Medellín Unfurnished Apartment Rental Costs – 2016 Update

I have now been living in Medellín for over six years and I have lived in six different barrios in the city. I have often been asked by many foreigners about the unfurnished apartment rental costs in Medellín.

I also have helped several foreigners find unfurnished apartments in Medellín. My experience in renting three unfurnished apartments was previously documented on this site in a four-part series. Read the first part here, the second part here, the third part here and the fourth part here.

I also covered my experience renting my latest apartment here. Also, I have seen several Internet blog posts and press articles that have inaccurately depicted the costs of apartment rentals in Medellín.

I recently surveyed with the help of my Colombian wife the rental costs of 1,000 available unfurnished apartments in several neighborhoods in Medellín.

This was to accurately answer the question: “What are the current unfurnished apartment rental costs in Medellín?”

We specifically looked in El Poblado, Laureles-Estadio, Envigado, Belén and Sabaneta. We only looked at 1-bedroom, 2-bedroom and 3-bedroom apartments. We did not look at casas (houses) or larger apartments.

This is an update of a very popular post last year that looked at apartment rental costs in these same neighborhoods in Medellín.

During this survey, we only looked in nicer neighborhoods where foreigners are more likely to live.  We only included apartments in estrato 3, 4, 5 and 6 neighborhoods. Only a few estrato 3 neighborhoods were included.

This update with the latest apartment rental costs in neighborhoods in Medellín also permits seeing if rental costs have increased in these neighborhoods from our survey at the end of last year.

We also looked at furnished apartment rental costs late last year.

(Note: using 2,918 Colombian pesos to the USD exchange rate in this post. The exchange rate fluctuates daily and has ranged from 2,851 to 3,118 over the past month.)

El Poblado Apartments

El Poblado is the most popular neighborhood for foreigners living in or visiting Medellín. It is the most upscale neighborhood in the city.  It’s also where the most hotels and furnished apartments catering to foreigners are located.

El Poblado is primarily an Estrato 6 neighborhood with about 74 percent of the households rated at estrato 6. It is also where the most expensive real estate and most expensive apartment rentals in the city are located.

I lived for over a month over six years ago in a furnished apartment in El Poblado during an early trial of living in Medellín.

I quickly determined that El Poblado wasn’t for me. I prefer to live in a neighborhood that has a lower cost of living and isn’t as westernized.

El Poblado survey of 200 apartment rentals results:

• 27 apartments were 1-bedroom or studios ranging in size from 38 to 100 square meters with rents ranging from 1.05 million to 2.6 million pesos per month.
• 50 apartments were 2-bedroom apartments ranging in size from 50 to 140 square meters with rents ranging from 1.3 million to 3.0 million pesos per month.
• 123 apartments were 3-bedroom apartments ranging in size from 70 to 220 square meters with rents ranging from 1.25 million to 6.2 million pesos per month.
• The average rental cost per square meter of the 200 apartments in El Poblado was 21,183 pesos per month per square meter.
• Surprisingly 16 percent of the 200 apartments surveyed in the ritziest neighborhood of El Poblado did not have hot water and 10 of those with hot water only had electric hot water in the shower(s).
• 8.5 percent of the 200 apartments surveyed in El Poblado didn’t have a 24/7 porteria.

Envigado Apartments

Envigado is a popular neighborhood for foreigners living in Medellín. It is less commercial than El Poblado and is located directly south from El Poblado.

Envigado has many areas with tree-lined streets and fewer high-rise apartments than are found in El Poblado.

Envigado is more of a working-class community with 96 percent of housing in estrato 2 to 5 and only 4 percent in estrato 1 or 6.

Envigado survey of 200 apartment rentals results:

• Only six of the apartments surveyed were 1-bedroom or studios ranging in size from 35 to 80 square meters with rents ranging from 600,000 to 1.8 million pesos per month.
• 54 apartments were 2-bedroom apartments ranging in size from 58 to 182 square meters with rents ranging from 800,000 to 3.3 million pesos per month.
• 140 apartments were 3-bedroom apartment ranging in size from 60 to 200 square meters with rents ranging from 600,000 to 3.8 million pesos per month.
• The average rental cost per square meter of the 200 apartments surveyed in Envigado was 18,071 pesos per month per square meter, which means Envigado apartment rentals are 14.7 percent cheaper on average than in El Poblado for similar size apartments.
• 18.5 percent of the apartments in Envigado did not have hot water and none of these only had electric hot water in the shower(s).
• 15 percent of the 200 apartments surveyed in Envigado didn’t have a 24/7 porteria.

Laureles-Estadio Apartments

Laureles-Estadio is another popular neighborhood for foreigners living in Medellín.  Laureles is primarily a residential neighborhood. It has many areas with tree-lined streets and fewer high-rise apartments than are found in El Poblado.

The first unfurnished apartment I rented in Medellín was located in Estadio. Laureles-Estadio is primarily an estrato 4/5 neighborhood with 99 percent of the households rated at estrato 4 or 5.

