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
Are you curious about how Colombia's real estate market will evolve in the coming years? Wondering which trends will shape property investments and housing developments? Eager to discover the key factors driving these changes?
We will tell you everything. Here, no guesswork; we rely only on solid data.
Actually, we know this market inside and out. We keep tabs on it regularly, and all our discoveries are reflected in the most recent version of the Colombia Property Pack
This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.
1) Medellín’s eastern suburbs will go up in value with new metro and tunnel projects boosting connectivity!
Medellín's eastern suburbs are becoming a hot spot for property buyers.
In recent years, these areas have seen a surge in property demand thanks to improved security and infrastructure. Medellín is gaining a reputation as a vibrant tourist and business hub, making its suburbs more appealing. The new metro and tunnel projects are set to enhance connectivity, drawing even more interest from potential buyers.
Historically, property prices in Medellín's high-demand areas have risen by 10-15% annually. This trend is expected to continue in the eastern suburbs, especially with the completion of these new infrastructure projects. Similar developments in other regions have led to significant property price hikes, so it's reasonable to expect the same here.
The Colombian government is investing heavily in Medellín's metro system, including the Tranvía de la Avenida 80 project. This, along with the Toyo Tunnel, which will be the longest road tunnel in Latin America, is set to boost connectivity in the eastern suburbs. Such improvements are likely to drive up property demand and prices even further.
These infrastructure projects are not just about convenience; they are game-changers for the local real estate market. As connectivity improves, the eastern suburbs are poised to become some of the most sought-after areas in Medellín. Buyers looking for investment opportunities should keep a close eye on these developments.
With the metro and tunnel projects underway, the eastern suburbs are on the brink of transformation. The combination of improved infrastructure and Medellín's growing appeal as a destination makes these areas a prime target for property investment.
Sources: Medellín Real Estate, World Highways, BNamericas
2) Bogotá's La Candelaria will captivate investors as restoration transforms historic buildings into stunning boutique residences
La Candelaria in Bogotá is quickly becoming a prime spot for property investors.
In Bogotá, historic neighborhoods like Chapinero and Santa Fe have seen rising property values, hinting that La Candelaria is next in line. The Colombian government is sweetening the deal with incentives for restoration projects, making it a win-win for those who want to preserve history and make a profit.
Investors are already seeing success in La Candelaria, where colonial homes have been transformed into lucrative properties. This trend is catching the eye of more investors eager for similar returns. In 2023, Bogotá welcomed a record number of tourists, especially from the U.S., showing a growing interest in cultural hotspots like La Candelaria. This surge in tourism signals a strong demand for boutique residences, a golden opportunity for investors.
Media outlets are buzzing about La Candelaria's makeover, highlighting its cultural and historical attractions. This spotlight is drawing in investors keen on developing properties in the area. Bogotá's urban development plans emphasize historic preservation, adding to La Candelaria's allure. These plans often come with restoration incentives, making colonial buildings even more attractive for investment.
La Candelaria's vibrant cultural scene, with its bustling restaurants and colorful colonial architecture, is boosting foot traffic and business activity. This lively atmosphere makes it a promising area for investors looking to tap into a thriving community.
Sources: The Latinvestor, Colombia Travel, Nomadic Niko, Visit Latin America
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3) Getsemaní in Cartagena will go up in price growth, fueled by its electrifying culture and irresistible tourist allure
Getsemaní in Cartagena is buzzing with life and opportunity.
Once a hidden gem, this neighborhood is now a magnet for tourists and investors alike, thanks to its vibrant culture and artistic flair. Picture streets alive with colorful murals, spontaneous performances, and bustling local crafts markets. It's a place where every corner tells a story, making it irresistible for those seeking a unique living experience.
Cartagena's tourism is booming, and Getsemaní is at the heart of it all. The neighborhood hosts a variety of cultural events and festivals that draw international crowds, turning it into a lively hub. This surge in visitors naturally fuels the demand for properties, pushing property values upward.
