Medellin Real Estate

Medellin Real Estate – Zone 3

colombiamedellin — Wed, 30 Sep 2009 16:06:53 +0000

Laureles, Medellin

Zone 3 is often overlooked by foreigners searching for Medellin real estate. This is a shame actually, as some neighborhoods in Zone 3 like Laureles and Bello are really quite nice. Not surprisingly, real estate prices in Zone 3 are about 25% lower than they are in typical Gringo neighborhoods like Poblado and Enviago. Really nice apartments in Zone 3 can be found for around $70 per square foot and in many cases much less than that.

Map of Laureles, Medellin

Specifically, Laureles is a quiet neighborhood composed of upper-middle class single family residents and upscale apartment complexes. It has remained somewhat off the radar, but I know several Americans that have purchased apartments in Laureles over the last few months. Laureles is also very close to both Calle 33 and La 70, a popular hangout for young Colombians, especially at night. Those who are looking for something different than Parque Lleras might find Laureles interesting.

Bello, Medellin

To the North of Laureles is Bello, an expansive neighborhood with around 500,000 residents. Bellos is actually a city within a city and is comprised of 81 seperate barrios with mainly residential and mixed-use buildings. Bello is home to many furniture designers and manufacturers, both big and small and many of its residents work in this industry. While it is true that some parts of Bello may not be 100% safe, there are several pockets within this large barrio that are quiet and safe. Real estate prices in Bello are considerably lower than Laureles and it seems to have the highest concentration of beautiful women in Medellin. I have spent alot of time wandering around the various subsections of Bello and have never felt unsafe. The women in Bello are much friendlier than their Poblado counterparts and always greet newcomers with a smile.

Medellin: “A Model for Cities Around the World”

colombiamedellin — Thu, 24 Sep 2009 15:58:12 +0000

Medellin, Colombia

Medellin gained even more International recognition last night as Architecture for Humanity awarded it’s annual Curry Stone Design Prize to Medellín’s Former Urban Projects Director, Alejandro Echeverri, and Former
Mayor Sergio Fajardo for their Transformative Urban Public Works Plan. The winner’s of the $100,000 prize will be announced today at the IdeaFestival in Lousiville, Kentucky.

Orquideorama - Medellin Botanical Gardens

Calling Medellin’s four-year revitilization a “model for cities around the world”, a four-judge panel of architecture and design leaders from around the world were amazed at the “remarkable” transformation of Medellin from one of the World’s most violent cities into what they called a “thriving urban hub”. Credit for this “remarkable” turn around was given to the two men, along with their extensive team of architects and technicians who embarked on an ambitious plan of revitalizing Medellin’s poorest and disconnected neighborhoods.

Spain Library - Medellin

Some of the more notable projects include the Orquideorama, a 42,200-square-foot structure whose defining feature is a soaring, fractal-like canopy of wood-framed hexagons that shelters the Botanic Garden’s orchid collection and houses cultural events and the iconic Parque Biblioteca España, which resembles three massive, etched black boulders and is perched in the hilltops of Santo Domingo, a barrio once notorious for drug violence.

MetroCable, Medellin

Other wildly successful architectural and social project initiated as part of the plan was Medellin’s Metro Cable system. The Metro Cable was designed to connect some of Medellin’s most violent and disconnected neighborhoods with the rest of the city via a gondola-style mass transit system. It has succeeded beyond anyone’s expectations and remains the World’s only gondola tramway used exclusively for public transportation. The idea behind these projects was giving people in neighborhoods once excluded from the city’s mainstream a sense of pride and responsibility. It let them know that the city was willing to invest in them if they were in turn willing to take responsibility for the maintenance of the investment. Again, the project was successful on all fronts. Murders in Medellin went from 381 for every 100,000 residents in 1991 to 29 in 2006 and International tourism to Medellin has increased dramatically. I was at La Biblioteca de Espana last week and was amazed to see several dozen foreign tourists roaming freely around a neighborhood once ravaged by drug violence and poverty. It truly is a testament to the power of public investment in social projects and more importantly to the special nature of Colombia’s best kept secret, Medellin.

Medellin Real Estate – Zone 2

colombiamedellin — Mon, 21 Sep 2009 00:26:39 +0000

Poblado, Medellin

Medelin real estate – Zone 2 is far and away the most upscale zone in Medellin. It is home to Medellin’s banking and hotel district, many of it’s finest Universities, several upscale malls and the famous Zona Rosa, the center of nightlife and fine dining in Medellin. Needless to say, Zone 2 is also where I have my apartment. While Zone 2 is made up of many different barrios, El Poblado and Envigado are two of the biggest and, not surprisingly, have far and away the highest concentration of North American and European residents.

