The up-and-coming area of Sabaneta, which is part of the southern Medellín metroplex, offers real estate costs that are lower than in El Poblado and Envigado. We have been looking at Sabaneta in more detail as an investment opportunity and this is the third article in our series. First we looked at an overview of Sabaneta followed by a look at the lifestyle in Sabaneta. This week we look at real estate costs in Sabaneta.
We recently completed a detailed survey of 100 existing real estate properties in Sabaneta, which permits us to compare Sabaneta with the real estate costs in other neighborhoods in the Medellín Metroplex that we surveyed in March. Similar to our previous survey, we surveyed 100 existing real estate properties sized from 70 to 100 square meters in Sabaneta. All of the apartments we surveyed in Sabaneta were located in estrato 3-5 neighborhoods.
Note we are using an exchange rate of 2,536 Colombian pesos to the U.S. dollar in this article.
Some foreigners have discovered Sabaneta, which is located directly south of El Poblado and Envigado, where real estate can be less expensive in comparison. In our survey of 100 existing properties in Sabaneta we found existing properties in Sabaneta are 18.5% cheaper in Sabaneta on average than existing properties in El Poblado with an average cost in Sabaneta of 2.365 million pesos ($972 USD) per square meter for properties sized from 70 to 100 square meters.
The majority of the 100 existing properties we surveyed in Sabaneta were three-bedroom apartments, with only 11% being two-bedroom apartments. 46% of the apartments we surveyed in Sabaneta were located in estrato 4 or 5 neighborhoods and the remainder were located in estrato 3 neighborhoods. Residential properties in Colombia are ranked on a 1-6 socioeconomic scale (with 6 being the highest), which are known as estratos.
With much of El Pobaldo built out, developers have started to focus their attention further south in Envigado and Sabaneta. Sabaneta has started to experience a construction boom with at least 50 new apartment buildings under construction in the area. There are more apartment buildings currently under construction in Sabaneta than in El Poblado.
Prices for new apartments in Sabaneta can range from about 1,800,000 pesos ($710) per square meter to over 3,500,000 pesos ($1,380). This is a pretty wide range that is driven by the estrato, quality and location/view of properties. The lowest priced new housing is typically located in poorer estrato 1 or 2 neighborhoods, where foreigners normally don’t feel comfortable living. In Medellín most foreigners choose to live in estrato 3-6 neighborhoods.
One thing to watch out for in new apartment construction in Medellín is that builders typically advertise prices for not fully finished apartments with a gris (grey) finish, which is not finished out with cabinets, paint, trim and flooring. Finishing out a new apartment have costs above the base price, which can add up to 20 million pesos or more to a new apartment cost.
Sabaneta is primarily a residential community – you won’t yet find any hotels in Sabaneta like are found throughout El Poblado. In Sabaneta, you will find several neighborhoods similar to El Poblado with high-rise apartment buildings but they tend to be more spread out. Also in Sabaneta you can find some quiet streets lined with one-story, two-story and three-story attached homes that are more difficult to find in El Poblado.
Much of the daily life in Sabaneta is centered around Parque Principal Sabaneta with many apartment options in Sabaneta being located within walking distance to this park.
Existing real estate properties in Sabaneta are on average 18.5% lower cost than in El Poblado as seen in the following table that presents our Sabaneta survey results along with our previous survey results.
The Bottom Line
With average real estate costs in Sabaneta for existing properties that are lower than El Poblado and Envigado, we believe that Sabaneta is likely to attract more foreigners. Sabaneta is attractive for other reasons besides the lower real estate costs, so we are repeating the following list of why we see Sabaneta as an attractive area for foreigners:
- Many parts of Sabaneta are flat areas for walking and retirees, compared to the hilly El Poblado
- 10 minutes on the metro to El Poblado
- Several apartment buildings within walking distance to metro stations
- Grocery stores within 10 minutes, including Exito and a new Euro
- Several quiet neighborhoods: no bars or discos
- One of the nicest parks in the Medellín metro: Parque Principal Sabaneta
- Established nightlife area away from residential areas (La Doctora area)
- Selection of good restaurants in the area
- Two modern shopping malls with movie theaters
In this third part in our series about Sabaneta we looked at the real estate costs in Sabaneta. We plan to add a final part to our series about Sabaneta next week that will look at Parque Principal Sabaneta in more detail.