COLOMBIA Colombia has been characterized by the strengthening of its macroeconomic variables combined with a dynamic economic performance in the last decade, which explains why the GDP has tripled, from U.S. $ 2,504 in 2000 to U.S. $ 7.748 in 2012 (values from 2000 and 2012 in current prices) according to the world Bank data. Also, this bank considers Colombia as the third more “friendly� country to do business and the Latin American top reformer. This country has close international trade relations supported by eight international free trade agreements; three signed agreements and five in negotiation process. It Also have a privileged geographical location and a technological and well- developed infrastructure that make Colombia one of the most attractive countries in to invest in the region
OECD ORGANIZATION FOR ECONOMIC
COOPERTATION AND
DEVELOPMENT
COLOMBIA WILL BE THE THIRD MEMBER OF LATIN AMERICA AFTER
MEXICO AND CHILE
INFLATION RATE
OF 1,9 % AMONG THE LOWEST
IN LATIN AMERICA
DEVELOPMENT, STABILITY, DRIVE AND
OUTLOOK
BBB RATING/ STABLE OUTLOOK
BBB RATING/ STABLE OUTLOOK
BAA3 RATING/ POSITIVE OUTLOOK
WITH COMPOUNDED ANNUAL GROWTH IN EXPORTS OF IN THE LAST DECADE
18%
8 th
WITH THE HIGHEST GROWTH
3rd AMONT LATIN AMERICAN COUNTRIES
between 2013 and 2018
the COLOMBIAN
ECONOMY WILL GROWN
GPD PER CAPITA
WILL GROW 36%
IN 2018
ANNUAL
WHERE TO
INVEST?
THE ANSWER IS
COLOMBIA
THE COLOMBIAN ECONOMY AND THE REAL ESTATE SECTOR Colombia has achieved a high level of development, poverty reduction
and a
transformation of the real estate industry, through incentives and subsidies to the housing demand
for the low-income
population. Although there is still a shortage of housing, the increasing of aggregate demand has improved the ability to save and invest in multiple modalities of real estate, which has helped to boost the market.
TOTAL GDP AND REAL ESTATE SERVICES GDP 2001-III to 2013 – IV
REAL ESTATE ACTIVITIES – HOUSING RENTAL SERVICES
GROSS DOMESTIC PRODUCT
9% 8% 7% 6% 5% 4% 3% 2% 1% 0%
4.3%
sep-13
mar-13
sep-12
mar-12
sep-11
mar-11
sep-10
mar-10
sep-09
sep-08
mar-09
mar-08
sep-07
sep-06
mar-07
mar-06
sep-05
sep-04
mar-05
mar-04
sep-03
mar-03
sep-02
mar-02
sep-01
mar-01
3.1%
Source: Dane. Cálculos Fedelonjas En el cuarto trimestre de 2013, los servicios inmobiliarios generaron valor agregado por $9,93 billones, esto es un 3,2% más de lo reportado en el cuarto trimestre de 2012. El aporte del sector al PIB trimestral se ubicó en el 8%.
GDPCLASSIFICATION BY THE SUPPLY SIDE ECONOMIC ACTIVITY BRANCHES 2013 Activity branch
Januarydecember 2013 (COP- Billions)
Part. %
#
Annual averge since 2000 (COP- Billions)
Part. %
#
Services
75,220
17.0%
1
58,840
17.3%
1
Industry Trade
55,322 59,203
12.5% 13.4%
4 2
49,481 44,667
14.5% 13.1%
2 3
Financial Intermediation*
57,743
13.1%
3
40,423
11.9%
4
Real Estate Activities
39,284
8.9%
5
32,083
9.4%
5
Agriculture
30,503
6.9%
9
26,591
7.8%
6
Transport
36,185
8.2%
7
26,495
7.8%
7
Mines and Quarries
37,809
8.6%
6
25,685
7.5%
8
Construction
33,144
7.5%
8
21,894
6.4%
9
Public Services
17,543
4.0%
10
14,407
4.2%
10
SOURCE: DANE, FEDELONJAS. * NO REAL ESTATE ACTIVITIES NOTE: TABLE IS ORGANIZED BY ANNUAL AVERAGE
LThe real estate activities are important generators of added value. in the past 12 years they provided the Colombian economy $32.1 billion per year, making the real estate industry the fifth sector behind high impact sectors such as services, industry, trade and financial. the contribution to the total GDP in this period was 9.4%. When we add the chain of building construction, the average output value is $ 42 billion pesos per year. For the twelve months of 2013, the production value was estimated at $ 39.3 billion and the contribution to the economy was 8.9%.
