Our audience will know that at Tycoon.to we’re big advocates of thinking creatively about different ways that Colombian land investors can better monetize their land. We were recently asked by a reader what are some of the land uses that entrepreneurs use their land for in Colombia. In this blog post, we thought we would explore this question in more detail.
In Colombia, land-use rules vary depending on your intended purpose. Local departments and municipalities enjoy a certain degree of autonomy to enact regulations on the organization of their territories, the proper use of land, and the protection of heritage and ecological areas. These regulations are collected in their Territorial Organization Plan or POT (“Plan de Ordenamiento Territorial”).
Creative land-use ideas in Colombia
Let’s dive deeper now and explore a few different ways that land investors in Colombia are monetizing their land. At Tycoon.to we spend a lot of time studying how land investors and entrepreneurs use their land. We have a growing list of interviews with these land entrepreneurs over on our land investing blog. However, lets go over a few of the more common income generating land uses below.
Tourist and agricultural farms
Coffee farms, such as the tourist farms in Quindío, offer their customers the opportunity to cultivate and live the experience of a coffee farmer in Colombia as well as enjoy a wide variety of coffee tastings and study to better understand the regions history. These farming experiences show off numerous coffee varieties to local tourists and show how different coffee is prepared according to their region and cultivation methods. These farms offer non-Colombians great insight into what the countries’ coffee culture is really like.
Other agricultural tourist farms share the entire agricultural process with their visitors but from a perspective of ecological and sustainable farming. They do this by featuring organic crops and environmentally-friendly processes.
Such is the case of the San Luis organic farm, a space where visitors can visit and feed the animals while learning about Colombian agriculture and sustainable, chemical-free processes.
Use of land for tours
Depending on the local geography, some vast expanses of land are suitable for recreational purposes, like Quad Tour ATV, in eastern Antioquia, where they created a track for all-terrain quads. Visitors can also take walks (guided or unguided) around the land and surrounding towns.
Use of land for viewpoints and glamping
An increasingly popular idea consists in taking over land in elevated peripheral areas with views of a city to create tourist viewpoints or glamping locations, as the case of Mirador San Félix, a well-known sightseeing location outside Medellín that offers the chance to enjoy a view of the beautiful city of Medellín while enjoying a hot beverage.
El Ojo Glamping is another beautiful location that offers spaces with a jacuzzi, sleeping areas under the moonlight, and a spectacular view.
Mountain Park is another place within Medellin which is nothing more than a flat patch of land with a petting zoo, pony rides, fire pits and restaurants.
Another land monetization strategy used in Colombia is land rental for agricultural exploitation. Many entrepreneurs think about buying a farm. However, in many cases, it’s wiser to rent an existing farm. This can help you keep your land costs down.
An example is a land lot suitable for farming specific agricultural products such as potatoes. However, its owner chooses not to exploit it but rent it to another party to farm it for a set period and at a specific price. After the lease is over, the land must be returned to the owner in the same conditions it was provided.
Land use for animal farms
Another creative alternative for land use is breeding grounds. These are large areas dedicating to raising cattle, pigs, dogs, chickens, or even fish. Some areas of Colombia have increased the use of rural spaces to farm fish, such as cachamas, mojarras (breams), and tilapias.
These fish farms usually sell their products wholesale as distributors. However, some also double as recreational spaces where visitors are offered the opportunity to catch a delicious fish to be cooked and served on-site or purchased to go.
Protected areas and speculative investment
As previously stated, in Colombia, only the state has the power to declare an area as protected. However, some individuals may acquire land to preserve it and prevent deforestation and environmental damage caused by others. However, this is rare.
Other landowners take over a property and leave it unexploited, which is locally known as a “terreno de engorde” (literally, “fattening land”). These investors usually own large expanses and wait for their land to increase in value.
Use of the land to create retreats and farms
Some landowners use their property to build rural facilities for recreational purposes such as spiritual retreats or simply for rest and leisure. Others are aimed at therapeutic purposes, as the case of equine therapy farms, for patients suffering from physical or mental illness. These institutions require large estates suitable for keeping horses and perform horse-riding therapy activities.
Another type of complex is created for educational or re-socializing purposes. These are usually rural schools and treatment centers for people with addictions. Residents can receive instruction or treatment in a calm, peaceful environment and surrounded by nature.
As we can see, there are several possible land uses in Colombia, many of which are intended to generate profits. However, before deciding on a specific use for a land lot, it is important to determine its soil type, as the various classifications include different restrictions. In Colombia, soils are classified into 5 types: urban, urban expansion land, rural expansion land, suburban land and protected land.
If you’d like to learn how to buy land in Colombia, get in contact with us today. At Tycoon.to we help foreigners buy land in Colombia. It would be a pleasure to help you find your dream plot of land.