Authored by the expert who managed and guided the team behind the Colombia Property Pack
Yes, the analysis of Cartagena's property market is included in our pack
Property prices in Cartagena are unlikely to decrease in the near term.
The city's real estate market shows strong fundamentals with consistent price growth, limited housing supply, and robust demand from both local and foreign buyers. As of September 2025, average house prices reached a record high of €1,829/m², representing a 12.4% increase from the previous year.
If you want to go deeper, you can check our pack of documents related to the real estate market in Colombia, based on reliable facts and data, not opinions or rumors.
Cartagena's property market continues to experience upward price pressure due to limited inventory and strong demand from both domestic and international buyers.
Current market conditions, including tight supply, declining mortgage rates, and ongoing population growth, suggest prices will maintain their upward trajectory through 2025 and beyond.
| Market Indicator | Current Status (Sept 2025) | Price Impact |
|---|---|---|
| Average Price/m² | €1,829 (record high) | Upward pressure |
| Annual Price Growth | +12.4% (July 2024-2025) | Strong appreciation |
| Housing Inventory | Extremely tight supply | Upward pressure |
| New Construction | +18% projected growth | Moderate relief |
| Mortgage Rates | 9.25% (down from 11-14%) | Supportive |
| Population Growth | 0.9% annually | Sustained demand |
| Foreign Investment | 20-25% in new developments | Upward pressure |
What has been the average house price in Cartagena over the past five years?
Cartagena's residential property market has experienced consistent upward momentum over the past five years.
As of September 2025, the average house price in Cartagena stands at €1,829 per square meter, marking a record high for the city. This represents significant growth from January 2023 when prices were approximately €1,525 per square meter. The market has shown remarkable resilience with steady appreciation year over year.
Property prices vary significantly by neighborhood, with the Historic Center commanding premium rates at €2,107 per square meter, while other areas range between €1,338-€1,800 per square meter. Coastal areas like Cabo de Palos have seen exceptional growth, with prices reaching €4,480 per square meter.
The five-year trend demonstrates Cartagena's growing attractiveness as both a residential destination and investment location. Limited supply combined with increasing demand from both domestic and international buyers has driven this consistent price appreciation.
It's something we develop in our Colombia property pack.
How much have house prices in Cartagena changed in the last 12 months?
Cartagena's property market experienced robust growth in the 12 months leading to September 2025.
House prices increased by 12.4% from July 2024 to July 2025, rising from €1,629 per square meter to €1,829 per square meter. This growth rate significantly outpaces Colombia's national inflation rate and demonstrates the strength of local market fundamentals.
Premium neighborhoods have seen even more dramatic appreciation. The Historic Centre experienced a 21.9% price increase, while Cabo de Palos saw extraordinary growth of 39.6% annually. These areas attract significant foreign investment and tourism-related demand.
The price growth reflects several market dynamics including limited new construction, archaeological restrictions in historic areas, and continued demand from both local buyers and international investors. New developments particularly attract foreign buyers, who represent 20-25% of purchases in some projects.
What is the current inventory of homes for sale in Cartagena compared to last year?
Cartagena's housing inventory remains critically low compared to demand levels.
As of September 2025, the inventory of homes for sale is roughly unchanged or slightly lower than the previous year. New construction has failed to keep pace with buyer demand, creating ongoing supply constraints that continue to push prices higher.
Developers face significant challenges including archaeological restrictions, particularly in historic districts, and lengthy permit processes that delay new construction. These regulatory hurdles have prevented the market from adequately responding to demand pressures.
The tight inventory situation is compounded by strong demand from multiple buyer segments. Local residents compete with foreign investors and retirees seeking coastal properties, while tourism growth continues to drive interest in vacation rental investments.
Market experts warn that this inventory shortage will likely persist through 2025, maintaining upward pressure on prices until supply constraints are meaningfully addressed.
How many months of housing supply does Cartagena currently have?
Cartagena's housing market is experiencing historic lows in available supply relative to demand.
While exact months-of-supply data for Cartagena specifically is limited, market experts indicate the city has well below pre-pandemic inventory levels. The active inventory represents significantly less than the balanced market benchmark of 4-6 months of supply.
The supply shortage is particularly acute in desirable neighborhoods like the Historic Center and waterfront areas. New construction approvals have increased by 18% in 2025, but this growth starts from a low base and hasn't yet translated to available inventory.
Construction delays caused by archaeological surveys, environmental assessments, and permit processing contribute to the extended timeline between project approval and market availability. These factors combine to create a supply-constrained market that favors sellers and supports continued price appreciation.
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What is the average number of days a property stays on the market in Cartagena?
Properties in Cartagena's tight market sell relatively quickly compared to less competitive markets.
While specific data for Cartagena is limited, comparable Spanish coastal markets report an average of 51 days on the market as of mid-2025. Given Cartagena's even tighter inventory conditions and strong buyer demand, properties likely sell at or below this timeframe.
Premium properties in sought-after locations like the Historic Center and waterfront areas often sell even faster, particularly when priced competitively. New construction and well-maintained resale properties in desirable neighborhoods can attract multiple offers.
The quick sale times reflect the supply-demand imbalance favoring sellers. Foreign buyers often make decisions quickly during brief visits, while local buyers face competition and understand the need to act decisively in this market environment.
What is the annual population growth rate in Cartagena?
Cartagena continues to experience steady population growth that supports housing demand.
As of 2025, Cartagena's population reached 1,106,000 residents, representing a 0.9% increase over 2024. This consistent positive growth rate reflects the city's economic opportunities, coastal lifestyle appeal, and growing tourism industry.
The population growth combines natural increase with migration from other Colombian cities and foreign residents. Tourism industry expansion creates employment opportunities that attract workers, while the city's colonial charm and Caribbean climate draw retirees and remote workers.
