Structural precaution against risk, along with an influx of investment coming from government housing programmes as well as private investors, continue to fuel Colombia’s housing market. Although government support has primarily focused on the lower-income segments of the population, the expansion of the middle class has helped move housing programme financing up the income echelon. At the…
With plans set to modernise transport networks and government-led housing programmes expanding the availability of homes, Colombia’s construction sector remains an essential part of the economy. Although the macroeconomic environment has required the government to exercise fiscal discipline, which may cause several projects to be postponed or delayed, it is unlikely that the ambitious infrastructure…
With economic growth reducing poverty and increasing the size of Colombia’s middle class, government programmes are having a major impact in lowering the country’s housing deficit. Programmes to allocate free homes to the lowest-income segments, reduce the costs of acquisition and ease access to banking credit for other segments of the population have absorbed a considerable amount of state resources.…
Interview:Alfredo Rizo To what extent has currency depreciation had an impact in terms of foreign investment? ALFREDO RIZO: Prior to the currency depreciation, Colombia looked expensive, and several investors started to have concerns about prices. Therefore, the current value of the peso is a good entry point for foreign capital to invest in the real estate market. Foreign investors have minimal…
With plans set to modernise transport networks and government-led housing programmes expanding the availability of homes, Colombia’s construction sector remains an essential part of the economy. The government estimated that the construction sector will grow by 3.9% in 2017, largely driven by the execution of large-scale projects, which is set to accelerate growth of the infrastructure segment from…
With oil accounting for roughly half of Colombia’s total exports, Latin America’s fourth-largest economy is feeling the effects of lower international oil prices. The negative impact of lower prices was nonetheless offset by positive performances by the retail, agriculture and financial services sectors, ensuring continued growth in 2015. Higher growth is expected in 2016 and beyond, driven in
As one of the larger economies in Latin America, Colombia has a track record of above-average GDP growth, a reputation for sound macroeconomic management and market-friendly policies. In 2015-16 it has demonstrated resilience, absorbing a significant oil price shock, with petroleum accounting for roughly half of total exports. It has managed to absorb this shock while maintaining positive, albeit…
A combination of public and private investment in infrastructure, as well as the implementation of public housing plans, continue to be the primary drivers for Colombia’s construction sector. Projects ranging from highway construction to expansion of existing port and airport infrastructure are attracting a rising number of international firms to build and operate important infrastructure across…
In an effort to counter the negative effects of a slowdown in the mining sector, as well as lower revenues from national oil exports, Colombia is implementing a stimulus package designed to encourage economic growth in the coming years. The Plan for Productivity and Employment (Plan para la Productividad y el Empleo, PIPE 2) comes on the back of an earlier stimulus plan announced in 2013. The success…
Interview:Carlos Jacks What are your expectations for the construction materials industry in 2016? CARLOS JACKS: It is possible that several of the factors that caused market volatility in 2015 will remain challenges in 2016. There are significant unknowns with regards to oil prices, possible hikes in interest rates and the strength of the US dollar compared to emerging market currencies. This…