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
Curious about the strongest trends shaping Colombia's real estate market? You're not alone. From bustling Bogotá to vibrant Cartagena, everyone is eager to understand the current dynamics. Are property prices rising or falling? Is Medellín still attracting foreign investors? And how are government policies influencing the market in 2025?
We dive into these questions daily, connecting with local experts and enthusiasts like you. That's why we've crafted this article: to deliver clear insights, thorough analysis, and a comprehensive view of the trends and forces at play in Colombia's real estate scene.
Our mission is straightforward: to equip you with the knowledge you need to navigate the market confidently. If you think we can improve or have missed something, we welcome your feedback. Reach out with your thoughts, and we'll strive to enhance this content for you.
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1) Colombia’s major cities will see a slow, steady rise in property prices, appealing to cautious investors
Colombia's property market in major cities is on a steady rise, making it an attractive option for cautious investors.
In bustling cities like Bogotá and Medellín, housing demand is outpacing supply. With urbanization on the rise, more people are flocking to these areas, pushing property prices up. Imagine the vibrant streets of Bogotá, where the population is expected to grow significantly by 2035, making it a hotspot for real estate.
Foreign investors, especially from North America and Europe, are eyeing Colombia as a promising market. The influx of international interest is driving prices higher, as these investors seek opportunities in emerging markets. The Colombian government is also stepping up, improving infrastructure like transportation, which in turn boosts property values.
Looking ahead, Colombia's economy is set to grow steadily by 2025. This economic boost is likely to increase consumer confidence, giving potential homebuyers more purchasing power. With low inflation and stable conditions, both local and international investors find real estate here increasingly appealing.
Government initiatives to enhance infrastructure are making cities like Bogotá and Medellín even more attractive. These improvements are expected to further elevate property values, drawing in more residents and investors. Picture Medellín's transformation with better public services, making it a desirable place to live and invest.
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: Global Property Guide, Colombia One, Oxford Business Group
2) Urban apartment rents will rise as short-term rental investments grow in areas popular with digital nomads and remote professionals
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
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.
3) Energy-efficient, compact apartments will increase in value as buyers seek lower utility costs 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 well-connected suburbs will stay appealing as tenants prioritize convenience and transport access
Rental yields in Bogotá's well-connected suburbs are set to stay appealing thanks to a few key factors.
In 2024, Bogotá's rental market showed promise with gross rental yields between 6.03% and 9.88%, averaging 8.05% in the first quarter. Neighborhoods like Chapinero and Usaquén, known for their connectivity, are expected to see even higher yields. This is because more people are looking for convenient living spaces close to transport.
Public investment in transport is a big part of this. Projects like the Bogotá Metro Line 2, backed by major international banks, aim to boost mobility and air quality. The expansion of the TransMilenio and metro systems will likely make suburban areas more attractive to tenants who value efficient transport.
People are increasingly choosing homes near transport, as surveys and market analyses show. This shift is boosting suburban rentals, especially in areas with better connectivity. Plus, population growth in these suburbs adds to their appeal.
With these trends, rental yields in Bogotá's suburbs are expected to remain strong. The focus on transport and convenience is key, as tenants prioritize proximity to efficient transport.
Sources: Global Property Guide, Bank Information Center, Setec
5) Eco-conscious buyers will favor sustainable buildings that retain value amid rising energy costs and environmental awareness
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 fetch higher prices as buyers prefer properties with integrated tech and energy efficiency
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) Restored historic homes in Colombia will attract foreign buyers, gradually increasing values in select heritage areas
Foreign buyers are increasingly drawn to Colombia's historic homes, sparking a rise in property values in certain heritage areas.
In recent years, especially around 2023 and 2024, cities like Cartagena and Bogotá have seen a surge in foreign property purchases. Cartagena's colonial architecture is a major attraction, with international buyers snapping up properties like a 4-story old city home and a 5-bedroom colonial mansion in the Historic District.
Property values in these areas have seen a remarkable rise. For instance, Cartagena's Historic District experienced price hikes of up to 600% between 2004 and 2009. This trend has persisted, partly due to the Colombian peso's devaluation against the US dollar, making Bogotá a hot spot for international investors.
The Colombian government has made it easy for foreigners to invest, with a favorable legal framework and no restrictions on foreign ownership. This has made historic properties even more appealing to international buyers looking for unique investments.
Tourism growth, especially in Cartagena's historic center, a UNESCO World Heritage site, has also boosted demand for short-term rentals. This demand has further driven up property prices, making these areas lucrative for investors.
