Major Development Approval Granted for Ambitious Mixed-Use Project Near Medellín CBD

City officials have given the green light to an ambitious mixed-use development at the intersection of Avenida Industriales and Calle 31, just east of Medellín’s bustling San Diego district. The Paisa Urbanismo Consortium received final approval last night to proceed with its plans for three residential towers, retail pavilions, and a public plaza directly adjacent to the Alpujarra administrative center.

Key Hub Poised for Transformation

The approval comes as Medellín grapples with intense pressure on housing inventory and commercial space in and around the central business district. The area between Alpujarra and the Plaza Mayor convention centre has become a magnet for investment, given its proximity to transit hubs, institutions like Universidad EAFIT, and the city’s growing digital entrepreneurship corridor. Urban planners at the Metropolitan Area Authority say the new towers-up to 28 storeys-will add 620 apartments and over 10,000 square meters of commercial floor space by late 2028.

Local stakeholders say the site-previously a parking lot across from Edificio Bancolombia-has been eyed for years by both retailers and office developers. However, the city’s emphasis on sustainable, mixed-use planning under the 2025 Urban Code limited piecemeal approaches, nudging the project toward a more integrated vision with landscaping, shaded pedestrian ways, and co-working amenities. Paisa Urbanismo’s approved plan features a rooftop urban orchard and publicly accessible play spaces that connect to the Parques del Río trail network, aiming to draw both residents and daytime office workers.

Demand, Pricing and City Ambitions

Median sales prices in El Centro and the adjacent San Diego area have jumped 18 percent since early 2024, according to Camacol Antioquia, with new-build apartments averaging COP 7.4 million per square meter. City authorities say the new project could help cool bidding wars for limited stock. "Medellín has a shortfall of at least 17,000 formal dwellings as per 2025 census data, and vacancy rates for Class A office space in the urban core are below 4 percent," noted planners during Wednesday’s open session. Transit integration remains a draw, with the site set to include a new feeder stop for Metroplús line 3 and expanded cycling infrastructure toward Carrera 50.

Sales for the first residential phase are set to launch in October, targeting both local buyers and digital nomads attracted by the city’s innovation ecosystem. The developer pledges to prioritize pedestrian links with Parque de Las Luces and is in talks with Bancolombia to install a branchless ATM hub on site. Construction is expected to begin by January 2027, pending final environmental permitting.

Buyers and tenants interested in early registration can contact Paisa Urbanismo by emailing their Avenida Industriales office or visiting their stand at Plaza Mayor this month. City officials will continue to hold quarterly updates as the site advances through its next regulatory milestones.