Investment · ROI Analysis May 10, 2026 8 min read

Medellín Real Estate ROI Compared to Miami in 2026

Same $200,000 USD budget. Two very different outcomes. A head-to-head comparison of rental yields, appreciation, carrying costs and total returns between Medellín and Miami.

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Octavio Acevedo Civil Engineer · Developer · Inversiones OTA · Envigado, Colombia
Living room apartment Edificio El Rubí Envigado Colombia — Inversiones OTA

Living room · Edificio El Rubí, Envigado, Colombia · Inversiones OTA

This is the comparison I get asked about most by US-based investors. They've watched Miami prices double since 2019, their yields compress to 3–4%, and they're looking for somewhere that still makes the math work. Colombia — and specifically Medellín and Envigado — keeps coming up.

I'm not a Miami expert. I am an Envigado developer who has been building and selling residential real estate here for over 20 years. So I'll give you my honest read of both markets, using publicly available Miami data and my direct experience in the Colombian market.

1. The Setup: Same Budget, Two Markets

We'll use a $200,000 USD investment budget — enough to be meaningful in both markets — and track what you get, what it earns and what it costs over 5 years.

What $200,000 USD buys in each market (2026)
  • Miami (Brickell / Edgewater): Studio or very small 1BR, 35–50m², older building, possibly high HOA fees
  • Envigado, Colombia: 2–3BR apartment, 75–100m², newer building (2020+), elevator, parking, stratum 4–5 finishes

2. Entry Costs Compared

Entry Cost Item Miami Envigado, Colombia
Purchase price $200,000 $200,000
Closing costs (notary, registration, taxes) $5,000 – $8,000 (2.5–4%) $2,000 – $3,500 (1–1.75%)
Buyer's agent commission $0 – $6,000 (post-2024 rules vary) $0 (not standard for buyers)
Furnishing for rental (estimate) $15,000 – $25,000 $5,000 – $10,000
Total investment to rent-ready ~$228,000 ~$213,000

3. Rental Income Compared

Rental Income Miami (studio/1BR) Envigado (2–3BR)
Long-term monthly rent $1,800 – $2,400 $1,100 – $1,500 USD equiv.
Annual gross rental income $21,600 – $28,800 $13,200 – $18,000
Gross yield on purchase price 10.8 – 14.4% 6.6 – 9.0%
Vacancy rate (realistic) 8–12% 3–6%
Wait — Miami gross yield looks higher? Yes, on paper. But gross yield is before costs — and Miami's carrying costs are dramatically higher, as you'll see next.

4. Annual Carrying Costs Compared

This is where the comparison shifts dramatically. Miami's property taxes, HOA fees and insurance are among the highest in the US — and they've risen sharply since 2021.

Annual Cost Miami Envigado, Colombia
Property tax (predial) $3,500 – $5,500/yr $400 – $800/yr
HOA / Copropiedad fees $6,000 – $14,400/yr $600 – $1,800/yr
Insurance $3,000 – $6,000/yr $200 – $600/yr
Property management (10%) $2,160 – $2,880/yr $1,320 – $1,800/yr
Maintenance / repairs $1,500 – $3,000/yr $500 – $1,200/yr
Total annual costs $16,160 – $31,780 $3,020 – $6,200

5. Appreciation Compared

Appreciation Miami Envigado, Colombia
5-year average annual appreciation 4–7% (post-2019 boom) 8–14% (COP terms)
USD-adjusted appreciation (est.) 4–7% 5–10% (after FX)
Pre-sale discount opportunity Minimal (mature market) 15–25% vs delivery price

6. 5-Year Total Return: The Full Picture

Miami
Net rental income 5yr: ~$25,000–$45,000 USD
Appreciation 5yr: ~$45,000–$80,000 USD
Total 5yr return: ~$70,000–$125,000
Envigado
Net rental income 5yr: ~$42,000–$58,000 USD
Appreciation 5yr: ~$55,000–$110,000 USD
Total 5yr return: ~$97,000–$168,000

Estimates based on mid-range scenarios. Currency risk applies to Colombian returns. Past performance does not guarantee future results.

7. The Verdict

On a pure numbers basis, Envigado outperforms Miami on net yield, total return potential and purchasing power — with significantly lower carrying costs and a larger, more functional property for the same budget.

Miami wins on liquidity, market depth, USD denomination and familiarity. If you need to exit quickly, Miami is easier. If you're comfortable with a 5+ year hold in a less liquid market, Colombia offers substantially better returns.

The investors who do best in Medellín are those who approach it as a long-term position, do proper due diligence, work with established local partners and aren't trying to flip in 12 months.

At Inversiones OTA, we show investors the same numbers we use internally. No tourist markup, no inflated projections. If the deal makes sense, we'll tell you. If it doesn't, we'll tell you that too.

Want to run the numbers on a specific project?

Tell us your budget, investment timeline and return expectations — we'll build you a realistic projection based on current market data.

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