tips to invest in real estate in 2021

Introduction :

The real estate sector in Colombia is on the rise and in tune with the reactivation of construction. 2021 will allow the consolidation of the country's real estate sector as the most feasible and profitable investment that may exist, outside the stock market.

The Colombian Chamber of Construction (Camacol) foresees a positive outlook for 2021, with a progressive reactivation that is evidenced through investment in housing that amounts to $ 28 billion, between January and October 2021. What is a real estate market that it has remained afloat, and even stands out as the fastest-growing sector in the country, representing an attractive investment option?

The gaze of Colombian investors is focused on safe and stable alternatives. But not only professional investors are thinking about investing in real estate, but every day more individuals are added who pursue the objective of betting on a long-term appreciation.

So that you make the right decision and take advantage of the opportunities that the real estate sector offers you at this time, let's see below the 5 key tips to invest in real estate in 2021.

1. Increase in supply and demand for housing for the middle class

The numbers are encouraging, the Radar firm affirms that Colombian household spending grew 4.71% in November and continues to rise despite the economic crisis faced in 2020. The rise in salaries by 6% and inflation decrease at the end of the year, allowed an increase in purchasing power.

Sandra Forero, president of Camacol reported that "The sector continues to show that it is an engine of the country's reactivation, and that talking about housing is talking about investment, employment, and growth ..." However, she also reported that construction will begin in 2021 of 149,700 homes, 26% more than in 2020. Which will significantly benefit the country's middle class.

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Leasing in Colombia represents 3 percentage points of GDP, with a high demand for rental properties, considering that 44% of Colombian families live in lease. Hence, the purchase of a real estate for rent is one of the most profitable and safe investments.

2. Space to increase the non-residential offer

Camacol has a 2021-2022 plan that foresees a goal of 500,000 formal homes and 12 million square meters in non-residential projects.

Likewise, the Colombian Chamber assured that, in order to comply with the reactivation plan, urban infrastructure should be promoted with the construction of non-residential projects such as schools and libraries. Which undoubtedly must have a large public investment.

Therefore, growth in the construction of buildings with non-residential uses is estimated. For example, Colombia has a deficit in the supply of square meters per inhabitant in shopping centers.

3. Possibility of purchase through fiduciary rights

Another important option to invest in real estate is through the fiduciary rights model, which allows small investors to access projects and returns reserved only for large investors.

4. Good profitability

Increases in property values and rental income are just two ways to make a profit in the real estate market. Investing in real estate offers returns: properties appreciate and increase in value.

Public and private urban renewal plans will intensify construction in the coming years, allowing for a substantial valuation of the homes.

5. Lower market volatility

The real estate market is profitable and very low risk. If we compare this sector with the assets of the Colombian Stock Exchange, the properties have a much more attractive and stable return on investment than the dividends of the shares, which makes investment in the real estate sector an alternative that provides greater confidence and security. From the many profitable options for real estate investment, choose the one that suits you best, consider the characteristics of the property, the location, and the profile of the builder to achieve the financial success you need.

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