fbpx
What is an estrato? It is important to understand estratos when looking at real estate in Colombia. We provide a guide to estratos in Colombia. Estratos are a classification in strata of residential properties that must receive public utilities. It is carried out mainly to charge for residential public utilities in a differential manner by strata, allowing subsidies to be assigned and contributions to be collected in this area. In this way, those who have more economic capacity pay more for public services and contribute so that the lower strata can pay their bills.

Estratos: A Guide to Understanding Estratos in Colombia

It is very important to understand estratos when looking at real estate in Colombia. Residential properties in Colombia are ranked in a socioeconomic scale, which are known as “estratos” (stratum).

Estratos in Colombia run from 1 to 6, as follows:

Estrato 1

Low-low class

Estrato 2

Low class

Estrato 3

Low-middle class

Estrato 4

Middle class

Estrato 5

Middle-high class

Estrato 6

High class

If you are planning to become an expat in Colombia, you should find out the estrato of the area you are planning to move to. Estrato 1 or 2 may put you in a neighborhood that is less than desirable. And you should be aware that estrato 5 or 6 will have higher utility rates.

Also, it is important to understand that middle class in Colombia is not the same as middle class in a wealthy country like the U.S.

Several Medellin Guru readers have recently asked questions about estratos. So, we now look at estratos in Colombia in detail.

In the past years I have lived in Medellín, I lived for one month in estrato 6, three years in estrato 5, five years in estrato 4 and over three months in estrato 3. Most foreigners living in Colombia tend to live in estratos 3 to 6.

Also, when we looked at unfurnished apartment rental prices in Medellín, we only included properties in estratos 3 to 6. If you want personalized advice and review a wide range of properties by strata, click on the green button below to get advice with our partner specialized in real estate.

Medellin Guru Real Estate Service

Our reliable partner, a leading real estate company, offers a wide range of services:

  • Transfer funds to Colombia
  • Legal analysis property background checks
  • Sales agreement
  • Deed registration
  • Legal representation
  • Investment visa

What is an estrato? History of Colombia's estrato system

The estrato system in Colombia was devised in the mid-1990s, in a country that at the time which had poverty rates close to 40 percent. And the estrato system in Colombia is reportedly unique in the world.

A 1994 law provides the instrument that allows a municipality to classify its population in distinct groups or estratos, which established subsidies that would help those in the lower estratos pay for utilities.

In order to decide which estrato a home belongs to, the government limits itself to evaluating the façade, the materials with which the roof is built and the conditions of the road in front of the home.

Estrato 6 apartment buildings near Santafé mall in El Poblado, Medellín
Estrato 6 apartment buildings near Santafé mall in El Poblado, Medellín

So, it is important to understand that estrato does not correlate to income. According to DIAN, the IRS of Colombia, about 20 percent living in estrato 3 are in the top 20 percent of the incomes in Colombia but they receive utility subsidies (lower utility rates) for living in estrato 3.

In 2024, new housing evaluation projects have been announced that imply the end of stratification in Colombia. But that will take years or even decades to change how the whole economic system works.

Higher estratos pay higher utility rates

It is important to understand that homes in the higher estrato neighborhoods in Colombia pay higher utility rates to help subsidize lower utility rates in the lowest estratos.

Homes in estrato 5 and 6 pay higher utility rates to subsidize lower utility rates in estrato 1, 2 and 3. And homes in estrato 4 doesn’t pay extra or receive subsidies.

With the new stratification projects, some things have changed. For example, The following table shows an approximate the price for Claro Hogar, Tigo Hogar and Movistar Hogar plans which in the past, prices varied by estrato, but now, varies by quality.

Internet price comparison in Colombia by Estratos

From 500mbps to 900gbps, TV and phone (TRM rate reference 4.000 COP/USD)

In relation to public services, the higher estratos 5 and 6 still have higher utility rates for electricity, gas and water services. While estrato 1, 2 and 3  have lower subsidized rates that high strata bills cover.