Adding to its charm, the local government is pouring resources into infrastructure improvements, making Getsemaní even more appealing. These enhancements, coupled with glowing media coverage, have positioned the neighborhood as a must-visit destination. This buzz is a key driver behind the anticipated rise in property prices.
Investors are taking note, as Getsemaní is set to outpace other areas in Cartagena in terms of price growth. The combination of cultural vibrancy, tourist appeal, and strategic investments makes it a hot spot for real estate. If you're considering buying property in the country, this neighborhood offers a unique blend of lifestyle and investment potential.
Sources: TheLatinvestor, Pauline Travels, Voyagers Travel, Medellin Advisors
4) Rental yields in Medellín's mid-range apartments will go up by 20% as digital nomads flood the city
Rental yields in Medellín's mid-range apartments are expected to jump by 20% as digital nomads continue to flock to the city.
Medellín has become a magnet for remote workers, thanks to its pleasant climate, affordable cost of living, and lively culture. This trend kicked off in 2023 and 2024, turning the city into a hotspot for digital nomads.
One big reason for this surge is the steady stream of digital nomads choosing Medellín. A study by Breakthrough found that about 8,300 digital nomads arrive in Medellín each month, thanks in part to a renewable two-year digital nomad visa introduced in 2022.
The rental market in Medellín is booming, especially in neighborhoods like El Poblado, where rental prices have shot up by 81%. This makes mid-range apartments a sweet spot for digital nomads seeking affordable yet comfy living spaces.
The global shift towards remote work is also fueling this demand, as more people look for flexible living options in vibrant cities like Medellín. The city's appeal is undeniable, drawing in a diverse crowd of remote workers.
Sources: Marketplace, Scholars UNH, The Latinvestor
5) European investors will flock to eco-friendly projects in smaller cities like Pereira
European investors are increasingly drawn to sustainable and eco-friendly investments, a trend that has been growing since 2023.
In smaller cities like Pereira, property prices are significantly lower than in major cities such as Bogotá. For instance, rent prices in Pereira are 44.2% lower, making it an attractive option for investors seeking cost-effective opportunities with strong growth potential.
Pereira is buzzing with economic growth, fueled by real estate investments and nearshoring. This development is pulling in more investors, as the city offers a promising environment for economic activities.
The Colombian government is sweetening the deal with incentives for eco-friendly projects, which further lures European investors. These incentives include support for green projects and policies aimed at preserving biodiversity.
Smaller cities like Pereira are seeing a rise in tourism, thanks to their natural beauty and eco-tourism potential. This trend is expected to continue, making these cities even more appealing for sustainable investments.
Latin America, including Colombia, has become a significant destination for European investments. This broader interest in the region highlights the potential for eco-friendly projects in cities like Pereira.
Sources: ESG News, Numbeo, Funds Society
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6) Solar-powered homes will revolutionize rural and coastal Colombia, slashing energy costs and transforming the real estate market!
In Colombia, solar-powered homes are gaining popularity in rural and coastal areas.
With electricity rates rising by 30% over the past five years, many homeowners are turning to solar energy to cut down on long-term costs. This shift is especially noticeable in areas where traditional energy sources are becoming more expensive.
The Colombian government is also playing a big role in this trend. They've set ambitious goals to add 6 GW of renewable energy capacity by 2026 and are offering tax incentives to attract foreign investors. This makes it easier for homeowners to access solar technology and contributes to Colombia becoming a regional hub for renewables.
Another reason for the shift is that solar panel installation and maintenance costs have dropped significantly. For smaller systems, maintenance is about 2% of the initial cost annually, and for larger systems, it's around 1%. This is because solar panels have no moving parts and use free sunlight as fuel.
In rural and coastal regions, where the sun is abundant, solar energy is a cost-effective solution for long-term energy needs. Homeowners in these areas are increasingly seeing the benefits of investing in solar technology.
As more people adopt solar power, the trend is expected to continue, making solar-powered homes a smart choice for those looking to save on energy costs in the long run.
