Real Estate Investment: Miami vs. Rio vs. Medellin - Medellin Advisors

Real Estate Investment: Miami vs. Rio vs. Medellin

Real Estate Investment: Miami vs. Rio vs. Medellin

Investing in Real Estate: Miami vs. Rio de Janeiro vs. Medellín

The real estate market in iconic cities such as Miami, Rio de Janeiro, and Medellín offers varied opportunities depending on the type of property you are looking for, your investment objectives, and, of course, your budget. Whether you are a novice investor, an experienced one, or simply looking to buy a property to live in or retire, there is no single guide or infallible book that guarantees a certain result. However, there are indicators that can help reduce risks.

Real Estate Investment: Miami vs. Rio vs. Medellin
Miami, Rio de Janeiro and Medellin offer diverse real estate investment opportunities

In this article, we will provide a comparative analysis of the costs of luxury, mid-range, and economy properties in these three cities. We will also explore the potential returns on investment (ROI), driven by tourism in these areas. Join us in this special edition of real estate investment.

Some Aspects You Should Take Into Account When Investing in Real Estate

Investing in real estate has proven to be a solid strategy for generating long-term returns on investment (ROI). However, choosing the right location can be complex, as various factors must be considered, such as historical tourism trends, economic dynamism, and future growth prospects. Ultimately, this decision is personal for each investor.

You must envision all possible scenarios and choose an option that can be sustained over time. For example, who could have foreseen the COVID-19 crisis in 2020 and all its consequences? This is why it is advisable to be prepared to face challenges, diversify your asset portfolio, and, above all, not rely on a single income source when investing.

Medellin rio miami
The investment decision will depend on each person's objectives and budget

So, what are the best cities in the Americas to undertake an investment or retirement project? Below, we will compare real estate investment opportunities in three vibrant cities: Miami, Rio de Janeiro, and Medellín. 

 

(1) Miami: Capital of Sunshine and Opportunity

Miami, also known as “The Magic City,” is a port city and the largest city in the state of Florida, USA. Founded on July 28, 1896, it covers an area of 145.21 km² and has a population of over 442,241 according to the 2020 census. Miami is a popular tourist destination renowned for its paradisiacal beaches, vibrant nightlife, and warm climate year-round.

Miami, known as the Sunshine City or Magic City, is always a very attractive investment destination.
Miami, known as the Sunshine City or Magic City, is always a very attractive investment destination

Miami maintains steady growth, making it an icon of progress and economic dynamism within the United States. This growth has attracted multinational companies and led to the consolidation of diverse immigrant communities from around the world. It is estimated that 70.2% of its inhabitants are of Hispanic origin, with the city serving as a haven for Cuban exiles for over 60 years, as well as Latin American people from Argentina, Colombia, Puerto Rico, the Dominican Republic, Venezuela, and other nations. Additionally, the thriving technology sector encourages real estate investors, making Miami a highly attractive destination for any investor.

Miami is a safe haven for investment and emigration of people from all over the world.
Miami is a safe haven for investment and emigration of people from all over the world

Miami Real Estate Market in 2024

The Miami real estate market offers a wide range of options, from luxury condominiums on the coast to single-family homes and apartments in residential neighborhoods. Property prices have increased significantly in recent years and are expected to continue growing at a moderate pace. While Miami’s real estate ROI is currently relatively low and conservative, averaging 5-7% annually, the high demand for sales and rental properties keeps the market red-hot. In 2023, there was a 14.9% year-over-year price increase, maintaining the interest of avid investors and attracting new players to the market.

Miami has a strong real estate market that satisfies the appetite of investors from all over the world.
Miami has a strong real estate market that satisfies the appetite of investors from all over the world

Real Estate Market Analysis in Miami

Miami is a coveted destination for investors and buyers from around the world due to its wide range of properties. In this analysis, we will explore the luxury, mid-range, and affordable property markets in the Magic City, covering neighborhoods, average prices, property types, among other key factors. 