Also, in general, homes in higher estratos tend to have higher rental prices and purchase prices per square meter than in lower estratos. Also, property taxes can be higher in the higher estratos. If you rent, property taxes are typically paid by the owner.

Where do Colombians live? Which estrato?

The majority of Colombians live in estrato 1, 2 or 3 homes, which represents about 80 percent of the housing in Colombia. In addition, the wealthy estrato 6 in Colombia represents only about 3 to 4 percent of the housing in Colombia.

Estrato 3 casas in Sabaneta
Estrato 3 casas in Sabaneta

The distribution of homes in estratos in cities in Colombia varies by the city. And some small pueblos in Colombia may not have all six estratos. The following table shows the percentage of homes in the four largest cities in Colombia in each estrato.

Percentage of housing by estrato in the four largest cities in Colombia, Source : Secretary of Planning, 2022
Percentage of housing by estrato in the four largest cities in Colombia, Source : Secretary of Planning, 2022

If you are an expat, you should select a neighborhood in a suitable stratum that offers security, comfort and a cost of living in line with your income. We advise you to speak directly with a real estate agent. Whether you are looking to buy or rent, it is best to get professional advice before deciding where to live.

Estratos in Medellín and the Aburrá Valley

The distribution of homes in estratos in the comunas in Medellín and municipalities also varies. The following table shows the percentage of homes in each estrato in the comunas in Medellín as well as the average estrato.

A typical Laureles street
A typical Laureles street

The distribution of homes in estratos in cities in Colombia varies by the city. And some small pueblos in Colombia may not have all six estratos. The following table shows the percentage of homes in the four largest cities in Colombia in each estrato.

In Medellín, 42% percent of the population belongs to the lower strata, 46% to the middle level and 12% expressed that they belong to the high level of social and economic stratification.

Can you change the estrato for an apartment or casa?

Is it possible to change an estrato for an apartment or casa (house)? Perhaps you will find that the home across the street is a lower estrato and you may want the estrato of your home re-evaluated.

Sometimes the estrato ratings don’t make sense. For example, when we lived in Belén, a neighbor didn’t understand why his building was rated estrato 5 when we were in a nicer and newer building a block away that was rated estrato 4.

Estrato 1 and 2 homes in the Santa Cruz Comuna in Medellín, photo by Jenny Bojinova
Estrato 1 and 2 homes in the Santa Cruz Comuna in Medellín, photo by Jenny Bojinova

Any person or group of people can file a claim for the estrato assigned by the mayor’s office for your home. This claim is filed with the mayor’s office of your municipality, which has the legal obligation to address the claim and resolve it within a maximum period of two months.

Once the notification of the mayor’s office decision has been received, if the user is not in agreement it can be appealed to the Comité Permanente de Estratificación, which also has two months to resolve it.

Are you looking to buy or sell Real Estate in Colombia?

Medellin Guru has partnered with Real Estate by expatgroup.co to provide real estate services to foreigners and locals interested in buying and selling properties in Medellin and across Colombia.

Recognizing our readers’ demand for real estate guidance, this partnership with Real Estate by expatgroup.co, desires to deliver trustworthy and comprehensive real estate services to our audience.

Banner Web MG - Real Estate EG

We chose to collaborate with Real Estate by expatgroup.co for buying and selling real estate services for several reasons:

  • Real Estate by expatgroup.co is recognized globally and is a familiar brand for foreigners.
  • As one of Colombia’s largest realtor companies, Real Estate by expatgroup.co has extensive coverage throughout the country, enabling it to serve various locations in Colombia.
  • They boast a robust team of agents, many of whom are bilingual in English and Spanish.
  • Real Estate by expatgroup.co ensures fair pricing through a thorough Comparative Market Analysis (ACM).

To access this real estate partner service from Real Estate by expatgroup.co, click the button below, complete a brief form, and receive a complimentary consultation offering insights into the local market, current pricing, and tips for buying or selling properties.