Real estate market reports suggest that foreign investment in Colombia's real estate is on the rise. North American and European investors are particularly interested, drawn by the potential in emerging markets and the allure of Colombia's restored historic homes.
Sources: Global Property Guide, Cartagena First American Realty
8) Colombia’s growing middle class will boost demand for mid-priced apartments, leading to a gradual rise in this key segment
Colombia's growing middle class is set to drive up demand for mid-priced apartments.
With the economy on the rise, Colombia's GDP is expected to grow by 2.8% in 2025 and 3.5% in 2026, largely fueled by domestic demand. This economic boost means people feel more confident about spending, which naturally increases their purchasing power.
The government is also stepping up by improving infrastructure, making real estate a more appealing investment. Add to that the stabilization of the Colombian peso and incentives for first-time homebuyers, and you've got a recipe for more accessible mortgage financing, which in turn ramps up the demand for mid-priced apartments.
Urbanization is another key player here. Cities like Bogotá and Medellín are expanding, thanks to their bustling economic activities and business hubs. This urban growth means more people are flocking to these areas, seeking better opportunities, and driving up the need for housing, especially in the mid-priced range.
As more Colombians move to urban centers, the demand for housing in these areas naturally increases. This trend is particularly strong in the mid-priced segment, where the expanding middle class is looking for homes that fit their budget and lifestyle.
All these factors combined suggest a steady upward trend in the mid-priced apartment market, making it a promising area for investment. Colombia's real estate market is poised for growth, with the middle class leading the charge.
Sources: BBVA Research, OECD iLibrary
We made this infographic to show you how property prices in Colombia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
9) Medellín’s tech hub status will boost property values near tech corridors as professionals seek convenient housing
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) Improved public transit in Bogotá will boost property values in less-desirable districts with better 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) Demand for accessible homes with elevators and no-step entries will grow as the population ages
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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12) Properties with outdoor spaces like balconies or gardens will see increased demand and higher prices as residents value fresh air more
In recent years, especially in 2023 and 2024, there's been a noticeable shift in what people want in a home.
One of the biggest changes is the growing demand for properties with outdoor spaces like balconies or small gardens. This demand has surged by 50% since 2020, and it's expected to keep growing as we move through 2025. People are really valuing the chance to have a bit of nature right at home, especially in urban areas where green spaces can be limited.
Remote work is another reason for this trend. With more people working from home, having a comfortable and functional outdoor space has become more important. These spaces aren't just for relaxing anymore; they're being used for work, entertainment, and even as personal retreats. This shift in how we use our homes has made outdoor spaces a top priority for many homebuyers.
There's also a growing awareness of the mental health benefits that come with having access to outdoor spaces. Fresh air and natural light are known to improve well-being, and this has led to increased interest in properties that offer these features. People are looking for homes that can provide a sense of peace and connection to nature, which is why properties with outdoor spaces are becoming more sought-after.
Properties offering outdoor spaces like balconies or small gardens will become more sought-after, edging up their prices as residents prioritize fresh air.
Sources: NAHB Blog, AIPH Green City Case Studies
13) Medellín’s property values will rise along new metro and cable-car routes as improved mobility attracts more residents
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) High-end Barranquilla neighborhoods will see minor price corrections as affluent buyers focus on 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
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.
15) Property values near Cartagena’s historical center will steadily rise due to infrastructure upgrades and heritage preservation efforts
Cartagena's property values are on the rise thanks to its infrastructure upgrades and heritage preservation.
The city has been busy with major infrastructure projects, like better transportation and public amenities. These changes make Cartagena more attractive to both locals and tourists, which naturally boosts property demand. As more people look to live or invest here, property values are set to climb.
Tourism is booming in Cartagena. In 2023, the city saw 640,331 international visitors, and this number is only expected to grow. More tourists mean more interest in properties, especially those near the historical center. This demand, paired with limited supply, is a surefire way to increase property values.
Cartagena's heritage preservation is another big draw. As a World Heritage site, the city has been recognized for its efforts to protect its historical assets. These initiatives not only keep the city's charm intact but also boost its reputation as a cultural hotspot, attracting buyers who appreciate a rich historical environment.
Living near Cartagena's historical center means being part of a vibrant cultural scene. The city's commitment to maintaining its heritage while modernizing its infrastructure is a winning combination for property investors. This blend of old-world charm and modern convenience is hard to resist.
For those considering a property purchase, Cartagena offers a unique opportunity. The city's ongoing improvements and dedication to preserving its history make it a promising place for investment. With rising tourism and limited property supply, the potential for value appreciation is significant.
Sources: UNESCO, Medellin Advisors, Properstar
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.