Construction & Real Estate

With plans set to modernise transport networks and government-led housing programmes expanding the availability of homes, Colombia’s construction sector remains an essential part of the economy. The government estimated that the construction sector will grow by 3.9% in 2017, largely driven by the execution of large-scale projects, which is set to accelerate growth of the infrastructure segment from 2.4% in 2016 to as much as 8% by 2017, as the various 4G projects take shape. Residential, commercial and office projects, as well as large-scale infrastructure development, will continue to drive the sector in coming years. The focus on pre construction sales by the real estate market has allowed the sector to avoid significant risk, while expanding to support the housing needs of the population. This has galvanised social housing programmes and property acquisition by middle-income Colombians. Although real estate remains profitable due to genuine demand, companies will have to manage a number of variables that remain out of their control, such as construction licences and access to water and electricity connections. This chapter features an interview with Alfredo Rizo, CEO, Terranum Corporate.