Medellin Guru Real Estate Service

Our reliable partner, a leading real estate company, offers a wide range of services:

  • Transfer funds to Colombia
  • Legal analysis property background checks
  • Sales agreement
  • Deed registration
  • Legal representation
  • Investment visa

Medellin Guru Blogs: Real Estate Series

On the Medellin Guru website, we have a comprehensive and up-to-date guide to buying, selling, and renting apartments and choosing a neighborhood in Medellin found in several articles, including:

Buying and Selling Apartments

Renting Unfurnished Apartments:

Renting Furnished Apartments:

Choosing a Neighborhood in Medellin:

Also, we have several articles that can be used to help foreigners choose a neighborhood in Medellin:

The Bottom Line: Estratos - A Guide to Understanding Estratos in Colombia

An “estrato” in Colombia is a stratification system that classifies residential properties into different socioeconomic strata. This classification is crucial for the provision of public utilities, as it allows for differential charging for services based on the economic capacity of the residents in each stratum.

The goal is to ensure that those with higher economic capacity contribute more towards public services while also enabling subsidies to be assigned to those in lower strata, thereby assisting them in paying their utility bills. Overall, the estrato system is a mechanism to promote equity in access to public services and utility payments.

Medellin Guru Social media

Be part of our community. Find out about news, participate in events and enjoy the best of the city.

Casa Manikí Building a boutique hotel on the Colombian Beach

Casa Mamikí on Nuquí beaches offers a beautiful escape. If you're planning a life project in Colombia that involves investment...

Read More
Medellin Real Estate 2023 Property Buyer's Guide for Foreigners

This blog offers comprehensive insights into purchasing real estate in Medellín for foreigners, detailing the procedural steps and typical closing...

Read More
Visa Agencies Using the Services of a Visa Agency in Colombia

Using a visa agency in Colombia can simplify obtaining a visa. Visa agencies are well-versed in the requirements and procedures....

Read More
Assist Card Why is the Best Health Insurance for Colombian Visas

Are you planning a trip to Colombia? The right health insurance is crucial, especially when applying for a Colombian visa....

Read More

Last Business-Directory

Health travel Insurance for expats in Colombia,AssitCard is multinational company dedicated to the provision of international assistance services with worldwide...

Read More
expatgroup.co offiice in El Poblado, Medellin - The best Visa Agency in Colombia

expatgroup.co is a dedicated team of professionals, who provide quality visa services to meet the needs of the expatriate community.

Read More

Real estate legal services for foreigners in Colombia: Transferring funds into Colombia, legal analysis and property background check, sales agreement,...

Read More

Modern and spectacular Studio, available for rent in one of the best locations in the city, where you will be...

Read More

6 thoughts on “Estratos: A Guide to Understanding Estratos in Colombia”

    1. Chad Sellmer August 7, 2019

      Hi Jeff, Another great post thanks! I am interested in purchasing a smallish rural coffee finca near Pereira or Armenia. Do estratos apply to rural properties? Do they affect anything besides utility rates, such as taxes or other property owning costs? Do you have any knowledge of the coffee region and if so any advice would be suuuuuuper appreciated!

    2. Thank you Jeff for another great and useful articulo! Can you tell us how one goes about finding out what ones “Estratos” are for a new house they just had built in a new development? Is it though DIAN or the local mayors office?

      • Good question. EPM must have a database of estratos, as your estrato shows up on your EPM utility bill. A friend recently moved into a brand new rental apartment and when the owner set up utilities the estrato was on the utility bill. So, EPM should be able to look up the estrato for a new property.

    3. David Williams July 5, 2019

      Thanks this is the best explanation of estratos I have seen. It is interesting to see the distribution of estratos in the big cities in Colombia and also in the comunas in Medellin. Thanks for sharing this info.

    4. Thanks for this valuable (and interesting) info!

    5. John MacLeod July 5, 2019

      Jeff you are an amazing guy sharing all this information. I’m currently in Brisbane Australia. I’ll buy you a few pints when I make my move. John aka Jo Elgas on Facebook.

    Add a Comment

    Your email address will not be published.

    3 × 2 =

    Join the networking group in Colombia on Facebook and Whatsapp Channel