A diverse industry with many business opportunities
It is estimated that by 2022 the demand for construction materials will be around COP$35 trillion, with a compound annual growth rate (CAGR) of 5.54% between 2012 and 2022.
In 10 years (2006-2016), demand of this industry tripled in Colombia, reaching a production close to COP$19.1 trillion and sales around COP$25.49 trillion in 2016.
Demand for construction materials in Colombia (2011 - 2021*)
Source: DANE, EAM 2018. DIAN. Apparent consumption by sector. Processed by Invest in Bogota. *Forecast
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Major segments of construction materials industry in Colombia
Source: DANE, EAM 2018. DIAN. Apparent consumption by sector. Processed by Invest in Bogota.
The construction industry in Colombia
With a CAGR of 8.6% between 2018-2022, Colombia's construction sector will continue being one of the most dynamic in Latin America. It is estimated that by 2022 it will reach COP$123.32 trillion.
The construction industry, with a size of COP$63.3 trillion (2017), is one of the branches of the economy with the highest share of Colombia’s GDP, with a contribution of 6.8%.
Construction sector in Colombia has two main branches: Residential and non-residential construction and Infrastructure, which represent approximately COP$31.15 trillion (49.2%) and COP$32.15 trillion (50.8%) respectively.
Between 2012 and 2017, Colombia's construction sector attracted a total of US$3.1 billion in foreign direct investment.
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.
In 2017, the infrastructure sub-sector grew by 7.15%; it was the main driving force of Colombia's construction sector.
Bogota-region has the largest building activity in Colombia
Bogotá region is the main construction center for residential and non-residential buildings in the country, accounting with 27.7% and 33.9% of the total works respectively.
With an amount of COP$27.14 billion, 46.8% of the total mortgage loans in the country have been granted in Bogotá region.
By 2019, it is expected that 558,000 m2 of office spaces will be completed in Bogota, followed by the Caribbean region (Cartagena, Barranquilla and Santa Marta) with 39,000 m2.
Major infrastructure projects in Bogota
- Bogota Metro: 23.96 km and 16 stations
- 20 km of new Transmilenio trunks and expansions
- Regiotram: 40.8 km and 17 stations
- Canoas waste water treatment plant: Maximum pump capacity 38.5 m3/s, 46 m pumping altitude
- El Dorado II Airport: 1,000 hectares
- CAN City: 2,750,000 m2 (112 buildings)
- 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 centers.
- Bronx: Construction of shopping and education centers, local mayor's office, metro station and morgue.
- 3 Hospitals of high complexity: 76.000 m2
- New prison "El Buen Pastor": relocation of the prison and construction of 1,952 houses.
If you need more detailed information, find in the lower part the information of our investment officers in charge of this sector.
Updated (mm/dd/yyyy): 12/12/2018