I remember a bombed out market in 2021.
I had never seen so many “for sale” signs as in Bogota during Covid. It then took a few years for inventory to clear out and since last year, prices have started increasing again. We called the bottom last year together with Arcesio.
The Bogota market is now firmly in a bull market, and the election of the new 🤡 president who seemingly appeared out of nowhere a year ago is being interpreted as bullish for the country.
- Wealthy Colombians who were sitting on the sidelines distrusting the previous far-left Petro government are now investing again
- Foreign investment will flow back in due to the new president’s very pro-US policy and pro business stance
- Commodities, Colombia’s main official export, are doing well
On the other hand there are two developments that are question marks for foreign investors.
1. The Colombian peso is the strongest it has been in years. You are not buying the currency at a discount anymore.
2. The war on drugs
The new president wants to go hard on drug producers together with his new allies the US and Israel.
Bear in mind that Cocaine is Colombia’s single biggest export, representing 4.4% of GDP, ahead of oil & gas. It is absolutely crucial for the economy and the current account.
There are a few scenarios going forward:
1. He actually wants to clamp down on drugs. This is not bullish for the real economy. It would also risk a new war with cartels which based on Colombia’s history is very dangerous. As soon as a few bombs start exploding tourism would dry up. His new allies don’t have a track record of cleanliness in this regard, so this scenario is unlikely.
2. Being the former Miami Lawyer that defended drug traffickers that he is, he may just want to put his guys in the trade and remove the others. This is good for production and exports but potentially very dangerous if a Cartel war were to erupt.
3. It’s all a show. He is just juggling and cutting deals with various cartels to get a greater share while benefiting from being seemingly tough on crime. This is the most bullish scenario.
Which one is most likely? I have no clue. There are many analysts of Colombian politics with much more informed views than mine.
But just be mindful that the situation is not all black and white. Leftist President Petro did not destroy the economy as most media predicted, and the current president probably won’t be a “savior” either. The truth lies somewhere in between.
Mediocrity is the name of the game in Latin America. It’s all you can expect of these countries and institutions. And if you invest in the right pockets where wealth concentrates or will concentrate, you will do well because local capital isn’t prone to thinking outside the box.
Meanwhile, the Bogota market continues to do well, including massive new developments and infrastructure development which we discuss with Arcesio. This video was recorded just before elections but what we discuss regarding the real estate market holds true.
Get in touch with Arcesio for Bogota real estate
To a World of Opportunities,
The Wandering Investor
Services in Colombia:
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Articles on Colombia:
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- Bogota Real Estate Market: Investor Guide
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- Double-digit yields in Bogota for Airbnb multifamily units
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Transcript of “Is Bogota Real Estate Now Picking Up?”
LADISLAS MAURICE: Hello everyone, today we’ll be discussing the real estate market here in Bogota in Colombia, together with Arcesio, who’s been a realtor here for many, many years, dealing in residential and also commercial. Arcesio, how are you?
ARCESIO: Hi Ladislas, how are you doing?
What is happening on real estate market in Bogota?
LADISLAS MAURICE: Good, good. So can you tell us a little bit about what’s been happening here in the market in Bogota?
ARCESIO: Well, regarding the high-end apartment market, the prices have been increasing like around 10% compared to 2024, 2025, and uh, we have sales increase of 20%. The high-end apartments have been in demand, basically, increasing demand. The one restriction we have is that we don’t have enough supply. So it’s very certainly that the prices will keep going up, unless there is a change in supply.
What has changed over the past year on real estate market in Bogota?
LADISLAS MAURICE: So we did a video about a bit over a year ago saying now’s the time to buy, and it was the time to buy, the market has since picked up. It’s still the beginning innings, I feel, you know, unless there are major macro issues, but the reality is there was a lot of inventory here in Bogota on the real estate market, and now the market is just gradually working through that inventory, and we’ll reach a point where there just won’t be enough inventory anymore and we’ll see more pressure on pricing for sure in the nicer areas. Because what was holding the market back was locally people were very worried about the Petro administration and some of the potentially very socialistic policies that were being discussed. At the end of the day, actually not that many terrible policies were implemented. So the impact of the Petro administration has actually been relatively minimal. And the next presidential elections are going to happen soon, and there are some decent chances that we could see a new more pro-business government. And in the meantime, the economy was doing relatively well in Colombia. Tourism was booming, commodities were doing relatively well. Cocaine production was through the roof, which, you know, helps with the local economy because it’s a major export. The overall picture was actually quite positive. I know Arcesio isn’t happy that I’m saying the cocaine production being up is good, but I mean, objectively for the economy it is.
