Real estate sector will rise in what remains of 2018 by 1.3%: Lonja de Bogota
- "This growth will be concentrated in low, medium and medium-high-income housing; the height is expected to remain stable".
- Housing is a key segment for the real estate market but there are also other forms of investment with a high rate of growth such as offices, commercial premises and warehouses.
Bogota, July of 2018. – During 2017 the real estate sector experienced some "ups and downs" in supply and demand in all regions of the country. For this second semester an improvement is expected thanks to the greater willingness of households to invest in real estate.
"Real estate construction should expand at an annual rate of 4.6% after the 2.3% registered in 2017, this indicates that it will grow almost twice over the economy as a whole," says Andres Martinez, Executive President (E) of the Lonja of Bogota.
At this time it can be said that there is a favorable macroeconomic environment for the sector thanks to various factors such as:
- The decreasing trend of the mortgage interest rate and the inflation index.
- Improvement in investment.
- Stable monetary policy.
- Recovery of confidence indicators.
- Effects of a greater aggregate economic dynamics that drive the demand for housing.
- Continuity in the subsidy for the middle segment.
"A gradual and stable growth of the real estate market is projected: 1.3% of the added value of the sector (figure that marks an optimistic path). This growth will be concentrated in low, medium and medium - high income housing; the high is expected to remain stable", says Andrés Martinez.
Currently the recent panorama of the market is as follows:
New housing: It is important to highlight the government's drive in social interest housing and priority (VIS - VIP), to this is added the positive effect of Mi Casa Ya program (National Government Program that facilitates the purchase of new urban housing in any municipality of the country for households with incomes up to 4 smmlv), which marked a milestone in housing investment. Between October 2016 and October 2017, 175,000 housing units were built for households that invested $ 32.5 billion COP in the acquisition of 11.6 million square meters. During the first quarter of 2018 the trend was sustained and 40,000 new housing units were built. 54% of social interest and 35% of middle stratum (between 110 and 130 million COP).
Used homes: The increase in demand and prices in this market has been significant above the average of other sectors during the last year. The preferences for this type of housing are due to the advantages it offers in terms of market size, location options, generous areas, price and remodeling costs; or for the short-term gains resulting from investing, improving and reselling the property.
Real estate activities and housing rental: grew by 2.8%, which indicates that the companies in the sector increased their participation in a market that covers 90% of real estate transactions in the country. The Colombian leasing market has grown at a good pace and covers 44% of urban areas.
Financing: The real estate sector presents as a key feature the increase in the demand for mortgage loans in correspondence with the decrease in interest. The value of the credits disbursed for used housing increased 18.2% and added 3.22 billion COP in the last 12 months (with a cut in March).
"It is important to remember that housing is a key segment for the real estate market but there are also other forms of investment in corporate segments such as offices, commercial premises and warehouses", concludes the Executive President (E) of the Lonja de Bogota.
During the XIII edition of the Gran Salon Inmobiliario - International Fair, the main platform of the real estate sector in Colombia, buyers, investors and professionals of the sector will be able to see at first hand the latest trends in the sector, make commercial agreements and acquire housing for the first time.
The fair is organized by the International Business and Exhibition Center of Bogotá - Corferias in association with La Lonja de Propiedad Raiz de Bogota, and will take place from 9 to 12 August in Corferias.