Authored by the expert who managed and guided the team behind the Colombia Property Pack
Yes, the analysis of Medellín's property market is included in our pack
What are the strongest trends shaping Medellín’s real estate market? Are property values rising or falling? Is the city still attracting international investors? How are local policies and taxes influencing real estate decisions in 2025?
These are the questions we hear daily from industry experts, potential buyers, and sellers, all eager to understand Medellín’s dynamic market. Maybe you’re curious too.
We stay closely connected with local professionals and enthusiasts, exploring Medellín’s real estate landscape every day. That’s why we crafted this article: to deliver clear insights, thorough analysis, and a comprehensive view of the market’s current trends and dynamics.
Our mission is straightforward: to make sure you feel informed and confident about Medellín’s real estate market without needing to search elsewhere. If you think we’ve missed something or could improve, we’d love to hear from you. Please share your feedback or comments, and we’ll strive to enhance this content for you.
1) Central neighborhoods will see higher rental yields as short-term rental demand rises
Rental yields in central neighborhoods are on the rise as short-term rental demand grows.
In Medellín's tourist hotspots, properties are seeing occupancy rates between 70% and 85% annually. This means short-term rentals are often more profitable than long-term ones, making them a smart investment choice.
Tourism in Medellín is booming, with 659,097 international visitors in 2023 and a total of 1.2 million tourists. This surge is driving the short-term rental market, especially on platforms like Airbnb, as the city attracts more tourists and digital nomads.
As demand for short-term rentals rises, so do the average daily rates. For instance, a four-bedroom penthouse in El Poblado can earn between $3,000 and $4,000 monthly, offering a gross yield of over 13%. Local government policies are also playing a role by improving connectivity and accessibility, which further boosts this market.
Sources: Medellin Advisors, International Living, Travel Noire
2) Rents in popular areas will rise as digital nomads and remote workers drive demand
Medellín is now a prime spot for digital nomads and remote workers, causing rental prices to rise in its popular neighborhoods.
In 2023, areas like Laureles and El Poblado saw rental prices jump by 81% and 10.33%, respectively. This surge is fueled by the influx of digital nomads and remote workers who are drawn to the city. Medellín's charm lies in its vibrant lifestyle, with leafy suburbs and a buzzing cafe culture, making it a magnet for those working remotely.
Every month, about 8,300 digital nomads arrive in Medellín, thanks in part to the digital nomad visa introduced in 2022. This visa aimed to attract 45,000 digital nomads over 18 months, and it's working. The demand for housing in popular neighborhoods is climbing, pushing rental prices higher.
Medellín's reputation as a top remote work destination is backed by surveys and rankings. The city is consistently praised for its appealing lifestyle and relatively low cost of living. This reputation continues to draw more digital nomads, further increasing the demand for rentals in sought-after areas.
As more remote professionals flock to Medellín, the city's rental market is feeling the pressure. The demand from digital nomads and remote workers is reshaping the housing landscape, especially in neighborhoods like Laureles and El Poblado. This trend is expected to continue as Medellín remains a favorite among those seeking a dynamic work-life balance.
Sources: Marketplace, Nearshore Americas, Scholars UNH
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Colombia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
3) Foreign investors will target short-term rentals to benefit from tourism growth
Medellín is buzzing with tourists, welcoming around 659,097 international visitors in 2023.
This surge in tourism has led to more international flights, making it easier for travelers to reach the city. With this increased accessibility, short-term rentals are booming as tourists look for flexible places to stay.
Airbnb is thriving in Medellín, bringing in over US$62 million each year. From 2020 to 2021, the platform saw a whopping 119% jump in revenue, showing just how popular short-term rentals have become. The local government sees Airbnb as a smart way to tackle accommodation issues, which is boosting this trend even more.
For foreign investors, Medellín's short-term rentals are a goldmine, offering annual returns of 7-10%. This profitability makes these properties a hot ticket, especially when considering the economic hit the city could take if Airbnb activities were restricted.
Sources: Medellín Advisors, Medellín Advisors, Travel Noire
4) Stricter zoning laws will shape the types of developments permitted in certain neighborhoods
Medellín's stricter zoning laws are reshaping the city's neighborhoods.
In 2023, the city rolled out new rules to encourage sustainable and inclusive growth. This means more green spaces and mixed-use developments are getting the green light, while high-density residential projects are taking a backseat. If you're eyeing El Poblado, known for its upscale vibe, expect fewer high-rises. The focus is shifting to mid-rise buildings that blend living and commercial spaces, thanks to concerns about urban density and environmental impact.