NUMBER OF EMPLOYEES
REAL ESTATE ACTIVITIES, MOBILE QUARTERS TO FEBRUARY 2014
1.1
17
1.0
16
0.9
15
0.8
feb-14
18
ago-13
1.2
feb-13
19
ago-12
1.3
feb-12
20
ago-11
1.4
feb-11
21
ago-10
1.5
feb-10
22
ago-09
1.6
MILLIONS OF EMPLOYEES
Real Estate Activities (right axis)
23
feb-09
MILLIONS OF EMPLOYEES
Total Domestic Employees
SOURCE DANE. CALCULOS FEDELONJAS
Dec13 - Feb14 BOGOTÁ MEDELLÍN A.M. CALI
62 59 48 52 34 30 21 23 25 22 19 19 20 19 17 17 14 10 7 7
BARRANQUILLA A.M. BUCARAMANGA CARTAGENA CÚCUTA A.M. PEREIRA A.M. IBAGUÉ MANIZALES A.M. VILLAVICENCIO PASTO MONTERÍA
0
112 98
100
Dec12 - Feb13 511 539
178 174
200
300
400
500
600
THOUSANDS OF EMPLOYEES
In the mobile quarter from December 2013 to February 2014, the Real Estate Industry generated nationally 1.445.000 jobs ( Surpassing the previous quarter for 0.42%). For Urban areas such as Bogotá, Medellín, Cali, Barranquilla and Bucaramanga 920.000 employed people was associated with the real estate business, 86 000 more than in the second quarter of 2012.
Employed population by Economic activities branches National total - (Thousands)
Employed population by Economic activities branches 13 Metropolitan areas - (Thousands)
ACTIVITY BRANCH
Commerce, hotels and restaurants Personal, social and communal services Agriculture, Fishing, livestock, Forestry and Hunting. Manufacture Industry
Dec 13 - Feb 14
#
Average
#
5,814
1
4,668
1
4,043
2
3,678
2
3,476
3
3,421
3
2,494
4
2,366
4
Transport, Storage and communications
1,761
5
1,406
5
Real Estate Activities
1,445
6
1,020
6
Construction
1,299
7
941
7
Financial intermediation
311
8
224
8
Mining and quarrying
202
9
199
9
Gas and wรกter supply
119
10
84
10
ACTIVITY BRANCH
Dec 13 - Feb 14
#
Average
#
Commerce, hotels and restaurants
3,195
1
2,575
1
Personal, social and communal services Manufacture Industry Transport, Storage and communications
2,235
2
2,031
2
1,606
3
1,564
3
968
5
796
4
Real Estate Activities
1,070
4
776
5
Construction
662
6
509
6
Financial intermediation
249
7
180
7
Agriculture, Fishing, livestock, Forestry and Hunting.
89
8
98
8 9
Gas and wรกter supply
57
9
43
Mining and quarrying
45
10
24
Source: DANE, Fedelonjas. Note: Table is organized by quarter average The Real estate industry is a sector that has the ability to mark out the economy not only by the value of generation, but also because it is a sector that employs an important number of people. The annual jobs that have been created to meet the demand for real estate products are posted to a million people. In the past twelve years, has become in a sector whose workforce places him in the sixth activity that attracts more labor. The high concentration of this labor market allows it to be an option for people with skilled human capital that is focused on meeting increasingly demanding market.un capital humano calificado, que estรก enfocado a satisfacer la demanda cada vez mas exigente.
PRICE INDEXES FOR NEW HOUSING QUARTERS BY CITIES.
