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What are the strongest trends in Cali’s real estate market? Are property values rising or falling? Is Cali becoming a new favorite for international investors? How are local policies and taxes shaping the real estate landscape in 2025?
These are the questions we hear every day from professionals, buyers, and sellers across Cali and beyond. Maybe you’re curious about the same things.
We stay closely connected with local experts and people like you, exploring Cali’s real estate market daily. That’s why we’ve crafted this article: to offer clear answers, insightful analysis, and a comprehensive view of market trends and dynamics.
Our aim is straightforward: to make sure you feel 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 your feedback. Feel free to message us with your thoughts, and we’ll strive to enhance this content for you.

1) Foreign buyers will increasingly target Cali’s real estate market due to favorable exchange rates
Foreign buyers are increasingly eyeing Cali's real estate market due to favorable exchange rates.
In 2023, the Colombian Peso (COP) saw a 25.14% rise against the US Dollar (USD), making foreign currencies like the USD more potent when converted to COP. This shift means that buying property in Cali has become more affordable for those holding foreign currency.
Colombia also experienced a 1.5% boost in foreign investment in 2023, with a significant chunk flowing into real estate. Cali, known for its stable economy, is poised to benefit from this trend as more investors look to capitalize on the favorable conditions.
The Colombian government is sweetening the deal with policies like reduced income tax rates and VAT exemptions for certain construction projects. These incentives make investing in Cali's real estate even more appealing to foreign buyers.
Economic forecasts suggest that the favorable COP/USD exchange rate will persist, making it a prime time for foreign investors to dive into Cali's property market.
Sources: Exchange Rates, The Latin Investor
2) Virtual reality tours will become standard in Cali’s real estate market, improving the buying experience
Virtual reality tours are now a staple in Cali's real estate market, making the home-buying process much more engaging.
Thanks to the widespread use of virtual reality in real estate, buyers can now enjoy immersive experiences that were once unimaginable. This tech-savvy approach is reshaping how properties are showcased, offering a fresh perspective to potential buyers.
Interestingly, over half of adults have already taken a virtual tour, and a whopping 67% of home buyers actually prefer listings that offer this feature. It's especially popular among young adults aged 18 to 34, who are 130% more likely to book a property if they can explore it virtually first.
Real estate agents in Cali are noticing a big difference too. Those who use virtual tours are seeing a 16% to 67% increase in bookings and conversion rates. This shows just how powerful these virtual experiences can be in boosting sales and engaging customers.
With the global virtual tour market on track to hit USD 12,345.5 million by 2033, it's clear that this technology is here to stay. It's not just a trend; it's becoming an essential part of the real estate toolkit.
As more buyers and sellers embrace this technology, virtual reality tours are set to become even more integral to the real estate experience in Cali.

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) Online property platforms will become more popular in Cali, simplifying property search and comparison for buyers
Online property platforms are booming in Cali, Colombia, and it's no surprise why.
With 75.7% of Colombians online in 2023, that's over 39 million people who can easily browse properties from their devices. This widespread internet access means that finding a home is just a few clicks away.
Colombians are also big on mobile, with 141.8% mobile connections compared to the population. This means many have more than one device, making it super convenient to check out property listings anytime, anywhere.
Platforms like fincaraz.com.co and metrocuadrado.com are leading the charge in online real estate searches. These sites are among the top choices for Colombians looking to buy or rent, showing a clear shift towards digital solutions.
Local real estate agencies are catching on, teaming up with these online platforms to offer a seamless property search experience. This collaboration means buyers get a more comprehensive view of the market, making it easier to find the perfect home.
As these platforms grow, expect even more features and tools to help buyers compare properties effortlessly. The convenience and efficiency of online searches are hard to beat, especially in a bustling market like Cali.
Sources: DataReportal, SimilarWeb
4) Cali will see rising demand for accessible, senior-friendly housing due to an aging population
The aging population in Cali, Colombia, is driving up the demand for accessible and senior-friendly housing.
