Published on and written by Cyril Jarnias
The market for vacation homes in Colombia is gradually emerging from obscurity to become a full-fledged segment in its own right, driven by the tourism boom, the rise of short-term rentals, and the influx of foreign capital. From apartments with Caribbean Sea views, to fincas in the coffee-growing hills, to urban lofts in Medellín, the offerings are as diverse as the country itself.
The second-home market in Colombia presents opportunities (low price per square meter, high rental yields, a legal framework favorable to foreigners) but also challenges (expensive credit, a housing deficit, and strong pressure on major cities).
A Supportive Real Estate Context for Vacation Homes
Before discussing vacation houses and Airbnb apartments, it’s important to understand the foundation of Colombia’s residential market. Since the mid-2000s, prices have seen a spectacular rise: between 2005 and 2024, the value of existing homes increased by approximately 375% in nominal terms, nearly 93% after adjusting for inflation. After a halt during the pandemic, the momentum has resumed.
Number of new homes sold in France for the entire year of 2024.
This trend fits within a relatively solid macroeconomic environment. The economy grew by 1.7% in 2024 and at an annualized rate of 2.7% in the first quarter of 2025; the IMF and World Bank project growth around 2.4% for 2025 and a moderate but positive growth trajectory towards 2030. Inflation, after peaking at over 11% in 2023, has fallen back to around 4‑5%, easing some pressure on households… but leaving interest rates at high levels.
A Country Still “Affordable” on an International Scale
One of the main drivers of Colombia’s vacation home market is a simple fact: the country remains significantly cheaper than most competing destinations in North America or Europe, and even several beach markets in Latin America.
Nationally, the average price of an apartment around 3.45 million Colombian pesos per square meter translates, depending on exchange rates, to an approximate range of $800 to $2,000 USD per square meter. Houses average around 3.18 million pesos per square meter. The median listing prices, more indicative for buyers, are nevertheless higher: over 5.5 million pesos per square meter for apartments and a little over 4 million for houses.
A beachfront apartment in Cartagena can cost 40 to 60% less than on equivalent coastlines in Costa Rica or Mexico.
Price Ranges by Major City
Investors interested in a vacation home tend to focus on a few urban or tourist areas. The average prices per square meter give a clear idea of the disparities:
| City | Average Apartment Price (COP/m²) | Approx. USD/m² per Sources | Market Profile |
|---|---|---|---|
| Bogotá | ≈ 7,130,000 | 1,500 – 2,000 | Capital, most expensive market |
| Medellín | ≈ 6,073,000 | 1,400 – 1,900 | Increasingly international city |
| Cartagena | 4,800,000 – 6,500,000 | 800 – 1,200 | Beach and heritage market |
| Cali | ≈ 4,556,000 | 950 – 1,150 | Dynamic regional metropolis |
| Barranquilla | ≈ 4,200,000 | 700 – 1,000 | Coastal city on the rise |
In reality, these averages conceal significant variation: a studio in a traditional neighborhood of Medellín is not priced the same as a penthouse in El Poblado, just as a small apartment in Santa Marta has nothing in common with a renovated colonial property within Cartagena’s walled city.
Urban, Rural, or Beachfront Vacation Homes
For the second-home clientele, three major worlds coexist.
In urban areas, the entry price for sought-after sectors is often between $1,000 and $2,000 per square meter. For example, in Bogotá, an 80 m² apartment in a central, upscale neighborhood typically trades between $135,000 and $160,000. In Medellín, a well-located 50 m² apartment in the El Poblado neighborhood can still be found between $66,000 and $83,000.
On the coast, the “sea” premium is real. Beachfront properties are generally listed between $1,000 and $2,500 per square meter, with a markup of 20 to 50% compared to inland; it can sometimes rise to 50‑100% in Cartagena for the most sought-after locations. A 90 m² first-line beach apartment in Cartagena typically sells for between $140,000 and $255,000.
