El 2024 será un buen año para comprar vivienda. Hay varias razones: la continuidad en los programas de subsidio del Gobierno, los niveles históricamente bajos de las tasas de interés hipotecario, y una oferta amplia y robusta acorde con las necesidades del mercado.
Revista semana
Are you thinking of investing in property in Colombia? Are you questioning whether it’s wiser to make a purchase now or hold off until next year?
Different individuals have different perspectives on market timing. The Colombian real estate agent you consulted might advise you that now is the opportune time to buy property, while your childhood friend from Bogotá may suggest exercising more patience before making a decision.
At TheLatinvestor, when we create articles or update our pack of documents related to the real estate market in Colombia, we facts and data that are backed by evidence, not just opinions or rumors.
We’ve done extensive research on official reports and government website statistics, resulting in a comprehensive database. Here’s what we’ve learned, which can provide valuable insights for your decision-making process regarding real estate purchase in Colombia.
We hope this article proves valuable to you.
How is the property market in Colombia now?
Colombia is, today, a relatively stable country
Stability is a necessary condition when investing in real estate because it reduces risks and provides a secure investment landscape. It is an information you need as a foreigner looking to buy real estate in Colombia.
In today’s context, Colombia can be regarded as a country that has achieved stability to some extent. The last Fragile State Index reported for this country is 78.4, which is a respectable number.
Colombia has made significant progress in stabilizing the country, both through increased security measures and by implementing economic reforms. This has led to a reduction in violence and improved economic conditions, making the country more stable and attractive to investors.
Let’s analyze other data now to assess whether it’s a favorable time to purchase property in this country.
Colombia will see substantial development
Second thing to do before buying a property: determine if the country’s economy is in good shape.
Based on the IMF’s outlook, Colombia is likely to finish 2023 with a growth rate of 1%, which is somewhat disappointing. Regarding 2024, the experts say 1.9%.
However, this modest figure is only temporary, as Colombia’s economy is expected to increase by 10.5% during the next 5 years, resulting in an average GDP growth rate of 2.1%.
The expected sustainable growth rate in Colombia is a good thing for someone who wants to invest in real estate because it indicates that the country’s economy is strong and growing, which makes it a good place to invest in real estate. This growth rate also provides assurance that the value of real estate investments in Colombia will increase over time.
On top of that, there are other indicators to pay attention to.
Colombian business owners are not confident anymore
Negative
The GDP growth is a valuable measure, but may not fully account for business community expectations. Thankfully, in Colombia there is a designated metric that is regularly reported. It’s not the case for every country, so we’re lucky.
The Business Consumer Index (BCI) is a metric that evaluates how confident business leaders feel about the present and future economic conditions. It’s determined by conducting surveys and assessments.
According to the Fedesarrollo’s data, the latest Business Confidence Index value is -6 for Colombia. It’s a score that can be regarded as “worrisomee.
Data shows that, one year ago, it was different. Business operators were confident, and the score was at 10.
A lack of confidence among local businesses in Colombia can lead to a sluggish property market with subdued investment and growth. There may be limited appreciation potential, and buyers could face challenges in finding available properties and motivated sellers.
Nevertheless, it is crucial to recognize that this “sentiment” alone does not exert a direct influence on growth. History has shown numerous instances where a negative BCI was followed by subsequent growth. Therefore, it is imperative for us to consider a broader range of data points in order to gain a more comprehensive understanding.
House prices are increasing without interruption in Colombia
Positive
Colombia’s home prices have increased by 37.9% in 5 years according to Dane, Colombia.
It means that if you had bought a hacienda in Cartagena for $625,000 five years ago, then it would now be worth around $862,000.
Nowadays, we can observe a relentless surge in house prices, with continuous increases observed across the real estate market.
It’s definitely a green flag for whoever wants to invest in the Colombian property market. However, you might want to wait for the next market correction, so you can get better prices.
You can find a more detailed analysis of the real estate prices in our property pack for Colombia.
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