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 considering investing in Mexico's real estate market? Curious about the emerging trends that could shape your property decisions in 2025? Want to know which areas are set to boom and what factors will drive these changes?
We will lay down recent insights. 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) Colombia's major city property prices are set to soar, offering a golden opportunity for savvy investors seeking steady growth
In Colombia, residential property prices in major cities are set to rise slowly and steadily.
With the urban population growing, 83.5% of Colombians are expected to live in cities by 2035. This means places like Bogotá and Medellín will see more demand for housing, making big price drops unlikely.
Foreign investors, especially from North America and Europe, are increasingly interested in Colombian real estate. They are drawn by Colombia's stable economic growth and low inflation, which make property investments appealing. The government's push to improve infrastructure and transportation in these cities also boosts property values.
Tourism is booming in Colombia, which is great news for the short-term rental market. This growth is driving up demand for properties, and in turn, pushing prices higher. Historical trends back this up, with property values having increased by 262% from 2005 to 2020.
Overall, Colombia’s residential property prices in major cities will continue to rise slowly and steadily, maintaining a balance that will appeal to cautious investors.
Sources: Oxford Business Group, The Latinvestor, Colombia One
2) Short-term rental boom skyrockets urban apartment rents in digital nomad hotspots across Colombia
Colombia is becoming a hotspot for digital nomads and remote workers.
Thanks to the Digital Nomad Visa introduced in October 2022, Colombia has been attracting a wave of remote professionals. This visa was designed to bring in around 45,000 digital nomads within 18 months, and it's working. As more of these professionals arrive, the demand for short-term rentals in urban areas is naturally increasing.
The short-term rental market in Colombia is booming. From January 2021 to September 2023, active listings jumped from 73,090 to 123,640. Colombia is now the third-highest earner in Latin America from short-term rentals, with a 19.6% growth in 2023. This shows how popular and profitable short-term rental investments have become.
Occupancy rates for these rentals are climbing, peaking at 35% in January 2023. This trend is especially strong in neighborhoods that digital nomads love. These remote workers are drawn to urban living for its convenience and infrastructure, which is pushing up demand and prices in these areas.
Rental prices in these popular neighborhoods are rising, with the average accommodation price hitting $75 per night. In 2023 alone, there were a solid 5.7 million nights booked. This surge is a clear sign of the growing interest in short-term rentals among digital nomads and remote professionals.
Sources: PriceLabs, Golden Harbors, Everyplace
Everything you need to know is included in our Property Pack for Colombia
3) Energy-efficient apartments will go up in value as buyers crave lower bills and eco-friendly designs
In Colombia, there's a growing trend towards energy-efficient living, especially in the housing market.
By 2023, more than 20% of new buildings in Colombia were certified under the IFC's EDGE program, showing a strong move towards sustainable construction. This has put Colombia at the forefront of green building finance in Latin America. People are increasingly drawn to homes that offer lower utility bills and eco-friendly designs.
With utility costs on the rise, many Colombians are looking for energy-efficient housing solutions. It's not just about saving money; it's also about reducing carbon footprints, which is becoming a priority for urban dwellers. The demand for modern, energy-efficient appliances is growing, as people want homes that match these values.
Government policies are a big part of this shift. The National Sustainable Construction Policy, which aligns with the IFC's EDGE certification, has been a major driver in developing eco-friendly properties. This, along with increased media coverage and public awareness of climate change, is pushing the demand for sustainable living options even further.
Compact, energy-efficient apartments are becoming more popular as buyers appreciate the lower utility bills and environmentally friendly designs. These homes not only help save money but also contribute to a greener planet, making them a smart choice for the future.
As more people become aware of the benefits of sustainable living, the market for these types of properties is expected to grow. This trend is likely to continue, with compact, energy-efficient homes gaining value as they meet the needs of modern buyers.
Sources: Environmental Finance, Verified Market Research, JLL Research
4) Rental yields in Bogotá's suburban neighborhoods will soar
In Bogotá's suburbs, rental yields are staying strong thanks to a few key factors.
