Construction & Real Estate

Colombia Construction and Real Estate

Buoyed by a strengthening of the government’s housing programme, as well as a continued emphasis on improving transport infrastructure across the country, Colombia’s construction sector is well positioned for growth over the coming years. The sector grew 9.8% in 2013, considerably more than the 3.6% increase seen in 2012, accounting for 6.5% of GDP in 2013, according to BBVA Bank. Driven by demand for housing and a mounting construction sector, the real estate sector is also experiencing healthy growth. According to the Colombian Federation of Real Estate, the sector accounted for 8% of GDP in 2013, with real estate services generating a value of $9.8bn, a 3.2% increase on 2012 figures. As the housing stock is absorbed by high demand and a well-structured mortgage system, fears of an impending bubble have so far been exaggerated. This chapter features an interview with Luis Felipe Henao Cardona, Minister of Housing and Social Development.