Buying a property in Antioquia: a complete guide

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Yes, the analysis of Antioquia's property market is included in our pack

Thinking of investing in real estate in Antioquia? You're not alone!

Antioquia's lush landscapes and vibrant culture captivate many, leading them to fantasize about owning a picturesque hacienda or a cozy mountain retreat in this Colombian region.

Would it be a profitable investment, though? Are property prices increasing in Antioquia? What is the current trend? Should I buy property in Medellín or Envigado? Are there any hidden fees? Which places offer rental yields exceeding 7%?

In this article, everything is sorted out for you.

At TheLatinvestor, we've really dug into this market. Actually, we've gathered all our findings in a pack. Get it now.

In this article, we'll provide you with helpful information.

How is the property market in Antioquia?

When evaluating the strengths of a property market, everyone has their own opinion. We do things differently - we rely on data and actual facts.

Property types

In Antioquia, you can find a variety of properties for sale, including houses, apartments, farms, and land.

Houses offer the comfort of traditional living, while apartments provide a more compact and convenient option.

Farms are available for those interested in rural lifestyles or agricultural ventures, and land parcels offer opportunities for building or investment.

Whether you're seeking urban or rural living, Antioquia offers a range of property types to suit your preferences and goals.

Buying or renting?

(If you want to live there yourself and not rent it to others)

Whether you've already made Antioquia your home or are contemplating it for the future, you might be considering the buy vs. rent dilemma in this vibrant Colombian region.

Usually, buying is better than renting in Antioquia due to its low cost of living and ample housing options.

However, if you prefer flexibility, go for renting.

Property prices in Antioquia

On average, according to the updated data from Dane, Colombia, buying a property in Antioquia will cost you around $1,200 per square meter.

Naturally, prices are quite spread out. A property in Medellín might have a different price per square meter than an apartment in Envigado. We actually give you a more detailed breakdown in our pack for buying property in Antioquia and in Colombia.

To give you some context, it means that, instead of buying an apartment in New York, you can get 11 properties in Antioquia.

Also, housing prices in Antioquia are 28% cheaper than in Bogotá.

The most expensive places in Antioquia are probably El Poblado and Envigado, while the cheapest are likely the rural areas or small towns.

Trends

First and foremost, we have to acknowledge that Colombia is, today, a relatively stable country. The last Fragile State Index that has been reported for this place is 78.4.

This is important to remember when wondering if it's a good investment to buy a property in Antioquia.

However, this modest figure is only temporary, as Colombia's economy is expected to soar by 10.5% in the coming 5 years, resulting in an average GDP growth rate of 2.1%.

If you want to invest in real estate in Antioquia it's a good thing because an expanding economy usually means people earn more, so they can buy property for themselves or as an investment, causing property demand (and then prices) to increase.

Also, in Colombia, the average GDP per capita has changed by 8.5% over the last 5 years. It's a good number.

These are positive signals showing that property prices in Antioquia might increase in 2024 and during the coming years.

Looking for more updated data? We've done a big-picture study to find out if it's a good idea to purchase property in Colombia right now.

Buying property in Antioquia

It can be difficult to buy property in Antioquia due to the lack of reliable and up-to-date information available. That's why we have created the pack to buy property in Antioquia and in Colombia.

Buying process

Within our pack, we've covered the entire buying process extensively. This includes a detailed breakdown of prices and yields based on the area, advice on negotiating prices, and information about obtaining a mortgage.

Now, we're providing you with a simplified version.

