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Everything you need to know before buying real estate is included in our Colombia Property Pack
Thinking about buying a 3-bedroom apartment in Chapinero? It’s a great area, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other neighborhoods like El Poblado or Usaquén where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Colombia Property Pack.
Will property prices increase in Colombia in 2025?
Yes, property prices in Colombia are expected to rise in 2025, driven by a combination of economic growth and increased foreign investment.
Backed by our fresh, in-depth market analysis, we’re confident that Colombia remains an attractive destination for both domestic and international investors.
While there are challenges such as inflation and potential political instability, the main drivers behind Colombia’s price growth are strong and persistent.
Demand, particularly in major cities like Bogotá and Medellín, continues to outpace supply, making significant price drops unlikely. Additionally, Colombia's growing reputation as a tourist and business hub is attracting more buyers.
Signals pointing to a property price increase in Colombia
Here are some factors suggesting prices could increase:
Colombia's economy is projected to grow steadily in 2025, boosting consumer confidence and increasing the purchasing power of potential homebuyers, which is likely to drive up property prices.
Foreign investment in Colombia's real estate market is expected to rise, particularly from North American and European investors seeking opportunities in emerging markets, which will likely increase demand and push prices higher.
The Colombian government is implementing policies to improve infrastructure, such as transportation and public services, in urban areas. These improvements are expected to enhance property values, especially in cities like Bogotá and Medellín.
The tourism sector in Colombia is experiencing significant growth, attracting more international visitors and expatriates. This trend is expected to increase demand for short-term rental properties, thereby driving up property prices.
Colombia's strategic location and free trade agreements are attracting multinational companies, leading to job creation and an influx of professionals seeking housing, which is likely to boost property demand and prices.
The Colombian peso is expected to stabilize, making real estate investments more attractive to foreign buyers, which could lead to increased demand and higher property prices.
Signals pointing to a property price decrease in Colombia
Here are some factors suggesting prices could fall:
Political uncertainty and potential policy changes could deter investment and affect market confidence, leading to a slowdown in property price growth.
Rising inflation rates could erode consumer purchasing power, making it more difficult for potential buyers to afford homes, which could dampen demand and slow price increases.
Higher interest rates could make mortgage financing more expensive, reducing the affordability of homes for many buyers and potentially cooling the market.
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If property prices go up in Colombia, how much would they increase by?
If real estate prices in Colombia were to rise in 2025, the increase would likely be between 3% to 7% of their 2024 values.
Typically, real estate in emerging markets like Colombia appreciates by approximately 3% to 7% annually over the long term. However, fluctuations can occur depending on factors such as region, season, and property type.
It means that, if you spot a charming 2-bedroom apartment in Bogotá for 500,000,000 COP today, don't be surprised if it's priced between 515,000,000 and 535,000,000 COP this time next year.
To give you a better understanding, here is a table that shows 7 types of Colombian real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 3%, 5%, and 7%.
| Type of Property | Average Price in 2024 (COP) | Price in 2025 (3% increase) | Price in 2025 (5% increase) | Price in 2025 (7% increase) |
|---|---|---|---|---|
| Apartment in Bogotá (60 sqm) | 500,000,000 | 515,000,000 | 525,000,000 | 535,000,000 |
| Modern Apartment in Medellín (75 sqm) | 700,000,000 | 721,000,000 | 735,000,000 | 749,000,000 |
| Luxury Penthouse in Cartagena (100 sqm) | 1,500,000,000 | 1,545,000,000 | 1,575,000,000 | 1,605,000,000 |
| Studio in Cali (30 sqm) | 200,000,000 | 206,000,000 | 210,000,000 | 214,000,000 |
| Loft in Barranquilla (80 sqm) | 800,000,000 | 824,000,000 | 840,000,000 | 856,000,000 |
| Townhouse in Bucaramanga (150 sqm) | 1,200,000,000 | 1,236,000,000 | 1,260,000,000 | 1,284,000,000 |
| Investment Property in Santa Marta (50 sqm) | 400,000,000 | 412,000,000 | 420,000,000 | 428,000,000 |
Everything you need to know is included in our Property Pack for Colombia
If real estate prices go up in Colombia, which areas are likely to see the biggest increases?
Today, people who want to move to Colombia are looking for a mix of cultural richness and modern amenities, which Chapinero in Bogotá delivers. Hence, we could see a price increase there in 2025.
Also, lately, there's been a shift toward more youthful, vibrant neighborhoods, and El Poblado in Medellín has really taken off.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Colombian market.
| Neighborhood | Level of Increase | Why |
|---|---|---|
| Chapinero, Bogotá | High | Recent development of luxury housing projects and its increasing appeal to international buyers as travel normalizes post-pandemic, driving demand. |
| El Poblado, Medellín | High | Expected rise due to limited housing stock, upcoming renovations to heritage buildings, and growing demand for prime properties in central Medellín. |
| Laureles, Medellín | Medium-High | Ongoing gentrification and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher. |
| Usaquén, Bogotá | Medium | The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments. |
| Envigado, Medellín | Medium-High | Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward. |
| Getsemaní, Cartagena | Medium | Investment in local infrastructure, such as the extension of tram lines and renovation of historic areas, is boosting long-term value. |
| Zona T, Bogotá | Medium-High | With new cultural and commercial spaces being developed, this trendy neighborhood is seeing increased demand from both residents and investors. |
| Santa Fe, Bogotá | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
| Rosales, Bogotá | Medium-High | Its proximity to central Bogotá, along with new office and residential developments, makes it increasingly attractive to professionals seeking more space. |
| San Antonio, Cali | Medium | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
| Zona Rosa, Medellín | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
| Centro Histórico, Cartagena | High | Upcoming restoration of historic sites and high-profile cultural projects are driving a renewed focus on this central, historic location. |
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Colombia?
In 2025, Colombian real estate trends focus on tech-smart, energy-efficient apartments, larger suburban homes for families, properties with outdoor spaces, and eco-friendly buildings—all driving higher demand and prices. Here is a summary.
- Tech-Equipped and Energy-Efficient Apartments:
Driven by remote work and sustainability trends, these homes offer smart technology features and energy-saving systems. They cater to young professionals and tech workers, making them a hot commodity in 2025, especially in cities like Bogotá and Medellín.
- Family-Sized Apartments in Suburban Areas:
With a growing demand for larger living spaces, especially among families, suburban areas near major cities like Bogotá, Medellín, and Cali are seeing increased interest. Proximity to green spaces, schools, and transportation hubs is a major factor driving value.
- Properties with Outdoor Spaces:
Post-pandemic, outdoor spaces like terraces, balconies, or gardens have become highly desirable. In dense urban areas, these features offer a much-needed escape and are likely to drive up property values, particularly in cities with pleasant climates like Medellín.
- Eco-Friendly Buildings with Low Carbon Footprints:
Colombia's commitment to sustainability is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the country's green goals, leading to price appreciation in this category, especially in environmentally conscious cities like Bogotá.
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