Over the past 12 years, the median age in Cali has jumped from 22 to 31, signaling a shift towards an older demographic. This means more people are reaching an age where they might need homes that cater to their specific needs. With life expectancy on the rise, women are expected to live up to 77.6 years and men up to 69.8 years by 2025, which further fuels the need for homes that are easier to navigate and maintain.
In Colombia, the percentage of people over 60 has more than doubled in the last 33 years, according to the Colombian statistics agency (DANE). This demographic shift is a clear indicator of the growing demand for senior-friendly housing options. As more people live longer, the need for housing that accommodates their lifestyle becomes more pressing.
There's a noticeable trend towards building retirement communities and senior living facilities in Colombia. This mirrors global patterns where aging populations are pushing for age-appropriate housing solutions. While specific real estate market analyses for Cali aren't detailed, the general increase in demand for accessible homes is evident in regions experiencing similar demographic changes.
For those considering investing in property in Cali, understanding these trends can be crucial. The demand for senior-friendly housing is not just a local phenomenon but part of a broader shift seen in many parts of the world. This could present opportunities for investors looking to tap into a growing market.
As Cali's population continues to age, the real estate market is likely to see more developments catering to older adults. This trend is expected to continue, making it an important consideration for anyone looking to invest in the region's property market.
Sources: Colombia Reports, Macrotrends, Loving Home Care Inc.
5) High-end property prices in Cali will drop due to an oversupply in the luxury market
In Cali, Colombia, the luxury real estate market is seeing a price drop due to an oversupply of high-end homes.
Neighborhoods like Pance and Ciudad Jardin are buzzing with new luxury developments, leading to a glut of unsold properties. This oversupply means sellers are now competing fiercely, often lowering prices to attract buyers.
The Colombian Chamber of Construction reports a noticeable slowdown in high-end property sales. In 2022, new home sales in Cali dropped by 7.71% compared to the previous year. Adjusting for inflation, house prices fell by 18.53%, showing a market that's not as robust as it once was.
Developers are feeling the pinch and are trying to stimulate demand by slashing prices. This trend is particularly evident in areas where luxury homes are abundant but buyers are scarce.
For potential buyers, this could be an opportunity to snag a high-end property at a more reasonable price. However, it's essential to keep an eye on market trends and act swiftly, as the situation could change.
Sources: Global Property Guide, Colombia One, Rio Times Online
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6) Cali's real estate will diversify to cater to international tastes as foreign interest grows
Foreign interest in Cali's real estate is booming, especially after Colombia's market was projected to hit USD 2.12 trillion in 2023 and 2024.
One standout project is the Parque Oeste Mixed-Use Development in Cali, which is designed with international tastes in mind. It offers a mix of shopping, offices, retail spaces, a supermarket, a cinema, a children's park, and a food court. This development is a direct response to the growing number of foreign buyers who want properties that match their diverse preferences.
International real estate agencies, like VITRINA INMOBILIARIA INTERNACIONAL, are setting up shop in Cali, showing the demand for properties that appeal to a global audience. These agencies bring expertise and a deep understanding of international markets, which helps diversify the property offerings in the city.
Local developers are teaming up with international firms, such as Chapman Taylor's involvement in the Parque Oeste project. These partnerships ensure that international design trends and architectural styles are part of local projects, making them more attractive to foreign buyers.
Foreign interest is reshaping Cali's real estate landscape, leading to more diverse property offerings that cater to international tastes. This trend is evident in the growing number of projects that incorporate global design elements and amenities.
As more international investors look to Cali, the city is becoming a melting pot of architectural styles and property options, reflecting the varied preferences of a global clientele.
Sources: Chapman Taylor, Properstar, Golden Harbors
7) Cali will see increased foreign investment in residential properties as it gains international recognition
Foreign investment in Cali's residential properties is set to rise as the city gains international recognition.
The Colombian real estate market is booming, with residential real estate leading the charge. This sector is expected to reach USD 1.63 trillion in 2023, showing a strong and growing market that naturally attracts foreign investors. Cali, being a vibrant city, is at the heart of this growth.