Laureles-Estadio survey of 200 apartment rentals results:

• 20 apartments were 1-bedroom or studios ranging in size from 38 to 80 square meters with rents ranging from 600,000 to 1.2 million pesos per month.
• 42 apartments were 2-bedroom apartments ranging in size from 55 to 140 square meters with rents ranging from 700,000 to 2.0 million pesos per month.
• 138 apartments were 3-bedroom apartment ranging in size from 60 to 185 square meters with rents ranging from 1.0 million to 3.2 million pesos per month.
• The average rental cost per square meter of the 200 apartments in Laureles-Estadio was 16,073 pesos per month per square meter, which means Laureles-Estadio apartment rentals are 24.1 percent cheaper on average than in El Poblado for similar-sized apartments.
• 35 percent of the 200 apartments surveyed in Laureles-Estadio did not have hot water and three with hot water only had electric hot water in the shower(s).
• 65.5 percent of the 200 apartments surveyed in Laureles-Estadio didn’t have a 24/7 porteria. A high percentage of the buildings in Laureles-Estadio are not high-rises so they don’t normally have 24/7 porterias.

Belén Apartments

Belén is a neighborhood that has been increasing in popularity for foreigners living in Medellín. Belén is the comuna where I lived for over three years in three different barrios (Fatima, Loma de Los Bernal and Los Alpes)

Belén is more of a working-class community with 98 percent of the housing in estrato 2 to 5 and only 2 percent in estrato 1.

Belén survey of 200 apartment rentals results:

• 13 the apartments surveyed were 1-bedroom or studios ranging in size from 32 to 51 square meters with rents ranging from 650,000 to 1.1 million pesos per month.
• 49 apartments were 2-bedroom apartments ranging in size from 47 to 100 square meters with rents ranging from 840,000 to 1.55 million pesos per month.
• 138 apartments were 3-bedroom apartment ranging in size from 57 to 135 square meters with rents ranging from 820,000 to 2.3 million pesos per month.
• The average rental cost per square meter of the 200 apartments in Belén was 15,448 pesos per month per square meter, which means Belén apartment rentals are 27.1 percent cheaper on average than in El Poblado for similar size apartments.
• 12 percent of the 200 apartments in Belén did not have hot water and two of these only had electric hot water in the shower(s).
• 23.5 percent of the 200 apartments surveyed in Belén didn’t have a 24/7 porteria.

Sabaneta Apartments

Sabaneta is a municipality located directly south of Envigado. It is an area that has been booming with developers building many apartment buildings over the past few years.

Sabaneta is becoming increasingly popular with foreigners looking for an alternative that can be cheaper than El Poblado and Envigado.

My current apartment in Medellín is located in Sabaneta. Since I have lived in Sabaneta for over a year I hear English more and more around town as more foreigners discover the area.

Sabaneta is more of a working-class community with 98 percent of housing in estrato 2 to 4 and only 2 percent in estrato 1, 5 or 6.

Sabaneta survey of 200 apartment rentals results:

• 15 of the apartments surveyed were 1-bedroom or studios ranging in size from 34 to 68 square meters with rents ranging from 650,000 to 1.3 million pesos per month.
• 47 apartments were 2-bedroom apartments ranging in size from 55 to 126 square meters with rents ranging from 700,000 to 1.7 million pesos per month.
• 138 apartments were 3-bedroom apartment range in size from 60 to 207 square meters with rents ranging from 750,000 to 2.5 million pesos per month.
• The average rental cost per square meter of the 200 apartments in Sabaneta was 15,194 pesos per month per square meter, which means Sabaneta apartment rentals are 28.3 percent cheaper on average than in El Poblado for similar size apartments.
• 12.5 percent of the 200 apartments in Sabaneta did not have hot water and none of these only had electric hot water in the shower(s).
• 14.5 percent of the 200 apartments surveyed in Sabaneta didn’t have a 24/7 porteria.

Avoiding Paying Gringo Rental Costs in Medellín

It is very important to understand the market rental prices when looking for an apartment in Medellín.  This is to make sure you aren’t taken advantage of by real estate agents and owners.

While I was living in Belén I met one expat living nearby that was paying about 70 percent higher rent.  This was for a much smaller place without the view I had. I suspect this was the result of a real estate agent taking advantage of an expat not knowing the market prices.

When you lease from a real estate agency in Colombia you sign a contract with the agency. The agency has a separate contract with the apartment owner. The difference between the contracts is the “commission”.

If an agent sees someone that is not knowledgeable about the market it’s easy to jack up the price to the tenant and pocket the difference. So this article should help give a general idea of the current unfurnished rental prices in several areas in Medellín.

I also recommend looking at the Espacio Urbano website. This Spanish-language website is where most real estate firms in Medellín post apartment rental and sales listings. It is an invaluable website to help understand market prices.

