Real Estate Sector In Times Of Pandemic

  • 2 years ago
  • 1

According to statistics the amount of properties sold in Colombia from the month of June to August 2020 exceeds those of May by 60%, this indicates a rapid and unexpected positive reaction in the real state sector despite the initial hit coronavirus took on the country in the first months of the year.

It should be noted that the real estate sector has been strong, sustainable and really flexible in this unprecedented times of covid-19, where lots of people have taken this opportunity to reinvent themselves with new ideas and activities with the purpose of getting through this crisis since unfortunately most financial projects have been a failure

The government with its social interest housing program, has managed to provide homes to millions of the most vulnerable citizens of our country, thus allowing constructers to fulfill their residential, rural and territorial development projects in order to sustain the economy of the construction companies.

As part of the economic recovery plan announced by the Colombian government, the National Planning Department (DNP) prepares a Conpes document to modify the conditions of the coverage program on the interest rate of new housing, with this proposal that is still pending the government seeks that the rate for the purchase of properties (that is not of social interest) is extended until the 2020, 2021 and 2022.

According to the Compes documents, implementing the Frech No Vis program (Reserve Fund for the Stabilization of the Mortgage Portfolio) as countercyclical measure until 2022 will require a total of 3.92 trillion pesos by the Government. This document points out these resources are consistent with the 2020-2030 Medium Term Fiscal Framework and with the 2020-2023 Medium Term Expenditure Framework, so as not to generate fiscal impact.

If the green light is given to the extension of the Conditional Coverage program, between the remainder of this year and 2022, the Government would give 100,000 hedges at the interest rate (each for 42 minimum wages, that is, 41,202,000 pesos) This amount will be disbursed over the first seven years of the home mortgage loan or housing leasing.

Between January and May 2020, according to El Dane, the construction sector employed 1.24 million people 754,000 in the buildings subsector.

 

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