Residential Real Estate - Colombia

Colombia is expected to witness a significant growth in its Residential Real Estate market market.
By 2024, the market value is projected to reach a staggering US$2.17tn.
This growth is anticipated to continue at an annual growth rate of 4.23% from 2024 to 2029, resulting in a market volume of US$2.67tn by the end of 2029.
In comparison to other countries, China is expected to generate the highest value in the Real Estate market, reaching US$112.9tn by 2024.
Colombia's residential real estate market is seeing a surge in demand driven by international investors seeking attractive investment opportunities.

Definition:

The residential real estate market covers the leases and transactions of residential properties. Residential real estate leases refer to the market where landlords and tenants enter into agreements for the rental of residential properties, such as apartments, houses, and condominiums, while residential real can be defined as buying, selling, or transfer of ownership of residential properties.

Structure:

The residential real estate market covers real estate transactions and leases, and the section, residential real estate leases, is 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 for real estate renters as well.

Residential real estate transactions
Residential real estate leases

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 Residential Real Estate market in Colombia has been experiencing significant growth and development in recent years.

Customer preferences: Colombian customers have shown a strong preference for residential properties that offer modern amenities and conveniences. There is a growing demand for properties with features such as smart home technology, energy efficiency, and recreational facilities. Customers are also increasingly looking for properties located in safe and well-connected neighborhoods, with access to schools, healthcare facilities, and shopping centers.

Trends in the market: One of the key trends in the Colombian Residential Real Estate market is the increasing popularity of high-rise apartment buildings. These buildings offer a range of amenities, including swimming pools, gyms, and communal spaces, making them attractive to young professionals and families. The demand for these types of properties has been driven by the urbanization trend in Colombia, with more people moving to cities in search of better job opportunities and a higher quality of life. Another trend in the market is the growing interest in sustainable and eco-friendly properties. Customers are becoming more conscious of the environmental impact of their homes and are seeking properties that are built with sustainable materials, have energy-efficient features, and utilize renewable energy sources. Developers are responding to this demand by incorporating green building practices into their projects, which not only attract environmentally conscious buyers but also help reduce long-term operating costs for homeowners.

Local special circumstances: Colombia's Residential Real Estate market is influenced by several local special circumstances. The country's political stability and improving security situation have contributed to a growing sense of confidence among buyers and investors. Additionally, Colombia's growing middle class and increasing urbanization rate have created a larger pool of potential homebuyers, driving demand in the market.

Underlying macroeconomic factors: Several underlying macroeconomic factors have contributed to the development of the Residential Real Estate market in Colombia. The country's stable economic growth, low inflation rate, and low interest rates have made it more affordable for individuals and families to invest in residential properties. The government has also implemented policies and incentives to promote homeownership, such as subsidies for low-income families and tax breaks for first-time homebuyers. These factors have stimulated demand in the market and encouraged investment in the residential real estate sector. In conclusion, the Residential Real Estate market in Colombia is experiencing growth and development due to customer preferences for modern amenities and well-located properties, as well as trends towards high-rise apartment buildings and sustainable housing. Local special circumstances, such as political stability and a growing middle class, are also contributing to the market's development. Underlying macroeconomic factors, including stable economic growth and government incentives, are further driving demand and investment in the sector.

Data coverage:

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

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, 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:

Data is modeled using current exchange rates. 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.

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Residential Real Estate - Colombia

Value

Volume

Analyst Opinion

Transaction Value

Revenue

Household Type

Real Estate Type

Living Space

Methodology

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