Real estate investor Juan Londoño said current market conditions in Colombia provide a favorable window for investing in residential property.
This shift is significant because it suggests a recovery for a sector that has faced stagnation due to high borrowing costs and paused construction projects.
Speaking at an investor and developer fair in Medellín, Londoño, the creator of ExpoInvestor, said there is potential for a reduction in interest rates. He said this trend is expected to reactivate real estate projects that were previously on hold, creating new entry points for investors.
Recent data supports a trend of growth in the sector. Housing sales saw an increase of 24% [1] in May. Additionally, average mortgage rates have remained below four percent [2] for a period of three months.
However, the market outlook remains divided among analysts. Some reports indicate that the Colombian real estate market is showing clear signs of recovery through these rising sales and descending rates [1]. Other perspectives suggest that strict regulation and a lack of available housing supply have altered the landscape, potentially complicating the decision for new buyers.
Londoño said the combination of lower rates and the return of stalled developments makes the current environment propitious for those looking at "finca raíz," or root property investment.
“Housing sales saw an increase of 24% in May.”
The divergence in expert opinions reflects a tension between macroeconomic indicators and structural hurdles. While falling interest rates and rising sales figures suggest a bullish cycle, regulatory bottlenecks and supply shortages may prevent the broader market from fully capitalizing on these lower costs.