The luxurious Brickell neighborhood is one of the preferred areas for investing in Miami.
The luxurious Brickell neighborhood is one of the preferred areas for investing in Miami.

Luxury Properties in Miami

Miami is renowned for its exclusive properties in select neighborhoods:

  • Fisher Island: A private island where the average cost is USD 20,000 per square meter, with properties reaching between USD 7-10 million.
  • Star Island: Home to celebrities, with an average price of USD 18,000 per square meter and properties valued between USD 8-12 million.
  • Indian Creek Island: Known as the “Billionaire’s Bunker,” it offers properties at USD 22,000 per square meter, with an average cost of USD 20 million.
Miami has become a destination for celebrities and millionaires from all over the world
Miami has become a destination for celebrities and millionaires from all over the world
  • Palm Island: Offers spacious homes with an average price of USD 15,000 per square meter, and properties ranging from USD 7-10 million.
  • Hibiscus Island: Features waterfront properties with an average price of USD 16,000 per square meter, and a median cost of USD 8-10 million.
In miami you can find a huge and luxurious penthouse
In Miami, you can find a huge and luxurious penthouse

Budget for Luxury Investment in Miami

Here’s a detailed breakdown of the investment costs for a 192 m² apartment in Miami, priced at USD 4,427 per square meter:

  • Sale Price: USD 850,000
  • Agent Commission (6%): USD 51,000
  • Closing Costs (3%): USD 25,500
  • Annual Management Expenses (approx. 5%): USD 42,500
  • Annual Taxes (1.8%): USD 15,300
  • Annual Insurance: USD 8,500
  • Total Investment + Costs: USD 992,800

Naturally, these values are approximate and may vary depending on factors such as the property’s value, location, size, and amenities.

Miami world invesment
Miami is among the top 5 cities attracting the most real estate investments

Mid-Range Properties in Miami

Miami also offers options for those with mid-range budgets, attracting medium and small investors, professionals, newlywed couples, and retirees looking for quality of life at a reasonable price. Some of the areas where you can find mid-range properties include:

Brickell: The financial district of Miami, with average prices per square foot typically ranging between USD 900 and USD 1,050, offering a blend of urban lifestyle and modern amenities.

Coral Gables: Known for its elegant architecture and green spaces, with an average cost per square foot ranging between USD 1,150 and USD 1,300.

Coconut Grove: Renowned for its bohemian atmosphere and proximity to the sea, with an average cost per square foot around USD 900 to USD 1,100.

Coconut Groove is one of the most recommended mid-priced areas to invest in Miami
Coconut Groove is one of the most recommended mid-priced areas to invest in Miami

Budget for Mid-Range Investment in Miami

Property Type: 376 m² House.  Price per m² USD: 3,542. 

• Sale Price USD: 544,900. 

• Agent Commission 6% USD: 32,694. 

• Closing Costs 3% USD: 16,347. 

• Annual Management Expenses approx. 5% USD: 27,245. 

• Annual Taxes 1.8%: USD: 9,808. 

• Annual Insurance USD: 5,449. 

• Total Investment + Costs USD: 636,443.

Similar to the previous example, we have made an estimated calculation for didactic purposes of closing costs, taxes, insurance, and commissions, as well as expenses associated with a mid-range real estate investment in Miami

The city of Miami has a wide range of properties for sale of all types and budgets.
The city of Miami has a wide range of properties for sale of all types and budgets

Economical Properties in Miami

For tighter budgets, neighborhoods like Little Havana, Allapattah, and Liberty City offer economical options:

Little Havana: Located in the heart of Miami, Little Havana offers a vibrant atmosphere and affordable real estate option. It has an average prices per square meter typically range between USD 1,200-1,500, translating into properties ranging from USD 250,000- USD 400,000, with areas of 100 m² to 120 m².

