Colombian Housing Market Shows Revival Despite Construction Slowdown

Colombia’s housing sector displays a stark contrast in early 2025, reveals the latest Visión Davivienda report tracking real estate trends across the country’s six major cities.

Construction has plummeted while sales demonstrate surprising resilience. Construction area decreased by 35.6% during the December 2024 to February 2025 quarter.

This represents the largest contraction since June 2020, raising concerns throughout the industry. Social housing (VIS) construction suffered the most with a 44.2% reduction, while non-VIS housing construction fell by 12.5%.

Housing sales tell a different story. February figures showed remarkable 39.8% growth compared to the same month last year. Developers sold 8,930 homes valued at 2.25 trillion pesos last month.

This growth occurred despite a slight 1.1% decline from January’s figures. The positive sales performance stems primarily from VIS housing, which increased 54.4% annually.

Non-VIS sales also performed well with 33.1% growth. Experts attribute this recovery to increased home-buying intentions among Colombians and favorable comparison with last year’s low numbers.

Colombia’s Housing Market Recovery & Challenges

Barranquilla leads the regional recovery with staggering 218.5% annual growth in home sales. Cartagena follows with 65.1% growth, while Bogotá ranks third at 42.5%. All six major cities recorded positive annual sales growth in both housing segments.

Construction starts dropped dramatically by 55.2% nationally in January, signaling potential supply constraints ahead. New housing project launches fell 30.5% to their lowest recorded level.

The suspension of the “Mi Casa Ya” subsidy program in December 2024 contributed significantly to market uncertainty. Analysts remain cautiously optimistic about Colombia’s real estate future.

The residential market should reach USD 2.26 trillion by year-end according to Statista projections. Economic forecasts predict 2.8% GDP growth for 2025, potentially boosting property demand.

Industry experts expect the recovery to continue gradually. Colombia’s growing middle class drives demand for mid-priced apartments while urbanization pushes developers toward smaller, energy-efficient units in major cities.