In 2024, property owners enjoyed gross rental yields between 6.03% and 9.88%, averaging 8.05% in the first quarter. This is a solid return on investment, making these areas attractive for buyers.
A big reason for this is the major public investment in transport infrastructure. Projects like the Bogotá Metro Line 2, backed by international banks, are set to boost mobility and air quality. This means better connectivity, which is a huge draw for tenants who want convenience.
People are now looking for homes near efficient transport. Recent surveys show that tenants are prioritizing areas with improved connectivity. Neighborhoods like Chapinero and Usaquén are hot spots, especially among young professionals and expats, driving up property values.
These areas are becoming more popular because of their proximity to new transport options. The expansion of the metro and TransMilenio systems is making suburban living more appealing, as people want to be close to efficient transport.
With these developments, rental yields in Bogotá's suburbs are expected to remain attractive. The focus on convenience and transport access is reshaping tenant preferences, keeping demand high.
Sources: The Latinvestor, Bank Information Center, Global Property Guide, Setec, The Latinvestor
5) Eco-conscious buyers will flock to sustainable buildings, skyrocketing in value as energy costs and environmental awareness soar
Eco-conscious buyers are flocking to sustainable buildings for a variety of compelling reasons.
In Colombia, the trend is clear: over 20% of new buildings are EDGE certified, making the country a leader in green building certification among emerging markets. This surge in green-certified buildings is not just a statistic; it's a reflection of a broader commitment to sustainability that resonates with buyers looking for eco-friendly options.
The Colombian government is playing a crucial role in this shift. Through its National Sustainable Construction Policy, the government aims to cut greenhouse gas emissions by 51% by 2030 and reach carbon neutrality by 2050. These ambitious goals are backed by incentives that make sustainable buildings more appealing to environmentally conscious buyers.
As the real estate market evolves, there's a noticeable shift towards sustainable properties. Green building rating systems and net-zero roadmaps are becoming standard, and there's an increasing emphasis on tracking embodied carbon in buildings. This focus not only highlights the environmental benefits but also suggests that these properties will maintain their value as energy costs climb.
For those considering a property purchase, it's worth noting that sustainable buildings are not just a trend; they are a smart investment. As energy prices rise and environmental awareness grows, these buildings are likely to hold their value better than traditional properties.
Eco-conscious buyers are not just investing in a home; they are investing in a future where sustainability is key. With the Colombian government's support and the real estate market's shift, sustainable buildings are becoming the norm, offering both environmental and financial benefits.
Sources: Environmental Finance, Commercial Search
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6) Smart-home ready apartments will go up in value as buyers crave tech-savvy, energy-efficient living spaces
In Colombia, 70% of home buyers in 2023 were on the lookout for smart homes.
By 2024, homes with smart upgrades were flying off the market faster than those without. This isn't just a local trend; globally, consumer spending on smart home systems is set to top $170 billion by 2025. Colombia is a key player in this growth, with both homeowners and renters showing a keen interest in smart devices.
Renters are also jumping on the bandwagon, with 82% wanting at least one smart device in their homes. This shows a broad appeal for smart technology, not just for ownership but for everyday living. The convenience and modern touch of smart homes are becoming a must-have for many.
Energy efficiency is a big deal too. People are more eco-conscious and want homes that save energy. Smart home tech is a game-changer here, offering substantial energy savings that appeal to green-minded buyers. This is reflected in the market, where smart-home equipped properties are fetching higher resale values.
Buyers are willing to pay a premium for homes that integrate technology and energy efficiency. This trend is reshaping the real estate landscape, making smart-home ready apartments more desirable. Properties with these features are commanding higher prices as they align with the modern buyer's priorities.
In the competitive real estate market, having a smart home isn't just a perk; it's becoming a necessity. As technology continues to evolve, the demand for integrated smart features will only grow, making these homes a wise investment for the future.
