Real Estate - Colombia | Statista Market Forecast

Colombia's Real Estate market market is expected to reach a staggering value of US$2.58tn by 2024.
Within this market, the Residential Real Estate segment holds the dominant position, with a projected market volume of US$2.17tn in the same year.
Furthermore, it is anticipated that the market will experience a steady annual growth rate (CAGR 2024-2029) of 3.73%, resulting in a market volume of US$3.10tn by 2029.
When compared to other countries worldwide, United States is expected to generate the highest value in the Real Estate market sector, reaching a staggering US$132.0tn by 2024.
Colombia's real estate market is experiencing a surge in demand for luxury beachfront properties due to the country's stunning coastal landscapes and growing tourism industry.

Definition:

The real estate market refers to the transaction of properties, including residential properties (such as houses and apartments) and commercial properties, such as office buildings and industrial properties. Apart from property sales, this market includes leases and the value of real estate.

Structure:

The real estate market comprises residential and commercial real estate. The residential real estate market covers real estate transactions and leases, and residential real estate leases are divided into apartment and house leases.

Additional information:

The market contains the following KPIs: real estate value aggregated for all countries and regions, average real estate value, real estate transaction revenue, number of real estate sold, number of leased and owned real estate, average room per resident, and dwelling type shares. The dwelling type shares comprise the share of the population that lives in houses and apartments. These shares are displayed for real estate owners and real estate renters as well.

Residential real estate (houses and apartments)
Commercial real estate (office buildings, retail spaces, warehouses, industrial properties)

Real estate agencies
Construction companies
Accommodation services, such as Airbnb
Commercial real estate leases and transactions
Publicly owned buildings used by the local government
Buildings used for public health care services

The Real Estate market in Colombia is experiencing significant growth and development, driven by various factors such as customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. Customer preferences in the Real Estate market in Colombia have shifted towards urban living and modern amenities. With the increasing urbanization and population growth in major cities like Bogota and Medellin, there is a growing demand for residential properties that offer convenience, security, and access to amenities such as shopping centers, parks, and recreational facilities. Additionally, there is a rising interest in sustainable and eco-friendly housing options, reflecting the global trend towards environmental consciousness. Trends in the Real Estate market in Colombia include the development of mixed-use projects that combine residential, commercial, and leisure spaces in a single complex. This trend is driven by the desire for convenience and the need for integrated living and working spaces. Furthermore, there is a growing demand for affordable housing options, especially among the middle-income population, leading to the construction of more affordable housing projects across the country. Local special circumstances in Colombia, such as government initiatives and policies, also play a role in shaping the Real Estate market. The Colombian government has implemented various measures to promote the development of the housing sector, including subsidies and tax incentives for homebuyers and developers. These initiatives aim to increase homeownership rates and stimulate economic growth in the construction industry. Underlying macroeconomic factors contribute to the development of the Real Estate market in Colombia. The country's stable economic growth, low inflation rates, and favorable interest rate environment create a conducive environment for real estate investment. Additionally, the increasing foreign direct investment in Colombia's real estate sector reflects the confidence of international investors in the country's economic prospects and potential returns. In conclusion, the Real Estate market in Colombia is experiencing growth and development driven by customer preferences for urban living and modern amenities, market trends such as mixed-use projects and affordable housing, local special circumstances including government initiatives, and favorable macroeconomic factors. These factors collectively contribute to the positive trajectory of the Real Estate market in Colombia.

Data coverage:

Figures are based on value of residential and commercial real estate, average real estate value, residential estate transactions and leases.

Modeling approach / Market size:

Market sizes are determined by a combined Top-Down and Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use data from international organizations and industry associations. Next we use relevant key market indicators and data from country-specific associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

The global housing market has slowed amid high inflation and soaring borrowing costs. Homeownership is one of the most universal signs of success and prosperity: It serves both as a source of stable and secure housing and a long-term investment. After the global financial crisis, property prices rose in many countries and especially in advanced economies. For more than a decade after that, the housing market has been on an upward trajectory, culminating in the housing boom during the COVID-19 pandemic. However, housing shortages in highly competitive markets, the recent rapid house price growth, soaring inflation, and consequently, some of the highest mortgage interest rates recorded in the past 10 years have led to the market cooling.

Japan is a country with very limited space for buildings, as mountains make up about three-quarters of its landmass. The country’s fairly large population is concentrated in major cities. The metropolitan area of Tokyo, home to a staggering one-third of the population, is the center of economic and political activity. As such, it boasts the highest property prices across the country. Driven by the weak yen, a tourism boom, and global investment, property and land prices surged in 2023 and 2024. Even some rural regions, which are generally confronted with economic stagnation and depopulation tendencies, have been affected by this trend.

The real estate market all around the world has been affected by the global pandemic. This historic event has changed the way we live, consume, and work. The real estate market in the Asia-Pacific region has experienced some turbulent and diverse changes depending on the sector, property type, and location. The commercial real estate segment, which includes offices, retail outlets, logistics centers, and many more, had to adapt to new conditions and demands. Furthermore, residential real estate suffered decreases in rental and capital values in some areas, with the exception of prime real estate, which experienced healthy growth in most locations.

Soaring inflation and aggressive mortgage interest rate hikes cooled the European housing market after a nearly decade-long period of growth. Since 2015, house prices in the European Union have grown by about 50 percent. When inflation in Europe started to rise at an alarming rate in 2021, the European Central Bank increased interest rates, resulting in substantially higher mortgage interest rates and a decline in homebuying. But how important is homeownership for Europeans?

Real Estate - Colombia

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Volume

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Methodology

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