This story was produced by our colleagues at the BBC.

Colombia: A Hub for Digital Nomads

Colombia has emerged as a prime destination for “digital nomads” or remote workers, with the city of Medellín leading the way. As the influx of remote workers boosts the local economy, it also poses challenges for some residents who find themselves being priced out of their neighborhoods.

The Transformation of Medellín

Once infamous as the murder capital of the world in the early 1990s, Medellín has shed its violent past, once heavily associated with narcotics trafficking and the notorious drug lord Pablo Escobar. Today, the city’s vibrant community, lush suburbs, and affordable cost of living attract many digital nomads seeking both work and adventure in Latin America.

Remote Work Opportunities

Breon Route, a remote worker employed by a ceramics company in New Orleans, is one such nomad. Living in Medellín, she appreciates the unique cultural experiences and the warmth of the people. “The culture, food, the people, the kindness of the people,” she shares, reflecting on the contrast to her experiences in the United States.

Boost for Local Businesses

The presence of digital nomads has positively impacted local businesses. Carlos Acosta, a fruit seller, notes that many foreigners make for excellent customers. “Some of them are great customers — good people who buy a lot,” he states, highlighting the economic benefits that accompany this influx.

Rising Demand and Gentrification

Research from consultancy firm Breakthrough suggests approximately 8,300 digital nomads are arriving in Medellín each month, aided by a renewable two-year digital nomad visa launched in 2022. While services like Uber have reported significant business increases thanks to these newcomers, the rental market has faced challenges as local landlords opt to rent to higher-paying foreigners, leading to price hikes of up to 80% in certain areas.

Displacement of Locals

Juan Guillermo Yunda, a professor at Colombia’s Pontifical Javierian University, notes that Medellín is experiencing a unique form of gentrification. Unlike cities in the United States and Europe where lower-income populations are displaced, he claims that middle-upper-income families are more frequently affected in Medellín. This shift presents challenges for residents who have long called the area home.

The Housing Crisis

For locals like Cristina Guerrero, finding affordable housing has become increasingly difficult. “The rent here in Medellín has increased exponentially,” she reveals, frustrated with rising prices that reflect what foreigners are willing to pay. Many locals find themselves questioning the value of apartments they once considered reasonable.

A Bright Future for Digital Nomads

Despite the challenges posed by rising rents, Medellín continues to captivate digital nomads like Breon Route. With its stunning landscapes and vibrant culture, she declares, “I am absolutely in love with the mountains, the beaches, the hot, the cold — it has absolutely everything to offer.” With the renewability of her digital nomad visa, she plans to stay in Colombia for the long haul, illustrating the enduring appeal of Medellín as a digital nomad paradise.

Medellín: A Rising Haven for Digital Nomads

Colombia’s vibrant city of Medellín has emerged as a prime destination for digital nomads seeking a diverse cultural experience while working remotely. This influx of remote workers has significantly impacted the local economy, but it has also sparked concerns about rising living costs for residents.

A New Medellín: From Infamy to Fame

In the early 1990s, Medellín was infamous for its high crime rates, largely associated with drug trafficking and the notorious Pablo Escobar. However, the city has undergone a remarkable transformation, now characterized by its lush parks, thriving cafe culture, and an affordable cost of living. This combination has made it particularly attractive to those looking to balance work and adventure.

The Digital Nomad Experience

Breon Route, a remote worker for a ceramics firm in New Orleans, is one of the many individuals who have embraced this new lifestyle in Medellín. She cites the warmth of the local culture, the delightful cuisine, and the friendliness of the residents as major draws. “It’s entirely different from what I’ve experienced in the States,” she reflects, emphasizing the enriching experiences available in her new home.

Economic Boost for Local Vendors

The arrival of digital nomads has proven beneficial for many local businesses. Fruit vendor Carlos Acosta notes that these newcomers are valuable customers, bringing increased sales and improved economic conditions. Similarly, Uber driver Henry Muriel credits foreign customers with forming a substantial part of his income, claiming they account for about 70% of his business.

The Housing Dilemma

While the surge in digital nomads has rejuvenated the economy, it has led to rising rental prices, with some areas seeing increases of up to 80%. Many landlords have started favoring foreign tenants who can afford higher rates, leaving local residents struggling to find affordable housing. This phenomenon has raised concerns among community members and local experts alike.

Expert Insights on Gentrification

Juan Guillermo Yunda, a planning professor at Pontifical Javierian University, discusses the unique form of gentrification occurring in Medellín. He notes that while international arrivals are reshaping the housing market, they are not necessarily displacing lower-income families as seen in other global cities. Instead, middle-to-upper-income locals who previously settled in these areas are increasingly being pushed out.

Residents Struggle with Rising Costs

Long-time residents like Cristina Guerrero are now facing a housing crisis. After weeks of searching, she laments the soaring rental prices, stating, “The rent here has skyrocketed, and it’s frustrating to see apartments listed for far more than they’re worth.” This sentiment underscores the challenges locals face as their city becomes a hotspot for international remote workers.

The Allure of Medellín Remains Strong

Despite the rising rents, Medellín continues to attract digital nomads from around the globe. Breon Route expresses her deep affection for the city’s natural beauty, stating, “It has absolutely everything to offer,” and hints at her intent to remain in Medellín long-term. With a renewable digital nomad visa, her dream of exploring this multifaceted city could become a lasting reality.