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What will happen in Santa Marta’s real estate market? Will prices go up or down? Is Santa Marta becoming a new hotspot for foreign investors? How is Colombia’s government impacting real estate policies and taxes in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with notaries, real estate agents, and clients who buy properties in Santa Marta, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.
1) Demand for modern urban apartments in Santa Marta will grow as more young professionals move in
Younger professionals are flocking to Santa Marta, sparking a demand for sleek, urban-style apartments.
Santa Marta's tech scene is booming, with a 12.5% growth in tech jobs from 2018 to 2023, outpacing the state average. This surge is fueled by 57 tech companies and hefty venture capital investments, drawing in a wave of young professionals eager to dive into the tech industry.
The city is also becoming a magnet for cutting-edge fields like AI, cybersecurity, and IoT. With big names like Google and Qualcomm setting up shop, Santa Marta is a hotbed for tech innovation, attracting young talent who thrive in such dynamic environments.
Co-working spaces and tech hubs are popping up all over, creating a vibrant ecosystem for startups. These spaces are perfect for younger professionals who crave flexible and collaborative work settings, making Santa Marta even more appealing.
There's a noticeable trend among younger folks leaning towards urban living. They want modern amenities that offer convenience and a high quality of life. This shift is evident in the rising demand for urban-style apartments, as highlighted in real estate reports.
The Emerging Trends in Real Estate 2024 report points out a growing interest in multifamily housing and urban-style developments. This is driven by the increasing need for housing in bustling urban areas, aligning perfectly with what younger professionals are looking for.
Sources: Nucamp Blog, Emerging Trends in Real Estate 2024
2) Demand for affordable rentals near schools will rise as the student population grows in the city
The city's growing student population is set to boost demand for affordable rental properties near educational institutions.
In 2024, Santa Marta's metro area population reached 552,000, marking a 1.1% increase from 2023. This uptick suggests more students are flocking to the city for educational opportunities, naturally leading to a higher demand for housing. With more students arriving, the need for affordable rentals near schools is becoming more pressing.
Local real estate agencies have noticed a significant rise in demand for student housing. In March 2024, pre-leasing rates hit 67.7%, a notable jump from the average between 2019 and 2022. This indicates that students are increasingly looking for places to live off-campus, further driving the need for affordable rental properties.
Additionally, the average rent per bed in student housing climbed to $895 in March 2024, a 6% increase from the previous year. This rise in rental prices is a clear sign of the growing demand for student accommodations. The sale of a student housing portfolio to KKR for $1.64 billion underscores the increased interest from property developers in building more student accommodations, as they see the sector as lucrative.
With the city's educational institutions attracting more students, the real estate market is responding by focusing on affordable housing options. This trend is particularly beneficial for investors looking to tap into the student housing market, which is showing strong growth potential.
As more students opt for off-campus living, the demand for affordable rentals near educational institutions is expected to continue rising. This shift presents a promising opportunity for property investors and developers to cater to the needs of the student population.
Sources: Macrotrends, CRE Daily
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Colombia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
3) Demand for homes with outdoor spaces and recreational facilities will grow as health and wellness lifestyles become more popular
The global wellness economy is booming, hitting $6.3 trillion in 2023.
People everywhere are focusing more on health and wellness, and this is reflected in the real estate market. Wellness real estate jumped from $225.2 billion in 2019 to $438.2 billion in 2023. This sector is expected to keep growing, with a 15.8% annual increase projected from 2023 to 2028. More and more, buyers want homes with outdoor spaces and recreational facilities, which are seen as key to a healthy lifestyle.
Take Santa Marta, for example. The area is buzzing with outdoor activities and sports, thanks to their recognized health benefits. Tayrona National Park is a hotspot for hiking, camping, and soaking in the Caribbean Sea's beauty. This trend is fueled by media highlighting the perks of outdoor living, pushing up the demand for properties with easy access to nature.
In Santa Marta, the demand for properties with outdoor access is not just a trend; it's a lifestyle choice. The region's natural beauty and recreational opportunities make it a prime spot for those seeking a healthier way of living. Properties here offer more than just a home; they offer a gateway to a healthier lifestyle.