Finally, the rural world attracts an affluent local clientele and some foreigners seeking tranquility: a finca can still be found between $41,000 and $60,000, and agricultural land sometimes starts from 200,000 pesos per square meter, or even less, especially away from major roads. In some cases, a simple single-family house in the countryside can cost $30,000–$50,000.
Tourism, Short-Term Rentals, and the Explosion of Seasonal Demand
If Colombia is seeing a proliferation of vacation homes, it’s primarily because the country has established itself as a major tourist destination. Non-resident visitor arrivals surged to 6.2 million in 2024, following a record already set the previous year. Between 2006 and 2019, the country went from about 800,000 annual visitors to about 3 million, before the 2020 slump and a spectacular rebound.
Visitors are distributed quite concentratedly: about a third in Bogotá, a quarter towards Medellín and Antioquia, over a fifth in Cartagena and the Bolívar department, and smaller but growing shares for Cali, Santa Marta, and the San Andrés archipelago.
This rise in prominence has two key effects on vacation homes:
This approach justifies purchasing a vacation home by offering it for tourist rental during unoccupied periods. It thus allows for generating supplementary income and fits within supporting the highly lucrative economic market of short-term seasonal rentals.
The country is now the third-largest market in Latin America for Airbnb and similar revenues, with nearly 85,000 tourist accommodations recorded and estimated revenue around $436 million in 2023, up nearly 20% year-on-year. Demand for seasonal rentals is expected to grow further at over 6% per year.
Significantly Higher Yields in Seasonal Rentals
Vacation homes put into short-term rental generally outperform traditional long-term rentals. Aggregate data shows gross yields on the order of 8 to 12% per year in the best locations, with net yields between 6 and 9% after deducting expenses, management, and platform fees. In major tourist cities, cases exceeding 8 to 10% net are documented.
Average gross yields on the traditional rental market in the second quarter of 2025 were around 7% nationwide.
| City | Average Gross Rental Yield (Q2 2025) |
|---|---|
| Bogotá | ≈ 8.25% |
| Medellín | ≈ 7.78% |
| Cali | ≈ 7.31% |
| Barranquilla | ≈ 7.00% |
| Cartagena | ≈ 5.71% |
| Pereira | ≈ 7.27% |
| Santa Marta | ≈ 5.90% |
| Bello | ≈ 6.99% |
Well-managed seasonal rentals can show premiums of 50 to 150% compared to traditional rents. A two-bedroom apartment in Cartagena, for example, can generate between $1,700 and $2,600 in gross monthly revenue during high season, with nightly rates potentially rising from $200 to $800 depending on the segment.
On the other hand, costs are not negligible: platform commissions running around 15%, professional management often charged at 20 to 30% of revenue in Cartagena, cleaning, maintenance, homeowners’ association fees. In practice, between 30 and 45% of gross revenue goes towards operating expenses.
Where Do People Buy Their Vacation Home in Colombia?
The snapshot of vacation home purchases reveals three main types of destinations.
Metropolises: Medellín and Bogotá in the Lead
Medellín dominates the narrative among foreign investors. Nicknamed the “city of eternal spring,” it combines a temperate climate, transformative urbanism, a dynamic cultural scene, and status as a hub for digital nomads and retirees. The neighborhoods of El Poblado and Laureles concentrate the majority of vacation home purchases oriented towards seasonal rental or extended stays.
Prices per square meter there are high by Colombian standards but remain attractive for a buyer in dollars or euros. El Poblado, for example, shows an average price of about 6.07 million pesos per square meter, translating to a range of about $1,500. A modern two-room apartment can be found in a range of $120,000 to $350,000 depending on size, view, and building amenities. Laureles, more residential and “authentic,” offers more contained prices and a better price-to-rent ratio.
