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If you're considering investing in rental property in Cali, Colombia, understanding current rental yields is essential to making a smart decision.
This guide breaks down gross and net yields, neighborhood variations, property types, and all the costs that eat into your returns in Cali's rental market.
We update this article regularly to reflect the latest data and market conditions in Cali as of early 2026.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Cali (Colombia).
What are the rental yields in Cali (Colombia) as of 2026?
What's the average gross rental yield in Cali (Colombia) as of 2026?
As of early 2026, the average gross rental yield for residential properties in Cali sits at approximately 6.8% per year when you mix all common property types together.
Most typical rental properties in Cali fall within a realistic gross yield range of 5.8% to 8.5%, depending heavily on the neighborhood and unit size you choose.
This puts Cali somewhat above Colombia's national average for major cities, where yields in places like Bogotá often hover closer to 5% to 6% due to higher purchase prices relative to rents.
The single biggest factor influencing gross yields in Cali right now is the price gap between premium lifestyle districts (where prices run ahead of rents) and middle-income commuter zones (where properties are priced more in line with what tenants actually pay).
What's the average net rental yield in Cali (Colombia) as of 2026?
As of early 2026, the average net rental yield in Cali lands at approximately 4.6% per year after accounting for all recurring ownership costs and realistic vacancy.
The typical gap between gross and net yields in Cali is around 2.2 percentage points, which means roughly one-third of your gross income goes toward costs before you see actual profit.
The expense category that eats the most into Cali landlords' returns is the vacancy buffer combined with property management fees, which together can consume 15% to 20% of annual rent.
Most standard investment properties in Cali deliver net yields in the 3.6% to 6.0% range, with the variation depending on how efficiently you manage turnover and whether you use professional property management.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Cali (Colombia).
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What yield is considered "good" in Cali (Colombia) in 2026?
Local investors in Cali generally consider a gross rental yield of 7% or higher to be "good" because it comfortably exceeds the citywide average and provides a meaningful buffer against unexpected costs.
The threshold that separates average-performing properties from high performers in Cali is roughly 7.5% gross, and anything above 9% typically signals either excellent micro-location selection or elevated risk factors like tenant quality concerns.
How much do yields vary by neighborhood in Cali (Colombia) as of 2026?
As of early 2026, the spread in gross rental yields between Cali's highest-yield and lowest-yield neighborhoods can reach 3 to 5 percentage points, which is a significant difference that can make or break an investment's profitability.
The highest-yield neighborhoods in Cali tend to be affordability-driven areas with lower purchase prices relative to steady local demand, such as Calipso, Alfonso López, and Mariano Ramos, where gross yields can reach 7.5% to 10%.
The lowest-yield neighborhoods are premium lifestyle districts like Granada, El Peñón, Ciudad Jardín, and Pance, where high purchase prices compress gross yields to just 4.5% to 6% even though rents are strong in absolute terms.
The main reason yields vary so dramatically across Cali neighborhoods is that purchase prices in desirable areas include a status and amenity premium that rents simply cannot fully recover.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Cali (Colombia).
How much do yields vary by property type in Cali (Colombia) as of 2026?
As of early 2026, gross rental yields across different property types in Cali range from approximately 3.5% for large standalone houses up to 9% for well-located studios.
Studios and small apartments (apartaestudios) currently deliver the highest average gross yields in Cali, typically between 7% and 9%, thanks to their lower price points and strong demand from young professionals and students.
Large standalone houses and villas deliver the lowest yields in Cali, usually between 3.5% and 6%, because their high purchase prices are not matched by proportionally higher rents.
The key reason yields differ so much between property types in Cali is rent density: smaller units generate more rent per square meter and per peso invested than larger properties do.
By the way, you might want to read the following:
What's the typical vacancy rate in Cali (Colombia) as of 2026?
As of early 2026, the structural residential vacancy rate in Cali sits between 6% and 7%, which represents empty units, second homes, and properties in transition.
