The real estate market in Colombia is relatively undervalued and vibrant, and that is especially the case in Medellin. There are numerous properties available in prime areas to purchase and renovate to either resell or furnish and lease short or long term.
The area that has seen the most activity from foreigners is El Poblado, the most upscale area of Medellin. Not far from Poblado is an area called Laureles that is also upscale and is seeing an increase in activity from locals as well as foreign buyers who migrate from El Poblado, seeking better value.
One of our associates recently completed renovation of a 3-unit building in the Laureles area of Medellin and resold each unit for a handsome profit. As you can see from the Before and After photos below, the renovation process resulted in a dramatic improvement in the appearance and value of the property. Due to Colombia’s low cost of labor and materials, the cost of this renovation project was surprisingly low.
There is a strong demand for both newly renovated properties in good areas and also for furnished rentals. The foreign market is a growing segment, along with a solid-growing middle- and upper-class Colombian market.
With more and more visitors coming to Medellin, furnished rental units are always in demand. This trend is expected to continue as as Colombia experiences an economic resurgence. In terms of activity, the market is is “bubbling up” and various types of renovation activities are seen in all of the desirable sections of the city.
In the best area of Laureles, 2- and 3-bedroom condos in need of some form of renovations can generally be purchased for $75,000 to $125,000. In the best area of Laureles, 2- and 3-bedroom condos in need of some form of renovations can generally be purchased for $75,000 to $125,000. This price range will go up in El Poblado and down when going to less desirable sections of Medellin. Either way, this is a solid “bread and butter” market with relatively low risk and healthy returns for investors. Also, the law allows foreigners the same rights as locals in owning real estate and title is secured by a title recorded at the local registry which is similar to the country recorder in the USA.
To learn more about living, investing and traveling to Colombia please request our complimentary guide.