This is the step-by-step process to purchase a property in Antioquia, Colombia:

1. Define your budget and property preferences in Antioquia.
2. Hire a reputable Colombian real estate agent familiar with the local market.
3. Review available properties in Antioquia and select one that meets your criteria.
4. Negotiate the price and terms in accordance with Colombian real estate practices.
5. Sign a preliminary agreement (promesa de compraventa) detailing the property's conditions and terms.
6. Pay a deposit, usually 10% of the property price, to secure the deal.
7. Conduct due diligence, including checking the Registro Único Nacional (R.U.N.) for property ownership and any encumbrances.
8. Obtain a certificate of tradition (certificado de tradición) to verify the property's legal status and ownership history.
9. Secure financing, if necessary, through a Colombian bank or lender and obtain a mortgage approval.
10. Finalize the purchase contract (escritura pública de compraventa) with a notary public in Antioquia.
11. Pay the remaining balance and associated fees, such as property transfer taxes and notary fees.
12. Register the property with the local Public Registry Office (Oficina de Registro de Instrumentos Públicos) to complete the property acquisition process in Antioquia.

Also, if you're not from the country, you might want to check our article on how to buy property as a foreigner in Colombia.

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Where to find a property

Discover properties in Antioquia with the help of these websites:

• Home Inmobiliaria - Optimizing the buying and selling process, satisfying customers' real estate needs.
• Property Finder - Based in Medellín, Colombia, offering listings, investment opportunities, developments, and services for buying and selling properties.
• Realigro - A global real estate search engine for finding homes for sale in Colombia and providing information on the real estate market.
• Expat - An online platform with housing listings and classifieds for buying, selling, and renting properties in Colombia.
• Point 2 - Providing listings of homes for sale, rentals, and commercial properties in Colombia.

Also, know that we have included contacts of real estate agencies, property lawyers, moving companies, expats communities and more in our pack for buying property in Colombia.

What you could get

As mentioned before, the average price per sqm in Antioquia is $1,200. In terms of pricing, a one-bedroom property covering 60 square meters would be around $72,000, while a two-bedroom with 85 square meters would cost about $102,000.

However, as you can guess, property prices will differ based on the attributes of the property and its specific location.

Premium areas in Antioquia generally have higher property values. An apartment in Poblado could cost around $140,000, and a residence in Laureles might be priced at $270,000.

However, some places are cheaper. You may find a condominium in Bello for $40,000, or one in Itagüí priced only at $30,000.

Find a more detailed breakdown in our full pack for buying property in Colombia.

Common mistakes

Here are the main pitfalls when buying property in Antioquia, Colombia:

• Agrarian Reform Zones: Some areas are designated as Agrarian Reform Zones, limiting property use and development.
• Informal Settlements: Beware of informal settlements (invasiones) where property rights may not be well-established.
• Cadastral Discrepancies: Discrepancies between physical boundaries and official records can lead to boundary disputes.
• Land Mines: Certain rural areas may have hidden landmines from past conflicts, posing safety and development risks.
• FARC Influence: In remote regions, FARC presence may affect security and property rights.
• Protected Natural Areas: Properties within protected areas face strict development restrictions.
• Local Community Consultations: Indigenous and local community consent may be necessary for land acquisition.
• Escritura and Notary Process: The complex legal procedures require experienced professionals to navigate successfully.

We don't want this to happen to you, so we have included a full checklist for your property investment in our pack of documents. Avoid these mistakes and save a lot of money.

Everything you need to know is included in our Colombia Property Pack

Living in Antioquia

Living in Antioquia is a great experience, with a pleasant climate, friendly people, and a variety of activities and attractions to explore.

Cost of living

The cost of living in Antioquia is relatively low compared to other parts of Colombia. The cost of basic necessities such as food and housing is quite affordable, making it an attractive option for those looking to live in Colombia.

Here are some examples to better understand the cost of living in Antioquia, Colombia:

• Rent for a one-bedroom apartment in the trendy neighborhood of "El Poblado," Medellín: $800 per month.
• A meal at a local restaurant with "Bandeja Paisa," a traditional Antioquian dish: $10.
• Monthly metro pass for public transportation in Medellín: $30.
• Utilities (electricity, water) for a small apartment in "Laureles" neighborhood: $60 per month.
• A cup of "Canelazo," a warm cocktail made with aguardiente and cinnamon: $3.
• Entrance fee to "Parque Explora" interactive science museum: $6.
• Monthly membership at a gym in "Sabaneta" municipality: $40.
• A bottle of local "Cerveza Poker," a popular Colombian beer brand: $2.