For individual landlords, vacancy rates across Cali neighborhoods typically range from 4% to 9% of the year, meaning you should expect roughly 2 to 5 weeks of empty time annually depending on your property's location and pricing.
The main factor driving vacancy rates in Cali is pricing strategy: overpriced units in weaker micro-locations sit empty far longer than well-priced properties in high-demand rental corridors.
Cali's vacancy rate is roughly in line with other major Colombian cities, though it benefits from consistent renter demand driven by the city's universities, healthcare sector, and services economy.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Cali (Colombia).
What's the rent-to-price ratio in Cali (Colombia) as of 2026?
As of early 2026, the average monthly rent-to-price ratio in Cali is approximately 0.55%, which translates to an annual ratio of about 6.6% and closely mirrors the gross rental yield.
For buy-to-let investors in Cali, a rent-to-price ratio above 0.55% per month (or 6.6% annually) is generally considered favorable because it typically delivers gross yields above the citywide average.
Cali's rent-to-price ratio is competitive compared to larger Colombian cities like Bogotá and Medellín, where higher property prices relative to rents often push ratios below 0.5% monthly.
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Which neighborhoods and micro-areas in Cali (Colombia) give the best yields as of 2026?
Where are the highest-yield areas in Cali (Colombia) as of 2026?
As of early 2026, the top three highest-yield neighborhoods in Cali are Calipso, Alfonso López, and Mariano Ramos, where investors can find gross yields reaching 7.5% to 10%.
In these high-yield areas like Calipso and Alfonso López, the estimated average gross rental yield range is typically between 8% and 10%, though this comes with higher management requirements.
The main characteristic these high-yield neighborhoods share is their lower entry prices combined with steady local rental demand, which creates a favorable rent-to-price ratio even if absolute rents are modest.
You'll find a much more detailed analysis of the areas with high profitability potential in our property pack covering the real estate market in Cali (Colombia).
Where are the lowest-yield areas in Cali (Colombia) as of 2026?
As of early 2026, the three lowest-yield neighborhoods in Cali are Pance, Ciudad Jardín, and Granada, where premium pricing compresses gross yields despite strong absolute rents.
In these prestigious areas, the average gross rental yield typically ranges from just 4.5% to 6%, which is roughly 2 percentage points below the citywide average.
The main reason yields are compressed in these areas of Cali is that purchase prices include a significant lifestyle and status premium that rental income simply cannot recover.
Buying a property in a low-yield area is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Cali (Colombia).
Which areas have the lowest vacancy in Cali (Colombia) as of 2026?
As of early 2026, the three neighborhoods with the lowest residential vacancy rates in Cali are Valle del Lili, Caney, and El Ingenio, where strong family and professional demand keeps units consistently occupied.
In these low-vacancy areas, landlords typically experience vacancy rates between 3% and 5% annually, which translates to just 2 to 3 weeks of empty time per year.
The main demand driver keeping vacancy low in Valle del Lili, Caney, and El Ingenio is the concentration of families and young professionals who value security, modern buildings, and proximity to southern job nodes.
The trade-off investors face when targeting these low-vacancy areas is that purchase prices are moderately higher, which compresses yields to the 6% to 7.5% range rather than the 8%+ available in riskier neighborhoods.
Which areas have the most renter demand in Cali (Colombia) right now?
The three neighborhoods currently experiencing the strongest renter demand in Cali are Valle del Lili, La Flora, and San Fernando, each serving different but robust tenant pools.
The renter profiles driving most demand in these areas are young professionals and families in Valle del Lili, service-sector workers near La Flora's commercial corridor, and students plus healthcare workers around San Fernando's university and clinic cluster.
In these high-demand neighborhoods, well-priced rental listings typically get filled within 2 to 4 weeks, compared to 6 to 8 weeks in slower areas of Cali.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Cali (Colombia).
Which upcoming projects could boost rents and rental yields in Cali (Colombia) as of 2026?
