20 of January of 2021

Construction Materials

A diverse industry with many business opportunities

It is estimated that by 2023 the demand for construction materials will be around COP $36 trillion, with a compound annual growth rate (CAGR) of 5.43% between 2013 and 2023.

In 10 years (2007-2017), the demand of this industry doubled in Colombia, reaching a production close to COP$18.3 trillion and sales around COP$24.78 trillion in 2017.

Demand for construction materials in Colombia (2012-2022*)

Major segments of the construction materials industry in Colombia

Source: DANE, EAM 2019. DIAN. Apparent consumption by sector. Processed by Invest in Bogota.

The construction industry in Colombia

With a CAGR of 7.4% between 2019-2023, Colombia's construction sector will continue being one of the most dynamic in Latin America. It is estimated that by 2023 it will reach COP$89.11 trillion.

The construction industry, with a size of COP$63.3 trillion (2018), is one of the branches of the economy with the highest share of Colombia’s GDP, with a contribution of 6.8%.

The construction sector in Colombia has two main branches: Residential and non-residential construction and Infrastructure, which represent approximately COP$30.42 trillion (48.1%) and COP$32.8 trillion (51.9%) respectively.

Between 2013 and 2018, Colombia's construction sector attracted a total of US$3.3 billion in foreign direct investment.

In 2018 Colombia was recognized by the World Bank as the third most competitive country in the world in terms of regulation for financing infrastructure projects under the Public Private Partnership (PPP) model.

Market with high supply potential: Housing (19.47 million m2), commercial buildings (2.24 million m2), other buildings (7.61 million m2).

Bogota-region has the largest building activity in Colombia

Bogotá region is the main construction centre for residential and non-residential buildings in the country, accounting with 29.6% and 36.9% of the total works respectively.

With an amount of COP$29.02 billion, 46% of the total mortgage loans in the country have been granted in the Bogota region.

By 2021, it is expected that 448,000 m2 of office spaces will be completed in Bogota, followed by Medellin with 94.000 m2.

Construction permisions

Major infrastructure projects in Bogota

First line of the Bogota Metro: 23.96 km and 16 stations.
Transmilenio: Extensions and 50 km of new trunks.
Regiotram: 40.8 km and 17 stations.
Canoas WWTP: Primary and secondary treatment of 16 m3/s of wastewater.
El Dorado II Airport: 1,000 hectares.
Fenicia Triangle: 1,000 houses, 25,000 m2 of commercial areas and 40,000 m2 of offices and hotels.
Lagos de Torca: 128,000 houses, construction of cultural, recreational, educational and health centres.
Bronx: Construction of shopping and education centres, local mayor's office and metro station.
3 medium and high complexity hospitals: 76,000 m2.
Monserrate Welcome Center: Construction of commercial and cultural centres.