In the past year, the real estate rental market in Colombia has experienced significant growth. According to the Colombian Federation of Real Estate Boards (Fedelonjas), lease agreements increased by 11% overall, with a rise of 11.5% in apartment rentals and 11.3% in house rentals.
However, despite this rental boom, it is expected that the housing sales market will regain momentum in the second half of the year due to the decrease in interest rates. Industry experts emphasize the importance of economic conditions and the country’s development for significant growth in the sector.
One of the main reasons behind the trend towards renting instead of buying homes is the increase in rental prices and the decrease in housing prices in some regions of the country. As Kelina Puche, director of the Real Estate Board in Barranquilla, highlights, “people prefer to rent due to the downward trend in housing prices and the upward trend in rental prices.”
According to Fedelonjas statistics, approximately seven million Colombian families live in rental properties, representing a 45% growth in recent years. This contraction in the real estate market is attributed to various factors, including high interest rates that make it difficult to access mortgage credit and the purchasing capacity of families. Furthermore, the uncertainty generated by tax reform and the current economic situation has created mistrust among consumers, leading them to postpone home purchases.
In conclusion, although the real estate rental market has experienced significant growth in Colombia, it is expected that the housing sales sector will regain momentum due to the decrease in interest rates. However, economic factors and consumer confidence remain crucial for sustainable growth in the country’s real estate sector.