How is progressing the real estate market in Colombia?
The real estate market is a relevant sector for Colombia's economy, which is full of opportunities for international investment. The country's conditions and the boost of the domestic market have been the driving force for this to happen. Discover here how this sector works in Colombia and the advantages of investing in the real estate sector in the country.
What is the real estate market?
The real estate sector is a vibrant industry, where diverse activities related to the purchase, sale, rental and development of properties are intertwined. The sector includes houses, apartments, lands and commercial buildings, among many other projects, that serve the needs of the market.
The real estate sector affects the way we live and, therefore, is highly relevant for the development of the country and for the economy not only of Colombia, but of the entire planet. Therefore, we invite you to learn about the state of the real estate market in the country of beauty and take advantage of its opportunities.
How is the real estate market developing in Colombia?
There are several indicators to measure how the real estate market is developing in Colombia. One of these is the cost of new housing in the country. A factor that influences the market's consumption capacity and directly affects this sector.
According to DANE data, the cost of new housing in the country increased by 2.02% during the second quarter of 2024, compared to the first quarter of the same year, a variation that is 1.03 percentage points lower than that recorded in the same quarter of the previous year, when there was a growth of 3.05%.
The slowdown in costs may be beneficial for many reasons. Among these, the following can be highlighted:
- It increases purchasing capacity in the market. Fewer end consumers would have access to this type of product if costs were to rise at the rate of the second quarter of 2023.
- It is a sign of a stable market. Generally, when costs begin to stabilize and do not reflect abrupt changes, it is a symptom of a stable market in both supply and demand aspects.
- It benefits investors. A sustained but moderate increase in the cost of housing (a factor that has identified this sector in Colombia for several years) allows more stable investment returns.
Another indicator that is relevant to understand the state of the real estate market in Colombia is the number of housing units that start their development in the country, what shows the Colombian capacity to build new buildings, meeting the needs of the market. In addition, it shows the development of this industry at a national level, in a quantitative way, as it evidences its production and innovation capacity.
During the second quarter of 2024, according to DANE data, more than 45,000 housing units were started, an amount that remains within the average of previous years. In addition, of the total number of housings that have been started, more than 37,000 were for apartments and more than 7,000 for houses.
This amount reflects that Colombia is a country full of opportunities for the real estate sector, as it has the capacity to develop a large number of real estate projects during the course of the year, allowing new investors to come to the country with their businesses, taking advantage of the opportunities that the country has for them.
What is so special about this sector in Colombia?
Colombia has several factors that make it an attractive destination for investments in real estate and in many other sectors. Starting with its domestic market, which has more than 50 million consumers that are beginning to populate more and more cities in Colombia.
In addition, the country has several urban centers with more than one million inhabitants, which makes them cities with high demand for this sector. One of these, is Bogota, the capital of Colombia, which has a population of 11.5 million people in its entire territory. This, added to its GDP of USD 98.8 billion, makes the city a very attractive place for this industry.
In the country you will also find cities such as Medellin, Barranquilla, Cali and Cartagena, among many others, with very favorable conditions for real estate projects and companies.
Another factor that makes the real estate market in Colombia more competitive is the talent that international companies can find in the country, because it is thanks to the knowledge of Colombians in each branch of this industry and in each stage of the development and construction of real estate projects, that the sector has excelled, achieving the ability to build high quantities of housing units.
For all these reasons, we would like to invite you to invest in the real estate sector in Colombia, taking advantage of the country's investment opportunities and the development of this industry nationwide. Invest in Colombia, the country of beauty.
Find out more about investing in the country here.
Related posts
Other documents