Sources: Energy News Pro, TXSES, It's My Sun
7) Bogotá's central neighborhoods will see rent prices skyrocket by 10% annually as remote workers flock to vibrant mixed-use hubs
In Bogotá's central neighborhoods, rental demand is booming thanks to remote workers.
These professionals are flocking to the city, drawn by the vibrant urban lifestyle and the convenience of living in areas that offer both residential and commercial spaces. Back in 2023, renting a one-bedroom apartment in the city center cost about $800, while a two-bedroom could set you back $1,200.
Remote workers are particularly keen on mixed-use spaces that blend living and working environments. This has led to a surge in demand for properties with amenities like coworking spaces and outdoor areas, making central neighborhoods even more desirable.
The rise of coworking spaces and other amenities in central Bogotá has made these areas even more attractive to remote workers. This has not only boosted the appeal of these neighborhoods but also driven up property values.
As a result, property prices in Bogotá are on the rise, with prime areas seeing the most significant growth. This trend is expected to continue as more remote workers prioritize living in central hubs.
Sources: Realtor.com, TheLatinvestor, ArepasDelGringo
8) Santa Marta's prices will go up thanks to eco-conscious buyers
Santa Marta is becoming a hotspot for eco-conscious property buyers looking for homes near the Sierra Nevada de Santa Marta.
In recent years, property prices in Santa Marta have been climbing, reflecting a growing interest in this picturesque region. This trend is fueled by a global shift towards sustainable living, with more people seeking homes that boast green certifications like LEED or Passive House standards. Santa Marta is no exception, as new sustainable projects are popping up, drawing in buyers who prioritize eco-friendly living.
The allure of the Sierra Nevada de Santa Marta is undeniable, with its stunning landscapes and rich biodiversity. This area has become a magnet for tourists, which in turn has sparked increased interest in local real estate. The media has also played a role, frequently highlighting Santa Marta as an eco-friendly destination, further boosting its appeal.
Government incentives are another factor driving the development of sustainable projects in Santa Marta. These incentives make it more attractive for developers to invest in eco-friendly construction, which is likely to lead to more green projects in the area. As a result, the demand for properties in Santa Marta is expected to continue rising.
For those considering a move, Santa Marta offers a unique blend of natural beauty and sustainable living. The region's commitment to eco-friendly development is not just a trend but a lifestyle choice that resonates with many modern buyers. With the ongoing rise in property prices, investing in Santa Marta now could be a wise decision.
As more people become aware of the benefits of living in an eco-conscious community, the demand for homes in Santa Marta is likely to grow. This makes it an exciting time for potential buyers who are looking to invest in a region that values sustainability and natural beauty.
Sources: Real Estate, Properstar, Entire Magazine
Everything you need to know is included in our Real Estate Pack for Colombia
9) 3D-printed homes will revolutionize lower-income housing, delivering affordable and sustainable living like never before
The demand for affordable housing in Colombia is rising, with 3.7 million households facing a deficit in 2023.
3D-printed homes are stepping up as a game-changer, especially in lower-income areas. In Latin America, this tech has already shown promise with Guatemala's first 3D-printed house completed in 2023, proving it works even in earthquake-prone zones.
One big perk of 3D-printed homes is the potential to slash building costs by up to 45%. This is a huge win for low-income markets where every penny counts.
The Colombian government is on board with these innovative solutions. The UNDP is using 3D printing to build homes, aligning with the National Development Plan 2023-2026 to boost housing access for those who need it most.
Local and international partnerships are key. The collaboration between Progreso and COBOD International in Guatemala shows growing interest in 3D-printed housing from all sides.
3D printing also scores points for being eco-friendly. It cuts down on construction waste and uses sustainable materials, fitting right in with the global push for greener housing.
Sources: 3Dnatives, COBOD International, IMechE
10) Eco-smart homes in flood-prone Cali will go up in demand as climate resilience projects lure eager buyers
Cali is making big moves in climate resilience by investing in nature-based solutions to combat flooding and other climate change effects.