Sources: Exploding Topics, Aparthotel, Fingent
7) Foreign buyers are flocking to historic Colombian homes, skyrocketing values in heritage quarters!
Foreign buyers are increasingly drawn to Colombia's historic homes, especially those that have been beautifully restored.
In places like Cartagena, these charming properties, such as a 4-story old city home or a 5-bedroom colonial mansion, are catching the eye of international buyers. This surge in interest is gradually pushing up property values in these heritage-rich areas.
Cartagena and Bogotá are seeing a notable rise in property values, thanks to the restoration of colonial homes. Some properties in Cartagena have experienced price increases of up to 300% to 600% over a few years. The devaluation of the Colombian peso against the US dollar is also making Bogotá a more attractive investment spot for foreign buyers.
The tourism boom in areas like Cartagena's historic center, a UNESCO World Heritage site, is another factor. This increase in visitors is expected to boost demand for short-term rentals, which in turn is likely to drive up property prices.
Real estate market reports highlight a trend of foreign investment in historic properties, with North American and European investors looking for opportunities in emerging markets. This is expected to further increase demand and push prices higher in these historic quarters.
Sources: Global Property Guide, Cartagena First American Realty, The Latinvestor
8) Colombia's booming middle class is set to skyrocket demand for mid-priced apartments
Colombia's growing middle class is driving up demand for mid-priced apartments.
With the economy on the rise, GDP is expected to grow by 2.8% in 2025 and 3.5% in 2026, thanks to strong domestic demand. This economic boost is putting more money in the pockets of the middle class, making it easier for them to consider buying property.
Getting a mortgage in Colombia has become more accessible, thanks to government policies aimed at improving infrastructure. These policies have made real estate investments more appealing, especially for first-time buyers who benefit from government incentives that make homeownership more affordable.
Urbanization is another factor pushing up the demand for housing in cities like Bogotá and Medellín. As these cities expand with economic activity and business opportunities, more people are looking for mid-priced apartments. Surveys show that Colombians have a strong preference for owning homes, seeing it as a stable and long-term investment.
In Bogotá, for instance, the influx of new businesses and job opportunities is making the city a hotspot for real estate. Medellín is not far behind, with its growing tech scene attracting young professionals who are keen on buying property. This trend is creating a steady demand for mid-priced apartments in these urban areas.
Colombia's middle class is not just expanding in numbers but also in purchasing power, which is crucial for the real estate market. This segment of the population is increasingly looking for homes that offer both comfort and affordability, ensuring a gradual upward trend in the mid-priced apartment market.
Sources: BBVA Research, OECD iLibrary, The Latinvestor
Everything you need to know is included in our Pack for Colombia
9) Medellín's tech boom will go up property values near tech corridors as professionals flock for prime housing locations
Medellín is quickly becoming a hotspot for tech and innovation.
With the launch of the Medellín Innovation and Entrepreneurship Center by Georgia Tech’s Enterprise Innovation Institute in 2024, the city is attracting more investment and professionals. This center is all about fostering collaboration and promoting innovation, making Medellín a magnet for tech enthusiasts.
Tech startups are popping up all over, like La Haus, which raised a whopping $135 million with backing from Jeff Bezos. This is a clear sign of Medellín's potential for tech growth. Plus, coworking spaces like Espacio and Seedspace Medellín are buzzing with digital nomads and startups, adding to the city's vibrant tech scene.
The government is also in on the action with initiatives like the "Digital Nomad" visa, which is bringing global talent to Medellín. The city’s reputation as a multimodal city with excellent public services makes it a prime spot for businesses and professionals alike.
This influx of tech professionals is having a noticeable impact on the property market. Some neighborhoods are seeing rental price increases of up to 80%, driven by the demand for convenient housing near tech corridors.
Medellín’s growing status as a tech hub is not just about innovation; it’s also about creating a thriving community where professionals want to live and work. This trend is likely to continue, bolstering property values in areas close to tech hotspots.
