The real estate market is constantly changing, and every shift in supply, demand, and prices affects those looking to buy, sell, or rent a property. In recent years, the sector has undergone significant transformations due to economic factors, the growth of medium-sized cities, and new housing trends. That's why staying informed is key. Knowing how the sector is evolving, which areas are booming, and how prices fluctuate allows you to make better decisions, whether it's to invest, find a better opportunity, or understand the behavior of the market in the country. Here we tell you about the real estate analysis in Colombia: New, used, and rental properties.

Properties for sale - new and used

Bogotá strengthens its leadership in the real estate sales market, with sustained growth. Between 2023 and 2024, its share rose from 26% to 28%, consolidating its position. Barranquilla and Cali are also advancing, reaching 8% and 7%, respectively, and reinforcing their presence in the sector.

In contrast, the supply of apartments for sale in Medellín showed a slight contraction, reducing its share from 16% to 13%. This suggests a redistribution of the market towards other cities. Similarly, intermediate markets such as Envigado, Sabaneta, Bello, Manizales, and Pereira lost market share. However, Rionegro bucked the trend and grew from 2% to 3%, standing out in the real estate landscape.

Apartments continue to dominate the market, albeit with a slight variation. In 2024, their share fell slightly from 58.04% to 57.62%, remaining the most popular option for home purchases.

On the other hand, houses for sale increased their share from 22.60% to 23.72%, showing a growing interest in this type of property.

Price of homes for sale – new and used

The average sale price of a new apartment closed 2024 at $366,675,000, reflecting a 12% increase over the beginning of the year. This trend confirms the continuous increase in the value of new housing throughout the period. Used apartments also saw a rise in prices. Between the first and last quarters of the year, the average sale price rose by $11 million, showing a similar trend to the new housing market. As for houses, both new and used, their prices remained higher than those of apartments, consolidating their position as a greater investment option in the real estate sector.

Real estate offerings for rent by city

Between 2023 and 2024, the distribution of real estate offerings in Colombia underwent significant changes. Bogotá reduced its share from 30% to 18%, while Medellín strengthened its position in the market, growing from 24% to 27%. In the Medellín Metropolitan Area, municipalities such as Envigado, Sabaneta, Rionegro, and Itagüí showed steady growth, driven by increased demand and development in these areas.

Barranquilla, Bello, and Bucaramanga maintained stable market shares, while Cali recorded a slight increase, rising from 5% to 6%.

These changes reflect a more dynamic market in medium-sized cities and a diversification of real estate supply outside Bogotá, with new areas consolidating their position as key players in the sector.

Housing rental trends

According to the Rent Index, which measures volatility in rental prices, the value of house and apartment rentals showed steady growth from 2021 to mid-2023, reaching their maximum annual increases of 10.1% and 9.9%, respectively.

However, towards the end of 2024, the trend began to slow down gradually, possibly due to adjustments in demand or changes in market conditions.

Commercial rental behavior

Retail spaces, offices, and warehouses also saw notable increases, peaking in 2023 with rises of 11.5%, 11.1%, and 10.4%, respectively. However, as in the residential sector, growth began to moderate at the end of 2024, suggesting possible economic adjustments or changes in commercial market dynamics.

Overall, although rents grew significantly in recent years, 2024 marked a turning point, reflecting a stabilization in prices after a period of strong expansion.

Value of rental properties by type of property

Throughout 2024, the rental market in Colombia experienced significant fluctuations. Prices peaked in the third quarter for both apartments for rent and houses, but declined in the last quarter due to a considerable increase in supply during November.

In contrast, medium-sized cities such as Medellín and Barranquilla experienced an increase in demand, driving prices up, especially in the middle of the year.

In general terms, the rental market was marked by a dynamic balance between supply and demand, leading to price variations throughout the year.

The real estate market in Colombia continues to evolve, with changes in supply, demand, and prices that impact buyers, tenants, and investors alike. Given this scenario, the key is to stay informed and analyze trends before making decisions. If you are thinking of buying, selling, or renting, research the behavior of the sector in your city and seek expert advice. A dynamic market offers opportunities, but it also requires strategy to make the most of them.

Source: Ciencuadras, Banco Davivienda (Executive Directorate of Economic Studies), El Libertador, and La Galería Inmobiliaria

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