In Bogotá, the vacation home market is solid and mainly concerns high-end apartments in northern and central neighborhoods (Usaquén, Chapinero, Chicó, Santa Bárbara, Rosales). These properties serve as urban pieds-à-terre and rental assets for corporate, diplomatic, or expatriate clientele. The main challenge is liquidity and progressive appreciation, with prices having increased on average about 5% annually over five years and recent gains around 6 to 7% annually, rather than seeking explosive profitability.
Coastal Cities: Cartagena, Santa Marta, Barranquilla
On the Caribbean coast, three cities concentrate vacation home purchases: Cartagena, Santa Marta, and Barranquilla.
Cartagena is the most high-profile gem. Its fortified historic center, a UNESCO World Heritage site, houses a micro-market of colonial and republican buildings where prices range from one to ten million dollars for very high-end properties. Around it, the neighborhoods of Bocagrande, El Laguito, Castillogrande, or Manga offer a modern alternative: large beachfront towers, condos with pools, security, gyms. Prices there typically range from $800 to $1,200 per square meter for standard products, and much more for premium locations.
Analysis of trends and yields on the coast, where heritage value and tourist demand compensate for more moderate gross rental yields.
Average gross rental yields are around 5.7%, lower than inland due to high prices and significant expenses.
Heritage value and tourist demand are overwhelming, constituting major assets for this market.
A growing flow of North American buyers is pushing prices upward, with projections of 15% gains over five years for some segments.
Santa Marta plays the card of a more relaxed beach resort, near Tayrona National Park and the Sierra Nevada. The areas of Rodadero and Bello Horizonte have seen the development of beachfront apartment complexes, less expensive than Cartagena and with interesting potential yields (around 6% gross on the best properties). This configuration makes it a credible destination for a second home with mixed use (personal and rental).
Barranquilla, a major port metropolis, is attracting more and more investors for properties with sea or river views, with demand for ocean views reportedly increasing about 15%. The neighborhoods of Alto Prado and Villa Santos concentrate new and high-end condominiums.
Nature Regions: Eje Cafetero, Guatapé, and Countryside
The third major category concerns “countryside” vacation homes, often prized by the Colombian bourgeoisie, but also by some foreigners seeking a more peaceful living environment.
Potential gross rental yield of an apartment in Pereira in the Eje Cafetero, a UNESCO-listed region.
Guatapé, on the shores of the large artificial reservoir east of Medellín, is emblematic of the market for lakeside vacation homes. Properties on the lakefront often trade between $80,000 and $150,000. Concrete examples show gross annual revenue on the order of $24,000, thanks to strong demand for weekends and short stays from Medellín residents.
On the outskirts of major cities like Cali (Pance, Ciudad Jardín, Calima Lake) or around Bogotá, many affluent families acquire country houses or cabins for weekends, sometimes equipped with solar panels or eco-friendly features. A partial shift of very high-income earners from Bogotá and Medellín towards prestige rural vacation homes is also observed, which is slowing price progression for ultra-luxury properties in city centers.
Who is Buying? Between Affluent Colombians, Expatriates, and Digital Nomads
The profile of the vacation home buyer in Colombia is more diverse than it appears.
On the Colombian side, the rise of an urban middle and upper class stimulates demand for weekend fincas, beach apartments, or housing for student children in another city. Pressure on the rental market (there are now more renting households than owning ones, 7.3 million vs. 7.1) reinforces the idea of real estate as a safe-haven asset.
Estimated percentage of real estate transactions conducted by foreigners in Cartagena, illustrating their significant weight in tourist markets.
Several factors explain this interest:
– A historically favorable exchange rate: The Colombian peso has depreciated against the dollar over the past fifteen years, giving increased purchasing power to holders of strong currencies;
– A relatively low cost of living and affordable services (including healthcare);
– The appeal of visas dedicated to real estate investors and digital nomads.
The establishment of a digital nomad visa allowing stays of up to two years has clearly boosted certain segments, particularly in Medellín. These new temporary residents seek well-connected, secure housing with reliable internet and coworking spaces nearby, which benefits central neighborhoods in major cities, but also some nearby nature destinations.
