Practical guide · General Questions · Basic level · 6 min read ·
How to invest in real estate in Medellín?
In Medellín you can get into real estate by buying a whole property or by participating with a small amount in a project that runs one, such as a short-term rental or coliving building. Either way, the result depends on the neighbourhood, what the land use plan allows, the building's rules and real demand.
In 30 seconds
- There are two paths: buying a whole property or participating in a project.
- The neighbourhood, land use plan and building rules matter as much as the price.
- Medellín's demand comes from residents, students, travellers and remote workers.
Before you start
Medellín mixes many kinds of demand: families, students, business travellers, tourists and people who work remotely. Each wants a different kind of property, so before choosing it helps to know which one you're aiming at.
- Decide whether you're after rental income, appreciation or a mix of both.
- Understand that a property in the city depends on what the POT allows in that area.
- Be clear on your horizon: real estate moves in years, not months.
- Keep money you may need soon apart from money you can leave alone.
Step by step
- 1
Choose the kind of demand
A flat for a family is not the same as one for travellers by the night. Short-term rental can bring in more per night but is also more variable; traditional renting is steadier and usually earns less per square metre.
- 2
Study the neighbourhood
In Medellín, areas such as El Poblado, Laureles or Las Palmas have very different demand and prices. Look at access, safety, nearby services and what uses the land use plan allows: whether the area is residential, commercial or mixed, and what can be built.
- 3
Check the building's rules
If the property is under propiedad horizontal, the building rules say which uses are allowed. To rent by the night you also need the RNT and the rules must authorise tourist use.
- 4
Pick your path: buy or participate
Buying a flat takes a down payment, a mortgage and managing it yourself. Participating in a project lets you start with a small amount while a team runs the asset. At Circular Urban, for example, Circular Houses is a building in Las Palmas with short-term rental apartments, coliving, a leased commercial space and workspace, and you can participate from about 190,000 pesos (around 50 dollars).
- 5
Read the documents before deciding
Go through the project page, the Project Documents, the participation agreement and the risk disclosure. If you buy a property directly, ask for the certificado de tradición y libertad before signing.
An example
As an illustration, unrelated to any project: Andrés wants a stake in Medellín but doesn't have a down payment for a flat. He compares the two paths.
| Buying a flat | Down payment, mortgage, managing it himself |
|---|---|
| Participating in a project | Small amount, a team runs the asset |
| Concentration risk | High if everything is in one property |
| Liquidity | Low either way |
| What Andrés decides | Start by participating and learn the process |
Neither path is better in the abstract. What changes is how much money you need to get in, how much work falls on you and how much of your wealth sits in a single asset.
Questions you'll have
Why do so many people want to invest in Medellín?
Because it combines several sources of demand: it's a hub for business, universities and healthcare, it receives many foreign visitors and it has become a chosen base for remote workers. That supports both traditional renting and short-term rental. But demand isn't the same in every neighbourhood, and an attractive city also draws more supply and competition.
Which areas of Medellín are best to invest in?
It depends on the use. El Poblado and Laureles concentrate tourist and business demand; areas such as Las Palmas attract people who want nature close to the city; the corridors toward the southwest are growing with new roads. Rather than the best area, look for the one that fits the project's kind of tenant or guest.
Can I run an Airbnb in any building in Medellín?
No. To rent by the night you need the RNT, and if the building is under propiedad horizontal, its rules must expressly allow tourist use. Many residential buildings don't, and operating without meeting these rules exposes the owner to penalties.
What is the POT and why does it matter to me?
It's the plan each municipality uses to decide how its land is used: which areas are residential, commercial or mixed, how many floors can be built and where roads and parks go. In Medellín it's called the POT; smaller municipalities have a PBOT or an EOT, which do the same job. A change to those rules can change what a plot is worth. For example, the land of Proyecto Vegas is in La Pintada, in Antioquia's southwest, and follows that municipality's EOT (Acuerdo 009 of 2023), not Medellín's POT.
Can I participate in a Medellín project if I don't live there?
Yes. When you participate in a project you don't have to manage the property or be nearby: the project team handles operations and you follow along in Your portfolio and the reports. If you live outside Colombia, there are extra steps to send the money, covered in the guide for people abroad.
How much is the building fee in Medellín?
It depends on the building, its common areas and each unit's coefficient. What matters is that the cuota de administración is a fixed cost: it's paid even when the property is empty, so it cuts into what's left from income in slow months.
Common mistakes
- Myth
In Medellín any flat rents itself.
- In reality
Demand varies a lot from one neighbourhood to another and supply keeps growing. Occupancy depends on location, the product and how it's run.
- Myth
To invest in Medellín I need to buy a whole flat.
- In reality
You can also participate with a small amount in a project that runs a property, such as Circular Houses.
- Myth
If the building is mine, I can rent it by the night without permits.
- In reality
You need the RNT and, under propiedad horizontal, building rules that authorise tourist use.
Your first step
Get to know a Medellín project
Look at the page for Circular Houses: how its four business units fit together, what documents it has and what risks it declares. No rush, no commitment.
See Circular HousesKeep learning
This content is educational. Every participation carries risks inherent to the project, including the possibility of partial or total loss, and results are subject to each project's actual performance.
