If I had to pick just one city for year-round living in Colombia, I’d have to recommend Medellín. Despite the old stereotypes, today’s Medellín is modern and cosmopolitan…clean and safe. And it’s also a great buy right now.

Nestled high in a lush Andean valley, the weather is near-perfect. Daytime highs average 79° F, while nighttime lows are a comfortable 64° F. There’s only 1 degree of seasonal variation, and rainfall is moderate.

The valley’s 3.8 million residents do not need heat, and seldom use air conditioning. In fact, I left the windows open during my entire stay—since there are no bugs—and was comfortable day and night.

Medellín offers a First-World setting with all the big-city amenities, from trendy cafés and elegant restaurants to hot nightclubs, theaters and world-class shopping.

The city has a modern metro system, two convenient airports, and good nonstop service to the U.S., just three hours away.

Best of all, high-end condos in good neighborhoods start at around $80,000, and large luxury penthouses can go for under $150,000.

Around the City

Without a doubt, the number-one residential area in Medellín is the green, forested El Poblado. It’s home to the Zona Rosa, an area known for its restaurants, sidewalk cafés, clubs, discos and shopping. And the centerpiece of Zona Rosa is Parque Lleras, a tree-filled park lined with cafés and restaurants…the center of Zona Rosa’s nightlife.

El Poblado today has the broadest appeal of any sector in Medellín. But I believe that Medellín’s other neighborhoods will gain in popularity quickly, as more expats bring their diverse tastes to the scene.

Centro, for example, will attract those seeking a more typical Spanish-colonial environment. The restored downtown train terminal is a stately centerpiece for the sector, and there are a number of attractive pedestrian walkways.

Laureles offers lush, tree-lined streets and a grassy divided boulevard that goes through the middle of the sector, with plenty of cafés, restaurants, and shops close at hand. This walkable sector offers an optimum blend of clean, residential areas and city amenities.

Other sectors popular with expats include Sabaneta, Envigado, Conquistadores, Belén and Las Palmas.

Depending on weather patterns, Medellín can be subject to smog. This is more apparent on the valley floor than it is in the higher-elevation neighborhoods like upper El Poblado. To mitigate it, motorists are restricted from driving certain days of the week, based on their license plate number.

A Little on the Market…

For years now, the news from Colombia—and specifically Medellín—has been positive. It’s even showing up as a destination in mainstream travel publications. Yet prices are kept at bargain levels by Medellín’s lingering negative image…along with some sectors’ high inventories.

So despite the upscale lifestyle, property prices in Medellín have remained fairly flat in recent years. But current trends indicate this is changing, as international buyers continue to focus on Medellín.

For example, in 2009, closing prices were running as low as 15% below asking prices. Volume picked up markedly in 2010, and the actual selling prices crept up to between 1% and 5% under the asking price. So today, upward pressure is being applied to the price of quality properties.

The picture for rental returns continues to be good, with plenty of demand. Properties are returning between 5% and 11%, with the average around 7%. This has been the main focus for investors over the past few years.

And remember that properties in Colombia are sold in pesos, so when buying here, you’ll be diversifying outside the U.S. dollar.

No one can predict exchange rates…but Colombia is energy-abundant, it exports electricity and oil, enjoys a trade surplus, and has a recent history of solid performance against the U.S. dollar…a 30% gain over five years. So it’s a currency that I wouldn’t mind investing in.

But most importantly of all, Medellín is a great place to live. With its green, leafy streets, perfect weather, modern amenities, and super restaurants and shopping, it would be a good value at twice the price.

What’s on Offer?

The average price of all properties I looked at here is just $846 per square meter—$79 per square foot—which is extremely low compared with anywhere else in the world market.

For example, one apartment has 1,334 square feet, in a peaceful location in El Poblado five minutes from all the action in Parque Lleras. It has three bedrooms and two baths, a maid’s quarters and two ground-level terraces. Greenery and park-like grounds surround the building. The asking price is $122,700.

Another El Poblado apartment is spacious and open, with 1,818 square feet, two bedrooms and two baths, a maid’s quarters, and a cozy balcony nestled on the third floor with excellent views of the green canopy and El Poblado. The master bedroom suite is huge, and its bathroom has an elegant Jacuzzi. Centrally located, the asking price is $106,700.

A 975-square-foot third-floor penthouse in El Poblado makes an excellent buy with its central yet quiet location near Parque Lleras. It has two bedrooms, two baths and a comfortable moon-shaped balcony overlooking the lush, green vegetation. The asking price is $80,000.

This one is a great value, at just $772 per meter. It’s a two-level penthouse conveniently located in Laureles. The 2,044-square-foot property occupies the 7th and 8th floors, has three bedrooms and three baths, a maid’s quarters, den, office, balcony, terrace and patio. The unit comes with three parking spaces and a storage unit for the asking price of $146,700.

I averaged the condo fees for 10 apartments city-wide, and they came out to $1.30 per square meter. So a 1,000-square-foot penthouse with normal building amenities would average about $121 per month…somewhat higher if you only considered El Poblado.

And if you’d prefer a house to an apartment…

We found an attractive 1,526-square-foot house in a newly-built part of the Guayaquil sector called Florida Nueva. It offers three bedrooms and two baths and is nicely finished with open-beam cathedral ceilings and an open kitchen with hardwood cabinets and granite counters. Including a garage, the asking price is $112,000.

The next house is 2,367 square feet and in an upscale gated community, with four bedrooms, three baths, garage, and a backyard with terrace. The asking price is $176,000.

At the lowest square-meter price, in Laureles, there’s a four-bedroom, three-bath house with 2,162 square feet. It also has a maid’s quarters, balcony, backyard and terrace for the asking price of $106,700. That’s just $581 per meter, or $54 per square foot.

Keep in mind that these prices reflect an exchange rate of 1,875 pesos per U.S. dollar.

My preferred real estate contact is expat Rich Holman, of First American Realty Medellín. He’s got a terrific selection of properties and also offers full-service property management and rentals. Contact him at rich@firstamericanrealtymedellin.com.

If you’re considering a second home in Colombia, I think Medellín represents the best value and the broadest appeal for the money. It offers a great living environment and also has the properties and amenities well-suited to the North American expat or investor.

Expert Legal Advice

Buying in Colombia can be tricky; especially with respect to moving money. So even confirmed, Spanish-speaking, do-it-yourselfers like me should use a qualified attorney. My attorney is Clara Múnera, e-mail: mcmunera@hotmail.com. She handles property transactions (and title insurance) in Medellín, as well as residency for anywhere in Colombia.

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Getting the Most out of Medellín

By Suzan Haskins

For a great place to stay, check out the Art Hotel near Parque Lleras and the Medellín Royal Hotel in El Poblado across from the new Santa Fe shopping mall with its 453 stores, 25 restaurants, VIP movie theaters and more.

For good grub, visit Mu, a BBQ rib restaurant and bar run by an outgoing British expat and his equally friendly Colombian wife.

For an interesting introduction to Medellín, hop aboard the Turibus, with multi-lingual guides and twice-daily departures from Parque Poblado.

At the flea market held on the first Saturday of the month in Parque Bolívar, you’ll find everything from antiques to handicrafts, food, plants, music and more.

Our knowledgeable English-speaking driver in Medellín was César Echeverría. E-mail: medellindriver@gmail.com.

And for super insider information, see Jaime Johnson’s Guide to Medellín.