What is estrato in Colombia and how it affects your home

Almost every home listing in Colombia carries a number from 1 to 6: the estrato. It doesn't say how much the people living there earn. It is a classification of the property that determines what you pay for utilities.

What estrato is

Socio-economic stratification sorts residential properties into six groups, according to the characteristics of the home and its surroundings: materials, roads, pavements, green areas. Each municipality's mayor's office assigns it.

• Estratos 1, 2 and 3: low-low, low and medium-low. They receive subsidies on utilities.
• Estrato 4: medium. Pays the cost of the service, with no subsidy and no surcharge.
• Estratos 5 and 6: medium-high and high. They pay an extra contribution that funds the subsidies of the lower estratos.

The estrato belongs to the property, not the person: move home and your estrato changes.

How it affects what you pay

• Utilities. The most direct effect. The same use of water, electricity and gas costs less in estrato 2 than in estrato 4, and more in estrato 6.
• Property tax. In many municipalities the rate depends on the estrato as well as the assessed value.
• Other charges. Some public university fees, programmes and subsidies take it into account.

A condominium's monthly fee doesn't depend on the estrato but on its running costs, though it tends to be higher where there are more shared amenities.

Why it matters when you buy or rent

• For your monthly budget: two apartments with the same rent can cost different amounts each month because of utilities.
• For comparing prices: the price per square metre varies between estratos within the same city.
• For housing subsidies: what counts is the home's value and the household's income, not the estrato.

On LuxuryHomes.com.co every listing shows its estrato, and you can search by it by typing, for example, "estrato 4 apartment in Medellín". Start at properties.

How to find out a property's estrato

• It appears on utility bills.
• The municipal planning office issues a certificate of stratification.
• In the listing: ask for it if it isn't there.

Frequently asked questions

Can the estrato be changed?

The owner can ask the mayor's office for a review if they think the classification doesn't fit the home. The municipality also updates the stratification of whole areas.

Do shops and offices have an estrato?

No. Stratification is for housing. Commercial and industrial properties pay their own utility rates.

Do farms have an estrato?

Rural homes are stratified too, using a different method from the urban one.

Is a higher estrato a better investment?

Not necessarily. It depends on the area, rental demand and the entry price. See more criteria in Where to find real estate in Colombia.