Areas

Since we want to help people understand easily, we've created a summary table that tells about the different areas in Antioquia. For yields, prices and rents, check our property pack.

Life in Antioquia

Antioquia is an important economic center in Colombia. It is a major producer of coffee, bananas, sugar, and textiles and has a strong industrial sector that includes oil, chemicals, and pharmaceuticals.

What expats usually like the most in Antioquia is the beautiful scenery of the Andes Mountains and the lively culture of the cities like Medellín.

Access to healthcare in Antioquia is generally good, with many public and private hospitals and clinics available throughout the region.

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Renting out in Antioquia

If your intention is to buy a property not for personal use, but to rent it out and create income, then this section is for you.

Long-term

Apart from Medellín, buyers in Antioquia generally do not rent out their properties as they primarily acquire real estate for personal occupancy.

If you decide to rent out long-term, you might want to target professionals and families looking for a stable home in Antioquia, as well as expats and retirees looking for a comfortable lifestyle in a safe and vibrant environment.

Here is a little summary table we've made for you.

Now, you will probably ask us about the yields. Unlike other places, giving you an average rental yield for Antioquia is though. The region is quite varied. For example, rental yields in Medellín and Envigado are quite different from those in smaller towns.

Finally, know that, in Colombia, the taxes will be around 27-30% of the rental income.

Short-term

You could also decide to rent short-term to business travelers, medical tourists, or international students studying in Antioquia. Additionally, short-term rental could be attractive to tourists visiting the area for its many attractions and natural beauty.

If you decide to go with that option, look for properties in El Poblado and Laureles, as they are the most popular areas for short-term rentals in Antioquia. Both areas are known for their vibrant nightlife, trendy restaurants, and shopping centers.

There are approximately 345 active Airbnb listings in Antioquia, reflecting a dynamic short-term rental market. The average daily rate stands around $70.

You have the opportunity to generate a nice additional income stream then. According to online testimonials and analytics platform like AirDNA, Guesty and Inside Airbnb, people who offer short-term rentals in Antioquia can make around $900 per month. Also, the average occupancy rate is estimated at 62%.

Is it worth buying real estate in Antioquia then?

Absolutely, buying a property in Antioquia can be a fantastic choice for those seeking a long-term residence or an investment with growth potential. The region offers a pleasant climate, a low cost of living, and a diverse range of property options to suit various preferences and goals.

If you plan to call Antioquia home for an extended period and appreciate the idea of stable living costs and potential property value appreciation, buying is a smart move. Plus, the prospect of rental income, especially in areas like Medellín and Envigado, can sweeten the deal for investors. The expectation of a growing economy and positive GDP projections for Colombia also bodes well for property prices in Antioquia.

However, if you're considering a short-term stay or prioritize flexibility in your living arrangements, buying property might not be the best option. The costs associated with purchasing and selling property can outweigh the benefits for those with shorter-term plans. Moreover, navigating the complex legal procedures in Colombia's property market can be challenging without expert guidance.

There are also risks to be aware of, such as Agrarian Reform Zones, informal settlements, and potential safety concerns in remote areas. In such cases, renting might offer more flexibility and fewer complications.

In essence, buying property in Antioquia is a fantastic prospect for those with long-term goals, but it's essential to weigh the factors carefully and consider your specific circumstances and preferences before taking the plunge.

Make sure you understand the real estate market in Antioquia

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The content provided here is for informational purposes only and does not imply endorsement or advice. While we strive for accuracy, we do not guarantee the completeness or reliability of the information, including text, images, links, or other elements in this material. Following the content and analyses presented here does not assure specific outcomes. For guidance tailored to your individual circumstances, it is recommended to consult with a professional, such as a lawyer, accountant, or business advisor.