The possibility of a global recession, the high interest rates that make credit more expensive and the rise in the costs of inputswould lead to the Colombians’ appetite for buying housing falling in 2023.
(Housing, one of the key axes of the economy for 2023).
This sector, one of the sectors that grew the most during the pandemic, threatens to fall due to the possibility of an economic slowdown that will reduce consumer confidence in buying a home, taking into account high interest rates and runaway inflation.
According to the most recent report on the Consumer confidence index prepared by Fedesarrollo in December, the willingness to buy housing was reduced.
In the last month of 2022, the willingness to buy a house indicator was -48.1%, which is equivalent to a reduction of 5.4 pps compared to the previous month (-42.7%).
(Deadline for registrations for housing subsidies in Bogotá extended).
However, the prospects for Camacol, union that brings together the builders of the country, show that the sector would close 2023 with a healthy state and expect its Gross Domestic Product to grow 9.8%. This means 7 times more than what was projected for the country’s total GDP.
By 2023, Camacol expects the country to maintain this trend taking into account that there are 349,000 households that are managing different phases of home purchase and are confident that inflation will subside during the year.
(How to plan the down payment for home purchase in 2023).
According to the builders union, in order to maintain the positive dynamics, it is necessary to maintain the subsidies and aid programs for future owners.
“It is essential to ensure the availability of subsidies from the Mi Casa Ya Program throughout the year and subsequent years”assured Edwin Chiriví, executive president of Camacol.
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