Spotlight
on...Cartagena, Colombia
A second home in
the Caribbean for $60,000
by Lee Harrison
“Colombia?
Are you crazy? They hate Americans, and if you ever have
to fly into Bogotá, the murder rate is one in 100.”
“Are
you ignoring the government warnings? I’ll be reporting
you to the proper authorities in the State Department!”
“What
about the drug lords?”
Stereotypes:
they’re at the root of many a good property deal.
If it weren’t for negative stereotypes, the investors
who bought beachfronts lots in Nicaragua for less than $30,000
would have never reaped such handsome returns.
But
most stereotypes indeed have some factual basis, and Colombia
is no exception. While it may not be the most dangerous
place in Latin America, it’s by no means the safest,
either. The political kidnappings and violence are real,
and you could end up in genuine danger if you’re not
careful about where you travel.
This
is one reason why many savvy property buyers have set their
sights on Cartagena, the centerpiece of Colombia’s
Caribbean coast. We heard from a number of readers who are
scouting there, have invested there, and even two who are
currently building a home in Colombia’s famous walled
city. Not to mention quite a few who are already in residence.
Why
Cartagena? Let’s start with those stereotypes.
According
to the U.S. State Department, “During the past
four years, kidnapping and other violent crimes have decreased
markedly in most urban areas, including Bogotá, Medellin,
Barranquilla, and Cartagena.” In fact, Cartagena
ranks among the safest of Colombia’s 32 department
capitals. The homicide rate is better than Panama City,
Caracas, or Brasilia…and also better than Memphis,
Atlanta, Cincinnati, and Kansas City, Mo., according to
statistics released by the FBI in September 2007.
As
to the statement that “they hate Americans,”
I strongly disagree. (I did not hear this claim from anyone
who had actually been to Colombia.) I found the Colombian
people to be friendly, open, and welcoming, from Cartagena
in the north all the way down to Pasto in the south.
Drug
lords? Cartagena has never been known as a center for the
Colombian drug trade. While I suppose you could find drugs
if you went looking, drugs, drug dealers, and “drug
lords” won’t be an issue for expats or investors.
Simply
put, Cartagena is a good place to live and invest…which
is why so many are doing just that.
Located
2.5 hours from Miami, Fla., Cartagena and its surrounding
areas is not a “newly discovered” market. On
the contrary, this famous Caribbean port and its surrounding
beaches have been a popular destination for many years among
South Americans and Europeans. As a UNESCO
World Heritage site and one of the world’s few remaining
walled cities, it’s no surprise that property prices
have been high for a while, especially given the magnificent
condition of the colonial buildings.
You
may recall that prices shot up about 50% in 2006, due to
a dwindling inventory of properties inside the wall. In
2007, we’ve seen a similar performance, with properties
in the city going up by 38% on a cost-per-square-foot basis.
Another
impressive gain for a single year.
Cartagena
is not the place to come if you’re looking for cheap
real estate, although it’s not bad when compared with
most of the Caribbean or to nearby Panama City. It is a
place worthy of your scrutiny if you’re looking for
a second home in the Caribbean or are considering a property
investment.
And
despite the gains over the last few years, there are still
some reasonably priced properties on the market.
The
Cartagena market is divided into two major sub-markets:
the city of Cartagena proper, and the adjoining beach areas
a few minutes away. Within the city, there are three major
sectors: Centro, San Diego, and Getsemaní.
Of these, Centro and San Diego lie within the wall, while
Getsemaní is just outside. At the beaches, you’ll
find Laguito, Castillogrande, and Bocagrande.
Centro
is the heart of the walled city itself. It’s the best-preserved
part of Cartagena, and has the largest number of tourist
attractions and the highest tourist traffic. San Diego adjoins
Centro inside the wall. It too has luxury hotels and fine
dining, but it has more of a bohemian feel in some areas,
with a residential flavor in others. Centro and San Diego
make up a colonial environment that’s as beautiful
as any you’ll see in Latin America.
Centro
and San Diego are the prime sectors for real estate in the
region, with the most rapidly increasing prices and sought-after
properties. This is mostly because it’s a walled city,
and the properties are therefore a finite commodity, with
no room to expand.
The
low-end entry point in the Centro market is represented
by an apartment I saw situated right on the Santo Domingo
square, which is the heart and center of the old city, central
to the cafés, bars, restaurants, and boutiques. It
was small (about 550 square feet), and the asking price
was $92,500. This property was in great condition.
In
San Diego, there’s a beautifully restored colonial
home on offer with two bedrooms, three bathrooms, a terrace,
and air conditioning. At 1,400 square feet, the asking price
is $249,750 at today’s exchange rates. The property
comes furnished, and I believe this is a great value for
this area. Contact Paul Juan (see below)
for details.
Also
in San Diego, I came across a luxury condo project that’s
selling pre-construction. The builder is offering more than
a dozen floor plans to choose from starting at $269,000.
Building is underway, and final payment is not due until
construction is completed in October 2008.