Source: DANE, Fedelonjas. *INCLUDES: ARMENIA, BARRANQUILLA, BOGOTA, BUCARAMANGA, CALI, MEDELLÍN Y PEREIRA.
2014 - 1
2013 - I
TOTAL*
12.32 %
11.76 %
ARMENIA AU
3.40%
7.74 %
BARRANQUILLA AU
19.65%
9.73 %
BOGOTÁ AU
13.36%
14.15%
The impulse of the Colombian economy, the abundant liquidity in the market, a population with higher incomes and access to cheaper credit, among other reasons, have made the dynamics of prices of new housing in important cities to experience a very active dynamic of prices . The traditional markets of Bogota, Medellin and Cali, and other development areas that have developed Over the last few
BUCARAMANGA AM
10.10%
CALI AU
13.07%
4.98 %
in the value of residential property. This is
MEDELLÍN AM
8.40%
9.07 %
an opportunity for investors interested in real
PEREIRA AU
15.59 %
years as Barranquilla and Bucaramanga, show an increasing trend (stable behavior)
6.07%
8.76 %
estate as a part of their personal portfolios.
NOTES:
1. INCLUDES BOGOTÁ, MEDELLÍN Y CALI AND THEIR MUNICIPALITIES. 2. BOGOTÁ INCLUDES SOACHA. 3. MEDELLÍN INCLUDES: ENVIGADO, ITAGUÍ Y BELLO
PRICE INDEX USED HOUSING BY CITIES.
20% 12% 10%
8% 7%
5%
1%
0% -5% -10% 2006
BOGOTA
2007
2008
2009
2010
MEDELLÍN
2011
CALI
2012
TOTAL
SOURCE: BANCO DE LA REPÚBLICA. CALCULOS FEDELONJAS
Just as the primary residential market is experiencing an upward trend in prices, the secondary market follows the same trend. Prices of resale housing in Bogotá and Medellín markets experience higher prices than those reported in 2011.
Cali growth follows the same trend
of positive prices, but slows down compared to what is observed in the market a year ago.
REAL ESTATE STOCK DISTRIBUTION BY ECONOMIC STRATA HOUSING AND OTHER USES (ACCORDING TO THE ENERGY BILL) THIRD QUARTER 2013
HOUSING
OTHER USES
60%
90.6%
100%
77% (Strata 1, 2 y 3)
90%
50%
80%
19.2%
60%
12.8%
50% 40%
20% 10%
Strata 1
Strata 2
Strata
Strata
3
4
Strata
Strata
5
6
3.0%
0%
30%
2.0%
10%
3.9%
6.6%
20%
4.3%
30%
70%
27.9%
29.7%
40%
0% Industrial
Commercial
Official
Other
BUCARAMANGA
PASTO
ARMENIA
MANIZALES
BUCARAMANGA
MONTERIA
CARTAGENA
VILLAVICENCIO
BOGOTA, D.C.
MONTERÍA
CARTAGENA
VILLAVICENCIO
PEREIRA
IBAGUE
TOTAL 14 CIUDADES
CALI
PEREIRA
IBAGUÉ
BARRANQUILLA
MEDELLÍN
CÚCUTA
TOTAL 14 CIUDADES
BARRANQUILLA
MEDELLÍN
ARMENIA
MANIZALES
BOGOTA, D.C. CALI CÚCUTA
PASTO
SOURCE: SUPERINTENDENCIA DE SERVICIOS PÚBLICOS – SISTEMA ÚNICO DE INFORMACIÓN DE SERVICIOS PÚBLICOS- SUI.
SOURCE: SUPERINTENDENCIA DE SERVICIOS PÚBLICOS – SISTEMA ÚNICO DE INFORMACIÓN DE SERVICIOS PÚBLICOS- SUI.
The Colombian market is highly concentrated in residential dwellings of levels 1, 2 and 3. Approximately 77% of the properties are part of this classification, this makes much of the training strategy should be aimed to this profile consumers, it also others as complementary credit and property maintenance.
