The construction sector in Colombia received a hard blow in September 2024, recording figures that have alarmed the industry. According to Coordenada Urbana, the information system of the Colombian Chamber of Construction (Camacol), housing sales fell to less than 10,000 units throughout the country, the lowest figure since May 2020 and, in September terms , the lowest since 2010. This represents a decrease of 16% compared to the same month of the previous year, when 11,720 units were sold, while this year there were only 9,889.
The Non-VIS Housing segment was the most impacted, with a drop of 34%. During the ninth month of the year, only 2,795 units were sold, compared to the 4,211 sold in September 2023. This sector had not experienced such a pronounced drop since May 2020. In contrast, sales of Social Interest Housing (VIS) also They decreased, although less drastically, with a decrease of 6%, going from 7,509 to 7,094 units in annual comparison. Despite this reduction, the figures remain above 7,000 units, the average observed in 2023 and so far in 2024.
Luis Aurelio Díaz, president of the construction company Oikos, described September as an “atypical” month and was optimistic about the coming months, attributing the potential improvement to lower interest rates and a perception of political stability given the proximity of the end of the current government. “I don’t think there is anything fundamental other than a specific issue. On the contrary, going forward the numbers will begin to improve very significantly,” said Díaz.
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In contrast, Oscar Manco López, PhD in economic sciences, indicated that the drop was mainly driven by low confidence in major cities, such as Bogotá and Cundinamarca, where government policies have generated uncertainty. “These areas, which concentrate a significant part of the GDP, still do not present a positive recovery environment,” said Manco López. In addition, he stressed that the high cost of money and the lack of confidence in purchasing long-term homes continue to affect the purchasing decisions of Colombian households.
On the other hand, the initiations and launches of new projects also reflect this negative trend. Housing starts fell 35% in September, with 8,467 units compared to the 12,930 reported in the same month of 2023. Regarding launches, a decrease of 49% was recorded, going from 14,583 units in September 2023 to 7,414 in 2024, which shows a lack of confidence to put new projects on the market, especially in the Non-VIS segment, which plummeted by 61%.
The sector’s recovery will largely depend on government relief. Juan Sokoloff, vice president of data and analytics at Habi, highlighted that for many Colombian families, purchasing a home is the most important financial decision of their lives, so it is essential that the government continues to implement incentives that favor the purchase. “We expect to see an increase in the volume of housing transactions in the remainder of 2024,” Sokoloff concluded.
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