The recent influx of people and investment into the National Capital District (NCD) has sent demand for housing through the roof, changing the area’s social and economic climate in ways that have severely tested the regulatory framework that currently governs the construction and real estate sector.
Roused by an adrenaline shot from the $19bn Papua New Guinea liquid natural gas (LNG) project that kicked the country’s construction sector into overdrive from 2009, the industry must now prove it has the staying power to sail smooth in the years after the boom, when the sector made up as much as one-fifth of real GDP.
Infrastructure development plans are focusing on the concession model to support the expansion of road connections. However, the initial market response to the projects has left much to be desired. Despite the pre-qualification of up to 10 companies for each of the first four projects to be tendered by the government in April 2014, the response from operators has so far...
Driven by demand for housing and a mounting construction sector, real estate in Colombia has been experiencing healthy growth. Fears of an impending bubble have so far been exaggerated, as the housing stock is being absorbed by high demand and a well structured mortgage system. The real estate sector accounted for 8% of GDP in 2013, according to figures by the Colombian...
Ever since entering office for its first term in 2010, the government of President Juan Manuel Santos has put the construction of new homes for Colombians as one of the top priorities. Despite being behind its target of building 1m homes over the 2010-14 period, the government has been able to establish a consistent level of housing development. Much of the impetus has...
Buoyed by a strengthening of the government’s housing programme, as well as a continued emphasis on improving transport infrastructure across the country, Colombia’s construction sector is well positioned for growth over the coming years. Construction of highways and other infrastructure is accelerating, as successive tenders for the Fourth Generation (4G) road projects...
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