Colombian Property Market

tomtom33 says on Aug 5, 2007, 18:15:

My guess is that you can get some deals in Buenaventura on the Pacific coast these days. Of course, if you want to live, you had better stick to the Caribbean coast.

Cartagena is becoming overbuilt. Barranquilla will soon tank because Elmo is moving in. How about Santa Marta?

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cal says on Aug 5, 2007, 18:43:

Thanks for the advice tt. At the risk of appearing stupid, who or what is Elmo? Surely you cannot be referring to the muppet from Seasme Street.

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cal says on Aug 5, 2007, 18:46:

that should read, Sesame Street.

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robi666 says on Aug 5, 2007, 18:47:

Elmo is the 5th hurricane of the season and the first which will hit Barranquilla.

"I am a citizen of the most beautiful nation on earth. A nation whose laws are harsh yet simple, a nation that never cheats, which is immense and without borders, where life is lived in the present."

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tomtom33 says on Aug 5, 2007, 18:50:

Elmo is Elmodefoque, our resident burra-lover. He's also fond of booze and hookers.

I don't partake in two out of three.

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ColombiaBoard says on Aug 6, 2007, 10:27:

You should analyze colombian real estate from a different point of view.

Whereas Panama offers basically only two alternatives: Panama City if you want a large well developed urban area or beachfront properties to build houses.

Colombia offers different types of possibilities, not just beachfront properties or cities along the coast.

Bogota is a huge urban area where you can find all types of real estate opportunities, other cities with similar markets are Medellin and Cali. Another option is the coffee region for small farms and lots.

It takes a while to analyze the colombian market but you can find many more options than the ones Panama can offer.

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Maojaimes says on Aug 8, 2007, 19:59:

Colombia is having a real estate boom. Average Prices have increased more than 10% in a national average the last three years. Some areas in major cities like Bogota and Medellin have had increases of 15% or more. Cartagena has the most real estate value of Colombia, Prices are getting an international value. In my opinion I think we have room for this kind of appreciation for two years more. So this is the time to buy. Interest rates are stable, unemployment rate is decreasing, so these are signs that you can keep in mind if you are plannig to buy as investment.

Mauricio
www.buycolombiarealty.com

www.buycolombiarealty.com - The most complete guide about How to buy Colombia Real Estate

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robi666 says on Aug 8, 2007, 23:02:

Interest rate are stable? Are you sure Mauricio? Unemployment rate decreasing? Are you sure Mauricio?
Because in the last months is happening exactly the contrary...
Colombia's central bank lifted its benchmark lending rate to the highest since 2001 to slow inflation amid the fastest economic growth in almost three decades.
Unemployment rate in Colombia is up by 0.6 p.p. in June 2007.

"I am a citizen of the most beautiful nation on earth. A nation whose laws are harsh yet simple, a nation that never cheats, which is immense and without borders, where life is lived in the present."

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Maojaimes says on Aug 10, 2007, 09:23:

Well Robbi, yes you are right, but just in part . Maybe I have to clarify also. Anyway, this is what this forums are for: friendly discussion.
If we look the national figures unemployment rate increased in June 0,6 from 10.5 % last year to 11.1%. in spite of an economic growth in the first quarter of 8%, the highest in the last 30 years as you say. That’s what economist says it’s a paradox . Economic growth without employment.
For my job what I do is to track unemployment rate in urban cities, because this is an indicator that can explain real estate market behavior. And in the major 13 Colombian cities this rate decrease from 12,5% to 11,7%
Bucaramanga has the lowest unemployment rate with 9,3%
Cucuta 10,4%
Bogota 10,8%
Cali 11,2%
Medellin 12,3%
And the highers
Cartagena 14,6%
Ibague 15,4%

Long term financing rate for housing had been stable, even as you said, the Central bank increased it in 0.25 basis points in July. I don’t think they ‘ll keep on it raising it in the short term, because what they care is that inflation rate can fall to less than 4%, and I think is a reasonably goal for this year. I’m still believe that people who buy real estate today (and maybe six months from now ) can expect a good value increasing for two more years. But after that, as is happening in the U.S, prices will have to adjust. This is a typical cycle we always have in the real estate market. So, this is the time of “fat cows�.


Mauricio
www.buycolombiarealty.com

www.buycolombiarealty.com - The most complete guide about How to buy Colombia Real Estate

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robi666 says on Aug 10, 2007, 12:55:

Thanks, Mauricio! Also, I had a look at your site and it gives really useful infos. Really good work.
About real estate, I have my own view and I think that prices are still too low in Colombia, comparing to other costs of life and lifestyle. Also, rent prices are too high in %. Well, we'll see in 15 years from now, when rent should be be 3,5% per year on the value.
Anyway, for what I see happening in Medellin in the last months, the time to invest for the ones who want to flip apartment in a year or two or even three is already gone. No six months... just gone!

"I am a citizen of the most beautiful nation on earth. A nation whose laws are harsh yet simple, a nation that never cheats, which is immense and without borders, where life is lived in the present."

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cal says on Sep 5, 2007, 18:58:

Thanks for all the detailed and informative answers, just what I was looking for.

And for my next questions. What sort of apartment could I get for between $100,000US and $150,000US in the Santa Marta area?

Thanks again. c

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john_stark says on Sep 5, 2007, 19:03:

Still some real deals to be had in the village of Santa Lucia on the road from Monteria to Puerto Escondido. Nobody wears shoes and if you catch a fat iguana and cook it watch out for the hogs and dogs that'll be hanging around trying to get a scrap.

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bill eskew says on Sep 6, 2007, 04:18:

the real estate market in colombia is not going to adjust or tank like in the U.S. or even slow down in 2 years...it's going to take 3-4 years for them to finish building what they have already started near my sabaneta apartment.a boom of this size, and it's like nothing i've seen, may take 7-10 years to cool.. i just bought a place in rodadero for $50,000 on the beach. it will be the last place to sell at that price on the beach..the next one bought at $70,000, will be the last bought at that price. and it's happening fast. but it's a long ways from topping out...bill eskew

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