Poblado Medellin map

El Poblado, which translates to “the village” in Spanish, is divided into 22 seperate, yet often indistinguishable sub-barrios and has a population of nearly 100,000. Real estate prices in El Poblado have risen sharply over the last few years, yet the average price for a very nice apartment in this area is still only around $120,000. Compare that to the average price for a luxury condo in the U.S. or even Panama and you can see why we think Medellin could truly be the next hot real estate market. Unlike Panama however, Medellin and especially Poblado is a highly organized and well-oiled machine. Traffic moves about freely most of the time and a large part of the wiring for cable and electricity are buried underground. The street lights were designed by a famous architect and even the trash cans and park benches have a modern design. It is rare to see any trash on the streets or sidewalks. In fact, El Poblado is one of the cleanest city neighborhoods that I have ever seen, the U.S. included.

Envigado, Medellin, Antioquia

Envigado is another nice neighborhood which borders Poblado to the South. Enviagado is a bit larger than Poblado with an estimated population of 180,000 and is equally as nice and clean. In fact, although Poblado is known as being Medellin’s nicest neighborhood, residents of Envigado often beg to differ. I have spent alot of time in both places and can say that it is virtually a toss-up. Like Poblado, Envigado has many beautiful and wooded parks, wonderful restaurants, nightclubs and shopping. Real estate prices in Envigado may be slightly lower per square meter than Poblado, but don’t expect big discounts from similar properties in Poblado. Envigado has a nice mix of large apartment complexes and single family homes. Many of Medellin’s newest and most luxurious real estate projects are being built in the upper most sections of Envigado where the views are nothing short of spectacular.

Medellin Real Estate – Zone 1

colombiamedellin — Sat, 19 Sep 2009 22:25:19 +0000

Parque Bolivar - El Centro

In my last post I described how Colombia real estate professionals in Medellin have found it practical to divide the city into four distinct zones. In this post I will talk specifically about Zone 1. El Centro (Downtown Medellin) makes up a large part of Zone 1. Like the the downtown of any large city, El Centro is where one will find most of the large office towers, museums, public parks and government offices.

Downtown Medellin

Street vendors and discount retail stores abound and the streets of El Centro are packed with shoppers, commuters and people from all walks of life from early in the morning to late in the evening. Most foreigners are told to stay away from El Centro for safety reasons. I personally love El Centro, and go there often, even at night. Clearly El Centro is not Poblado, and one should remain aware when walking the streets, especially at night. On the real estate front, El Centro offers many options, although most of my clients prefer a cleaner, quieter neighborhood. Nonetheless, for the adventurous, there are some great deals to be had in El Centro. Most upwardly mobile Colombians posses the desire to leave the hustle and bustle of the downtown area and move to a quieter neighborhood. The suburban flight has forced many downtown apartment owners to lower their prices. In fact, I have seen small units close to the Metro and the Botero Museum for less than $30,000.

Real estate in Medellin (Prado)

The rest of Zone 1 is made up of a number of barrios surrounding El Centro. Generally these areas are safe, yet I do not see alot of foreigners requesting information about real estate in these areas. The neighborhoods surrounding El Centro are comprised mainly of one or two-story single family residences and small apartment buildings. Construction quality is average in these neighborhoods, but there are some small pockets where one can find high-quality homes and apartments for less than $50 per square meter.

Medellin Real Estate – The Truth About Prices

colombiamedellin — Sat, 19 Sep 2009 21:15:44 +0000

Medellin real estate prices

This is an important topic that I thought would make an interesting post, especially for those unfamiliar with Medellin real estate and the city’s different zones or sectors. Like in any real estate market, prices for homes and apartments in Medellin are most often determined by one thing (or is it three?), location, location, location! Medellin is officially divided into 6 different zones or stratas. The government uses these divisions as a way to decide what to charge residents for electricity. Generally, the higher the zone number, the nicer the zone and the more the government charges residents in that zone for electricity per kilowatt hour. This has proven to be an excellent way for the residents of nicer areas like Poblado to essentially subsidize the electricity usage for those who live in the poorer barrios of Medellin.

Medellin neighborhoods, zones and sectors

Though the 6-sector division works well for the municipality, for the purposes of real estae, we have found it easier to divide the city into four zones and, in this case, the higher zone numbers do not necessarily correlate to a nicer neighborhood. Prices in Medellin have been rising steadily for the past several years. It is hard to say what effect foreign investors and home buyers have had on real estate prices in Medellin, but my assumption is not much. Most of the price appreciation witnessed in Medellin has been driven by the stability in the local economy, a growing middle-class and Colombian-expats living abroad and investing in Colombia. Over the last several weeks, I have compiled a list of the average price per square meter for apartments in Medellin’s main neighborhoods. My calculations are based on the asking prices of well over 100 apartments in neighborhoods from all four real estate sectors.

