A recent post on the U.S. News website concluded that Medellín is one of four international retirement cities where the strong dollar offers a discount retirement and a real estate buying opportunity.
The U.S. News post describes Medellín as:
“… a first-world setting, with clean, safe and shady streets, fine dining and charming outdoor cafes. Travelers and retirees from around the world are beginning to realize this, yet Medellín’s negative stereotype of 30 years ago continues to keep property prices down.”
We agree with this description. The recently improved exchange rate for the Colombian peso has also made real estate in Medellín a bargain in terms of U.S. dollars as we recently covered in an article entitled, “Medellin Might Be the Best Real Estate Deal on the Planet”.
Also last month we surveyed real estate prices in four neighborhoods in the city of Medellín and found that the average current price for existing properties in these four neighborhoods was 2.503 million Colombian pesos ($973 USD) per square meter for properties sized from 70 to 100 square meters.
Note we are using an exchange rate of 2,572 Colombian pesos to the U.S. dollar in this article. This exchange rate is up about 39% over the past nine months.
The U.S. News post highlights El Poblado, which is the most upscale neighborhood in Medellín, which is most popular with foreigners. However this is also the most expensive neighborhood in the city and it is possible for retirees to save over 30% by looking at other neighborhoods in Medellín.
In El Poblado existing properties we surveyed last month averaged a cost of 2.921 million pesos ($1,146 USD) per square meter for existing properties sized from 70 to 100 square meters. While in Laureles, for example, existing real estate in our survey averaged 2.226 million pesos ($865 USD) per square meter, which is 31.2% less than El Poblado.
The Bottom Line
Medellín continues to gain a reputation as a top foreign retirement location. Several publications including Businessweek, U.S. News and Huffington Post have called the city a great retirement location.
Medellin is known as the City of Eternal Spring with year round comfortable temperatures with little humidity. You don’t need heat and you don’t need air conditioning. In short, it has all the benefit of the tropics without the nasty weather or bugs.
Medellín is attracting more retirees with this near perfect climate, a relatively low cost of living and good healthcare with eight of Latin America’s 42 top-rated hospitals.
The recent dramatically improved exchange rate for the US dollar to Colombian peso is primarily due to the weakness in the price of crude oil (Colombia is a big oil exporter) and the strength of the US dollar. While the exchange rate may stay around where it is for a while longer, this is not guaranteed. If you want to save about 39% on real estate compared to just nine months ago, now is the opportunity.
Call First American Realty at 305 393-8872 or 954 363-1169 or email [email protected] and the company will send you more information about the real estate opportunities in Medellín.