For the first time, Housing Minister Helga Rivas After his appointment to the portfolio more than a month ago, he held his first meeting with the media, in which, although He highlighted the role of new housing in the economic recovery process, located the Housing improvements as a cornerstone of his bid for office and invited us to think less about numbers and more about changing habits.
Regarding new housing, he explained that to date the corresponding dialogue tables have been held with the private sectors, including: Asobancaria and the Colombian Chamber of Construction (Camacol) to highlight the points to be worked on in the economic reactivation of the sector, in which Aydee Marsiglia Bello, Deputy Minister of Housing, has led the discussions.
(See: Housing subsidy of up to $65 million: requirements to obtain it).
According to the Deputy Minister of Housing, the Government has worked with the business community of large and small companies at these meetings, highlighting the role that each one could play in the Government’s plan, since its priority is to protect employment in the sector.
To this he adds that: “The banking sector is committed and President Petro has been very emphatic in lowering rates, this is the idea with the credit pact, which will boost the sector and protect employment.”.
In addition to this, they seek to guarantee the resources from the 50,000 Mi Casa Ya subsidies for the year 2025 and stimulate the economy. To date, 20,500 reliefs have been guaranteed, and the surplus will be tied to the budget set by Congress in the talks. The request is for an additional 1.6 billion for next year. It is worth noting that the VIS (Social Interest Housing) segment accounts for 7 out of 10 sales in the country.
“We have a budgetary complexity, so we want to say that we are working to have the resources that allow us to meet the housing acquisition goals of this program. One in three subsidies that have been granted in my House Now has been given by this Government,” explained the minister.
Due to the above, the Government will seek to broaden the spectrum of markets. In this regard, the Minister of Housing assured that they will accept the proposal of Asobancaria for increase the LTI from 30% to 40% for the purchase of non-VIS housing. They are currently working on a draft decree to make the proposal a reality.
(See: With $2.7 billion delivered in 2024, Bancolombia leads housing disbursements).
“We think it is a good idea to increase the borrowing potential for non-VIS. It is an initiative that we see as a good way of boosting the industry. The sector is very tied to VIS and we think it is good that we can transform it.“, the minister acknowledged.
“2023 was the most challenging year in the history of housing. This year we expect the sector to have a growth path with 100,000 homes, where the VIS boosts construction thanks to the effort of subsidies. We hope that in September sales will improve and new projects will be seen to boost the sector at the end of 2024 and 2025.“, he added.
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In terms of improvement, in order to unite the business fabric, Bello acknowledged that will unite different sectors of construction materials in the Cambia Mi Casa program. He mentioned that 70% of cement is sold in bulk, a segment that they plan to boost with the program, He also highlighted the role of hardware stores in this process.
(See: ‘The Mi Casa Ya program was focused on the richest of the poor’: Fonvivienda).
“Our heart in the Government of Change is to strengthen a country that is already built, a country that was built by the self-management of its inhabitants and what there is is many homes that need to be improved.“Rivas said.
In the country, The qualitative deficit reaches 4 million households, That is why they prioritize this type of improvement, unlike the quantitative deficit, which has been prioritized by other governments.
(See: Non-VIS housing would be a ‘parachute’ to cushion the sector’s drop in sales).
In line with this, They seek to ensure that housing improvements are not only achieved through housing subsidies, but through banking resources.
Paula Galeano Balaguera
Portfolio Journalist