In fact, the Medellín City Planning Department noted that over 30% of development permits were denied in 2023 due to zoning law violations. This shows just how serious the city is about these new regulations. The Medellín Chamber of Commerce reported in 2024 that projects getting the nod are those that tick the sustainability boxes, like green buildings and those with public transport links.
On the flip side, high-density projects without enough green space are often turned down. This shift is also visible in the real estate market, where there's a growing appetite for properties with green roofs and community gardens. It's all about aligning with the city's push for environmental sustainability.
So, if you're considering buying property in Medellín, keep an eye on these trends. The city's zoning laws are not just about limiting what can be built but are steering the market towards more eco-friendly and community-focused developments. This could mean a more vibrant and sustainable living environment for future residents.
Sources: El Colombiano, El Tiempo, Chamber of Commerce of Medellín
5) Foreign buyers will increasingly seek eco-friendly and sustainable properties
Foreign buyers are increasingly drawn to Medellín's eco-friendly real estate market.
In Medellín, there's a noticeable shift towards sustainable living, with over 20% of new buildings in Colombia now certified under the IFC's EDGE program. This certification highlights a commitment to eco-friendly construction, making the city a hotspot for those seeking green properties.
The Colombian government is pushing for environmentally friendly building practices, which is fueling the demand for sustainable materials. This market is set to grow by more than USD 1 billion from 2024 to 2029, making sustainable properties even more appealing to buyers.
Foreign buyers are not just looking for any home; they want energy-efficient ones. These homes promise lower utility bills and feature eco-friendly designs, which is why real estate listings in Medellín increasingly showcase sustainable features like energy-efficient appliances.
Medellín's real estate market is adapting to these preferences, with more properties highlighting their green credentials. This trend is part of a broader movement where consumer preferences are shifting towards sustainability, reflecting a global awareness of environmental issues.
As Medellín continues to develop its eco-friendly infrastructure, it's becoming a prime destination for those who value sustainability. The city's commitment to green building practices is evident, and foreign buyers are taking notice, eager to invest in properties that align with their values.
Sources: Medellin Advisors, Bona Fide Research
Get fresh and reliable information about the market in Medellín
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
6) New tax incentives for green buildings will boost sustainable residential property development
New tax incentives for green buildings are set to boost sustainable residential development in Medellín.
In 2023, over 20% of new buildings in Colombia were certified under the IFC's EDGE program, with Medellín leading the charge. This trend is expected to continue, with projections indicating that more than 20% of new buildings will be EDGE certified by 2025.
The Colombian government's National Sustainable Construction Policy, which includes these tax incentives, aims to cut greenhouse gas emissions by 51% by 2030. This policy has already spurred a private sector investment of over $5.9 billion in EDGE certified floor space, with Medellín being a major beneficiary.
Developers are increasingly drawn to eco-friendly homes that offer lower utility bills, driven by consumer demand for sustainable living. This is evident in the rising number of developers seeking EDGE certification for their projects.
Additionally, buildings with LEED certification in Medellín have shown significant energy and water savings, with some achieving 30% savings in energy and 35% in water consumption.
These incentives are proving effective, as seen in the rapid growth of green-certified buildings across the country, with Medellín at the forefront of this movement.
Sources: EDGE Buildings, Colombia Real Estate Trends, SBT Durabi
7) New property tax rules will affect investment strategies and profitability
Changes in property tax regulations are shaking up investment strategies and profitability in Medellín's real estate market.
In 2023, Medellín introduced the "Impuesto de Timbre," a progressive tax that hits properties based on their value. If your property is valued at COP 941.3 million or less, you're in the clear with no tax. But if it's between COP 941.3 million and COP 2.35 billion, expect a 1.5% tax. For those over COP 2.35 billion, the tax jumps to 3%, plus an extra COP 21.1 million.
These tax changes are directly affecting real estate returns. Foreign investors, who often eye high-value properties, now face these extra taxes, which can eat into their profits. This has prompted a shift in strategies, with investors now having to carefully assess the costs and benefits of properties under the new tax rules.
Real estate investors in Medellín are becoming more cautious about ownership costs. New investors, in particular, are diving deeper into tax implications before making decisions. The mix of local taxes and potential taxes from their home countries makes calculating net returns on rentals more complex.