International tourism in Cali is also on the upswing, with 193,440 international visitors in 2023. This surge in global interest highlights the city's increasing appeal, which can lead to more foreign investment in residential properties. Tourists often fall in love with the city's charm and consider investing in a piece of it.
The Colombian government has made it easier for foreigners to invest by offering the same property rights to non-residents as locals. This legal framework is a significant draw for international buyers, making Cali's real estate market more accessible and attractive.
Cali's cultural and economic growth is getting noticed internationally, especially with events like hosting the United Nations Biodiversity Conference (COP16). Such events boost the city's profile, making it more appealing to foreign investors who are looking for vibrant and growing markets.
Colombia's economic outlook is positive, with a 7.5% GDP growth in 2022. This economic stability is a key factor in attracting foreign investors to Cali's residential properties, as they seek stable and promising environments for their investments.
Sources: Medellin Advisors, Golden Harbors
8) Rental yields in southern Cali will rise as new developments draw more tenants
Rental yields in the south of Cali are on the rise as new developments draw in more tenants.
With increased investment in infrastructure, like road expansions and better public transport, the area is becoming more accessible and attractive to potential renters. This boost in accessibility is making the south of Cali a hot spot for those looking to rent. The average price per square meter for homes in Cali jumped by 7% in 2023, showing a clear demand for housing.
People are flocking to Cali, and this migration is pushing up the need for rental properties. As the population grows, so does the demand for housing, which naturally leads to higher rental yields. The government's push for home ownership is also playing a role, indirectly lifting property values and supporting rental growth.
Safety improvements in the region are another draw for tenants who want secure living environments. Surveys show that renters are increasingly interested in modern amenities, which are often found in the new developments popping up in the south of Cali. This trend towards modern living spaces is making these areas even more appealing to potential tenants.
Sources: Golden Harbors, The Latin Investor

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) Mid-range properties will see higher yields as they gain popularity with local renters
Mid-range properties in Cali, Colombia, are becoming increasingly popular among local renters.
As Cali's population grows, with projections showing it will hit 2,917,000 by 2025, more people are flocking to the city, especially young professionals and students. These newcomers are on the lookout for affordable housing, and mid-range properties fit the bill perfectly. They offer a sweet spot between luxury and budget, making them a hit with a wide range of renters.
Colombia's economy is on the upswing, thanks to stable conditions and a boost in foreign investments. This economic growth has put more money in the pockets of locals, making it easier for them to afford mid-range rentals. With more disposable income, the demand for these properties is climbing, and so are the rental yields.
In Cali, the affordability of mid-range properties is a major draw. They provide a more accessible option compared to high-end rentals, which is a big deal for many renters. This affordability is a key factor in their growing popularity, as more people look for cost-effective living solutions in the city.
As the city continues to expand, the trend towards mid-range properties is expected to persist. With more people moving to urban areas, the need for these types of housing options will only increase. This ongoing demand is likely to push rental yields even higher, making mid-range properties a smart investment choice.
For those considering buying property in Cali, the rise in popularity of mid-range rentals is a promising sign. As these properties become more sought after, their value and rental returns are poised to grow, offering a potentially lucrative opportunity for investors.
Sources: Macrotrends, Global Property Guide, Urbanet
10) Cali’s property prices will rise moderately as demand exceeds supply
Residential property prices in Cali are on the rise as demand continues to outstrip supply.
With a growing population, Cali is bustling with activity. By 2024, the city is expected to have around 2.89 million residents, reflecting a steady annual growth rate. This influx of people naturally boosts the demand for housing, making it a hot market for potential buyers.
Urbanization is another key player in this scenario. Cali has been a major force in Colombia's urban growth, with its population nearly doubling between 1950 and 2018. This rapid urbanization, paired with limited land for new developments, means fewer new homes are being built, which in turn pushes property prices higher.
Real estate agencies are buzzing about the high demand in sought-after neighborhoods like Pance and Ciudad Jardín. These areas are experiencing a surge in interest due to sustained economic growth and infrastructure improvements. The demand here is intense, and with limited new housing projects, the shortage is driving prices up even more.
