As we already know, Colombia is a great tourist destination thanks to its beaches, mountains, and jungles that attract hundreds of tourists in search of adventure and new experiences, however and in addition to this, in recent years foreign investors and entrepreneurs see a wide opportunity to develop their businesses in our country, among those businesses, real estate investment turns out to be the most profitable and safe.
The Ministry of Industry and Commerce has reported that in 2023, Colombia received a total of US$17,446 million in foreign investment, which is 1.5% more than in 2022, according to the balance of payments. Of this total, 65.6% was invested in non-mining and energy sectors. Within the non-mining sectors, US$11,452 million was invested in Colombia, with US$4,795 million going to the manufacturing industry and the sector that includes commerce, restaurants, hotels, and tourism.
The purchase of housing in Colombia has been decreasing thanks to low sales, high cancellations, and increased finished inventories; whether to live, rent, or invest, it has become one of the most attractive sectors of the economy at this time. However, here are some reasons why buying property in Colombia is an excellent decision.
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As mentioned before, real estate investment allows adapting to the investor’s profile. In the case of home purchase, the risk is generally low and in addition to its use, it generates appreciation over long periods of time, which allows to secure and make the investment profitable.
The direct purchase of a real estate for investment allows a return from various sources such as rent, medium-term appreciation, short-term sale and purchase investments at market prices, and the possibility of leveraging larger investments.
In 2024, demand in Colombia will continue to be directed especially to new and used housing. Valuation expectations are like 2023 or higher, depending on supply and subsidies, but it is expected that we will have at least an 8% valuation with an inflation of 4%, and rents of at least 6% per year, which would give about 14% per year before taxes and insurance.
Investment Incentives
To promote investment projects in the country, the Colombian government promotes fiscal, tax, and even migratory incentives. Another type of incentive is the differential rent for new hotel projects that are built, remodeled, or expanded, this is very important since the purchase of property in tourist areas offers good returns.
Foreign Investment Certificate Foreign
Certification issued by the Banco de la República, which is one of the ways to obtain a visa or Colombian residency depending on the amount of investment.
Foreign investment in Colombia is considered foreign capital investment in Colombian territory, including Colombian free zones, by non-residents in Colombia.
Exchange rate
The dollar exchange rate is one of the factors considered in the different sectors of the Colombian economy. The currency started 2024 at 3.822 COP, a decrease that will eventually impact the cost of housing. However, considering that real estate prices are set in advance, 2024 is still an excellent time for real estate investment.
These variations are also mostly positive for Colombians living abroad or foreigners interested in investing in Colombia. With the notable appreciation of currencies such as the pound sterling, the euro, and the dollar, this investment is even more profitable since it is possible to acquire a home at a price up to 30% lower than what was obtained a few years ago.
Colombia Investment Visa
The process of applying for an Investment visa type M (Property Owner) in Colombia is carried out before the Foreign Ministry of Colombia in Bogotá and once the visa is approved, the immigration certificate is requested before Migration Colombia of the corresponding city of residence and you can obtain your cédula de extranjería. To apply for it, you will need:
FAQs about buying a property in Colombia
No, you can search for properties by yourself. However, we do
recommend getting a realtor to show you around. Realtors can
help ease the process of purchasing a property in Colombia since
they have experience dealing with negotiations and solving
problems.
In Colombia like in most countries, realtors charge the vendor with a comission fee. In Colombia, it is customary to pay a comission fee between 3%-4% of the value of the property.
Customary, the comission fee is payed the days in which you sign
the sales agreement and the public deed. However, the
responsability of payment relies on the vendor.
– Comission fee: You need to pay the comission fee for the broker agency after converting the money to Colombian Pesos
– 4×1000 tax: You need to pay this Colombian tax at the moment of making the money transfer to the vendor. It’s 4 pesos for
every 1000 pesos transferred.
Interested in investing in real estate?
At expatgroup.co we have complete advice for the purchase of your property, from advice on the legalization of money, legal representation, and an accompaniment so you can get the Colombian Investment Visa, we accompany you throughout the process of buying property in Colombia.
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Visa Services expatgroup.co
- Includes migratory advisory
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