Colombia | Real Estate Market

Summary

Colombia’s housing market has entered a recovery phase. Building permits have increased and the market-rate (No VIS) segment shows renewed momentum. New-home price appreciation is running below CPI. A persistent housing deficit underpins demand, while the social housing (VIS) segment retains an inventory overhang.

Key points

• Key points:
• The 2022 adjustment has eased; No VIS sales have gained traction and rising permits set up a new construction cycle, although VIS still carries elevated inventories.
• New-home prices are rising below inflation; Cali and Medellín lead in appreciation, while Bogotá and its metro area underperform the national average.
• An estimated 26.8% of households face a housing deficit (~4.9M). Addressing this requires public-private coordination and stronger credit and subsidy channels to sustain the upcycle.
• Higher labor incomes and remittances are lifting purchasing power; rising rental tenure and smaller household sizes are shifting demand toward compact units and amenity-rich projects.

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