As more people embrace wellness-focused lifestyles, the real estate market is responding. Buyers are increasingly looking for homes that offer not just comfort but also opportunities for physical activity and relaxation. This shift is driving the demand for properties with outdoor spaces and recreational facilities.
Whether it's the allure of the Caribbean or the promise of a healthier lifestyle, the demand for wellness real estate is set to keep rising. Santa Marta is just one example of how this trend is playing out in real estate markets worldwide.
Sources: Global Wellness Institute, BeautyMatter, Global Wellness Institute, Hotel Parque Tayrona
4) International investors will target Santa Marta's up-and-coming areas, expecting future growth and development
International investors are zeroing in on Santa Marta's up-and-coming neighborhoods for some pretty compelling reasons.
In the more established parts of Santa Marta, property values are on the rise, catching the eye of savvy investors. This uptick is part of a larger trend where people are leaning towards sustainable living, and homes with green certifications are in high demand.
Emerging areas like Pozos Colorados and Interpuertos are buzzing with new infrastructure projects. These are part of a big plan called "Boosting the Integrated Urban Operations in the Framework of the Master Plan Santa Marta 500 Years in Colombia." It's all about urban development and government initiatives, which are key to attracting investment and spurring growth.
The local government is rolling out incentives for foreign investment, especially in eco-friendly construction. This has made Santa Marta a hot spot for developers, leading to a boom in green projects and driving up property demand.
Santa Marta's tourism numbers are climbing, making it a top pick for visitors. This boost in tourism adds to the city's allure as a prime investment opportunity, with more people looking to buy property in the area.
Sources: Solamericana, Cities Investment Facility, Colombia One
5) More foreign investors will buy in Santa Marta as it becomes known as a safe and stable place to invest
Foreign interest in Santa Marta's real estate is on the rise as the city becomes known as a safe and stable investment location.
Eco-conscious buyers are particularly drawn to Santa Marta, where foreign property purchases are increasing. The city is a hotspot for sustainable living, and this trend is pushing property prices up. With a global shift towards eco-friendly homes, Santa Marta is becoming a prime choice for international investors.
Tourism is another big factor. In 2023, Colombia saw a record number of tourists, and many flocked to Santa Marta. This surge shows the city's growing appeal and hints at a bright future for its real estate market. As tourism is expected to bounce back to pre-pandemic levels by 2024, the demand for property in Santa Marta is likely to rise.
The local government is also making moves to attract foreign investment. By offering tax breaks and making it easier to start new businesses, Santa Marta is becoming more appealing to foreign capital. These efforts, along with improved safety and crime rate statistics, boost its image as a stable place to invest.
Safety is a big deal for foreign investors. Knowing that Santa Marta is a secure place to put their money gives them peace of mind. The city's reputation for safety is a key factor in its growing popularity among international buyers.
With all these elements in play, Santa Marta is set to become a top destination for those looking to invest in real estate. The combination of eco-friendly living, booming tourism, and government incentives makes it a compelling choice.
Sources: Solamericana, Colombia One, Expat Exchange
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6) Rental yields in the city center will drop as more properties become short-term vacation rentals
In Colombia, the number of properties listed on short-term rental platforms like Airbnb has surged in recent years.
By September 2023, active listings jumped to 123,640, up from 73,090 in January 2021. This shows a clear shift towards short-term rentals, especially in tourist hotspots like Santa Marta.
Property owners are finding short-term rentals more profitable. In 2023, 5.7 million nights were booked at an average of $75 per night, making it a lucrative option compared to long-term rentals.
As more properties become vacation rentals, the availability of long-term rental properties in city centers is shrinking. This shift is causing rental yields for long-term rentals to decline.
Real estate agents and media reports are buzzing about this trend, highlighting the market's pivot towards vacation rentals and the impact on long-term rental availability.
With demand steady or rising, the supply of long-term rentals is not keeping up, leading to potential challenges for those seeking permanent housing in urban areas.
Sources: SSRN, Habitat International
7) Property values in Rodadero will drop because of overdevelopment and congestion
In Rodadero, traffic congestion has become a major issue, making commutes longer and more frustrating.
Locals and visitors alike are increasingly unhappy with the overcrowding, and this dissatisfaction is frequently mentioned in the news and local government reports.
