Colombia | Where is the housing market headed?

Summary

Housing construction will be a key sector to help the country's economic recovery. The low and mid-price segments will have the greatest dynamism, thanks to government support and the reactivation of household demand. The other housing sectors, along with non-residential buildings, will have a slower recovery.

Key points

• Key points:
• In 2020, an all-time record of 200 thousand homes were sold, with a higher share of VIS housing. This is consistent with the objective of reducing the housing deficit.
• Low and medium value housing will lead the recovery, with positive effects on employment and input demand.
• Currently there is a more concentrated supply in the pre-sales stages, which benefits the financial solidity of builders and the outlook for the sector.
• The commercialization of used housing deteriorated during the pandemic and its improvement is not yet evident.
• Construction costs remain low due to slower increases in labor and machinery. However, increases in iron and steel may not yet have fully materialized.

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