Residential Real Estate Leases - Colombia

In Colombia, the Residential Real Estate Leases market market is anticipated to witness significant growth in the coming years.
By 2024, the projected revenue for this market segment is expected to reach US$29.76bn.
Among the various subsegments, House Leases dominate the market with a projected market volume of US$18.40bn by 2024.
This indicates the strong demand for residential properties in the country.
Looking ahead, the market is expected to experience a steady annual growth rate (CAGR 2024-2029) of 3.19%.
This growth rate implies that by 2029, the market volume will expand to approximately US$34.81bn.
This indicates the increasing popularity and demand for Residential Real Estate Leases market in Colombia over the forecast period.
Colombia's residential real estate leasing market is experiencing a surge in demand due to the country's improving economic stability and growing middle class.

Definition:

The residential real estate leases market refers to the market where landlords and tenants enter into agreements for the rental of residential properties, such as apartments, houses, and condominiums. The lease outlines the terms of the rental agreement, including the duration of the lease, the amount of rent to be paid, and the responsibilities of both the landlord and the tenant. The lease may also include provisions for security deposits, maintenance and repair obligations, and renewal options.

Structure:

The residential real estate leases market comprises the lease of houses and apartments.

Additional information:

The residential real estate leases market includes the following KPIs: the revenue generated by real estate leases, the number of real estate leases, the average revenue per real estate lease, the share of dwelling type of tenants, and the average room per tenant. The dwelling type shares comprise the shares of the renter population that lives in houses and apartments.

Residential house and apartment leases

Real estate transactions
Commercial real estate
Accommodation services, such as Airbnb

The Residential Real Estate Leases market in Colombia is experiencing significant growth and development, driven by customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. Customer preferences in the Residential Real Estate Leases market in Colombia are shifting towards renting rather than buying properties. This is primarily due to the flexibility and affordability that renting offers. Renting allows individuals to have a place to live without the long-term commitment and financial burden of purchasing a property. Additionally, renting provides the opportunity to live in desirable locations that may be unaffordable for homebuyers. As a result, the demand for residential real estate leases has been steadily increasing. Trends in the market further support the growth of the Residential Real Estate Leases market in Colombia. One significant trend is the rise of co-living spaces. Co-living spaces are becoming popular among young professionals and students who are looking for affordable and communal living arrangements. These spaces offer shared common areas and amenities, creating a sense of community and reducing living expenses. The emergence of co-living spaces is driving the demand for residential real estate leases, particularly in urban areas. Another trend in the market is the increasing use of technology in the rental process. Online platforms and mobile applications have simplified the search for rental properties, making it easier for individuals to find suitable accommodations. These platforms also provide transparency and allow for direct communication between landlords and tenants. The convenience and efficiency offered by technology have contributed to the growth of the Residential Real Estate Leases market in Colombia. Local special circumstances in Colombia have also played a role in the development of the Residential Real Estate Leases market. One such circumstance is the high rate of urbanization. As more people move to urban areas in search of better job opportunities and amenities, the demand for rental properties has increased. Additionally, the government's focus on urban development and infrastructure improvements has further fueled the growth of the Residential Real Estate Leases market. Underlying macroeconomic factors have also contributed to the growth of the Residential Real Estate Leases market in Colombia. The stability of the economy, low interest rates, and favorable lending conditions have made renting an attractive option for individuals who are unable or unwilling to purchase a property. Furthermore, the growing middle class and increasing disposable income have enabled more people to afford rental properties. In conclusion, the Residential Real Estate Leases market in Colombia is developing and expanding due to customer preferences for flexibility and affordability, market trends such as co-living spaces and technology integration, local special circumstances like urbanization, and underlying macroeconomic factors including a stable economy and favorable lending conditions. This growth is expected to continue as more individuals opt for renting rather than buying properties in Colombia.

Data coverage:

Figures are based on total and average revenue of residential apartment leases.

Modeling approach:

Market size is determined by a 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 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 Leases - Colombia

Volume

Analyst Opinion

Revenue

Affordability

Real Estate Type

Living Space

Methodology

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