Here is what we found.

	ZONE 1	ZONE 2	ZONE 3	ZONE 4
Avg. apartment size (sqm)	95	120	108	102
Avg. apartment size (sqft)	1,022	1,292	1,162	1,097
Avg. asking price (Colombian Pesos)	89,680,500	252,919,354	167,690,250	132,677,418
Avg. asking price (U.S. Dollars)	$45,990	$129,702	$85,995	$68,039
Avg. price per square meter (USD)	$483	$1,081	$796	$667
Avg. price per square foot (USD)	$45	$100	$74	$62

The lack of a Multiple Listing Service in Colombia makes it difficult to obtain precise real estate sales information. Nonetheless, data was compiled on more than 100 different apartments in Medellin and are accurate through September 2009. Avid followers of Medellin real estate and Internet sites dedicated to the promotion of Medellin as a travel and investment destination will notice that these results differ greatly from those posted on other, more outdated sites. I have found these results to be right on the mark, and that they accurately reflect today’s real estate market in Medellin. Long gone are the days where one can find a nice apartment in Poblado for $60/sqft. Almost every apartment that we surveyed in Poblado was above $100/sqft. I will highlight each one of these sectors in my next few posts. Stay tuned!

Colombia Real Estate Buying Process – Final steps.

colombiamedellin — Mon, 14 Sep 2009 22:41:36 +0000

Medellin real estate closing

Once the Purchase agreement has been signed by both parties and the non-refundable deposit has been transferred to the seller, the buyer usually has 30-90 days to get the remaining funds together, do due diligence and complete the final steps of the Colombia Real Estate buying process.

7. The Closing.This is often the most stressful step in the Colombia real estate buying process. The closing involves many steps and can be a complicated process if the buyer tries to handle everything on his own without the help of a Colombian attorney or a bilingual real estate professional. Again, I will dedicate an entire post to understanding the closing process and the signing of the deed in the near future.

8. Registering the title. Once the monies have been transferred to the previous owner and the deed has been signed, the buyer/investor is almost officially the owner of Colombia real estate. There are still a few more steps before picking out furniture and planning for a celebration. In Colombia, buyers need to register their property with the local government office charged with recording the title of the property. The property will not officially belong to the buyer until this step has been completed. I will go over each and every step in detail in a later post.

9. Registering the property as a ‘Foreign Investment’. This step is important if the buyer or investor does not have Colombian citizenship. Colombia law provides for tax free repatriation of real estate investments in Colombia. This is important to know, especially for investors. All real estate purchases over $100,000 should be registered as a Foreign Investment.

10. Crack the champagne!The process of purchasing a property in Colombia can seem daunting, especially for those not fluent in Spanish. This is why we continually stress the importance of having a professional, bilingual real estate professional walk you through every step of the process. But, no matter how daunting or stressful the process may be, this I promise you. Your investment in this beautiful country will be one of the best decisions you will ever make.

Colombia Real Estate Buying Process – The offer.

colombiamedellin — Mon, 14 Sep 2009 01:19:53 +0000

Purchase contract - Colombia

Once the perfect piece of Colombia real estate has been chosen, it is time for the next logical step in the buying process.

4. Making an offer and negotiating the price. This step can be complicated and uncomfortable in any county. And investors or home buyers will find the process no less so in Colombia. If your real estate professional has done his job correctly, the buyer will have a pretty good idea as to the firmness of the asking price. In a hot market like Cartagena, don’t expect alot of movement on the owner’s asking price. We have found that owners of apartments and homes in Medellin however are willing to negotiate the price. It is important note that, when negotiating with a Colombian as a foreigner, it is often best to let the real estate professional or Colombian attorney do the negotiating. Often times, when the Colombian seller sees that the buyer is North American or European, the seller assumes (most often incorrectly) that the buyer is rich and can afford to pay a premium price for the property. Again, your real estate professional should have ways around this by negotiating on your behalf.

5. Decide for how the property will be paid. Once a price has been agreed upon by both parties, it is time to define a payment method. In the United States, the vast majority of home purchases are done with a bank mortgage. I will talk about Colombian bank financing for foreigners in my next post. For now let’s assume that the property will be paid for in cash. There are various ways of getting the cash from the buyer to the seller. I will talk more about the various methods of paying for Colombian real estate in a later post.

6. Sign a purchase agreement. Once the method of payment has been determined, it is time to sign a purchase agreement. Colombian purchase agreements work much in the same way that purchase agreements work in other parts of the world. A licensed and well-recommended attorney will draw up the agreement and the document will be signed by both parties. Generally, the signing of this agreement is accompanied by a non-refundable deposit given to the seller by the buyer. The deposit amount varies, but the buyer should expect to pay around 10% of the sales price as a non-refundable deposit.