High-end real estate in La Zona T in Bogota, Colombia
ARCESIO: Yes, and also in this area where we are right now, which is La Zona T, where is the high-end real estate, we have a new development that is called Proscenio.
Proscenio development project in Bogota
This development is being developed in 33,000 meters square, and it’s going to have uses like health, entertainment, apartments, retail, and others. This uh development is going to change the face of this area and is probably gonna increase, keep increasing the prices of all real estate.
LADISLAS MAURICE: The construction site is massive. It’s over three square kilometers of building. And essentially all the residential units have been sold out, right?
ARCESIO: The apartments have been sold out, and there are more than 200 apartments. That’s what I was told by another broker, and they never went on a public sale. They were privately sold.
LADISLAS MAURICE: How much per square meter?
ARCESIO: Over COP 20 million per meter square.
LADISLAS MAURICE: Over $5,000 per square meter for this development, which really raises the average in in the area. I mean, this is a nice catalyst.
Metro construction and development in Bogota
LADISLAS MAURICE: And then there’s a lot of construction going on as well in with regards to public transport and to the kind of the metro here in in Bogota. I mean, it’s…
ARCESIO: But the metro goes up to Calle 72, which is around 10 blocks from here.
LADISLAS MAURICE: Okay. So further growth down there.
ARCESIO: Is towards the south of the city.
LADISLAS MAURICE: I’m staying in the south of Bogota right now, my Airbnb, and there’s just massive construction all day, all night, and they’re doing this new metro. So that’s also nice for that area.
Yields and income on the Bogota real estate market now
LADISLAS MAURICE: I think the main message here is the bottom was reached a year or two ago, and now we’re in the early earnings of the market here in Bogota gaining strength. You won’t make fantastic yields on the local market. You’re looking at 5%, 6% gross. But on the Airbnb market, if you play your cards right, because there is oversupply of Airbnbs, especially with regards to cheaper studios, one bedrooms, all of that. If you look around on Airbnb, you’ll get like relatively nice places for $30 a night. That’s not the interesting market. The interesting market is going high-end, going for business people, people who want to stay a few months, who want a really nice, you know, one-bedroom apartment with a view, a jacuzzi, all of that. There isn’t much supply in Bogota for this. Increasingly we’re seeing people that used to go to Medellin, spend time there, now they feel that it’s become too commercial, too touristic, that the city has become a victim of its own success in their eyes. So now they’re going to places like Cali, like Bogota to spend time, and the market here doesn’t quite cater to them yet. So there’s a bit of an opportunity there.
Commercial real estate market in Bogota
LADISLAS MAURICE: Can you tell us a little bit about the commercial market in Bogota, because that’s one of your core specialties?
ARCESIO: Commercial real estate, if we talk about retail, it’s not easy to find retail outlets. The economy regarding expending is doing very well. I’m talking about for real estate people. And the same happens in office space, where most of the buildings are almost full. The market is changing.
LADISLAS MAURICE: It wasn’t the case two years ago.
ARCESIO: There were many empty buildings two years ago. There are many reasons for that, but the most important reason is that people are spending money on many things. So businesses are selling.
LADISLAS MAURICE: So the economy’s doing quite well.
ARCESIO: Especially if we are talking about retail.
LADISLAS MAURICE: Yeah. What gross rental yields can one expect as an investor in retail and in the office space?
ARCESIO: I will give you a range from 7% to 9% per month. That’s what should be expected. The better the tenant, the better the property, the lower the yield.
LADISLAS MAURICE: So about 7 and a half to 10% gross yield annually is doable.
ARCESIO: Correct.
Contact Arcesio for real estate in Bogota
LADISLAS MAURICE: So if you’re interested in real estate here in Bogota, don’t hesitate to contact Arcesio. You studied in the US, all of that, so no issues with language. There’s a link below and you can get in touch with them directly. Arcesio, thank you very much, Ladislas.
ARCESIO: Thank you very much, Ladislas.
LADISLAS MAURICE: Make sure to download my free ebook, 12 Mistakes to Avoid When Investing in International Real Estate, which you can find on my website, link below. And feel free to follow me on Instagram @thewanderinginvestor. I look forward to hearing from you.