Sources: Alcor BPO, StartupBlink, Nearshore Americas, Georgia Tech
10) Bogotá's transit upgrades will go up property values in once-overlooked districts with newfound connectivity
In Bogotá, recent upgrades to public transit are transforming property values in newly connected areas.
With the introduction of the TransMilenio BRT and TransMiCable, areas like Ciudad Bolivar have seen property values rise due to reduced travel times and improved quality of life. These transit systems are not just about getting from point A to B; they are reshaping neighborhoods by making them more accessible and attractive.
Experts have noticed a strong link between transit improvements and real estate appreciation. As Bogotá invests in projects like Metro Line 1, economic growth is expected in areas with better connectivity. This makes these neighborhoods more appealing to both residents and businesses, who are drawn to the convenience and opportunities that come with improved transit.
Urban planners and real estate analysts are optimistic about the future. They predict that less-desirable districts will become more attractive as public transit continues to improve. The focus on sustainable mobility and better access to jobs is likely to draw more people and businesses, boosting property values in the process.
For potential buyers, this means that investing in these areas could be a smart move. As Bogotá's transit systems expand, property values in connected areas are likely to increase, offering a promising return on investment. The city's commitment to enhancing public transit is not just about transportation; it's about creating vibrant, connected communities.
Sources: Bogotá’s Approach to Safe, Sustainable, and Accessible Transport, The Equitable Benefits of Colombia's Bus Rapid Transit System, A Sustainable Asset Valuation of the Mass Rapid Transit System in Bogotá, Colombia
11) Colombia's aging population is set to skyrocket demand for accessible homes with elevators and no-step entries!
In Colombia, the population aged 65 and over is on the rise, shaping new housing demands.
As more Colombians enter their senior years, there's a growing need for homes that accommodate their changing lifestyles. Accessible housing with features like elevators and no-step entries is becoming increasingly important. This shift is not just about comfort; it's about ensuring safety and independence for older adults.
The OECD has emphasized the importance of designing homes that are both affordable and accessible for the elderly in Colombia. Mobility challenges are a significant concern, and homes that address these issues are in demand. This means more than just ramps and wide doorways; it involves thoughtful design that anticipates future needs.
Globally, there's a trend where older adults are choosing to age in place, preferring homes that support this lifestyle. Assistive technologies and home modifications are key components of this trend, offering solutions that enhance daily living. In Colombia, this is becoming a priority as the population ages.
For those considering buying property in the country, it's worth noting that inclusive home designs are gaining traction. This is not just a trend but a response to a real need, as more people seek homes that will serve them well into their later years.
Investing in properties with these features could be a smart move, as the demand for such homes is expected to grow. The aging population is driving this change, and the market is slowly adapting to meet these new requirements.
Sources: Statista, OECD, Connected World
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An increasing number of foreign investors are showing interest in Colombia. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
12) Outdoor spaces like balconies and gardens will go up in demand, driving up prices as residents crave fresh air more than ever
In recent years, especially in 2023 and 2024, there's been a noticeable shift in what people want in a home.
More folks are looking for properties with outdoor spaces like balconies or small gardens. This demand has jumped by 50% since 2020 and is expected to keep climbing through 2025. People crave a touch of nature at home, especially in cities where green space is scarce.
Remote work is another big reason for this trend. With more people working from home, having a comfy and functional outdoor area is now a must. These spaces are no longer just for chilling; they're becoming spots for work, fun, and personal retreats. This change in home use is making outdoor spaces more desirable, which is pushing up their prices.
There's also a growing awareness of the mental health perks that come with having access to outdoor spaces. Fresh air and natural light are known to boost well-being, and this has become a key factor for many when picking a home. As a result, properties with these features are becoming more sought-after, and their prices are reflecting this increased demand.
In urban areas, the limited availability of green spaces makes properties with outdoor areas even more attractive. People are willing to pay a premium for the chance to enjoy fresh air and a bit of nature without leaving home.