Little Havana offers more accessible price ranges for investing in Miami
Little Havana offers more accessible price ranges for investing in Miami

 

In Allapattah: To the northwest of downtown Miami. Allapattah blends historic charm with urban vitality. The average prices per square meter vary between USD 800-USD 1,200, meaning you can find houses and apartments in the range of USD 250,000 to USD 400,000, with areas of 100 m² to 160 m².

Liberty City: Situated in the urban core of Miami. Liberty City provides affordable housing options, with average prices per square meter ranging between $700 and $1,000, resulting in properties ranging from $250,000 to $400,000, with areas of 120 m² -170 m².

There are also low-cost investment options available in Miam
Cerro Tusa is the world’s largest natural pyramid.

Budget for Economical Investment in Miami

Property Type: 175.26 m² Apartment.  Price per m² USD: 1,797. 

• Sale Price USD: 315,000. 

• Agent Commission 6% USD: 18,900. 

• Closing Costs 3% USD: 9.450. 

• Annual Management Expenses approx. 5% USD: 27,245. 

• Annual Taxes 1.8%: USD: 9,808. 

• Annual Insurance USD: 5,449. 

• Total Investment + Costs USD: 636,443.

Similar to the previous example, we have made an estimated calculation for didactic purposes of closing costs, taxes, insurance, and commissions. As well as expenses associated with a economical real estate investment in Miami.

The increasing demand for properties for rent and sale maintains a positive appreciation in the real estate sector in Miami
Cerro Tusa is the world’s largest natural pyramid.

Miami Real Estate Market Comparison 2024

Finally, we have prepared a summary table of properties for sale in each category: luxury, mid-range, and affordable. This is intended to give you an approximate idea of price ranges and the value per square meter in various neighborhoods of Miami. This table will help you draw your own conclusions and, ultimately, make a personal decision based on your specific needs.

Comparativo de Mercado Inmobiliario de Miami en 2024
There are many pricing options in Miami when it comes to investing in property, it all depends on your needs and budget

As we can see, in Miami, there are luxury properties that will require you to invest several million dollars. These properties are located on private islands, allowing you to maintain an exclusive lifestyle at the level of celebrities. Similarly, there are moderately priced options in areas of significant growth and development. But even if you do not have a large budget. You can find opportunities in older houses or small apartments, as these will also allow you to enter the market.

Is it a Good Time To Buy a Home in Miami?

Miami offers a wide range of properties that meet various requirements, from luxurious mansions to mid-range and affordable houses or apartments. With a thriving economy and high demand for rental and for-sale properties. Miami allows for high appreciation in the short and medium term, with a conservative long-term return on investment (ROI). It’s no coincidence that the city remains a classic destination for investors and homebuyers. Of course, the final answer and decision will depend on your investment objectives, economic capacity to enter the vibrant real estate market in the Magic City, and other factors you must evaluate yourself. 

Miami is a classic destination for real estate investors.
Miami is a classic destination for real estate investors

A not-so-positive aspect of investing in Miami is that you need an initial capital of at least $400,000 and up (just to enter the market). As the cost per square meter is higher than other cities. Consider also closing costs, taxes and administrative expenses, which can be challenging for small investors or people with tight budgets.

(2) Rio de Janeiro: "A Cidade Maravilhosa" of Brazil

Río de Janeiro is a coastal city located in the southeast of Brazil, founded on March 1, 1545, by Portuguese colonizers. With an area of 1,200 square kilometers and a population of 6,211,423 inhabitants, it is the second-largest city in the country and globally renowned for its beaches, the Carnival, its football stadium, the statue of Christ the Redeemer, and the favelas

Ubication rio de janeiro
Rio de Janeiro is the second most important city in Brazil after Sao Paulo.

Real Estate Market Analysis in Rio de Janeiro

Rio de Janeiro has emerged as an attractive destination for real estate investors due to its steady economic growth, with a 2.9% increase in GDP in 2023, and a relatively low cost of living compared to other global cities, with a cost of living index of 77.12. Additionally, the city has experienced a significant property appreciation, with an average 8.5% increase in housing prices over the last three years, and an attractive return on investment (ROI), with an average yield of 7-9% in the real estate sector. 