This demographic expansion directly translates to housing demand. Each new resident requires accommodation, whether rental or ownership, contributing to the demand pressures that support property values. The steady growth rate suggests continued underlying demand for residential properties.
How many new housing units are being built in Cartagena each year?
New housing construction in Cartagena is increasing but remains insufficient to meet demand.
New developments are projected to grow by 18% in 2025, driven by demand for both affordable and luxury housing segments. However, this growth starts from a relatively low baseline and hasn't yet resolved the supply shortage.
Construction activity faces several constraints including archaeological restrictions in historic areas, environmental regulations, and complex permit processes. These factors extend development timelines and limit the pace at which new supply can enter the market.
The government has prioritized public-private partnerships to boost affordable housing construction, while private developers focus on luxury projects targeting foreign buyers. Despite these efforts, new construction continues to lag behind the pace needed to balance supply with demand.
It's something we develop in our Colombia property pack.
What is the current mortgage interest rate in Colombia, and how has it changed recently?
Colombian mortgage rates have declined significantly from their recent peaks but remain elevated by historical standards.
As of August 2025, Colombia's central bank policy rate stands at 9.25%, where it has remained steady since June 2025. This represents a substantial decline from the 11-14% range seen in 2024, providing some relief to property buyers.
The central bank appears positioned for further moderate rate cuts later in 2025, which could improve affordability for mortgage borrowers. However, current rates still represent a significant cost for property financing compared to historical norms.
Despite the elevated borrowing costs, strong demand continues in Cartagena's property market. Foreign cash buyers, who don't rely on local financing, remain active participants. Local buyers increasingly focus on properties that offer rental income potential to help offset financing costs.
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.
What percentage of buyers in Cartagena are foreign investors versus local residents?
Foreign investment plays a significant role in Cartagena's property market, particularly in new developments.
Foreign buyers represent 20-25% of purchases in some new development projects, with investors primarily coming from the United States, Spain, and China. This international demand focuses heavily on luxury properties and vacation rental investments.
The foreign buyer segment particularly targets waterfront properties, Historic Center renovations, and new luxury developments. These buyers often pay cash, giving them competitive advantages in bidding situations and contributing to faster transaction timelines.
Local buyers continue to represent the majority of overall transactions, though they face increasing competition from foreign investors. Colombian buyers increasingly focus on properties that offer rental income potential, both for traditional leasing and short-term vacation rentals.
The high foreign buyer participation helps support premium pricing, particularly for properties with tourism rental potential or unique historic character that appeals to international investors.
How has the average rental yield in Cartagena changed in recent years?
Cartagena offers attractive rental yields that have remained relatively stable despite rising property prices.
Average gross rental yields range from 5.71% to 7.6% depending on property type and location, placing Cartagena among the strongest rental markets in the region. These yields compare favorably to other Colombian cities and international markets.
Rental prices have increased by 6.41% in the past year, reaching an average of €8.30 per square meter per month. This rental growth has helped maintain yield levels even as property purchase prices have appreciated significantly.
The vacation rental market, particularly through platforms like Airbnb, offers higher potential returns for well-located properties. Tourism growth in Cartagena continues to support strong short-term rental demand, especially in the Historic Center and coastal areas.
Investors benefit from both traditional long-term rental income and the flexibility to use properties for vacation rentals during peak tourism seasons. This dual-use potential helps justify higher purchase prices for many foreign investors.
What is the unemployment rate in Cartagena, and is it trending up or down?
Cartagena's employment situation shows positive trends that support housing market fundamentals.
As of August 2025, Cartagena has fewer than 12,000 officially jobless residents, representing a 1.32% drop from June levels. This improvement reflects the impact of new local employment and training policies.
Colombia's national unemployment rate stands at 8.6% as of June 2025, showing a declining trend since 2024. The improving employment picture supports consumer confidence and housing demand among local buyers.
Tourism industry growth continues to create employment opportunities in Cartagena, from hospitality and restaurant jobs to construction and real estate services. The city's growing reputation as a tourism destination drives job creation across multiple sectors.
Stable employment conditions support both rental demand from workers and home purchase activity from families with secure incomes. The positive employment trends contribute to the fundamental strength supporting property values.
What are the government's current or planned policies that could affect real estate prices in Cartagena?
Government policies aim to balance housing supply growth with historic preservation, creating mixed impacts on property prices.
Cartagena has prioritized public-private partnerships to boost affordable housing construction and is investing in infrastructure improvements, particularly transportation upgrades in the Zona Norte. These initiatives could help unlock new supply in previously less accessible areas.
However, strict preservation rules in historic districts and lengthy permit processes continue to limit new inventory in central neighborhoods. Archaeological requirements for construction projects can significantly extend development timelines and increase costs.
The government is balancing protection of Cartagena's historic and environmental assets with the need for modern, affordable housing. Further initiatives targeting supply growth and foreign investment incentives are expected in late 2025.
Infrastructure investments in transportation and utilities could open new areas for development, potentially providing some relief to supply constraints. However, the most desirable historic and waterfront areas will likely remain supply-constrained due to preservation requirements.
It's something we develop in our Colombia property pack.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Based on current market conditions, Cartagena's property prices are unlikely to decrease in the near term.
The combination of limited supply, strong demand, improving economic conditions, and ongoing foreign investment creates a supportive environment for continued price appreciation throughout 2025 and beyond.
Sources
- Indomio Real Estate Market Data
- Cartagena Price Forecasts
- Murcia Villas Property News
- Cartagena Real Estate Market Analysis
- Cartagena Property Market Report
- Euro Weekly News Housing Report
- Realtor.com Market Data
- World Population Review
- Global Property Guide Rental Yields
- Trading Economics Colombia Interest Rates