Construction & Real Estate
From The Report: Colombia 2014
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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.

Articles from this Chapter

Overview

Homebuilding and ambitious infrastructure plans drive expansion
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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. Construction of highways and other infrastructure is accelerating, as successive tenders for the Fourth Generation (4G) road projects are launched. At the same time the programmes to build more than 1m homes during the 2010-14 period is set to continue to mobilise…

Analysis

New building incentives help to tackle the housing gap
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Ever since entering office for its first term in 2010, the government of President Juan Manuel Santos has put the construction of new homes for Colombians as one of the top priorities. Despite being behind its target of building 1m homes over the 2010-14 period, the government has been able to establish a consistent level of housing development. Much of the impetus has been achieved through a programme to build 100,000 free homes, established in 2012, as well as a series of subsidies to help low-income…

Analysis

Finance structure on public-private deals raises concern
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Infrastructure development plans are focusing on the concession model to support the expansion of road connections. However, the initial market response to the projects has left much to be desired. Despite the pre-qualification of up to 10 companies for each of the first four projects to be tendered by the government in April 2014, the response from operators has so far been lukewarm. The first two of the Fourth Generation (4G) projects to be tendered were the Girardot-Puerto Salgar highway public-private…

Interview

Reaching out: OBG talks to Luis Felipe Henao Cardona, Minister of Housing and Social Development
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Interview:Luis Felipe Henao Cardona What are the government’s housing priorities? LUIS FELIPE HENAO CARDONA: The government’s housing development priorities have positively affected not only the industry but the entire economy. The housing sector showed double-digit growth in the first half of 2013 and 7.9% in the second half. The number of social housing licences increased by more than 60%, while housing sales went up by 18% in 2013. Part of the task is to decentralise social housing,…

Overview

The sector continues to grow steadily, despite a lack of available land
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Driven by demand for housing and a mounting construction sector, real estate in Colombia has been experiencing healthy growth. Fears of an impending bubble have so far been exaggerated, as the housing stock is being absorbed by high demand and a well structured mortgage system. The real estate sector accounted for 8% of GDP in 2013, according to figures by the Colombian Federation of Real Estate (Federación Colombiana de Lonjas de Propiedad Raíz de Colombia, FEDELONJAS). Real estate services generated…

Analysis

Bogotá expansion limited by land and legislative uncertainty
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Despite the growing importance of medium-sized cities for property development, Colombia’s real estate sector has been highly affected by expansion in Bogotá. The capital city has seen a wave of economic growth turn into real estate investment, whether for high-end housing options or as an investment opportunity. Despite the fast-growing market, the city’s real estate sector remains pressured by institutional issues regarding the urban development plans and a consistent lack of available land…