Rio de Janeiro is a charming city in Brazil
Rio de Janeiro is Brazil's second-largest city after São Paulo

Rio de Janeiro Real Estate Market in 2024

The real estate market in Rio de Janeiro in 2024 continues to be attractive due to its growth potential backed by international events and infrastructure development. The city offers a variety of neighborhoods with different characteristics and prices, providing options for a wide range of investors and residents. Some of the standout neighborhoods in Rio de Janeiro and their average prices per square meter in US dollars are:

-Copacabana: Known for its famous beach and nightlife. Copacabana is one of Rio’s most iconic neighborhoods. Average prices per square meter range between USD 4,000-6,000.

Ipanema: Another popular coastal neighborhood, famous for its stylish ambiance and stunning ocean views. Average prices per square meter in Ipanema are between USD 5,000-7,000.

Leblon: Considered one of the city’s most exclusive neighborhoods, Leblon offers luxury properties and an excellent quality of life. Prices per square meter typically exceed USD 7,000.

Rio de janeiro jardin
Rio de Janeiro also offers high-end properties to real estate investor

Barra da Tijuca: With wide beaches and modern developments, Barra da Tijuca is a popular choice for families and those seeking a more relaxed lifestyle. Average prices per square meter range between USD 4,000-5,000.

Botafogo: With a central location and a mix of residences and businesses, Botafogo offers more affordable options compared to some of the more exclusive coastal neighborhoods. Prices per square meter usually hover around USD 5,000.

These prices are general estimates and may vary depending on the exact location, type of property, and market conditions at the time of purchase. However, they reflect the diversity of options available in Rio de Janeiro’s real estate market, which continues to be attractive to investors and residents alike.

Growth in Rio de Janeiro driven by tourism and foreign investment
There are opportunities for real estate investment in Rio de Janeiro with ocean view

Luxury Properties in Rio de Janeiro

Rio de Janeiro boasts luxury properties in exclusive neighborhoods. Some of the most sought-after areas are:

Ipanema: It is a sector famous for its white sand beaches, crystal clear waters and, promenade. It has a vibrant atmosphere and is the epicenter of national and foreign tourism. It has an average price per square meter of USD 15,000 and average cost of USD 9,550,000, with an average area of 601 m².

-Lagoa: It has a quiet and charming landscape, surrounded by green areas and recreational activities, being an ideal place to live in Rio de Janeiro. It has an average price per square meter of USD 3,600, luxury properties here have an average cost of USD 1,900,000 with areas of 345 m².

-Leblon: It is an elegant seaside neighborhood, famous for its beach, sophisticated atmosphere and, a wide range of restaurants, bars and, luxury stores. It has an average price per square meter of 9,000 USD, with an average cost of 3,678,400 USD and an average area of 984 m².

 

 

 

Leblon is a neighborhood famous for its beaches, shopping area and lifestyle.
Leblon is a neighborhood famous for its beaches, shopping area and lifestyle.

Budget for Luxury Investment in Rio de Janeiro

Property
Type: 250 m².

House. 
Price per m² USD: 2,797.

 

•Sale Price USD: 699,219 .

•Agent
Commission 6% USD: 41,953. 

• Closing Costs 5% USD: 34,961. 

• Annual Management Expenses approx. 5%
USD: 34,961. 

• Annual Taxes 4% USD: 27,969. 

• Annual Insurance 1% USD: 6,992. 

 

• Total Investment + Costs USD:  846,055.

Naturally, these figures are estimations and could differ based on the property’s investment value, its location, size, and the amenities it provides.

