The City of Opportunity

Medellin, a city on the rise, is becoming a hotspot for real estate investment, driven by impressive returns, steady property price increases, and a thriving rental market.

With significant growth in tourism, a robust economy, and ongoing infrastructure development, the city presents abundant opportunities for investors.

Medellin's commitment to safety, education, and environmental sustainability further enhances its appeal, making it a prime destination for those looking to capitalize on its potential.

Why Colombia?

When a country's economy is expected to grow, it usually has a positive effect on real estate markets. When the economy is doing well and people are earning more, they tend to buy more homes, and as a result, prices of properties and the rent people pay for them go up.

GDP Forecast

When a country's population increases, the demand for housing also increases because more people need places to live in. This leads to higher property prices and rental rates because there aren't enough housing units available to meet the overall demand.

Population

When the prediction is for inflation to rise, it tends to impact real estate markets by potentially causing property prices and rental rates to increase. The value of currency decreases and people may look to invest in tangible assets like real estate to protect against the decreasing purchasing power of their fiat currency.

Inflation Forecast

When the average amount of money earned by each person in a country (GDP per capita) goes up, people can afford better homes and places to live in, which will make property prices increase. Also, since people are earning more, they are able to afford better rental prices, as a result, rents tend to increase.

GDP per Capita

If a country's currency strengthens against the one you use (for example, USD or EUR), it can make property prices even more attractive

Currency Valuation

The housing index shows property price trends over time. For investors, it can help predict if property values will increase or decrease. High index suggests growth, good for buying. Low index might mean decline, so caution when investing.

Housing Index

Why Medellin Real Estate?

Medellin real estate values have increased steadily since the turn of the millennium.

Not even during the economic recession of 2008, which saw house prices plummet not only in the US but across most of the world, have housing prices gone down year over year in Medellin.

Case Study

This massive 135m2, 3 bedroom, 3 bathroom apartment was sold for $178,000, which corresponds to $1,320 per m2, fully renovated. These numbers include the terrace and Jacuzzi. It is located in El Poblado, in a prime area.

Breakdown

Here is the exact breakdown. We are assuming a conservative occupancy rate of 85%. In reality, it has been over 92% using contracts of a month up to a year.

We just changed the occupancy rate, and added relatively high maintenance costs.

Essentially, there is boost in these numbers.

In reality, with the right property, setup and management, net returns should outperform the example in this case.

Investing in foreign real estate offers a unique opportunity to diversify your investment portfolio, reducing risk and enhancing stability. By spreading your investments across different geographical locations, you can protect your assets from local economic downturns and market fluctuations.

Diversification

Foreign markets, like Medellin, often provide higher returns on investment compared to domestic markets. Lower property prices combined with strong economic growth and increasing demand make these markets highly lucrative.

Higher Returns

Investing in countries with favorable exchange rates can significantly enhance your purchasing power and overall investment returns. This advantage allows investors to acquire premium properties at a fraction of the cost in their home country.

Currency Advantage

Many countries offer tax incentives for foreign investors, including reduced property taxes and tax exemptions on rental income. These benefits can improve your investment profitability and cash flow.

Tax Benefits

Foreign real estate can serve as a tangible asset that protects against inflation and currency devaluation. Owning physical property in a stable foreign market provides a secure and appreciating asset.

Asset Protection

Investing in foreign real estate can also offer benefits such as residency or citizenship opportunities. These programs provide greater mobility, security, and potential tax advantages.