Getsemaní
(pronounced “get seh mah NEE”) is a neighborhood
within the city but outside the wall, and was originally
the sector for workers who made their living servicing the
upper classes inside the wall. It is a colonial sector still
in its unrestored form, and many streets are a combination
of fixed-up homes interspersed with those still awaiting
the paintbrush. With few tourists, it doesn’t yet
have the secure feeling of the neighborhoods inside the
wall. About 20% of this sector is restored to the level
of Centro, including a pleasant waterfront area.
On
a recent property scout, I found a house of 2,367 square
feet, with three bedrooms and two bathrooms, in one of the
areas that’s being restored. The asking price is about
$275,000, and you can contact the owner directly at tuiran2932@hotmail.com.
This is a good price in Getsemaní, the sector where
there’s still plenty of room for appreciation.
If
you’re looking to remodel, the fixer-uppers in this
neighborhood start at less than $100,000—about half
of what the same house would go for in Centro or San Diego.
The
beach resorts of Cartagena are located a few minutes away
from the city proper. While the gleaming highrises are a
world apart from the colonial city itself, the prices are
in fact driven by Cartagena’s districts within the
wall.
El
Laguito (“lahg EE toh”) is the most active beachside
tourist destination in the region, and the beaches are busy
all year, even in the low season. There are restaurants
and sidewalk cafés, and the beaches are alive with
vendors selling everything imaginable, which adds to the
sector’s party atmosphere. The properties in Laguito
tend to be smaller than in other sectors and are often designed
for short-term rentals, often renting by the day or week.
Realtor
Paul
Juan has a one-bedroom, one-bathroom apartment
on the 13th floor of a modern building with a pool near
the Hilton. The view of the bay is spectacular, and the
asking price is a negotiable $59,900, with condo fees of
$71 per month.
A
two-bedroom, two-bathroom apartment—also with an excellent
view—will set you back $91,000—and it comes
furnished. For more information, e-mail info@CartagenaApartments.com.
Castillogrande
(“cah stee yo GRAN deh”) is a high-end residential
haven in the midst of all the tourism. Even though it is
within walking distance from Laguito, the beaches here are
generally quiet, without vendors or many tourists. The streets
are tree-lined and well kept, with large, expensive homes
and tasteful highrises. Apartments and houses here are large
and more geared to year-round living. This is the area’s
exclusive, high-rent district.
One
of the better pre-construction deals I saw was in the waterfront
Malibu building, where you can buy an apartment of 1,515
square feet with three bedrooms, four bathrooms, a maid’s
suite (one bedroom and one bathroom), and a balcony. This
luxury building even has its own power generator. An apartment
on the 16th floor will cost $315,500.
Bocagrande
is the beach area nearest the walled city, and it has two
very different characters. On the Caribbean side, it is
geared toward the tourist trade, and has much of the atmosphere
of Laguito. Its beaches are quietest on the end nearest
the city (the northeast end), and they tend to get busier
as you approach Laguito.
The
bay side of Bocagrande is a different world, with high-end
condos in gleaming new highrises. It has a luxury residential
character similar to that of Castillogrande, and similar
property prices.
Less
than 25% of the visitors to Cartagena are international
visitors, with the remainder being Colombians…so far,
few North Americans. And once North American attention wanders
from the comparatively high prices in Panama, this market
could expand even faster.
SIDEBAR
Who
to contact in Cartagena |
Attorney
Cori
Ltd. (Ricardo Velez B), Edificio Banco
Popular, office 1302, Cartagena; tel. (57)5664-5071;
cell: (57)310-657-5501; e-mail: misioncol3@hotmail.com.
Real
Estate
CasasColoniales Ltd. (Marcela Carvajales),
tel. (57)313-532-2270; e-mail: marcecarvajales@hotmail.com. Paul
Juan Inmuebles (Paul Juan), Edificio
Playa Mar, apto 603, Laguito; tel. (57)5665-0515;
cell: (57)311-660-2756; e-mail: paul@cartagenainmuebles.com;
website: www.cartagenainmuebles.com.
Paul and his partner—longtime U.S. expat Jim
Bone—are a wealth of information on immigration,
the property purchase process, among other practical
issues.
Juan
Francisco Chavarriaga, Laguito Calle
1ra, 1-70, Laguito, tel. (57)5665-0907; cell: (57)315-743-1939;
e-mail: ventas@inmobiliariaJyG.com;
website: www.inmobiliariaJyG.com.
Juan Francisco gets the prize for the most efficient
viewing of a wide variety of real estate. He does
not speak English, so if you don’t speak basic
“real estate Spanish,” I’d suggest
making an appointment with his son, Juan José.
Gómez
Pombo Inmobiliaria (Lucy Gómez), Plaza
de la Aduana, Calle Cabral Piso 2, #32-10; tel. (57)5664-3697;
cell: (57)315-731-6035. Located in the walled
city, they have the area’s best selection of
in-town properties. |
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