In Colombia, there's a growing trend towards eco-friendly and sustainable housing as people become more aware of the need for homes that can handle environmental challenges. The government's push for a green transition is making these eco-smart homes even more attractive to buyers.
Buyers are also drawn to government incentives for building eco-smart homes, especially in flood-prone areas. These incentives are part of a larger strategy to promote sustainable development and climate resilience, offering financial benefits while supporting environmental sustainability.
Take Barranquilla, for example, where climate resilience projects have successfully reduced flood damage. By restoring waterways and creating green spaces, the city has improved living conditions and protected against natural disasters, setting a precedent for other cities.
These efforts in cities like Cali and Barranquilla show that investing in eco-smart homes is not just a trend, but a smart move for those looking to buy property in flood-prone areas. The combination of government support and proven success stories makes these homes a compelling choice.
With Cali's focus on enhancing biodiversity and projects like the Pact for Wildlife, the city is reducing the impact of extreme weather events, making it an attractive option for potential buyers interested in sustainable living.
Sources: UNEP, USAID, Foreign Policy
11) Medellín's cable cars will go up property demand in once-overlooked hillside neighborhoods
Medellín's cable car projects are transforming the city's hillside neighborhoods.
These areas, once overlooked, are now seeing a boost in property values. According to a study by Garcia-Lopez and Gomez-Hernandez, improved public transportation like the Tranvía system positively impacts housing prices. This means the cable cars could make properties in these neighborhoods more valuable, attracting potential buyers.
The cable car lines are also helping to change perceptions of the comunas. An Oxfam article highlights that income growth and reduced stigmatization are making these areas more appealing. People are increasingly interested in living near cable car stations, seeing them as desirable places to settle down.
Looking at other cities, we see similar success stories. In places like Hong Kong and Vancouver, integrating transit infrastructure with urban design has created vibrant communities. These examples show that improved public transportation can boost local economies and increase property demand.
Medellín's cable cars are not just about getting from point A to B; they're about revitalizing neighborhoods. The World Bank notes that cable cars are an economically viable public transport system, which can lead to thriving communities.
As these projects continue, expect more interest in Medellín's hillside properties. The combination of better transport and community development is a win-win, making these areas prime spots for investment.
Sources: Garcia-Lopez and Gomez-Hernandez (2024), Oxfam (2021), World Bank (2021)
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12) Cartagena's beachfront properties will go up with foreign interest, driving double-digit annual price growth in Bocagrande!
Cartagena's beachfront properties, especially in Bocagrande, are catching the eye of foreign investors.
With 640,331 international visitors in 2023, Cartagena is now the third most popular spot in Colombia, right after Medellín and Cali. This surge in tourism is expected to continue, with a 24% increase in international tourists predicted for the first half of 2024, making Cartagena a hot destination.
Foreign investment in Colombian real estate is on the rise, and Cartagena is no exception. In 2023, the tourism sector saw a record 5,869,869 non-resident tourists, showing a strong post-pandemic recovery. The infrastructure development in Bocagrande, like expanding beaches and improving water drainage, is set to boost property values.
The coastal expansion project in Bocagrande is not just about aesthetics; it's about practicality too. By improving water drainage and preventing street flooding, these enhancements make beachfront properties even more appealing. Plus, more direct flights from major international cities are making Cartagena more accessible, further driving interest in real estate.
The growing expatriate community in Cartagena is another factor. Attracted by its vibrant culture and status as a digital nomad hub, this community is fueling demand for luxury residential projects and vacation rentals. This trend is particularly strong in areas like Bocagrande, where the lifestyle and amenities are a big draw.
Sources: Medellin Advisors, Double Double Cartagena, Travel Pulse
13) Medellín’s Laureles district will dominate as the top residential hotspot
Laureles in Medellín is set to remain a top residential choice thanks to its rising property values and consistent demand.
From 2023 to 2025, property prices in Laureles are expected to climb, driven by high demand and limited housing supply. This trend is bolstered by upcoming renovations to heritage buildings and a growing interest in prime properties in central Medellín.
