REAL ESTATE
Real Estate in Colombia is made up of the residential sectors in which the segments of the residential sector are located.
The commercial sector is made up of the VIS and NON VIS housing, student residences and senior living, and the commercial sector, which is made up of the
office, retail and hotel and tourism, and the industrial sector comprising business, industrial and logistics parks.
THE REAL ESTATE SECTOR IN COLOMBIA IS OF GREAT IMPORTANCE.
- Colombia is the third largest destination for Real Estate investment projects. Between 2010 and 2019, the country registered 61 investment projects in the sector, representing 21% of the investment projects attracted in Latin America and the Caribbean. (Source: FDI)
- In addition, Colombia is attracting large investors who are investing in the region from markets such as the United States, Chile and Switzerland. (Source: FDI)
ATTRACTIVE LOCAL MARKET WITH POTENTIAL FOR THE DEVELOPMENT OF THE REAL ESTATESECTOR
- Colombia is the third most populous country and the fourth largest economy in terms of GDP in Latin America whose economic performance translates into a middle class with growing purchasing power, making Colombia an attractive destination for the development of residential and commercial projects. (Source: IMF)
- The country has the third largest construction industry in Latin America, an industry that supports the development of assets for the real estate sector. (Source: Fitch Connect)
- On average the country builds 17.8 million m2 each year in new areas that can be used in the construction of assets for real estate activities. In 2019 the country licensed 23.1 million m2 for construction, of this licensed area 80.8% was for housing, 9.7% for commerce, 3.6% for offices and 27.2% for other types of construction. (Source: DANE)
- Colombia shows a downward trend in interest rates for housing construction and acquisition that favours the development of residential projects in the sector. (Source: Banco de la República)
- There is currently a high demand for premium office space (class A+, A) in large cities, which favours the development of projects. (Source: Colliers)
IMPORTANT STRATEGIC LOCATION FOR PROJECTDEVELOPMENT
- Colombia has become an important destination for tourism in Latin America, which has allowed for the development of the hotel, commercial and entertainment sectors.
- In addition to being a tourist destination, it is also promoted as a retirement destination. According to the International Living 2020 Retirement Index, the country ranks 5th as a destination for senior citizens. (Source: International Living 2020 Retirement Index)
INVESTMENT OPPORTUNITIES IN THE REAL ESTATE SECTOR IN COLOMBIA:
- Shopping centres
Colombia has opportunities in the development of shopping centres. It is the first most attractive country to invest in the retail sector in Latin America and tenth in the world according to the Global Retail Development Index 2019. (Source: Global retail Development Index 2019)
In addition, growing private consumption, the middle class and the urban population have made it attractive for investment projects. (Source: DANE)
- Senior Living
Colombia has opportunities in the development of projects focused on secondary residences, housing and multi-family housing for the elderly due to an increasing elderly population and a low cost of living. (Source: United Nations Population Division)
- Student Residences
The six main cities in Colombia account for 76.3% of the graduates in the country, this means that there is a migration of students to the big cities, this has increased the demand for construction in these types of projects in these cities. (Source: Labour Observatory)
- Multifamily
Colombia has opportunities for social housing (VIS) development due to government housing programmes and the possible adjustment in housing prices.
- Mixed use
There is a growing development of mixed-use projects in Colombia, where offices, commercial and residential areas are developed in the same space, attracting the benefits of these sectors in one place.
Retrieved from: https://investincolombia.com.co/es/sectores/inmobiliario/inmobiliario
You may also be interested in: https://zonafrancaoccidente.com/las-100-mujeres-que-hacen-empresa/