A Surprisingly Open Legal Framework for Foreigners
One of the major strengths of the Colombian market lies in the status of non-resident investors. Colombian law grants foreigners the same property rights as citizens. It is not necessary to be a resident nor have a specific visa to buy and hold property (provided it is not untitled state land or collective territories of indigenous or Afro-descendant communities).
The acquisition procedure is based on a few key steps:
Purchasing real estate in Colombia follows a structured process. First, you must obtain a tax identification number (NIT or RUT). Then, it is crucial to verify the property title via the Certificado de Tradición y Libertad to ensure there is no mortgage or dispute. A purchase promise (Promesa de Compraventa) must then be signed to outline price, deadlines, and conditions. The definitive deed (escritura pública) is signed before a notary, and then the deed must be registered at the Oficina de Registro de Instrumentos Públicos.
Transaction costs remain relatively contained. In practice, the total for notary, transfer taxes, registration fees, and legal fees often represents between 2 and 5% of the price for the buyer, while the seller mainly assumes the real estate agent commission (3 to 4% plus VAT). The “round-trip” purchase and resale is generally estimated between 4.15 and 6.15%.
The maximum tax rate on rental income from a vacation home in Colombia.
Financing: A Still Underdeveloped Credit Market
This is one of the market’s paradoxes: while Colombia attracts more and more foreign buyers, its mortgage system remains shallow and expensive.
The numbers are telling: only about 3% of adults have a mortgage, and the total loan portfolio weighs just a little over 8% of GDP. At the same time, the central bank’s policy rate is still around 9%, and average home loan rates exceed 11%, with ranges of 12 to 14% mentioned for 2025.
In practice, this means that: the actions undertaken must be clear and accessible to everyone.
To obtain a mortgage in Colombia, banks generally require a high personal down payment (30 to 50% of the price), especially for non-residents. The loan term is limited, usually not exceeding 20 years. Access to credit is conditional on holding a valid residence permit, justification of local income, or an established credit history in Colombia.
Result: most purchases of vacation homes by foreigners are made in cash or through financing arrangements in their home country (e.g., remortgaging the primary residence). Some developers offer direct financing or installment payment plans, but over shorter terms and often with rates above the banking market.
This constraint paradoxically plays in favor of stability: the low dependence on credit limits the risk of an explosive bubble linked to interest rates, but it restricts access to homeownership for a large part of households, contributing to a still high housing deficit (nearly 26.8% of households are reportedly affected).
Investment Visas: Turning Your Vacation Home into a Migration Gateway
Colombia has made real estate investment one of the pillars of its migration policy for foreigners. The country offers a Type M (Migrant) visa for investors who acquire a property valued at 350 times the legal monthly minimum wage. At the wage level set for 2025, this represents an investment of about 498 million pesos, or a little over $100,000.
Number of minimum wages to invest in real estate to directly obtain a Resident (R) visa in Colombia.
Within a vacation home strategy, these thresholds are far from inaccessible: a single good-quality apartment in Bogotá, Medellín, or Cartagena often allows them to be met. The key requirement is registering the investment as a foreign contribution with the central bank, to secure capital repatriation rights and the proof needed for obtaining the visa.
Regulation of Short-Term Rentals: A Framework That is Tightening
The rise of vacation homes intended for tourist rental has not been without debate. As elsewhere, the growing power of Airbnb-type platforms has raised questions about housing for residents, noise, security, and competition with the hotel industry.
Colombia has therefore begun to regulate the sector more strictly. Several obligations now weigh on owners who rent short-term:
To rent a property for tourist stays, registration with the National Tourism Registry (RNT) is mandatory and must be renewed annually. The owner must keep a guest register (Tarjeta de Registro de Alojamiento) and submit it to the authorities. In condominiums, rentals of less than 30 days must be explicitly authorized by the bylaws or deed, or risk prohibition by the general assembly. Finally, specific host insurance may be required in some cases.