As of early 2026, the top three infrastructure projects expected to boost rents in Cali are the Tren de Cercanías del Valle (Cali-Jamundí rail), the Corredor Verde urban regeneration, and continued expansion of the MIO transit system.
The neighborhoods most likely to benefit from these projects include Valle del Lili, Bochalema, and Ciudad Jardín's edges along the southern rail corridor, plus central districts touched by the Corredor Verde improvements.
Investors can realistically expect rent increases of 5% to 15% in affected neighborhoods once these projects are completed, with the strongest gains near future transit stations and regenerated public spaces.
You'll find our latest property market analysis about Cali (Colombia) here.
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What property type should I buy for renting in Cali (Colombia) as of 2026?
Between studios and larger units in Cali (Colombia), which performs best in 2026?
As of early 2026, studios and small one-bedroom apartments outperform larger units in Cali in terms of both rental yield and occupancy rates, making them the better choice for yield-focused investors.
Studios in Cali typically deliver gross yields between 7% and 9% (COP 140,000 to COP 180,000 per square meter monthly, roughly USD 35 to USD 45, or EUR 32 to EUR 41), while larger 2 to 3 bedroom units yield 5.5% to 7% (COP 100,000 to COP 140,000 per square meter monthly).
The main factor explaining studios' outperformance in Cali is that their lower total price attracts a larger pool of renters who can afford the monthly payment, while rent-per-square-meter stays high.
However, larger 2 to 3 bedroom apartments become the better investment choice when targeting family tenants who sign longer leases and cause less turnover, reducing management costs over time.
What property types are in most demand in Cali (Colombia) as of 2026?
As of early 2026, the most in-demand property type in Cali is the standard 1 to 3 bedroom apartment in a secure building or gated community (conjunto cerrado), which appeals to the widest range of renters.
The top three property types ranked by current tenant demand in Cali are: first, apartments in conjuntos cerrados; second, townhouse-style homes (casas en conjunto) in southern family zones; and third, studios near education and healthcare clusters.
The primary demographic trend driving this demand pattern in Cali is the growth of young professional households and small families who prioritize security, modern amenities, and proximity to employment centers.
One property type currently underperforming in tenant demand in Cali is the large standalone house or villa, which has a thin renter pool and often sits vacant longer than apartments or townhouses.
What unit size has the best yield per m² in Cali (Colombia) as of 2026?
As of early 2026, units between 30 and 50 square meters deliver the best gross rental yield per square meter in Cali, as this size range captures the sweet spot between affordability and livability.
For this optimal unit size in Cali, the typical gross rental yield per square meter is around COP 150,000 to COP 180,000 monthly (approximately USD 37 to USD 45, or EUR 34 to EUR 41), which translates to annual yields of 7% to 9%.
The main reason smaller units under 30 square meters and larger units above 70 square meters have lower yield per square meter in Cali is that very small units face limited tenant pools while larger units have higher price tags that rents cannot proportionally match.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Cali (Colombia).
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What costs cut my net yield in Cali (Colombia) as of 2026?
What are typical property taxes and recurring local fees in Cali (Colombia) as of 2026?
As of early 2026, the annual property tax (impuesto predial) for a typical rental apartment in Cali ranges from approximately COP 600,000 to COP 1,800,000 (USD 150 to USD 450, or EUR 135 to EUR 410), depending on the property's cadastral value and location.
Other recurring local fees landlords must budget for annually in Cali include the building administration fee (administración) if applicable, which can range from COP 100,000 to COP 500,000 monthly (USD 25 to USD 125, or EUR 23 to EUR 115), though tenants often pay this directly.
Property taxes and recurring fees in Cali typically represent between 5% and 12% of gross rental income, with the variation depending on whether the landlord pays administración or passes it to the tenant.
By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in Cali (Colombia).
What insurance, maintenance, and annual repair costs should landlords budget in Cali (Colombia) right now?
