[vc_row][vc_column][vc_column_text]My latest scouting trip for Global Property Advisor took me to Medellín, Colombia, and I couldn’t have been more pleased with this city…
The weather is fantastic, the area is beautiful (full of green and breathtaking mountain views), everyone I talked to was friendly and kind, and I thoroughly enjoyed the active and outdoor lifestyle its residents take part in.
Medellín is a modern city with all the conveniences of a cosmopolitan area that still feels authentically Latin American—but better.
No restrictions are in place for foreign buyers in Colombia. Expats can buy any type of property—land, beachfront, urban, rural—you name it.
Indeed, Colombia encourages foreign buyers by offering real estate-specific visas if you buy property over approximately US$160,500.
All residential properties in the city are ranked from one to six, with six being the wealthiest neighborhoods.
Most homes fall between estratos two to four. People who live in the higher estratos pay more for utilities to help subsidize the cost for those on the lower end.
Property Market In Medellín, Colombia
The Medellín property market is informal in the sense that real estate agents do not need a license to practice. Colombia also does not have an MLS, like the States does.
One of our trusted contacts on the ground tells me that to decrease risk when seeking a real estate agent, it’s best if you work with one who does this as their full-time job.
Do your due diligence with anybody who you decide to work with and avoid transactions through individuals who are not professionals in the field.
The “friend of a friend” or “family member” who’s selling a property and can give you a “nice deal” is almost always too good to be true.
It’s also strongly recommended for foreigners to work with a local bilingual lawyer for all property-related transactions.
In Colombia, the official currency and the real estate transactions currency is the Colombian peso.
You’ll see that all properties are priced in pesos and rented in pesos. Also, you might see a few cases of properties being rented in dollars on platforms like Airbnb, but this is not the norm.
For those looking to buy for investment, the El Poblado neighborhood will always be your best bet for the highest ROIs.
El Poblado has the most buildings in estratos five to six and is home to the most expensive and luxurious options.
For example, an investment in this neighborhood will earn you about 6% to 7% per year in the long-term rental market (six month to a year contracts) and 10% to 12% per year for month-to-month rentals.
Visitors love El Poblado because this is the most cosmopolitan area of the city. It’s where the largest percentage of expats live, and where you’ll hear the most English spoken.
The nightlife is exciting, the gastronomy scene is vast and delicious, there’s green spaces a-plenty, and you can take your pick of cultural and historical places and events.
Of course, like anywhere, the area also comes with some downsides, such as heavy traffic, noise pollution, and hilly streets.
I checked out a beautiful and spacious apartment near Avenida El Poblado and Las Palmas with amazing natural light, an open kitchen and living room area, a balcony with great views of the city, three bedrooms, three bathrooms, and two parking spaces.
The living space is 111 square meters.
Located in an estrato six apartment building, with a pool, pet zone, green walking trail, events room, a gym, a Turk sauna room, and a movie room, this seventh floor unit was on the market for 900,000,000 Colombian pesos (about US$218,871).
Another great area for buying both for investment and a second or retirement home is Laureles.
This area is home to a great deal of commercial spaces like malls, clinics, vets, supermarkets, restaurants, bars, shops, theatres, boutiques, and more. It has everything you need to live in an area of about 8 kms.
Laureles, as much of Medellín, is full of tree-lined streets that provide plenty of shade, as well as several parks to enjoy the eternal spring days.
A great feature of this area is that it is mostly flat. A lot of the popular areas of Medellín are full of hills. If you have mobility issues, this might be a problem, and Laureles might be a better choice.
One current downside is that this comuna is farther away from the metro lines. Depending on where you buy, you could be up to an hour away from the nearest station (by foot).
Some Laureles neighborhoods are close to a metro station, but there is no line going through the entire comuna. Bus routes, bike lanes, and taxis are widely available and inexpensive, so it could be a non-issue.
In a couple of years, however, appreciation will happen in this neighborhood due to infrastructure improvements.
Most importantly, the work for a new metro line in Laureles has already started and will improve its connectivity with the rest of the city.
I found an estrato five apartment in the Velodromo neighborhood of the Laureles comuna that has 102 square meters of living space, three bedrooms, three bathrooms, a maid’s quarters, an open kitchen and living room area, modern finishes, a balcony with great city views, and two parking spaces.
The price: 695,000,000 Colombian pesos (about US$ 168,975).
Sincerely,
Mónica Linares
Managing Editor, Global Property Advisor[/vc_column_text][/vc_column][/vc_row]