More on the closing and registering aColombian Real Estate purchase in my next post

Colombia Real Estate Buying Process – First steps

colombiamedellin — Wed, 09 Sep 2009 13:51:20 +0000

Colombia real estate buying process

I get emails all the time asking me about the real estate purchase process in Colombia. People often want to know about the safety of purchasing real estate in Colombia as a foreigner and what types of local bank financing are available if any. I will use my next several posts to highlight the important steps in the Colombian real estate buying process. Then, I will revisit each step in it’s own post and cover, in detail, the most important constituents of each of these steps. Here we go!

Medellin, Colombia

1. Choosing a market. The first step in any real estate purchase process is clearly deciding where exactly you want to live. This is obviously an important step and could be complicated by the fact that Colombia offers so many wonderful options. From the steamy colonoal city of Cartagena to the bustling capital in Bogota, Colombia truly has a market perfect for any type of investor or home buyer. For us, this step was easy. We chose Medellin because of it’s year-round spring-like climate, world-class public transportation services and the overall friendly nature of the people in Medellin.

2. Finding a local real estate professional. We always recommend having a local real estate professional help with the buying process. Unlike in North America or Europe, there is no official real estate licensing process in Colombia. You might find that even the taxi drivers have real estate for sale in Colombia. We suggest trying to avoid buying real estate without the help of a legitimate real estate professional. There are many qualified real estate companies in Colombia and many of them cater to the needs of English-speaking investors, retirees or vacation home buyers.

3. Choosing the right home. Once a prospective buyer/investor has decided on a market and solicited the help of a real estate professional, the next and most exciting step will be selecting the right home or investment. Keep in mind that there is no MLS system in Colombia. If your real estate professional shows you three options and you don’t like any of them, ask to see more properties or find another realtor. A buyer/investor should always make an informed decision and should not settle on a property that is less than exactly what you are looking for.

Colombia real estate process

Is Medellin getting a new rep?

colombiamedellin — Tue, 01 Sep 2009 19:09:22 +0000

MSNBC on Medellin

I realize that for Medellin to truly become the ‘Next Panama’, major changes will need to be made in how the mainstream world views Medellin. Despite all of the transformations that Medellin has undergone over the last 10 years, many people still see Medellin as one of the world’s most dangerous cities. As a Medellin real estate investor, I obviously think this will change. I came across an interesting article on MSNBC.com. It is a good read for anyone considering investing in real estate in Colombia or is planning on visiting Medellin.

MSNBC – FORMER COCAINE CAPITAL SHAKES OFF BAD REPUTATION

Medellin Real Estate – The Next Panama?

colombiamedellin — Mon, 24 Aug 2009 13:41:01 +0000

Medellin at night

Could Medellin real estatebe the next Panama?

I have seen this question answered elsewhere on the Internet (usually be people with little or no real life experience investing in Panama). This question interests me personally, as I lived and invested in real estate in Panama for over three years. I was in Panama in 2006 when developers and investors thought they could do no wrong. No price was too high for a Panama City condo with an ocean view. At the height of the Panama real estate boom, apartments on Balboa Avenue were selling pre-construction in excess of $4,000/sqm. Late last year, reality hit most of the world’s hot real estate markets. Since then, markets like south Florida, Arizona, Dubai and Panama have seen price valuations cut in half. I personally know realtors and developers in Panama City that have not moved a unit in 18 months. Does this mean that Panama will no longer be a popular destination for international retirees and real estate investors? NO. Panama is still Latin America’s most stable economy and the new President seems poised to expand Panama’s investor friendly political environment.

So, Why Medellin?

I will attempt to draw comparisons between the two markets over the next several weeks. I will start here though by examening the issue that affects a person’s decision most, price. At the beginning of the Panama phenomenon in 2003, prices per square meter for land and apartments in Panama City were very affordable. A nice apartment could be had in one of Panama City’s nicest neighborhood for $800/sqm. Today however, even after the 50% reduction in asking prices over the past 12 months, nice apartments in a nice area of Panama are running close to $2,000/sqm.

Medellin on the other hand never experienced this kind of speculation-driven price increase. Medellin has experienced its own boom of sorts, but in contrast to Panama’s international, internet-based boom, the growth in Medellin’s real estate sector was home-grown and fueled by a growing middle-class and Colombian ex-pats living abroad buying property for investment or for future retirement. Prices for luxury apartments are on the rise, but beautiful apartments can still be found in Medellin’s most exclusive areas for less than $1,000/sqm.