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July 24, 2025
One of the most widely accepted methods for valuing real estate assets is cash flow analysis, as it allows you to estimate how much an investor would be willing to pay based on the income and expenses associated with the property. In this context, gross profitability becomes a key indicator, as it offers a quick way to estimate the value of different types of properties. For this reason, understanding profitability is essential for making informed decisions, as it not only allows you to evaluate the potential return on investment, but also to compare alternatives within the market. In this blog, we will explore which properties are the most profitable in the Aburrá Valley.
To calculate the gross profitability of different types of properties in the Aburrá Valley, La Lonja de Propiedad Raíz de Medellín y Antioquia analyzed 275 properties sold during 2025. Gross profitability was estimated by comparing the rental fee (excluding the administration fee) with the sale value of the property. Based on this analysis, an overall average gross profitability for the region was obtained. During the year, some property categories showed a slight decrease in their rates of return, as the increase in sale prices was greater than the increase in rental fees.
The analysis was based on information on used homes, including apartments for sale in Medellín, which were sold in the Aburrá Valley and had been rented for the last twelve months. For each property, data such as administration fees and property tax were collected. In addition, a 10% commission on the rental fee, corresponding to property management, was taken into account, and a vacancy of one month per year was estimated. With this data, the net rates of return on investment in these properties were calculated.
The results of this analysis show that, on average, residential properties in the Aburrá Valley offer a net monthly return of 0.31%. The best returns were observed in properties valued at less than $150 million, reaching an average of 0.36% per month. In contrast, the most expensive properties, with prices between $750 million and $1 billion, had the lowest returns, with a monthly average of 0.28%.
An interesting finding was the slight increase in the profitability of properties valued at over $1 billion. In the case of exclusive apartments in Medellín, this increase was due to rental fees growing faster than the sale value, which improved their net return compared to other market segments.
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The study of net rates of return for commercial properties was based on information from businesses with warehouses, premises, and offices in the Aburrá Valley. Data such as rental fees, property tax, co-ownership administration fees, and commissions charged by real estate agencies were collected. To calculate the capitalization rate, a vacancy of one month per year was estimated, equivalent to five months every five years. With this data, the net rates of return on investment in this type of property were obtained.
The results obtained in 2025 for premises located in large shopping centers show an average net monthly return of 0.51%. These rates vary between 0.3% and 0.64%, especially for properties located in shopping centers with high occupancy and the presence of well-known brands, which reinforces their attractiveness as an investment.
Similarly, the city center showed an improvement in rates of return compared to the previous year. In particular, premises for sale in Medellín located in the La Candelaria neighborhood recorded an average monthly net return of 0.53%, consolidating this area as an attractive option for commercial investment.
The results for wineries for sale in Medellín and the rest of the Aburrá Valley reflect an average monthly net profitability of 0.48%, slightly lower than the previous year. This decrease is due to the fact that the sale prices of these properties grew faster than rental fees, which slightly reduced their yield.
The items that most significantly reduce net profitability are property tax and condominium management fees.
The results for the type of offices for sale in El Poblado, especially in the El Poblado sector, show higher returns than in previous years, driven by an improvement in occupancy levels in recent months. Despite this progress, the office market is expected to continue to recover as more companies fully resume their face-to-face activities.
Understanding the profitability of real estate in the Aburrá Valley is key to making smart investment decisions. Each type of property offers different opportunities depending on its location, use, and market behavior. Medellín continues to position itself as an attractive destination for those looking to invest with vision and strategy.
Source: Medellín and Antioquia Real Estate Exchange You may be interested in: Where to invest in Medellín?
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