Many citizens of the city of Medellin are reporting an increase in the price of real estate in the capital of Antioquia, recurring the phrase «it became impossible to live in medellin”.
according to Urban Coordinateattached to camacol, the value per square meter in Medellín cost 5.9 million pesos by the end of 2022; however, this factor increased until it reached 6.4 million pesos for the month of March.
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Eduardo Loaiza, manager of Camacol Antioquiarigorously are the factors that led to the increase in the value of real estate in the aburrá valley metropolitan regionindicating that construction costs have warned in the capital of Antioquia by up to 20% more than in other cities in the country.
Medellin It is known for being a mountainous city, which, despite giving it distinction and attractiveness, has also meant inconvenience to build, which is evidenced by the recurrent demolitions that take place in the city.
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“Antioquia has a characteristic and it is that it has scarcer land and topographically explains that other capital cities such as Bogotá, Barranquilla and Cali, which have flat and available land. We are a narrow and elongated canyon with less available soil and we work more at height”, explained Loaiza.
Added to this is the fact that urban planning obligations in Medellín and its metropolitan area are the highest in the country, according to Camacol, and that approximately 20% of the value of the land goes into this obligation.
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“That costs us more, but that cost is transferred to the final price, which is also influenced by the transfer of networks, which while in other cities make the connection from point A to point B, in our territory you have to do almost double track to overcome the slope in a kind of zigzag”.
Project delays
This scourge, very common in the country, has become the few deliveries of homes that are made in the city, in which Camacol Antioquia and La Lonja Real Estate coincide.
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In this case, the pandemic and post-pandemicas well as the costs of construction materials, have taken center stage together with an increase of the rate dand builder credit interest, which is also reflected in the final price of the properties.
Loaiza explained that the construction credit rate went from 16% to 22%so some construction companies choose to delay projects so that they remain financially viable.
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“In this sense, we can say that about 69 projects, which is more than 20% of the offer we have in projects in the region, presenting some degree of significant delay of more than three or five months, and there are projects that may be behind schedule. one year. In other words, there is an inventory that has not entered the market and that means that we have a lower supply of real estate, which has contributed to the increase in rents significantly.”, explained the union leader.
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