Commercial Real Estate - Colombia

Colombia's Commercial Real Estate market market is anticipated to achieve a significant milestone by 2024, with a projected value of US$412.00bn.
This market segment is expected to maintain a steady growth trajectory, with an estimated annual growth rate (CAGR 2024-2029) of 0.89%.
This growth will ultimately lead to a substantial market volume of US$430.70bn by 2029.
When compared to other countries globally, it is worth noting that the United States will continue to dominate the Real Estate sector, generating the highest value of US$25.3tn in 2024.
Colombia's commercial real estate market is experiencing a surge in demand due to growing foreign investment and a stable economic climate.

Definition:

Commercial real estate can be defined as properties that are used for business purposes, such as office buildings, retail spaces, warehouses, and industrial properties.

Additional information:

The commercial real estate market contains the value of commercial properties as a key performance indicator. This is the worth of all office buildings, retail spaces warehouses, and industrial properties for the timeline of our data coverage.

Office buildings
Retail spaces
Warehouses
Industrial properties

Residential real estate
Publicly owned buildings used by the local government
Buildings used for public health care services

The Commercial 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 Commercial Real Estate market in Colombia are shifting towards modern and well-designed office spaces. Businesses are seeking office spaces that offer a comfortable and productive working environment for their employees. This includes features such as open floor plans, natural lighting, and amenities like gyms and cafes. Additionally, there is a growing demand for flexible office spaces, which allow companies to scale up or down their operations as needed. Trends in the market show an increasing focus on sustainability and energy efficiency in commercial real estate projects. Developers are incorporating green building practices and technologies to reduce energy consumption and minimize environmental impact. This trend is driven by both customer demand for environmentally-friendly spaces and government regulations promoting sustainable development. Another trend in the Commercial Real Estate market in Colombia is the rise of mixed-use developments. These projects combine commercial, residential, and recreational spaces in a single complex, creating vibrant and integrated communities. Mixed-use developments offer convenience and accessibility, as residents can live, work, and play in the same area. This trend is driven by the desire for a better work-life balance and the need for efficient use of land in urban areas. Local special circumstances in Colombia also contribute to the development of the Commercial Real Estate market. The country's growing economy and stable political environment attract foreign investors, who see Colombia as an attractive market for real estate investments. Additionally, the government has implemented policies to attract foreign investment and promote economic growth, creating a favorable business environment. Underlying macroeconomic factors such as population growth and urbanization further drive the development of the Commercial Real Estate market in Colombia. As the population increases and more people move to urban areas, there is a higher demand for commercial real estate to accommodate businesses and provide employment opportunities. This creates opportunities for developers and investors to capitalize on the growing market. In conclusion, the Commercial Real Estate market in Colombia is experiencing growth and development due to shifting customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. The demand for modern office spaces, sustainable developments, and mixed-use projects is driving the market forward. Additionally, Colombia's stable political environment, government policies, and population growth contribute to the attractiveness of the market for investors and developers.

Data coverage:

Figures are based on value of commercial real estate.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach. As a basis for evaluating this market, we use national statistical offices. Next, we use relevant key market indicators and data from country-specific associations such as share of industry, manufacturing, and services of the GPD, price level index, GDP. 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 market, for example, exponential trend smoothing.

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.

After a challenging period during the coronavirus pandemic, the European commercial real estate sector now faces additional pressures, including inflation, record-high interest rates, and sluggish economic growth. In 2022, these challenges were evident through contracting investment volumes in the two largest markets—the United Kingdom and Germany. Although the shifting economic landscape has impacted all commercial real estate subsectors, industrial and logistics—a property type that demonstrated incredible resilience during the pandemic—continues to be the most popular investment class. The performance of the sector is closely tied to the state of the economy, explaining why cities with flourishing capital markets garner the most interest from investors. In 2023, investors identified London, Paris, and Madrid as the three most attractive markets.

Growing demand for industrial and logistic real estate is prominent in Europe, driven by the increase in online retail sales rather than in-store. All the Nordic countries saw steady growth in their e-commerce sales during the past fifteen years and more, and the growth is expected to continue. Investments in the industrial and logistic real estate industry have generally been at a higher level during the last few years. The highest investment value among European countries in the first half of 2021 was in the United Kingdom, while Sweden topped the list among the Nordic countries, and was fifth in terms of industrial and logistics investment in real estate in Europe that year.