As residents prioritize fresh air, properties offering outdoor spaces are becoming more sought-after, edging up their prices. This trend is particularly noticeable in bustling cities where every bit of green is a luxury.
Sources: The Latinvestor, AIPH, NAHB
13) Medellín's booming metro and cable-car expansions will go up property values
Medellín's expanding metro and cable-car lines are set to nudge up property values along new routes.
In 2024, Medellín added a new tram line to its metro system, making it easier and cheaper for people to get around. This boost in connectivity is expected to draw in new residents, which will likely increase property values along these new routes.
Looking at other cities, high-quality transit systems often lead to higher property values. For example, in Cleveland, properties near a Bus Rapid Transit system saw a noticeable rise in value, especially for multi-family homes. This trend suggests that Medellín's transit upgrades could have a similar impact on property values.
Medellín's cable car system has already shown how better mobility can benefit communities. By linking hillside neighborhoods to the city center, it has improved access to jobs and services, leading to socioeconomic progress and attracting new residents. This has been accompanied by rising property values in areas with enhanced connectivity.
As Medellín continues to expand its transit network, areas along these new routes are likely to see a surge in interest from potential buyers. Improved mobility not only makes these areas more accessible but also more attractive for investment, potentially leading to increased demand for properties.
For those considering buying property in Medellín, keeping an eye on these transit developments could be a smart move. As the city grows and evolves, the areas with the best connectivity are poised to become the most desirable, offering both convenience and potential for long-term value appreciation.
Sources: New Tranvia Line in Medellín, Impact of Bus Rapid Transit (BRT) on Property Values, Medellín’s Cable Car System, Medellín’s Cable Car System
14) Barranquilla's luxury neighborhoods brace for a price shake-up as wealthy buyers demand clear long-term growth potential
The real estate market in Barranquilla is seeing a slowdown in price growth in its high-end neighborhoods.
Since 2023, affluent buyers have become more discerning, focusing on long-term growth potential rather than just the prestige of a location. This shift is causing a minor price correction in luxury areas.
One reason for this change is the increased inventory of luxury properties. With more high-end homes on the market, there's a surplus, leading to stable or slightly declining prices.
Buyers are now prioritizing infrastructure and amenities over location prestige. This shift is drawing interest to emerging neighborhoods with better growth potential, thanks to Barranquilla's urban development focus.
Experts note that areas like Villa Campestre and the Vía 40 sector are becoming more attractive. New projects and industrial parks in these areas are pulling attention away from traditional high-end spots.
These emerging neighborhoods are offering better investment returns, making them appealing to savvy buyers looking for future gains.
Sources: Proyectos Inmobiliarios, Global Miami Magazine, Luxury Estate
Everything you need to know is included in our Property Investment Pack for Colombia
15) Cartagena's infrastructure upgrades and heritage preservation are set to skyrocket property values near its historic center
Cartagena's property values are set to rise thanks to its infrastructure upgrades and heritage preservation.
The city is buzzing with improvements, from better transportation to enhanced public amenities, making it more attractive and boosting property values. This isn't just about convenience; it's about creating a vibrant, livable city that draws people in.
In 2023, Cartagena welcomed 640,331 international tourists, and the numbers are climbing. With a projected 24% increase in international visitors to Colombia in 2024, the demand for properties, especially near Cartagena's historical center, is on the rise.
Cartagena's heritage preservation efforts are turning heads globally. As a World Heritage site, the city is a leader in sustainable heritage management, blending public policy with urban design to fuel social and economic growth.
These preservation initiatives are not just about maintaining old buildings; they're about creating a cultural and historical hub that attracts buyers. People are drawn to the charm and history, which in turn drives up property values.
Investing in Cartagena means tapping into a city that values its past while building for the future. The combination of tourism growth and heritage preservation is a powerful driver for increasing property demand in this vibrant city.
Sources: The Latinvestor, Medellin Advisors, UNESCO