After the pandemic, the real estate sector was the first to stand up on its feet properly. Additionally, the construction sector is one of the significant players that plays a massive role in Colombia’s economy.
According to Colombia’s official Construction Chamber department, the construction sector contributed around 6.5% of the national GDP and employed approximately 7% of the citizens in the nation.
The simple purchasing process is why foreigners find it tempting to own a house or property in the country. Foreigners can even purchase the property either in their name or in the name of an enterprise and have similar rights to Colombian citizens.
A passport is enough for you to buy real estate in the country. However, you need to keep things in mind when buying houses for sale in Colombia: the first is that there is no title insurance, and the second is that no escrow is available, either.
Hence, you need to hire an experienced lawyer who knows all the real estate laws of the country and can reliably perform a title search and thorough background checks.
Now, once you have decided to buy a property in Colombia, you must choose the city for buying real estate. But how can you decide:
Where to Buy Houses for Sale in Colombia?
Colombia is the second most diverse country in the world. Whether you want a perfect climate, a vibrant culture, or a peaceful lifestyle, you’ll find everything in this South American country.
Here, you can live in a posh, advanced city or own condos in the countryside. There are many cities where you can find good neighbourhoods providing you with your dream location to own houses for sale in Colombia.
What follows are some of the best cities to live in Colombia:
One of the county’s fastest-growing foreign destinations, the Medellin Colombia real estate sector is booming once again. It is the country’s second-largest city, with a population of around 2.5 million, “The City of Eternal Spring” is one of the best places to buy an apartment.
Due to its fantastic atmosphere, blooming flowers, and vibrant streets, you will understand why Medellin is one of the favourite cities of expats. In this city, the best neighbourhood is El Poblado, as it is the most desired suburb for renting and buying houses for sale in Colombia.
This suburb is full of foreigners and offers you houses in Medellin’s most sophisticated parts of the city. Additionally, the suburb is surrounded by green mountain landscapes, providing a blend of natural beauty and urbanised buildings.
Property Samples in El Poblado:
- Many El Poblado houses in Colombia are perfect for small families with two-bedroom, two-bathroom, and 800-square-foot carpet areas. These apartments are often laced with 24-hour security, covered parking space, storage locker, and a gorgeous balcony. For example, apartments near the EAFIT University also give you the privileges of nearby grocery stores and a metro station. Plus, the pricing is not astronomical, as you can get one of these apartments for around $90,000 to $110,000.
Situated on the country’s Caribbean Coast in Magdalena, Santa Marta is rapidly becoming one of the most coveted destinations for potential property owners. Santa Marta is significantly smaller than Medellin and has around 400,000 to 500,000 population.
The average temperature in the daytime is 80s F, and at nighttime, it decreases to around 70F. Santa Marta’s warm, pleasant climate makes it one of the most popular cities among foreigners who want outdoor, ocean-focused living.
Property Samples in Santa Marta:
- One of the most preferred neighbourhoods of Santa Marta, Bavaria offers you a quiet residential section, which is only 10 minutes away from the beach. Many Bavaria houses for sale in Colombia are nearby shopping malls, grocery stores, and restaurants. The listing price ranges between $70,000 to $80,0000 for three-bedroom and two-bathroom properties.
- If you prefer to live in an apartment, you can opt for a beachfront property. These apartments have amenities like an open kitchen, swimming pools, a sauna, a steam room, gyms, jacuzzis, and a direct walking path to the beach. You can get all this for $247,000 for a three-bedroom unit.
Widely known as “The City of Parks”, Bucaramanga houses more than 150 parks and is one of Colombia’s most beautiful cities. However, the admiration of this neighbourhood doesn’t end here as the glitzy city is also known for its schooling institutions, wealth, poshness, and safety.
Property samples in Bucaramanga
- The posh Nueva Sotamayor area has everything from four-bedroom and five-bedroom apartments to two-story houses for sale. Some of the features of the units are tile floors, a balcony, a one-car garage, a patio, and updated bathrooms which range between $120,000 to $135,000.
Closing Costs and Fees
What follows is the closing costs and fee you may need to pay after purchasing houses for sale in Colombia. These figures are compared with the North American markets.
- The real estate agent fees in Colombia are 3% of the purchase value in addition to 119% VAT; both of these will be paid by the seller and not the buyer.
- The standard attorney fee is around 2.5 to 3 million Colombian pesos ($500 to $600).
- 0.5 to 1% of the purchase price is paid by the buyer as the registration fee.
- The notary fees will be shared 50-50 between the buyer and seller, and it will be around 0.35 to .40 % of the purchase value.
- The notary will be responsible for collecting 1% of the purchase price from the seller for the income tax.
- The name transfer charges will be 0.15% of the purchase cost, which will be shared between the buyer and seller.
- Local taxes are also shared half between the buyer and seller, which will be around 1% of the purchase price.