Colombia Construction Sector Research Highlights

Overview

China's Belt and Road Initiative energises construction activity globally
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From 206 BCE to 220 CE, China’s Han dynasty fostered a booming trade industry in silk, a precious commodity in high demand among the elites of the Mediterranean. The Silk Road was the name given to the network of trade routes connecting the East and West at the time. Later, spices and other precious cargo would be traded using the system, fostering not only economic, but also cultural links…

Overview

China's Belt and Road Initiative energises construction activity globally
OBG
plus

From 206 BCE to 220 CE, China’s Han dynasty fostered a booming trade industry for silk, a precious commodity in high demand among the elites of the Mediterranean. The Silk Road was the name given to the network of trade routes connecting the East and West at the time. Later, spices and other precious cargo would be traded using the system, fostering not only economic, but also cultural links…

Overview

Growing pressure on emerging markets to solve housing deficits
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Urbanisation is a mega-trend redefining contemporary life in both developed and emerging markets across the world. This mass rural-to-urban movement of people and expansion of cities to absorb formerly isolated villages is a relatively recent phenomenon, at least in the developing world. According to the UN, in 1950, 751m people lived in urban areas; however, by 2018 this number had risen to…

Analysis

Private equity spending drives changes in Colombia's retail ownership
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The real estate industry in Colombia and wider South America has undergone substantial change in recent years, driven by an influx of private capital investments from local and international fund managers, sovereign wealth funds and Canadian pension funds. In light of the challenges of navigating Colombia’s property market, most of these investors have taken to partnering with local developers…

Country Report

The Report: Colombia 2019
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Colombia is home to a distinctive blend of ethnicities, cultures and geography, has the second-largest population in South America and is the continent’s fourth-largest country. After spending much of the second half of the 20th century embroiled in the world’s second-longest modern civil war, the 2016 peace accord brought a formal end to the conflict between FARC and the government. The end o

Overview

Colombian real estate market shows beginning of a revival of sustainable growth
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Following a challenging three-year period characterised by an oversupply of new homes and a growing housing deficit, data from late 2018 and early 2019 indicate the beginning of a revival in the Colombian real estate market. While inventories from the pre-2016 construction boom underscore the old mismatch between developer interests and the needs of businesses and households, suppliers have…

Overview

Colombia increases focus on subsidised and free housing programmes
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Although it is affected by a slowing economy, the construction sector remains one of the country’s most important industries. The sector posted negative growth in the first quarter of 2019, contracting by 5.6% year-on-year (y-o-y) compared to a decrease of 0.9% in the same period of 2018. Despite government efforts to subsidise low-income housing and invest in health and education facilities,…

Chapter

The Report: Colombia 2019: Construction & Real Estate
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As the economy made a recovery in late 2018 it is likely that construction will soon follow suit, with initial estimates for the first quarter of 2019 already showing signs of improvement. Social housing and infrastructure will likely receive the most attention from investors, with both segments addressing crucial deficits in the country. Likewise, the advent of new vehicles to channel private sector…

Interview

Roberto Moreno, President, Amarilo: Interview
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Interview: Roberto Moreno How is Bogotá responding to the challenges of urbanisation and densification? ROBERTO MORENO: Bogotá is one of the densest cities in the region, and indeed the world. In addition to densification, we are also experiencing a population shift, a growing middle class and new trends in family planning. As a result, we require smaller but more numerous housing options. In this…

Economic View

Diego Prada, President, Prabyc

On current building trends and foreign participation What are the main forces driving construction growth in Colombia? DIEGO PRADA: In recent years, the housing deficit has been progressively reduced as a direct result of policies promoted by the former administration. Yet, despite demographic shifts and changing trends in family planning – with people choosing to have smaller families – the…

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Colombia Construction Sector Research Highlights

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