Experts say Medellín's booming tourism and infrastructure development could boost property values and rental income. However, these potential gains need to be weighed against rising property tax costs. Investors should keep an eye on future infrastructure projects to maximize their returns.
Sources: Medellin Advisors, Big News Network, Golden Harbors
8) Co-living spaces will see higher demand as more people look for community-focused living arrangements
In bustling cities like Medellín, co-living spaces are becoming increasingly popular.
These spaces are not just a trend; they're a booming market, valued at $13.3 billion in 2022 and expected to skyrocket to $63.8 billion by 2028. Medellín is a hotspot for this growth, with new developments catering to digital nomads and remote workers. These co-living spaces offer furnished rooms, individual leases, and all-inclusive pricing, making them a smart choice over traditional housing.
The introduction of the Digital Nomad Visa in October 2022 has been a game-changer, attracting remote professionals to Colombia. This visa aims to bring in around 45,000 digital nomads in just 18 months, boosting the need for co-living spaces. With remote work on the rise, people are looking for flexible, short-term housing that offers both community and affordability.
Many millennials and Gen Z individuals are shifting their priorities, valuing experiences and social connections over conventional housing. Platforms like Coliving.com make it easy to find roommates who match your lifestyle, ensuring a sense of community. Social media is buzzing with hashtags that highlight the perks of communal living, further driving this preference.
In Medellín, co-living spaces are not just about a place to stay; they're about creating a lifestyle. These spaces foster a sense of belonging and offer a unique blend of privacy and community. As more people seek out these community-oriented living arrangements, the demand for co-living spaces is set to rise.
For those considering a move to Medellín, co-living offers a vibrant, connected way of life. It's an opportunity to be part of a growing community that values flexibility and shared experiences.
Sources: Coliving.com, Tolj Commercial, Coliving.com for Young Professionals
We have made this infographic to give you a quick and clear snapshot of the property market in Colombia. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
9) Blockchain will make property transactions more secure and efficient by streamlining the process
Blockchain technology is transforming property transactions by making them more secure and efficient.
Back in 2023 and 2024, Colombia took a bold step with its National Land Registry Pilot Project, using blockchain to record land titles. This move ensured transparency and security, slashing processing times and cutting down on corruption. The "Registro de Propiedad" platform, developed by the Colombian National Registry, is a shining example of how blockchain can enhance property transactions. By recording and verifying transactions on a blockchain, the platform reduces fraud risks and boosts transparency.
This initiative was backed by Colombia’s Digital Government Office and the Ministry of Information and Communication Technologies, showing the government's commitment to innovation. Blockchain's knack for cutting out middlemen and automating tasks has led to significant cost savings. Reports from Deloitte suggested that blockchain could trim real estate transaction costs by up to 30%.
The International Blockchain Real Estate Association also highlighted that blockchain could slash real estate fraud by as much as 50%, potentially saving up to $160 billion annually. Imagine the peace of mind knowing your property deal is secure and efficient, thanks to blockchain. This technology is not just a trend; it's a game-changer in the real estate world.
Sources: Coin Rivet, Savvycom Software, Alcor BPO
10) Improved air quality efforts will make some neighborhoods more attractive to health-conscious buyers
Medellín's air quality improvements are drawing in health-focused property buyers.
In recent years, Medellín has made strides in its Air Quality Index (AQI), now boasting levels classified as "Good." This cleaner air is a major attraction for those who prioritize health, making certain neighborhoods more appealing. The city's commitment to green infrastructure and public transportation, like the Metro and Metrocable, plays a big role in this transformation.
These initiatives not only cut down on pollution but also make the city more accessible, reducing traffic-related health issues. For buyers interested in sustainable living, Medellín's eco-friendly efforts are a significant draw. The city's focus on improving air quality aligns with global health standards, making it a desirable place for health-conscious individuals.
Real estate trends show that property values rise in areas with better air quality. This is expected to continue as neighborhoods with cleaner air become more sought after. Health studies consistently link good air quality to better respiratory and cardiovascular health, which is a key consideration for many buyers.
Medellín's efforts to enhance air quality are not just about health; they also boost the city's appeal. As the air gets cleaner, the city becomes more attractive to those looking for a healthier lifestyle. This trend is likely to keep growing, making Medellín a hotspot for health-conscious property buyers.
With these improvements, Medellín is setting a standard for urban living that prioritizes health and sustainability. The city's focus on air quality is making it a more desirable place to live, especially for those who value a clean and healthy environment.