Laureles charms with its blend of traditional allure and modern conveniences, making it a hit with both expats and locals. The neighborhood boasts a variety of amenities like parks, schools, shopping centers, and cafes, all contributing to its high livability rating.
Safety is a big draw for Laureles, as it's generally considered a secure area. This, along with its strong public transportation links via the Medellín Metro, makes it a convenient and desirable place to live.
The vibrant nightlife scene in Laureles adds to its appeal, offering residents a lively social environment. The increasing number of expatriates choosing Laureles further highlights its desirability as a residential area.
With mid-range prices and high livability, Laureles continues to attract those seeking a comprehensive residential experience in Medellín.
Sources: Laureles as a Popular Neighborhood, Transportation in Medellín, Real Estate Market Projections
14) Luxury homes in Bogotá and Medellín will stagnate as wealthy buyers flock to rural estates and second homes for investment.
In Colombia, luxury homes in Bogotá and Medellín are seeing slower price growth as wealthy buyers turn their attention to rural estates and second homes.
Many affluent Colombians are now seeking a lifestyle that blends work, leisure, and nature, increasing the demand for rural living. The pandemic has made less crowded areas more appealing, pushing this trend even further.
Developments like Cannúa are catching the eye of those interested in sustainable and eco-friendly living. These properties offer a unique mix of high-end amenities and green practices, making them attractive investments for those wanting a change of pace.
Rural estates are not just about escaping the city; they offer a chance to invest in something different. Buyers are looking for properties that provide both luxury and sustainability, a combination that is becoming increasingly popular.
As more people look to these rural options, the urban luxury market is feeling the impact. The shift is noticeable, with more buyers opting for the tranquility and space that rural properties offer.
For those considering a property purchase in Colombia, it's worth noting this trend. Rural estates are becoming the new luxury, offering a lifestyle that many find irresistible.
Sources: The Latinvestor, Statista, J.MAK Hospitality
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15) US and Canadian buyers will dominate Cartagena's market, skyrocketing prices by 15% in five years
Cartagena is becoming a hotspot for US and Canadian property buyers.
With over 3.5 million air passengers arriving in 2022, many from North America, Cartagena is seeing a surge in interest from US and Canadian tourists. This influx is not just about vacations; it's sparking curiosity about owning property in this lively city. The vibrant culture and stunning coastal views are drawing in potential buyers who want a slice of Cartagena's charm.
Historically, foreign investment has played a big role in Cartagena's real estate market. Back in the early 2000s, the city's historic center saw a property price jump of 300% to 600% between 2004 and 2009. This shows how foreign interest can really boost property values. Plus, with the current exchange rates, US and Canadian buyers find Colombian real estate even more appealing, giving them more bang for their buck.
The growing communities of US and Canadian expats in Cartagena are a testament to the city's allure. Many of these expats are snapping up local properties, seeing them as solid investments. The Colombian government is also rolling out the welcome mat with incentives for foreign property investment, making it easier and more attractive for international buyers to dive into the market.
Foreign buyers from the US and Canada are expected to dominate the market in Cartagena, driving up prices by at least 15% in the next five years. This trend is fueled by the city's irresistible mix of history, culture, and modern amenities, making it a prime spot for investment. The combination of favorable exchange rates and government incentives is creating a perfect storm for North American buyers looking to invest in Cartagena's real estate.
Sources: Medellin Advisors, Global Property Guide
16) Colombia's booming middle class will go up demand for affordable family homes in fast-growing urban areas near regional capitals
Colombia's middle class is on the rise, thanks to economic stability and foreign investment.
As more Colombians join the middle class, they're seeking quality housing in bustling cities like Bogotá, Medellín, and Cali. This trend is clear in 2023 and 2024, with a noticeable uptick in housing demand in both urban and suburban areas.
Urbanization is picking up speed, with the urban population expected to grow significantly by 2035. This shift is partly due to internal displacement, pushing more people into large cities. As a result, housing demand is outpacing supply, driving up property prices in major urban centers.