Annual landlord insurance for a typical rental property in Cali costs approximately COP 400,000 to COP 1,200,000 (USD 100 to USD 300, or EUR 90 to EUR 275), covering basic property damage and liability.
The recommended annual maintenance and repair budget in Cali is 0.6% to 1.2% of property value, which for a COP 400 million apartment means setting aside roughly COP 2.4 to COP 4.8 million per year (USD 600 to USD 1,200, or EUR 550 to EUR 1,100).
The repair expense that most commonly catches Cali landlords off guard is plumbing and water damage issues, which are exacerbated by the city's humidity and heavy seasonal rains.
In total, landlords in Cali should realistically budget COP 3 to COP 6 million annually (USD 750 to USD 1,500, or EUR 680 to EUR 1,370) for the combined cost of insurance, maintenance, and repairs.
Which utilities do landlords typically pay, and what do they cost in Cali (Colombia) right now?
In standard long-term rentals in Cali, tenants typically pay all utilities including electricity, water, gas, and internet, while landlords only cover costs bundled into the building's administración fee.
When landlords do cover utilities (common in furnished or short-term rentals), the monthly cost in Cali ranges from COP 200,000 to COP 450,000 (USD 50 to USD 115, or EUR 45 to EUR 105) for a typical apartment, depending on unit size and usage.
What does full-service property management cost, including leasing, in Cali (Colombia) as of 2026?
As of early 2026, full-service property management in Cali typically costs between 8% and 12% of collected monthly rent, which for a COP 2.2 million monthly rent means COP 175,000 to COP 265,000 per month (USD 44 to USD 66, or EUR 40 to EUR 60).
On top of ongoing management, the typical leasing or tenant-placement fee in Cali is approximately one month's rent, which is COP 2 to COP 2.5 million (USD 500 to USD 625, or EUR 455 to EUR 570) for a standard apartment, charged each time a new tenant is placed.
What's a realistic vacancy buffer in Cali (Colombia) as of 2026?
As of early 2026, landlords in Cali should set aside approximately 8% to 10% of annual rental income as a vacancy buffer, which accounts for typical turnover periods between tenants.
In practical terms, most landlords in Cali experience roughly 3 to 5 weeks of vacancy per year, though properties in weaker micro-locations or with above-market pricing can sit empty for 6 to 8 weeks.
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Cali (Colombia), we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| DANE Consumer Price Index (IPC) | DANE is Colombia's official statistics office, making its inflation data the baseline for rent indexation calculations. | We used it to anchor rent dynamics as of early 2026, since many Colombian rental contracts adjust annually with inflation. We also used it to sanity-check whether our rent growth assumptions were realistic. |
| DANE GEIH Household Survey | This is DANE's official household survey microdata portal with transparent methodology and documentation. | We used it to understand Cali's rental market structure, including the share of renters and household characteristics that drive demand. We also used it as a reality check on affordability and rent pressure in Cali. |
| Banco de la República IPVNBR Index | This is Colombia's central bank official housing price index, widely cited for tracking price trends in major cities including Cali. | We used it to anchor sale price trend direction for new housing in Cali. We also used it to avoid "listing-only" bias when translating portal prices into citywide estimates. |
| Banco de la República IPVNBR Glossary | This is the central bank's own definition and scope statement for their housing price index. | We used it to document what the index covers, specifically new housing in main cities including Cali. We also used it to explain our methodology in plain language. |
| DANE IPVN Bulletin | This is DANE's official publication on new housing price evolution with regular updates and documented methodology. | We used it to cross-check the price trend story from the central bank index. We also used it as a second official anchor to triangulate housing price momentum in Cali. |
| Fedelonjas Market Report | Fedelonjas is Colombia's main national guild for real estate associations and publishes structured market reports. | We used it to anchor rent-per-square-meter levels and segmentation logic by socio-economic strata. We then updated the levels to January 2026 using official inflation and rent indexation logic. |