Sources: Medellin Air Quality Index (AQI), Medellín’s Metro System, 2023 World Air Quality Report
11) Improved public transport will make the San Javier area more appealing
The San Javier area is becoming a hot spot thanks to major upgrades in public transportation.
In recent years, Medellín has poured resources into expanding its metro system, including the impressive 80 Metro line. This line stretches over 13 kilometers, featuring 20 trains and 17 stations, and it serves a significant chunk of the city's population, including those in San Javier. Residents now enjoy smoother commutes and a more connected lifestyle.
The 80 Metro line links key neighborhoods like Castilla, Robledo, Laureles, La América, San Javier, Guayabal, and Belén. This connection not only cuts down on CO2 emissions but also eases traffic congestion and reduces accidents. Cleaner air and less traffic are huge perks for anyone thinking about moving to or investing in San Javier.
There's a clear trend: property values tend to climb in areas with better transit access. Homes near public transport in lower-income areas can see their value jump by up to 17.1%. San Javier is poised for a property value boost as it becomes more accessible, making it a prime spot for buyers and investors.
With these transit improvements, San Javier is not just more connected but also more appealing. Efficient and eco-friendly commuting options are drawing attention from potential residents and investors alike.
As the area becomes more attractive, expect a ripple effect on local businesses and amenities. Improved transit can lead to a thriving community, offering more than just a place to live but a vibrant lifestyle.
Sources: City2City Network, SciELO
Don't buy the wrong property, in the wrong area of Medellín
Buying real estate is a significant investment. Don't rely solely on your intuition. Gather the right information to make the best decision.
12) New green spaces and parks will boost the appeal of nearby residential areas
New green spaces and parks can make nearby residential areas much more attractive.
Take Medellín, for example. Projects like Parques del Río Norte have shown that property values rise when new parks and green spaces are introduced. These areas not only cool the city but also offer beautiful spots for relaxation and recreation, making life more enjoyable.
People today are more eco-conscious, and there's a growing trend of wanting to live near nature. Since 2020, there's been a 50% increase in demand for homes with outdoor spaces. Residents often report a better quality of life, which makes these neighborhoods even more appealing.
Green spaces also bring more business activity. Projects like Parques del Río Norte include commercial areas that attract visitors, boosting local businesses and creating a lively community vibe.
In Medellín, these green projects are not just about aesthetics; they are part of a larger urban plan to enhance living conditions. They integrate commercial spaces that draw people in, benefiting both residents and businesses.
So, if you're considering buying property, keep an eye on areas with new parks and green spaces. They not only promise a better lifestyle but also potentially increase the value of your investment.
Sources: Energy Transition, ArchDaily, Green Policy Platform
13) Eco-friendly homes will become more popular as buyers' environmental awareness increases
Eco-friendly homes are gaining traction as more people become aware of environmental issues.
By 2023, over 20% of new buildings in Colombia were certified under the IFC's EDGE program, highlighting a strong shift towards sustainable construction. This trend is expected to continue as energy costs rise and more people become environmentally conscious.
The demand for modern, energy-efficient homes is driving a significant increase in the sales of sustainable building materials. Consumer surveys reveal a clear preference for environmentally friendly homes, with many actively investing in sustainable products.
The Colombian government is promoting sustainable construction through policies like the National Sustainable Construction Policy, which offers incentives for eco-conscious buyers. This policy aims to reduce greenhouse gas emissions by 2030 and achieve carbon neutrality by 2050.
Real estate market reports show a noticeable shift towards sustainable properties, driven by the growing demand for eco-friendly homes and the increasing availability of green financing options. In Medellín, eco-friendly attributes are becoming key selling points in property listings.
As environmental awareness grows among buyers, eco-friendly homes are expected to gain even more popularity. The combination of government incentives, consumer demand, and sustainable construction practices is shaping the future of the real estate market.
Sources: IEA, The Madrona Group
14) Luxury rental yields will decline as more affordable options emerge
Luxury properties in Medellín are facing a tough time as more affordable rentals pop up.
With a growing number of affordable rental properties hitting the market, luxury homes are losing their edge. As new mid-range housing developments spring up, they’re catching the eye of digital nomads and remote workers. These folks are drawn to the affordability and convenience of these options, making them a hot choice over pricier luxury spots.
Surveys show that both locals and expats are leaning towards more budget-friendly housing. This shift means luxury properties are no longer the go-to for renters, leading to lower occupancy rates and, in turn, lower rental yields. Some luxury property owners are even slashing prices to fill vacancies, which only eats into their profits more.
