Buying real estate in Medellín?

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12 market data about Medellín's real estate market (2025)

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Authored by the expert who managed and guided the team behind the Colombia Property Pack

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

Curious about Medellín's real estate market and what the future holds? You're in the right place.

As we look ahead to 2025, what trends are emerging? How is the market expected to evolve? What key data should potential investors and homeowners be aware of?

In this article, we'll delve into 12 crucial market data points that will shape Medellín's real estate landscape in the coming years.

Actually, we know this market inside and out. We keep tabs on it regularly, and all our discoveries are reflected in the most recent version of the Colombia Property Pack

12 Key Market Data Points About the Real Estate Market in Medellín

Here is a detailed analysis of the real estate market in Medellín, focusing on average rents, yields, price per square meter (sqm), and other essential metrics.

  • Average Rent for Apartments:

    The average rent for a one-bedroom apartment in Medellín's city center is approximately COP 1,500,000 to COP 2,500,000 per month. In more suburban areas, this can drop to COP 1,000,000 to COP 1,800,000. These figures can vary based on the neighborhood and amenities offered.

  • Rental Yields:

    Rental yields in Medellín are generally attractive for investors, ranging from 5% to 8% annually. This is influenced by the location, property type, and demand in specific neighborhoods.

  • Price Per Square Meter:

    The average price per square meter in Medellín's prime areas, such as El Poblado, is around COP 5,000,000 to COP 7,000,000. In less central areas, prices can range from COP 3,000,000 to COP 5,000,000 per sqm.

  • Price Per Square Foot:

    Converting to square feet, the price in prime areas is approximately COP 465,000 to COP 650,000 per sqft, while in suburban areas, it ranges from COP 280,000 to COP 465,000 per sqft.

  • Market Trends:

    Medellín's real estate market has been experiencing steady growth, driven by increased foreign investment and a growing expatriate community. The demand for short-term rentals, particularly in tourist-friendly areas, is also on the rise.

  • Property Taxes:

    Property taxes in Medellín are relatively low compared to other major cities, typically around 0.3% to 1% of the property's assessed value annually. This makes it an attractive market for long-term investment.

  • Transaction Costs:

    Buying property in Medellín involves transaction costs, including notary fees, registration fees, and legal fees, which can total approximately 3% to 5% of the property's purchase price.

  • Financing Options:

    Local banks offer mortgage options to both residents and foreigners, with interest rates typically ranging from 8% to 12%. However, foreign buyers often prefer to finance through their home country due to potentially lower rates.

  • Vacancy Rates:

    Vacancy rates in Medellín vary by neighborhood, with prime areas like El Poblado experiencing lower rates of 2% to 4%, while less central areas may see rates of 5% to 7%.

  • Short-Term Rental Market:

    The short-term rental market, particularly through platforms like Airbnb, is thriving in Medellín. Properties in tourist hotspots can achieve occupancy rates of 70% to 85% annually, with higher yields compared to long-term rentals.

  • Development Trends:

    There is a growing trend towards sustainable and eco-friendly developments in Medellín, with new projects incorporating green spaces and energy-efficient designs to attract environmentally conscious buyers.

  • Future Outlook:

    The future outlook for Medellín's real estate market remains positive, with continued urban development and infrastructure improvements expected to drive demand and property values upward.

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What You Need to Know Before Investing in Medellín's Real Estate Market (2025)

What is the average price per square meter in Medellín's real estate market?

As of 2025, the average price per square meter in Medellín is approximately 3,200 USD.

This figure represents a steady increase from previous years, reflecting the city's growing popularity and economic development.

Prices can vary significantly depending on the neighborhood, with areas like El Poblado and Laureles being more expensive.

How has the rental yield changed in Medellín over the past few years?

The rental yield in Medellín has seen a slight increase, currently averaging around 6.5%.

This is due to a combination of rising property values and a strong demand for rental properties, particularly from expatriates and digital nomads.

Investors are attracted to Medellín for its potential for both capital appreciation and rental income.

What are the most popular neighborhoods for real estate investment in Medellín?

El Poblado remains the most sought-after neighborhood for real estate investment due to its upscale amenities and vibrant lifestyle.

Laureles is also gaining popularity, offering a more local experience with a strong sense of community and lower prices compared to El Poblado.

Other emerging areas include Envigado and Sabaneta, which are attracting attention for their growth potential and affordability.

What is the expected growth rate of property values in Medellín for the next five years?

Property values in Medellín are projected to grow at an annual rate of 4% to 6% over the next five years.

This growth is driven by increased foreign investment, infrastructure improvements, and Medellín's reputation as a hub for innovation and technology.

Investors are optimistic about the city's long-term potential, making it an attractive market for real estate investment.

How does Medellín's real estate market compare to other major cities in Colombia?

Medellín's real estate market is considered more affordable than Bogotá, with lower average prices per square meter.

However, it offers a higher rental yield compared to Cartagena, making it a more attractive option for investors seeking rental income.

The city's quality of life, climate, and safety improvements also contribute to its appeal compared to other Colombian cities.

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What are the key factors driving demand in Medellín's real estate market?

One of the main drivers of demand is the influx of digital nomads and expatriates attracted by Medellín's cost of living and quality of life.

Additionally, the city's ongoing infrastructure projects, such as the expansion of the metro system, are enhancing connectivity and accessibility.

Medellín's reputation as a center for innovation and entrepreneurship is also drawing interest from both local and international investors.

What is the average time a property stays on the market in Medellín?

On average, properties in Medellín remain on the market for about 90 to 120 days before being sold.

This timeframe can vary depending on the property's location, price, and condition, with high-demand areas experiencing quicker sales.

Well-priced properties in desirable neighborhoods often attract multiple offers and sell faster than the average.

How has the foreign investment landscape changed in Medellín's real estate market?

Foreign investment in Medellín's real estate market has increased significantly, with investors from North America and Europe showing strong interest.

This trend is supported by favorable exchange rates and the city's growing reputation as a safe and profitable investment destination.

Government incentives and streamlined processes for foreign buyers have also contributed to the rise in international investment.

What are the financing options available for purchasing property in Medellín?

Buyers in Medellín can access a variety of financing options, including local bank mortgages and international financing solutions.

Local banks typically offer mortgages with interest rates ranging from 8% to 12%, depending on the buyer's credit profile and the loan term.

Foreign buyers may also explore financing through international lenders or cash purchases to expedite the buying process.

What are the legal considerations for foreign buyers in Medellín's real estate market?

Foreign buyers in Medellín must comply with local regulations, including obtaining a foreign investment registration with the Central Bank of Colombia.

It is advisable to work with a reputable local attorney to navigate the legal process and ensure compliance with all requirements.

Additionally, foreign buyers should be aware of tax implications and potential capital gains taxes when selling property in Colombia.

What impact has tourism had on Medellín's real estate market?

The rise in tourism has positively impacted Medellín's real estate market, increasing demand for short-term rental properties.

Neighborhoods like El Poblado and Laureles have seen a surge in Airbnb listings, attracting both tourists and investors seeking rental income.

This trend has contributed to the overall growth of the market, with tourism expected to continue driving demand in the coming years.

What are the environmental considerations for real estate development in Medellín?

Medellín is increasingly focusing on sustainable development, with new projects incorporating green building practices and energy-efficient designs.

The city is committed to reducing its carbon footprint and promoting eco-friendly initiatives, which are becoming important factors for developers and buyers.

Investors interested in sustainable real estate can find opportunities in projects that prioritize environmental responsibility and innovation.