Municipalities are working in parallel on more detailed local rules: limiting the number of nights, zoning permits, security requirements. By 2026, observers expect a more harmonized framework, with increased obligations regarding licenses, tax collection, and respecting quotas in certain neighborhoods.
For the vacation home owner, this means two things: an increase in administrative complexity, but also a form of legitimization of the model, likely to attract more institutional capital and professionalize management.
Risks and Limitations: Not All is Rosy Under the Tropical Sun
Despite its strengths, the vacation home market in Colombia is not without its gray areas.
In terms of security and politics, the country remains subject to tensions. The situation regarding violence has deteriorated again in some territories, with an increase in kidnappings, extortion, and homicides despite “total peace” programs. The government’s popularity is low, and the upcoming electoral horizon maintains some uncertainty regarding fiscal and regulatory policies.
The exchange rate risk is also significant: the Colombian peso is volatile. A sharp depreciation can make buying very attractive but erode rental income converted into strong currencies; an inverse appreciation can reduce short-term profitability but boost the asset’s value.
The Colombian real estate market is marked by a housing deficit and limited new supply, due to high material costs and a slowdown in social programs (suspension of “Mi Casa Ya,” a 24% drop in residential construction permits in 2024). This shortage pushes prices upward, creating accessibility tensions, especially in Bogotá and Medellín where price-to-income ratios are becoming very high.
Finally, the quality of the cadastre and titles remains heterogeneous. In major cities, the registry is well-maintained; in rural areas, cases of incomplete or contested titles persist. Hence the importance of systematically using a specialized lawyer to conduct an in-depth estudio de títulos (title study).
Sustainability, Technology, and New Buyer Expectations
Vacation homes are not immune to the major underlying trends transforming the Colombian market.
The first is the ecological transition. Nearly 300,000 new homes have already obtained sustainability certification, and projections mention the possibility that half of new constructions could be “green” by 2030. Countryside or seaside houses equipped with solar panels are multiplying; the market for solar-powered properties is expected to triple in just a few years.
Technology is transforming the vacation home market. In 2023, 14% of households owned connected devices, a proportion expected to exceed 20% soon. This generates demand for “smart” homes equipped with home automation, remote control, security sensors, and digital keys. Furthermore, the development of PropTech (online purchase platforms, virtual tours, tokenization) facilitates remote access to the market, even allowing buyers to acquire a property without having visited it in person.
Finally, new lifestyles, between hybrid work and digital nomadism, blur the line between primary and secondary residence. More and more properties bought as “vacation homes” end up being occupied several months a year, notably by remote workers who alternate between their home country and Colombia.
Towards a More Mature and Selective Vacation Home Market
Everything indicates that the Colombian vacation home market is heading towards a phase of more controlled growth. Analysts anticipate price appreciation on the order of 4 to 6% annually nationwide in the coming years, with peaks of 8‑12% for prime assets in tourist hubs like Medellín or Cartagena, in terms of total return (combination of rent and capital gains).
In the most sought-after neighborhoods, five-year forecasts indicate potential gains of 40 to 50%, or more, especially in areas served by new transportation infrastructure. Conversely, the market is expected to remain balanced or slightly favorable to buyers in less pressured segments or for some new high-end developments, where local purchasing power is under pressure.
For prospective vacation home buyers, this requires a more refined approach: choosing the right micro-location (proximity to transport, security, services), understanding local rental regulations, careful analysis of homeowners’ association fees and management costs for short-term oriented products.
Beyond the numbers, one point remains: Colombia, with its rare combination of still accessible prices, landscape diversity, attractive rental yields, and property rights open to foreigners, retains an obvious competitive advantage in the vacation home segment. The question remains whether investors will be able to navigate its complexities, from taxation to tourist rental regulation, to turn the dream of a home in the sun into a truly sustainable wealth-building strategy.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