The area is developing rapidly, but the infrastructure can't keep up. New buildings are popping up everywhere, but the roads and services are struggling to handle the load, pushing potential buyers to look elsewhere.
Environmental assessments show that local resources like water and waste management are under pressure due to this fast-paced development. This has led to a negative view of the area, fueled by media reports on the downsides of overdevelopment.
Real estate surveys reveal that buyers prefer less crowded areas, as the congestion in Rodadero is a significant deterrent.
With all these factors, it's clear that property values in Rodadero are likely to decline as the area becomes less attractive to potential buyers.
Sources: Xmap.ai, MDPI, Tripadvisor
8) Santa Marta’s property prices will rise moderately as it attracts more digital nomads
Santa Marta is becoming a hotspot for digital nomads, leading to a moderate rise in real estate prices.
With the global shift towards remote work, digital nomads are on the lookout for places that offer a perfect blend of work and leisure. Santa Marta fits the bill perfectly, offering a vibrant lifestyle and the necessary amenities for remote work.
The city has been busy upgrading its infrastructure, focusing on enhancing internet connectivity and creating co-working spaces. For example, Flamingo Coworking offers a tropical setting with reliable Wi-Fi, making it a favorite among digital nomads.
Santa Marta's charm extends beyond workspaces. Its stunning beaches and rich history make it a magnet for tourists, which in turn boosts the real estate market. This growing appeal is a key factor in the moderate price increase.
Long-term rental demand is on the rise, with properties on platforms like Airbnb showing high occupancy rates. This trend indicates a healthy real estate market, driven by both tourists and remote workers.
As Santa Marta continues to attract more digital nomads, the city's real estate market is poised for growth, offering a promising opportunity for investors.
Sources: Flamingo Coworking, Big News Network
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.
9) Santa Marta’s rental market will grow as remote work attracts more long-term renters
The rental market in Santa Marta is set to thrive as remote work becomes more common.
With the rise of remote work, more people are looking for long-term rentals in beautiful places like Santa Marta. Remote job listings have surged, and this trend is expected to keep growing. Santa Marta, known for its stunning landscapes and rich biodiversity, is becoming a favorite spot for eco-conscious buyers and remote workers.
Many remote workers are drawn to coastal and scenic areas for a better quality of life. Santa Marta's natural beauty makes it a top choice for these individuals, boosting the demand for long-term rentals. The city is not just about pretty views; it's also about a lifestyle that appeals to those who can work from anywhere.
There's a noticeable influx of digital nomads in Santa Marta, with thousands of newcomers arriving each month. This steady stream of digital workers is pushing up the demand for mid-range apartments and other long-term rental options. The city is adapting to this change, making it even more attractive for those who work remotely.
Investments in internet infrastructure, like advanced Wi-Fi and 5G, are ensuring that remote workers have reliable connectivity. This tech upgrade is a game-changer for Santa Marta, enhancing its appeal as a remote work hub. The city is becoming a smart choice for those who need to stay connected while enjoying a laid-back lifestyle.
Santa Marta is on the path to becoming a smart city, with initiatives to improve its infrastructure and services. These developments are making it a more attractive place for long-term renters who value both connectivity and quality of life.
Sources: Properstar, Newsfilecorp, Be Adventure Partners
10) Santa Marta’s rental prices will rise as more retirees seek a coastal lifestyle
Santa Marta is becoming a favorite spot for retirees, thanks to its stunning natural beauty and coastal lifestyle.
With more retirees moving in, property values and rental prices are on the rise. The city’s expat community is growing, as seen by a 1.1% increase in the metro area population from 2023 to 2024, showing that international retirees are choosing Santa Marta as their new home.
Santa Marta is not just about beautiful beaches; it’s also about significant investments in infrastructure and urban development. These improvements make the city even more appealing to retirees.
Local amenities and healthcare facilities are getting a boost, which is a big draw for retirees. This focus on enhancing services is a key factor in driving up rental prices.
Imagine living in a place where the city is actively working to improve your quality of life. That’s what Santa Marta offers, and it’s why rental prices are expected to keep climbing as more retirees flock to this coastal paradise.
Santa Marta is transforming into a retiree hotspot, and with that comes a steady increase in demand for rental properties.
Sources: Macrotrends, Solamericana, Expatistan
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.