The real estate market in Colombia is booming, especially in urban areas. This growth is fueled by urbanization, increased housing demand, and foreign investment. Surveys show that family homes are in high demand, matching the needs of the expanding middle class.
In rapidly urbanizing areas near regional capitals, the middle-class growth is set to boost demand for affordable family homes. This trend is particularly evident in cities experiencing a surge in population.
With more people moving to urban areas, the real estate market is responding to the growing need for residential properties. This shift is creating opportunities for those looking to invest in Colombia's property market.
Sources: Urbanet, The Latinvestor
17) Virtual tours and digital platforms will revolutionize Colombia's real estate
Colombia's digital landscape is rapidly evolving, making it a hotspot for tech-savvy property investors.
With mobile internet access on the rise, expected to jump from 54.27% in 2024 to 59.86% in 2025, the country is becoming increasingly connected. This connectivity is crucial for attracting younger investors who prefer digital solutions. Real estate companies are catching on, using virtual tours to showcase properties in a way that resonates with this audience.
Platforms like Floorfy are leading the charge, offering 30,000 virtualized properties and drawing in over 2 million visits each month. This shows how effective virtual tours can be in engaging potential buyers who are more comfortable navigating the digital world. The convenience of exploring properties online is a game-changer, especially for those who value efficiency.
Consumer surveys back this up, revealing a strong preference for digital transactions in real estate. The ease and speed of digital buying platforms are major attractions. For instance, real estate agents using Floorfy have seen a dramatic drop in the number of physical visits needed to close a sale, from 17 to just 6, thanks to these virtual tours.
These digital tools are not just a trend; they're reshaping how properties are marketed and sold. The ability to view a property from anywhere in the world is particularly appealing to younger investors who are used to doing everything online. This shift is making the property market more accessible and appealing to a new generation of buyers.
As Colombia continues to enhance its digital infrastructure, the real estate market is poised to benefit from this tech-driven transformation. The integration of virtual tours and digital platforms is not just about convenience; it's about meeting the expectations of a digitally native audience. This trend is set to redefine property investment in the country.
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18) Colombian property taxes will go up in Bogotá and Medellín's wealthiest neighborhoods to supercharge infrastructure projects
In Bogotá and Medellín, property values in upscale areas like El Poblado and Chapinero are climbing.
These neighborhoods are attracting international buyers, thanks to luxury developments and their growing appeal. As these areas become more affluent, it's common to see property taxes rise to match the increased value.
The Colombian government is keen on boosting infrastructure, especially in cities. They're focusing on improving transportation and public services to support the bustling urban life. To make this happen, they're looking at tax reforms, which include adjustments to property taxes.
Colombia has a history of tweaking property taxes to fund urban growth. The government wants to ensure cities have the cash for infrastructure while keeping property owners in mind. This pattern, along with the current push for better infrastructure, points to higher property taxes in wealthier neighborhoods.
Sources: Colombia One, The Latinvestor, The Latinvestor, Medellin Advisors
19) Skyrocketing mortgage rates will drive Colombians to choose renting over buying in major cities
Many Colombians are now leaning towards renting instead of buying homes in major cities.
The main reason behind this shift is the rising mortgage interest rates. Even though the Central Bank of Colombia cut its benchmark rate to 10.25% in 2024, it's still quite high, making home loans expensive and discouraging purchases.
In cities like Bogotá and Cali, property prices dropped in 2023 but are expected to rise again in 2025. This potential increase, coupled with high interest rates, makes buying a home less affordable, pushing more people towards renting for its flexibility and lack of long-term financial commitment.
The rental market in Colombia is on the rise, driven by the demand for affordable and flexible living arrangements. Co-living spaces and tech-driven rental processes are making renting even more appealing.
These factors, along with the financial burden of buying a home, are contributing to the trend of more Colombians choosing to rent. Renting offers a way to live in desirable areas without the hefty price tag of ownership.
With the current economic climate, it's no surprise that renting is becoming the go-to option for many Colombians looking for a place to call home.
Sources: Rio Times Online, Global Property Guide, Statista, Trading Economics, The Latinvestor