Rio de Janeiro also offers older luxury properties at lower prices than Miami
Rio de Janeiro also offers older luxury properties at lower prices than Miami

Mid-Range Properties in Rio de Janeiro

Rio de Janeiro also offers options for medium budgets, allowing for a balance between the value per square meter and the investment. Some possible options are:

-Botafogo: It is a residential neighborhood known for its family-friendly atmosphere and its proximity to the famous beach. It offers a blend of urban life with entertainment options, restaurants, and shopping centers. The average price per square meter is USD 4,500-5,000, with a 101-square-meter apartment costing approximately USD 560,000-650,000.

Laranjeiras: It is an area famous for its historic houses and its proximity to the city center. It is ideal for families and those seeking a more relaxed atmosphere. The average price per square meter is USD 2,500-3,500, with a 180-square-meter property costing an average of USD 550,000-600,000.

-Barra Da Tijuca: It is a well-located residential neighborhood with easy access to downtown and various commercial areas. It is known for its schools, parks, and recreational areas. The average price per square meter is USD 4,000-5,000. A property with an estimated area of 159 square meters can cost between USD 550,000-650,000. 

 
 
Botafogo is an upper-middle-class neighborhood ideal for investment in Rio de Janeiro
Botafogo is an upper-middle-class neighborhood ideal for investment in Rio de Janeiro

Budget for Mid-Range Investment in Rio de Janeiro

Property
Type: 180 m².

Apartment. 
Price per m² USD: 2,778.

•Sale Price USD: 510.346 

•Agent
Commission 6% USD: 30,621. 

• Closing Costs 5% USD: 25,517. 

• Annual Management Expenses approx. 5%
USD: 25,517. 

• Annual Taxes 4% USD: 20,414. 

• Annual Insurance 1% USD: 5,103. 

 

• Total Investment + Costs USD:  617,518.

The previous estimates are only intended to give an approximate idea of the costs and taxes involved in investing in this category in Rio de Janeiro. It is important that you conduct your own research and factor these costs into your budget to avoid any setbacks.

 
Barra da Tijuca is a prominent neighborhood within Rio de Janeiro
Barra da Tijuca is a prominent neighborhood within Rio de Janeiro.

Economical Properties in Rio de Janeiro

Rio de Janeiro is an appealing city even for investors with tighter budgets, as there are opportunities in the West Zone of Rio de Janeiro, with more accessible costs and where one can achieve annual appreciation and adequate ROI. Among them, we have:

Bangu: It is a residential neighborhood with a mix of homes of different styles and sizes. It offers good commercial and transportation infrastructure. The average price per square meter ranges from USD 1,200 to 1,800. The average cost of a property in this area is USD 200,000-250,000, with sizes ranging from 110-290 square meters.

 
Campo Grande is an area where the cost per square meter is lower than in other tourist zones of Rio de Janeiro.
Campo Grande is an area where the cost per square meter is lower than in other tourist zones of Rio de Janeiro

-Campo Grande: Stands out for its tranquil residential environment and extensive green areas, offering affordable housing options and a robust service infrastructure. The average price per square meter ranges between USD 1,500-2,000, meaning that a property of 130-200 square meters can vary between USD 180,000-220,000.

-Santa Cruz,: Is known for its suburban character and family-friendly atmosphere. It offers a variety of housing options at more affordable prices compared to other areas of the city. The average price per square meter is USD 1,000-1,500, with properties in this range typically priced between USD 200,000 -250,000, with areas ranging from 225-240 square meters. 

 

Budget for Economical Investment in Rio de Janeiro

Property
Type: 3,200 m².

House. 
Price per m² USD: 75.

•Sale Price USD: 240.000

•Agent
Commission 6% USD: 14,400. 

• Closing Costs 5% USD: 12,000. 

• Annual Management Expenses approx. 5%
USD: 12,000. 

• Annual Taxes 4% USD: 9,600. 

• Annual Insurance 1% USD: 2,400. 