| Fedelonjas Rent Increase Communication | This is the national real estate guild communicating the legally relevant rent adjustment practice linked to official inflation. | We used it to explain why rent growth in Cali is capped for existing contracts under Law 820. We also used it to keep the yield story consistent with legal rent indexation rules. |
| IGAC Cadastral Valuation Guide | IGAC is Colombia's national authority on cadastre and valuation standards. | We used it to translate "predial is X per mil of cadastral value" into an effective percentage of market value. We also used it to keep net yield cost assumptions credible. |
| Ley 44 de 1990 (Property Tax Law) | This is an official legal text showing the national legal band for property tax rates that municipalities apply. | We used it to set the lawful range of 5 to 16 per mil that municipalities apply to cadastral values. We also used it to bound our typical predial assumption for Cali homes. |
| Ley 1995 de 2019 (Predial Growth Limits) | This is the official law PDF hosted by IGAC establishing caps on property tax increases. | We used it to explain why predial jumps are capped in many situations after cadastral updates. We also used it to design a realistic net yield tax buffer. |
| Alcaldía de Cali Property Tax Service | This is Cali municipality's official tax service entry point for property owners. | We used it to validate that predial is an annual, recurring owner cost in Cali. We also used it to keep the net yield section grounded in local administration reality. |
| EMCALI Water Tariffs | EMCALI is the main utilities provider in Cali with published tariffs and regulatory oversight. | We used it to anchor typical utility costs when landlords cover any utilities in furnished rentals. We also used it to explain what tenants usually pay versus what landlords might bundle. |
| EMCALI Electricity Tariffs | This is the official utility tariff publication for Cali's regulated electricity market. | We used it to estimate electricity cost exposure in "utilities included" scenarios. We also used it to set a realistic contingency for short-term and furnished rental strategies. |
| DANE Cali en Cifras | This DANE publication combined with administrative records provides a high-credibility city snapshot of Cali's housing stock. | We used it to approximate a structural vacancy signal by comparing occupied homes versus utility connections. We also used it as an anchor for a typical vacancy range in Cali. |
| FincaRaíz Cali Rentals | FincaRaíz is one of Colombia's largest listing platforms, serving as a transparent proxy for asking market prices. | We used it to benchmark asking rents across mixed property types in Cali. We then applied a haircut to approximate achievable rent levels based on what actually gets leased. |
| FincaRaíz Cali Sales | This is the same large, liquid listing dataset providing directionally reliable price levels for Cali properties. | We used it to benchmark asking sale prices across mixed property types. We then adjusted down to approximate transaction prices and cross-checked against official price index direction. |
| Properstar Cali Data | Properstar is an established international real estate data aggregator with city pages and timestamped updates. | We used it as a second private-sector cross-check on price and rent levels to avoid relying on a single portal. We also used it to validate that our Cali price-to-rent ratio was not an outlier. |
| BBVA Research Housing Report 2025 | BBVA Research is a major bank research arm producing widely cited, methodology-driven housing reports. | We used it to contextualize demand, credit conditions, and supply constraints affecting yields. We also used it to keep the story macro-consistent with what investors and banks see. |
| Inmobiliaria Elite Group | This is a Colombian real estate management company publishing transparent guidance on typical management fees. | We used it to anchor property management cost assumptions in the 8% to 12% range. We also used it to validate leasing fee norms for tenant placement. |
| MinTransporte Tren de Cercanías | This is Colombia's Ministry of Transportation official announcement about the Cali-Jamundí rail project. | We used it to identify infrastructure projects that could impact rents in southern Cali neighborhoods. We also used it to ground our rent uplift estimates in official project timelines. |
| Alcaldía de Cali Corredor Verde | This is the Cali municipal government's official page documenting the urban regeneration project. | We used it to identify which central neighborhoods could see rent growth from improved public spaces. We also used it to explain how better walkability translates into higher achievable rents. |
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