For those considering a move to Cali, it's important to know that the city's charm and opportunities are drawing more people in, but the housing market is tight. The combination of a growing population, urbanization, and high demand in prime areas is creating a competitive environment for buyers.
As Cali continues to develop, the balance between supply and demand will be crucial. The city's ongoing transformation and the allure of its vibrant neighborhoods are key factors in the property market dynamics.
Sources: World Population Review, Urbanet
11) Luxury property yields will drop as rental demand moves to more affordable options
In Cali, Colombia, rental demand is shifting towards more affordable properties, impacting luxury property yields.
Luxury properties are seeing rising vacancy rates. For instance, in 2023, the office real estate vacancy rate in Cali was 11%, slightly improving to 8.7% in 2024. This trend indicates that fewer people are choosing high-end rentals, which could mean lower returns for property owners.
High rental prices are also a factor. In 2023, average accommodation prices in popular urban areas hit $75 per night, making luxury rentals less accessible. As Colombia's middle class grows and the economy strengthens, more people are seeking mid-range and affordable housing options.
The income gap is widening, with home purchase costs exceeding renting by about 40%. This makes renting more appealing, but many prefer affordable rentals over luxury ones. The Colombian government is also promoting affordable housing, further driving this demand shift.
In the current market, luxury property yields are expected to decrease as more renters opt for budget-friendly options. This trend is reshaping the rental landscape, with a clear preference for affordability.
As the demand for affordable housing grows, luxury properties may struggle to maintain their appeal. This shift is significant for potential property buyers considering investments in Colombia.
Sources: Statista, World Bank Blogs, Global Property Guide
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12) Mid-range property prices in Cali will rise steadily as they become more accessible to the middle class
Mid-range properties in Cali are becoming more appealing as urban development projects improve the city's infrastructure.
With the city's ongoing enhancements, more potential buyers are drawn to the area, which naturally increases demand and property prices. Cali's charm is not just in its salsa music and vibrant culture; it's also in its growing accessibility and modern amenities.
Colombia's middle class is expanding, with many families moving up from poverty, creating a larger pool of potential property buyers. This shift is significant because it means more people have the financial stability to invest in real estate, particularly in mid-range properties.
The government's initiatives in education and employment are crucial, as they enable more individuals to join the middle class. This economic mobility is a key factor in the rising demand for mid-range homes, as more people can now afford to buy.
As Cali continues to develop, the middle class finds these properties increasingly within reach. The city's growth is not just about new buildings but also about creating opportunities for its residents to improve their quality of life.
With these factors in play, mid-range properties in Cali are expected to see a steady price increase, making them a smart investment for those looking to buy in the area.
13) Rental yields in northern Cali will dip slightly as newer properties increase competition
The north of Cali is buzzing with new residential developments.
While the overall number of homes sold in Colombia took a hit in 2023, construction approvals nearly doubled to 156,938 units, with a noticeable uptick in the north of Cali.
Building permits are on the rise, hinting at more properties entering the market. Even though approvals dipped slightly early in 2023, the trend is clear: more construction is happening.
Tenants are leaning towards newer properties with modern amenities. They value essentials like security and public transport over fancy finishes, making these new builds more appealing.
There's a shift in the Colombian real estate scene, with demand moving towards new constructions. Economic growth and better infrastructure are driving this change, leaving older rentals facing stiffer competition.
Source: Global Property Guide
14) Property values in Valle del Lili will increase with the development of new shopping centers and amenities
New infrastructure and amenities often boost property values, as seen in places like Medellín.
In Medellín, the introduction of metro and tunnel systems led to a 10-15% annual increase in property values in high-demand areas. This pattern suggests that Valle del Lili could experience a similar boost as new developments emerge.
The Valle del Cauca region, home to Cali, is already seeing a rise in residential real estate transactions. With a projected annual growth of 10% over the next five years, the demand for housing is expected to keep climbing, especially as new shopping centers and amenities are built.