• Total Investment + Costs USD:  290,400

 The previous calculations are for educational purposes only, so they do not represent a guaranteed outcome when investing in Rio de Janeiro. Naturally. You should research the market, optionally consult with a real estate agent experienced in the area, and ultimately make decisions that best suit your investment goals and budget.
Rio de Janeiro offers a wide variety of investment options in 2024
Rio de Janeiro offers a wide variety of investment options in 2024

Rio de Janeiro Real Estate Market Comparison in 2024

In the following table, we present a comparison of some luxury, mid-range, and affordable properties for sale in Rio de Janeiro. Where you can better understand the variety of options available in the city’s inventory. You will also gain insight into the approximate market costs based on location, size, and other factors. 

All this information will allow you to make a more informed decision when embarking on a real estate venture. 

Rio de Janeiro has luxury, mid-range and affordable properties for investment
Rio de Janeiro has luxury, mid-range and affordable properties for investment

As for Rio de Janeiro, we find luxurious properties, but at a lower price than Miami. For example, a large mansion on a private island can be acquired with a budget of 8-10 million dollars. The final price will depend on you and the communities you wish to have. Similarly, there are options of moderate price, near the beach or in areas where there is a recent growth. 

Finally, there are affordable older homes, apartment or projects to the west of the city, with an average cost of $200,000 and even less, so there are always opportunities to enter the real estate market in this fascinating city.

Is it a Good Time To Buy a Home in Rio de Janeiro?

 
Rio de Janeiro offers a wide range of properties for every need and budget. Although Rio has shown signs of recovery in the real estate sector, with high demand for properties for sale and rent in recent years.  
 
In the city, there have been fluctuations and the so-called “Real Estate Boom”, a phenomenon that led to speculation and overvaluation of housing prices. Rio de Janeiro has hosted major sporting events, such as “The Football Cup in 2014” and “The 2016 Olympics”. As expected, this boosted the construction and economy, subsequently there was a sharp drop in prices.
 
This generated panic and losses for some investors, but at the same time has created opportunities for new players. Who can enter at more reasonable prices in the market.  So it is important to make informed decisions and properly assess risk when investing in this Brazilian real estate sector.
Rio investment
Rio de Janeiro's real estate market has fluctuated over time, causing fear among some investors

Brazil’s successive crises generated panic and losses for some investors, but at the same time has created opportunities for new players. Who can enter at more reasonable prices in the market.  So it is important to make informed decisions and properly assess risk when investing in this Brazilian real estate sector.

(3) Medellín: "La Ciudad de La Eterna Primavera" and District of Science, Technology and Innovation

Medellín, also known as “The City of Eternal Spring,” is a city and the capital of the department of Antioquia in Colombia. It was founded on November 2, 1616, with an area of 382 km² and a population of over 2,700,702 in 2024. Medellín is the second-largest city in Colombia, with a diversified economy. Furthermore. It has become a preferred destination for national and foreign investment, standing out for its pleasant climate, economic development, and cultural richness.

 

Map of Colombia and location of Medellin
Medellin is located in the Aburrá Valley region, in the central mountain range of the Colombian Andes

Real Estate Market Analysis in Medellín

Medellin’s real estate market is surprising positively. For over 20 years, it has continued to grow and has doubled in size, maintaining a high appreciation despite the fluctuations of Colombia’s national politics and economy. The city has thus become a safe haven for real estate capital. The city has a growing demand for real estate for sale and rent, the latter accentuated by increased tourism and foreign investment. Therefore, despite the slowdown in economic dynamism faced by Gustavo Petro’s government. The outlook for Medellín in 2024 is positive for the real estate sector.

Medellin is an attractive city for real estate investment.
Medellin is an attractive city for real estate investment

Medellín has thus become a safe haven for real estate capital. The city has a growing demand for real estate for sale and rent, the latter accentuated by increased tourism and foreign investment. Therefore, despite the slowdown in economic dynamism faced by Gustavo Petro’s government. The outlook for Medellín in 2024 is positive for the real estate sector.

