We thought it was time to provide an update on the current state of real estate in Medellin in 2023.
With significant changes in the dynamics of the industry in recent years, and new areas emerging as up-and-coming neighborhoods for investors, I sat down with Sam Miller to discuss what’s been happening.
We’ve captured the main points of our conversation in a video, and we thought we’d share them with you in this blog post.
In the following sections, we’ll dive into prices per square meter, popular areas for buyers and renters, and whether short or midterm investments are the best options for generating rental income.
Prices per Square Meter
- The most expensive real estate in Medellin is in El Poblado, where prices per square meter for new construction range from 11 to 12 million COP (Colombian pesos) and are on the rise.
- This is a big jump from past years when those prices were top-tier in Bogota.
- At this time Bogota and Cartagena have pricing for strata six properties in the 15 million COP range.
- La Linde has become more popular lately due to its beautiful natural surroundings and access to Provenza.
- The Monticello building in La Linde is still popular with investors and renters despite being 35 years old because of its proximity to a bamboo forest and a gurgling brook.
- Astorga, Castropol, San Lucas, Golden Mile and El Tesoro areas are also popular.
- While the pandemic slowed things down, the real estate market in Medellin is now on an upward trend, and a record year of sales is predicted.
- Medellin was named the number one city in the world for remote working by Travel and Leisure, making it a popular consideration for investors.
- People are buying properties in Medellin for both lifestyle and ROI.
- The market offers short and long-term investment opportunities, with the net return on rentals predicted to reach 10%.
Short-Term Rentals & Airbnb
- Short-term rentals are not always the best way to get a high ROI.
- It’s important to focus on the final return, whether it’s short-term or long-term rental.
- Short-term rentals have a higher turnover rate, more wear and tear, and more damage.
- Airbnb is just one platform to rent out a property, and it’s important to consider occupancy rates and the type of tenants that come with short-term rentals.
- Finding a trustworthy property manager is key to success.
The Medellin Real Estate Market and Investor Visas
- The Medellin real estate market has been on a steady rise for the past 20 years and is still undervalued compared to other cities.
- The rental market is catching up for lost time, and net returns on rentals are predicted to reach 10%.
- The investor visa costs around $85,000 to $90,000 USD and gets you up to five years in renewable visas. After five years you can apply for a permanent visa.
- Investors need to be in the country twice a year and will need to renew the visa one or two times before going permanent.
Lifestyle in Medellin
- Medellin offers a longer, better, and healthier lifestyle.
- There is an incredible amount of unique building designs, gastronomical innovations, and a vibrant positive energy, making it an attractive place to live.
- Investing in real estate in Medellin can provide excellent returns on investment, whether for lifestyle or ROI.
- While El Poblado is the most expensive area, other neighborhoods like Envigado, Laureles and Sabaneta offer great investment opportunities and are growing in favor with foreign investors and tourists.
- With Medellin named the number one city for remote working and a strong US dollar, a record year of sales is predicted. Now could be a great time to invest in Medellin’s real estate market.