Experts in the real estate market are saying that mid-range properties are set to see better rental yields. Take El Poblado, for instance, where mid-range apartments can offer gross yields of over 11% to 13%. This makes them a sweet deal for investors, putting luxury properties in a tight spot.
In Medellín, the trend is clear: affordable options are winning the rental game. As more people opt for these mid-range homes, luxury properties are struggling to keep up with their rental yields.
With the rise of these affordable rentals, luxury properties are finding it hard to stay competitive. The market is shifting, and those who adapt to the demand for affordable and strategically located housing are likely to come out on top.
Source: International Living
We made this infographic to show you how property prices in Colombia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
15) High-demand neighborhoods will keep stable rental yields with consistent tenant interest
High-demand neighborhoods in Medellín are likely to maintain stable rental yields due to consistent tenant interest.
In these popular areas, rental prices have been steadily rising, with neighborhoods like El Poblado seeing significant increases. The average accommodation price hit $75 per night in 2023, largely because of the influx of digital nomads and remote professionals who are drawn to the city's vibrant lifestyle and affordable living.
These neighborhoods also enjoy impressive occupancy rates, often between 70% to 85% annually, which are much higher than those in less central areas. El Poblado, for example, has a particularly low vacancy rate, ranging from 2% to 4%, showing strong and consistent demand from tenants.
The demographic shift towards young professionals and expatriates is a key driver of this demand. Many are attracted to Medellín for its cost of living and quality of life, which in turn pushes up demand and prices in these sought-after neighborhoods. The city's ongoing infrastructure improvements, like the expansion of the metro system, further enhance the appeal of these areas, making them even more attractive to potential tenants.
With these factors in play, it's no surprise that high-demand neighborhoods are maintaining stable rental yields. The combination of rising rental prices, high occupancy rates, and a growing population of young professionals and expatriates ensures that these areas remain desirable for both tenants and investors.
As Medellín continues to develop and attract more international attention, the rental market in these neighborhoods is expected to stay robust. The city's commitment to improving infrastructure and quality of life only adds to the allure, keeping tenant interest high and rental yields stable.
Source: ArchDaily
16) High-demand areas will see moderate price rises as supply remains limited
Property prices in Medellín's high-demand areas have been steadily rising due to limited supply.
In these sought-after neighborhoods, prices have historically increased by 10-15% each year. This trend is expected to persist, especially with new infrastructure projects like the metro and tunnel developments in the eastern suburbs enhancing connectivity and appeal.
The limited supply is largely because there's not much new land available for development. According to a World Bank report, even though there's potential for over 5 million m² of development, actual development has been capped at around 1.6 million m² over a TIF’s 20-year lifetime. This means that despite having space, various constraints prevent full utilization.
Adding to the demand, Medellín's population is growing, and urbanization is on the rise. The middle class in Colombia is expanding, thanks to economic stability and foreign investment, which is driving up the demand for housing in urban areas like Medellín.
With more people looking for homes and not enough new construction, property prices are naturally climbing. This is particularly true in areas where new infrastructure is making living more convenient and attractive.
So, if you're considering buying property in Medellín, be prepared for ongoing price increases in these high-demand areas due to the limited supply and growing demand.
Sources: PPIAF, Medellin Colombia Real Estate, Nearshore Americas
17) El Poblado's price growth will slow as investors seek opportunities in emerging neighborhoods
El Poblado, once the darling of Medellín's real estate scene, is seeing a slowdown in price growth as of 2023.
With prices per square meter for new builds hovering between 11 to 12 million COP, the market seems to be hitting a plateau. This has led to more properties lingering on the market, a sign that investor interest is waning as they scout for better deals elsewhere.
Emerging neighborhoods like Laureles and Envigado are catching the eye of savvy investors. These areas not only offer more affordable property options but are also seeing a surge in infrastructure and amenities, making them increasingly attractive.
Laureles, for instance, is undergoing a facelift with renovations to its heritage buildings, which is expected to boost property values. This, coupled with higher rental yields, makes these neighborhoods a magnet for those seeking solid returns.
There's also a demographic shift at play. Younger folks are flocking to areas like Laureles, drawn by its vibrant community vibe and local experiences. This trend is highlighted in media coverage and investor surveys, marking these neighborhoods as the next big investment hotspots.
Source: Primavera Realty Medellín
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.