The dynamics of trade and services in the Colombian economy make that an important percentage of the residential properties stock aim to serving needs of location, which is why 9 out of 10 properties have a trade vocation in all its forms. This means that the real dynamics of the different residential segments is marked by the movements that occur in this market.
REAL ESTATE MOVEMENT IN COLOMBIA IV QUARTER OF 2013
198346
195980
188523
162905
189083
191437
181112
181016
190689
184238
179830
200000
194022
250000
150000
SALES
MORTGAGES
2013-I
2013-II
2013-III
407
53697
52118
51544
328
2012-IV
348
2012-III
302
2012-II
381
2012-I
44843
54479
53447
49287
49251
2011-IV
347
2011-III
331
2011-II
354
387
2011-I
354
379
51676
48554 402
0
44239
50000
51872
100000
2013-IV
SWAPS
ANNUAL%VARIATION
SALES
MORTGAGE
SWAPS
2013-IV /2012-IV
4.9%
-1.4%
6.8%
SOURCE: SUPERINTENDENCIA DE NOTARIADO Y REGISTRO, FEDELONJAS. SUPERINTENDENCY OF NOTARIES AND REGISTRATION, FEDELONJAS.
The notary movements in Colombia are mostly from sale of property, in second place mortgages and third place are swaps with a small participation. The figures reported during the last three years suggest that there are opportunities for the mortgages market, to channel more business of acquisition of property. Moreover the major urban areas of the country remain making the dynamics of notarial transactions.
MISSION
STRATEGIC OBJECTIVES
To Promote, professionalize and ensure the continuity of the real estate activities, for the benefit of its members, different real estate agents and the society.
• Representation • Regulation • Training • Information • Divulgation • Real Estate certification
VISION 1. Leading the value chain of the real estate industry.
5. Having an information system to spur real estate transactions and -SOI- generation industry statistics -SISI-
2. Have a clear and specific regulatory framework for each activity under a model of self-regulation.
6. Position as a consulting source and opinion source
3. Publishing of the technical standards required for each real estate activity.
7. To be accredited, directly or through an entity, as a certifier of the activities and real estate services.
4. Owning a standardized national training system
¿WHO WE ARE?
THE BRAND The Fedelonjas network is the largest in the Colombian real estate market, because our associates represent all real estate activities. This is why our goal is to promote each of these activities with certification schemes, registration and policies focused on their specific needs. Our main objective is to professionalize the activities that compose the real estate services.
多Why Fedelonjas? We are the traditional real estate guild nationwide, with 40 years of experience in the sector. We have a wide geographical coverage. Our Federation is composed by 23 regional associations that provide coverage for nearly 100% of the national territory. We are a market force of more than 1,000 members and 10,500 agents, with broad recognition in the market for our quality, social responsibility and commitment to the development of the country.
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.
Lonja de Propiedad Raiz de Barranquilla y el Atlántico Lonja de Propiedad Raiz de Bogotá Lonja de Propiedad Raiz de Boyacá Lonja de Propiedad Raiz de Caldas Lonja de Propiedad Raiz de Cali y Valle del Cauca Lonja de Propiedad Raiz de Cartagena Lonja de Propiedad Raiz de César Lonja de Propiedad Raiz de Choco Lonja de Propiedad Raiz de Huila y Caquetá Lonja de Propiedad Raiz de Llanos Orientales Lonja de Propiedad Raiz de Medellín y Antioquia Lonja de Propiedad Raiz de Monteria
13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23.
Lonja de Propiedad Raiz de Nariño y Putumayo Lonja de Propiedad Raiz de Norte de Santander y Arauca Lonja de Propiedad Raiz de Quindio Lonja de Propiedad Raiz de Risaralda Lonja de Propiedad Raiz San Andrés, Providencia y Santa Catalina Lonja de Propiedad Raiz de Santa Marta y del Magdalena Lonja de Propiedad Raiz de Santander Lonja de Propiedad Raiz de Sucre Lonja de Propiedad Raiz de Tolima Lonja de Propiedad Raiz de Tuluá Lonja de Propiedad Raiz de Yopal, Casanare y la Orinoquia
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+571 6370810
fedelonjas@fedelonjas.org.co