Moderate to good rental yields in Bogota, Colombia
November 29, 2018
|Last Updated: Nov. 29, 2018|
|CHICO, BOGOTA- Apartments||COST (US$)||YIELD (p.a.)||PRICE/SQ.M. (US$)|
|TO BUY||MONTHLY RENT||TO BUY||MONTHLY RENT|
|75 sq. m.||161,325||952||7.08%||2,151||12.69|
|120 sq. m.||262,680||1,379||6.30%||2,189||11.49|
|200 sq. m.||470,600||2,230||5.69%||2,353||11.15|
|CEDRITOS, BOGOTA - Apartments|
All yields are gross - i.e., before taxes, repair costs, ground rents, estate agents fees, and any other costs. Net yields (what you´ll really earn) are typically around 1.5% to 2% lower.
Source: Global Property Guide and Metro Cuadrado Definitions: Data FAQ See also: Update Schedule
Gross rental yields in Bogota, Colombia - the return earned on the purchase price of a rental property, before taxation, vacancy costs, and other costs - are quite attractive, though significantly lower than they were a few years so (our research suggests that they have fallen over the past year). Gross rental yields are an important consideration even for those who do not intend to become landlords, because a high rental yield indicates that the property market is reasonably priced.
Across the Bogota districts that we cover, gross rental yields range from 5.7% to 7.1%. Given that the cost of managing a property can typically be estimated to be around 2% of the yield, this still means that property in Bogota is reasonably valued, and will yield a reasonable return to the investor.
Round trip transaction costs are not high in Colombia (i.e., the total costs of buying and selling a property). See our Colombia residential transaction costs analysis
and Residential transaction costs in Colombia compared to the continent