Luxury Properties in Medellin

Medellín offers a wide range of luxury real estate options. Some of the most sought-after areas for investment include:

-El Poblado: Famous for its luxurious atmosphere, vibrant nightlife, and modern infrastructure. This neighborhood features upscale shopping centers, fine dining restaurants, and exclusive residential complexes. The Average Price per Square Meter ranges from USD 4,000-5,000 with prices starting at USD 420,000.

-Envigado: Exudes charm with its cobblestone streets, colonial architecture, and picturesque landscapes. This affluent suburb offers a blend of tranquility and sophistication. With luxury residences, boutique shops, and gourmet restaurants. The Average Price per Square Meter ranges between USD 3,500-4,500, with price ranges starting from USD 350,000 onwards.

El poblado views beautiful
El Poblado is located southeast of Medellin. It is one of the richest and most popular neighborhoods to invest in buying property

-Laureles: It is known for its tree-lined avenues, cultural diversity, and bohemian atmosphere. It offers a variety of upscale cafes, designer boutiques, and exclusive residential properties. The Average Price per Square Meter ranges from USD 3,000-$4,000, with prices starting from USD 250,000.

Laureles is a great place to live in medellin
Laureles is a place that generates interest to invest in properties and the cost is lower than El Poblado

Budget for Luxury Investment in Medellin

Property Type: 264 m² Apartment.  Price per m² USD: 1,483. 

• Sale Price USD: 391,396.

• Agent Commission 3% + I.V.A 19% USD: 13,973. 

• Closing Costs 3% “Gastos Notaries-Impuesto de Timbre” USD: 11,472. 

• Annual Management Expenses approx. 6% USD: 23,484. 

• Annual Taxes 2% USD: 7,828. 

• Annual Insurance USD: 3,914. 

• Total Investment + Costs USD:  452,336.

The above calculations are approximate and will allow you to determine the budget you should have available to invest in this category, as well as to assume the initial costs, taxes and maintenance or repairs you may have to make.  

One of the main advantages of Medellin is that the investment cost is more affordable than other cities such as Miami or Rio de Janeiro.
You can find elegant apartments or old units for remodeling at a good price in Medellín

Mid-Range Properties in Medellin

Medellín offers various neighborhoods where you can find mid-range properties, including:

  • Belén: It’s an area that blends residential and commercial areas. It has easy access to roads and public transportation, as well as nearby shopping centers, schools, and medical facilities. In this area, the average price per square meter is USD 1,000-1,500 for an apartment of 150-200 square meters, with prices ranging between USD 190,000-220,000.
Belen stands out as a mid-priced neighborhood in Medellin
Belen stands out as a mid-priced neighborhood to buy property in Medellin.

-La Floresta: It’s a residential neighborhood with a peaceful and family-friendly atmosphere. Known for its parks and green areas, as well as its good connectivity through the metro. The Average Price per Square Meter is USD 1,200-1,500. In this area, you can find a property of 230-250 square meters at an average cost of USD 250,000.

Sabaneta: It offers a tranquil and residential environment on the outskirts of the city. With easy access to services and amenities. The average price per square meter in this area is around USD 1,500-1,800, and the approximate cost of a property can range between USD 200,000-220,000.

 

Sabaneta is a municipality located 15 km from the center of Medellin, being a mid-priced option for investment
Sabaneta is a mid-priced option for investment

Budget for Mid-Range Investment in Medellin

Property Type: 139 m² Apartment.  Price per m² USD: 1,483. 

• Sale Price USD: 206,135.

• Agent Commission 3% + I.V.A 19% USD: 8,415. 

• Closing Costs 3% “Gastos Notaries-Impuesto de Timbre” USD: 6,184. 

• Annual Management Expenses approx. 6% USD: 12,638. 

• Annual Taxes 2% USD: 4,123. 

• Annual Insurance USD: 2,061. 

• Total Investment + Costs USD:  239,286.