Cali's population growth is a key factor driving housing demand. The city's expanding economy and a growing middle class make areas with new amenities particularly appealing to buyers. Neighborhoods like Pance and Ciudad Jardín have already seen significant price hikes, showing strong market interest.
As Valle del Lili develops, expect property values to rise, much like in other parts of Cali. The area's appeal will likely grow with the addition of new shopping centers and amenities, attracting more potential buyers.
Investing in Valle del Lili now could be a smart move, given the anticipated rise in property values. The area's development mirrors trends seen in other Colombian cities, where new infrastructure has led to increased demand and higher property prices.
Sources: Golden Harbors, The Robin Report

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) Rents in new developments will rise due to modern amenities and improved living conditions
Rental prices in Cali's newly developed areas have been climbing, making them increasingly attractive for potential property buyers.
In 2024, average monthly rents for retail spaces surged, highlighting the growing appeal of these modern neighborhoods. Areas like Ciudad Jardín are drawing in luxury home buyers with their exclusive properties and high-end amenities, which naturally pushes rental prices up as more people seek these improved living conditions.
The real estate market in Cali is thriving, thanks to a stable economy and rising foreign investments. This positive trend is expected to continue, with residential real estate transactions projected to grow annually. The allure of modern amenities is a major driver of this growth, as evidenced by a 7% increase in home prices in 2023.
Government policies and infrastructure improvements have significantly influenced these market trends. Areas like Pance and Ciudad Jardín have become particularly attractive due to these developments, further driving up property values and rents.
For those considering a property investment in Cali, understanding these dynamics is crucial. The combination of modern amenities, stable economic conditions, and strategic government initiatives makes these newly developed areas a promising choice.
Sources: Statista, Overseas Property Alert
16) Rents in Cali's outskirts will drop as better transport makes commuting easier
Cali's public transportation has seen major improvements with the expansion of the MIO Bus Rapid Transit system.
Since its launch in 2009, the MIO system has grown into a vast network, making it easier and faster for residents to commute. Average commute times have dropped thanks to streamlined routes and fewer vehicles on the road, making central areas more appealing for daily travel.
The Colombian government is also investing heavily in transportation infrastructure, adding bicycle paths and pedestrian-friendly zones. This increased connectivity is drawing more people to central areas, where they can enjoy the benefits of these improvements.
With these changes, rental demand in Cali's outskirts is expected to decline. As central areas become more accessible and attractive, more people are likely to choose living closer to the city center.
These transportation upgrades are making city life more convenient, encouraging a shift in where people want to live. Commuting from the outskirts is becoming less necessary as central areas offer better access and amenities.
As a result, property values in central Cali may rise due to increased demand, while the outskirts might see a decrease in rental interest.
Sources: ITDP Indonesia, Golden Harbors
17) Emerging neighborhoods will see significant price hikes as infrastructure enhancements progress
Properties in emerging neighborhoods are seeing significant price hikes as infrastructure gets a boost.
Take Cali, Colombia, for example. The government is pouring money into improving waterway containment infrastructure, which is a big deal for new residents. This makes these areas more appealing to buyers, as better infrastructure means better living conditions and connectivity, naturally driving up property values.
It's not just Cali. In Barranquilla, property values shot up in 2023 and 2024 after infrastructure upgrades. Cali is on a similar path with the Río Cali Park Project, which aims to revamp public spaces and transport. This is expected to boost commercial activity and, in turn, property values.
Real estate agencies are buzzing about growth in these areas, thanks to improved connectivity and accessibility. The government's push for affordable housing and urban renewal is also expected to give the real estate market a significant lift, further driving up property prices in these revitalized neighborhoods.
As infrastructure improves, these neighborhoods become more livable and connected, which naturally boosts property values. This trend is particularly evident in cities like Cali, where government investment in infrastructure has been a key driver.
In Barranquilla, for example, property values rose significantly in 2023 and 2024 following infrastructure improvements. This pattern is expected to continue in Cali, where the Río Cali Park Project is set to modernize public spaces and transport systems, likely leading to increased commercial activity and higher property values.
Sources: Resilient Cities Network, West8
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.