How did real estate perform in Colombia?

In the first half of 2025, the Colombian real estate market not only grew in terms of the volume of listings, but also consolidated the presence of medium-sized cities in the digital offering. Medellín remained the leader, with a 32.36% share in the first quarter and a slight drop to 30.77% in the second. Although it retains its dominant position, this reduction reflects a process of decentralization in the market. Bogotá went from 9.61% to 13.75%, showing sustained growth driven by its size, diversity of supply, and advances in digitization. In the Aburrá Valley, municipalities such as Envigado, Rionegro, and Sabaneta maintained or increased their share, confirming the vitality of the Antioquia real estate corridor. Rionegro stood out by rising from 6.17% to 6.62%, consolidating itself as an emerging hub with high potential. At the same time, cities such as Cali, Barranquilla, and Itagüí maintained a stable presence, while Bello and Bucaramanga began to gain ground and contribute to the territorial diversification of the market. In this scenario, categories such as apartments for rent in Medellín reinforce the city's relevance as the epicenter of housing and digital demand in the country.

Residential rental market performance

For those looking for or already renting residential property, the outlook shows a slowdown in rent growth. – Houses: in April 2025, the annual increase was 9.5%, the lowest level since June 2023. – Apartments: rose 7.5% annually, also the lowest point since mid-2023. Although prices continue to rise, they are doing so at a slower pace and are expected to continue approaching 2024 inflation (5.2%). However, the low supply of properties may still limit further reductions. In the regional analysis, the cities with the highest annual increases were: – Houses: Cartagena (15.7%), Manizales (12.7%), and Pereira (11.0%). – Apartments: Pereira (12.9%), Armenia (11.1%), and Ibagué (10.6%).

Commercial property leasing behavior

The commercial property segment, including retail space, offices, and warehouses, also showed a moderation in price increases, although these increases still exceed annual inflation. – Retail premises: grew by 9.1% annually in April, the lowest increase since mid-2023. Cartagena (14.1%) and Pereira (11.9%) stood out. – Offices: rose by 8.8% annually, also at their lowest level since mid-2023. Cali (13.6%) and Ibagué (12.5%) stood out. – Warehouses: increased by 7.3% annually, the lowest figure since March 2024. The largest increases were in Barranquilla (15.6%) and Cartagena (12.3%). Demand for business and logistics space remains strong, keeping prices on the rise despite the slowdown. The low vacancy rate, i.e., the limited availability of properties, is the main factor preventing a greater reduction in this segment.

In short, the Colombian real estate market is undergoing a period of adjustment and opportunity. Although challenges remain in new housing and rental moderation, used housing and the growth of intermediate cities confirm a sector in reconfiguration, with attractive scenarios for both investors and those looking for a place to live.

Source: Ciencuadras, Banco Davivienda (Executive Directorate of Economic Studies), El Libertador, and La Galería Inmobiliaria You may be interested in: How does the Bogotá metro impact housing values?

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