The above calculations are approximate and will allow you to determine the budget you should have available to invest in this category, as well as to assume the initial costs, taxes and maintenance or repairs you may have to make.  

Economical Properties in Medellin

Medellín offers a variety of areas where you can find affordable properties. Some of the options in this category are:

-La Candelaria: Located in the heart of Medellin, it retains a mix of traditional architecture and modern amenities. The Average Price per Square Meter ranges from USD 900-1,100, with properties available in the range of USD 80,000-110,000 for areas of 110-160 square meters.

 

 

 

 

 
Mayor FICO wants to make Medellín a model sustainable city in the country
La Candelaria is a central neighborhood of Medellin where prices are lower for investment, but insecurity can be higher than in other areas

-El Retiro: It is a tranquil suburb located just outside Medellín. It offers a peaceful environment surrounded by lush vegetation and panoramic mountain views, standing out for its spacious properties, perfect for those seeking a quieter lifestyle away from the city hustle. The average cost per square meter ranges from USD 900-1300, and you can find prices starting from USD 120,000-130,000.

-Itagüí: It is an urban area with a mixture of residential and commercial zones. It is well-connected to public transportation, facilitating access to other parts of the city. The Average Price per Square Meter is USD 800-1200, with prices ranging from USD 120,000-130,000 and 90 square meters. 

 
Itagüí is a low-cost area that is generating new developments that are ideal for investment near Medellín
Itagüí is a low-cost area that is generating new developments that are ideal for investment near Medellín

Budget for Economical Investment in Medellin

Property Type: 151 m² Apartment.  Price per m² USD: 1,026. 

• Sale Price USD: 154,885.

• Agent Commission 3% + I.V.A 19% USD: 6,878. 

• Closing Costs 3% “Gastos Notaries-Impuesto de Timbre” USD: 4,647. 

• Annual Management Expenses approx. 6% USD: 9,293. 

• Annual Taxes 2% USD: 3,098. 

• Annual Insurance USD: 1,549. 

• Total Investment + Costs USD:  180,349.

The above calculations are approximate and will allow you to determine the budget you should have available to invest in this category, as well as to assume the initial costs, taxes and maintenance or repairs you may have to make.  

Medellin Real Estate Market Comparison 2024

To conclude, the real estate panorama (Medellín chapter). We have prepared the following table that will allow you to obtain valuable information when deciding to invest in the City of Eternal Spring. In it, we have condensed the studied property categories: luxury, mid-range, and economical, in different neighborhoods, also determining the average cost per square meter.

 
Medellin offers a wide variety of properties for sale that meet the needs of every investor
Medellin offers a wide variety of properties for sale that meet the needs of every investor

When comparing prices in Medellín in 2024 with those in Miami and Rio de Janeiro, it’s evident that the Colombian city has an advantage, as entering the market doesn’t require as significant an effort. So, clearly, you don’t have to be super-rich or leave all your capital when buying a property to get into the real estate business in the city of the Eternal Spring. Another advantage is that the appreciation annual is higher, on average 9-10%, due to a sustained demand for properties for sale and lease.

 
 

Is It a Good Time To Buy a Home in Medellin?

As we have pointed out throughout this report, the historical figures are revealing and speak for themselves about a significant revaluation of the real estate market in Medellín. Indeed, there is no other investment in Colombia as secure as property acquisition, since over time, the investment’s value will increase due to annual property value increments. However, the decision to invest or not ultimately depends on each person.

Questions about these taxes, other closing costs, or the property acquisition process in general?
Email me – ingo@medellinadvisors.com or a WhatsApp message (+57)  317 5233469 and we can chat about it further. 

Join The Discussion

Compare listings

Compare
Search
Logo

Useful advice? Subscribe to our monthly newsletter. 

One email per month about the latest in Medellin relating to news, daily life, investing, and local events. 

**tu email es nuestro secreto sagrado, nunca lo compartiremos con nadie**

Click to chat!