media outlets like Edible Reading have also spotlighted Granada, recommending it as a must-visit for food enthusiasts.
Social media is playing a big role in spreading the word about Granada's culinary delights. Platforms like Instagram and Facebook are filled with posts and reviews, making the neighborhood even more popular. This online buzz is attracting both tourists and potential new residents, which is great news for property values.
Real estate experts often point out that areas with a thriving food scene tend to see a rise in property demand. Granada is expected to follow this trend, thanks to its growing reputation as a food hub. The neighborhood's appeal is not just about the food; it's about the lifestyle that comes with it.
As more people discover Granada's culinary offerings, the neighborhood is set to become even more desirable. Property values are likely to climb as a result, making it an attractive option for potential buyers looking to invest in a lively and culturally rich area.
Sources: Evendo, Edible Reading, Samira Holma
We have made this infographic to give you a quick and clear snapshot of the property market in Colombia. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
15) Property values in Aguacatal will rise as it becomes popular for eco-friendly living
The Aguacatal neighborhood is becoming a hotspot for eco-friendly living, which is set to boost property values.
In Cali, there's a growing demand for homes that embrace sustainable architecture and energy-efficient designs. This shift is part of a broader trend in Colombia's real estate market, where green building practices are gaining traction. Buyers and investors are increasingly drawn to properties that offer a smaller carbon footprint and long-term savings on energy costs.
The Colombian government is playing a key role by offering tax benefits and subsidies for green building projects. These incentives not only encourage sustainable development but also create jobs in the green sector, making neighborhoods like Aguacatal more appealing to eco-conscious buyers. This government backing is a significant factor in the neighborhood's growing popularity.
Aguacatal's charm is further enhanced by the development of parks and green spaces as part of the Cali River corridor project. This investment aligns with the city's environmental goals, making the area even more attractive to those seeking a sustainable lifestyle. The presence of lush greenery and open spaces offers residents a serene escape from urban hustle.
Community-led sustainability projects are another draw for Aguacatal. These initiatives foster a sense of community and attract residents who value grassroots efforts to improve their environment. Such projects not only enhance the neighborhood's eco-friendly image but also strengthen community bonds.
As Aguacatal continues to evolve, it stands out as a prime example of how urban areas can successfully integrate eco-friendly living with modern conveniences. This balance is key to its rising property values and growing appeal among potential buyers.
Sources: Inspired Homes, Urban Design Lab
16) Property values in Santa Teresita will rise as it becomes a popular spot for retirees
Santa Teresita is quickly becoming a favorite spot for retirees, which is set to boost property values.
Many retirees are choosing Cali for its affordable living costs and pleasant climate. This trend has been growing, with a noticeable number of Californians picking Colombia as their retirement haven. The appeal isn't just the weather; it's the lifestyle that Cali offers, which is both vibrant and relaxed.
Healthcare is another big draw. Colombia's healthcare system is accessible and high-quality, especially for those with a Retirement Visa. This makes it a top choice for older adults who want good medical care without breaking the bank. Cities like Medellín are already seeing senior-friendly infrastructure, and Cali is expected to follow suit.
Financial perks are also in play. The government offers tax exemptions on foreign-sourced pension income for retirees settling in Cali. This means more money in their pockets, making neighborhoods like Santa Teresita even more attractive. It's a win-win for those looking to enjoy their golden years comfortably.
Santa Teresita is not just about numbers; it's about community. The neighborhood is known for its welcoming atmosphere and vibrant local culture. Retirees are drawn to the sense of belonging and the active social life that the area offers, making it a preferred choice.
Sources: Golden Harbors, Business Insider, Golden Harbors
17) Property prices in La Flora will drop as younger families seek more affordable areas
In Cali, property prices have been dropping, especially in the La Flora neighborhood.
Back in February 2023, new house prices in Cali fell by 7.71% year-over-year. When you factor in inflation, the drop was even more dramatic, hitting 18.53%. This paints a clear picture of the overall decline in property values across the city.
Looking at the numbers, the median price for an apartment in Cali was COP 3,761,351 per square meter, while houses were at COP 2,802,607 per square meter. These figures highlight the downward trend in property prices, including in La Flora. It's a trend that's likely to persist as younger families, who are often more budget-conscious, look for cheaper housing options.
Although there aren't specific reports about younger families leaving La Flora, it's a common pattern in real estate for them to move to more affordable areas. This shift in preference can lead to a drop in demand for properties in pricier neighborhoods like La Flora, which in turn, pushes property prices down further.
In the real estate world, when younger families start moving out, it often signals a change. They tend to seek out areas where they can get more bang for their buck, leaving behind neighborhoods that don't fit their budget. This movement can significantly impact property values, especially in areas like La Flora.
So, if you're considering buying property in La Flora, it's worth keeping an eye on these trends. The shift in demographics and the search for affordability are key factors that could influence your investment.
Sources: Properstar, Global Property Guide
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.