Recently on International Living’s website a post about Medellín discussed an expat’s experience in renting an apartment in the Conquistadores barrio, which is located in Laureles.

The post says that the expat was paying $1,000 per month to rent a three-bedroom apartment. But if you look above at three-bedroom apartment prices in Laureles, you’ll find they should rent for less.

During our survey we didn’t find any apartments in Conquistadores renting for a price as high as $1,000.  That is above the market price in the area.

I also read a recent report by Live & Invest Overseas, which claimed that an “unfurnished, two-bedroom, comfortable apartment in El Poblado or other expat-popular neighborhood” costs 3 million pesos per month to rent.

However, if you look at the survey results above, the average two-bedroom apartment in El Poblado actually rents for only 2,148,500 pesos per month or 2,050,00 pesos per month as a median. In fact, in our survey we only found one two-bedroom apartment renting for 3 million pesos in El Poblado.

The other 49 two-bedroom apartments in El Poblado we surveyed were all lower priced than 3 million pesos.  So the actual average and median market price in El Poblado is much lower.

Other neighborhoods in Medellín popular with expats like Laureles-Estadio, Envigado, Belén and Sabaneta have even cheaper rental apartments as seen above.

Rent versus Buy?

If you are planning to move to Medellín from another country, I recommend not jumping right into buying or renting an unfurnished apartment.

First rent a furnished apartment for at least a month or more as I originally did to make sure Medellín is right for you. This will also give you the time and opportunity to explore the city to find which neighborhood(s) you would like to live in. However, even after deciding that you want to live longer-term in Medellín, buying may not be the best option for everyone.

In our study of the rental prices in Medellín, we saw many unfurnished apartments that rent for a year for only 5-8 percent of the purchase price to buy the apartment.

When determining if renting or buying is the better option, I suggest using a rent-versus-buy calculator like this one from New York Times.

Renting may ultimately be lower cost than buying if you factor in all the variables and costs including opportunity cost. Also if you buy you will be responsible for ongoing property taxes, maintenance and administration fees. The owner normally pays these costs for a rental property.

For my situation, with rents being so cheap in Medellín, renting for me is lower cost than buying over a 5-year, 10-year, or even a 20-year period.

Also with renting I have much more flexibility and can easily move to another neighborhood by choice, which I have already done three times.  But to “each his own”, some prefer buying regardless.

The Bottom Line

If you want to save on unfurnished apartment rental costs in Medellín, our 2016 survey of unfurnished apartments demonstrates that you can save an average of 24-28 percent by living in Laureles-Estadio, Belén or Sabaneta instead of living in a similar sized apartment in El Poblado. If you select Envigado, you will only save an average of 14.7 percent compared to the apartment rental costs in El Poblado.

Our survey results also show that compared to last year the average rental price per square meter in terms of Colombian pesos has increased in all five neighborhoods in 2016.

In Colombia landlords are legally able to raise rent at renewal by no more than the inflation rate for the prior year. Inflation last year in Colombia was 6.77 percent, which was a seven-year high. Landlords can increase rent by no more than that percentage at renewal time this year.

However based on our survey, in some areas the average market rental price per square meter appears to have increased by much more than 6.77 percent as owners respond to demand.

A recent article in El Colombiano newspaper indicated that Laureles was the most popular apartment rental area in Medellín with the most space leased in the first half of the year.

It only takes on average three months for an owner to rent an unfurnished apartment in Laureles. In comparison, in pricey El Poblado it takes on average 11 months for an owner to rent an unfurnished apartment.

In popular areas like Laureles and Belén that traditionally have had lower rental prices, the market price looks to have increased faster than inflation. This is due to demand.

According to Lonja de Propiedad Raíz in the first half of the year, 32.3% of unfurnished apartment square meters leased in Medellín were in Laureles/Estadio and 19.7% were in Belén.

Avoiding Rental Price Increases

Even with owners being able to raise rents by the inflation rate in Colombia this is still negotiable in my experience. In my five apartment lease renewals in Medellín over the past six years I haven’t experienced a rent increase.

In fact, for two renewals I was able to negotiate a lower price. One year I was able to negotiate a lower monthly price by agreeing to a longer term and paying in advance.

My latest lease renewal this year was also at a lower price as I now rent directly from the owner instead of through an agent so I saved money even after factoring in inflation. The typical real estate agent commission for rentals typically runs between 7-10 percent.

The rental market is still competitive in Medellín.  So you could threaten to move, particularly in El Poblado where it takes a long time on average for an owner to lease an unfurnished apartment. Plus the cost of moving can be quite low.

The owner may not want to lose a tenant as it may take a long time to find a replacement. I met an expat in El Poblado who did this recently. He threatened to move and essentially negotiated a lower rent increase for his renewal as a result.

It is also important to note that over the last two years, the exchange rate has been volatile and beneficial if you have U.S. dollars (USD), which has dropped the cost of renting an apartment in Medellín substantially over the past two years in terms of USD.