How Did the Housing Market Perform in 2022?

During 2021 and the beginning of 2022, the residential real estate market experienced strong growth, which allowed this sector to make a significant contribution to the country’s economy. Below, based on a report prepared by La Lonja – El Gremio Inmobiliario de Medellín y Antioquia, we explain how the housing market performed in 2022, covering new housing, used housing, and rentals.

New Home Sales

According to an analysis conducted by Galería Inmobiliaria, during the first half of 2022, new home sales maintained strong growth in the Aburrá Valley, Eastern Antioquia, and the nearby western region, with 17,286 new units sold. This represents a 16% increase compared to the first half of 2021.

As in the past two years, Bello was the municipality with the highest number of new homes sold, totaling 3,068 units, followed by Medellín with 2,263 and Sabaneta with 1,285 homes. On the other hand, the nearby eastern region showed a 43% growth in new home and lot sales in new developments, with a total of 6,023 units sold, of which 3,477 were located in Rionegro and 817 in La Ceja. These figures reflect the appreciation of apartments for sale in Rionegro and La Ceja, driven by the strong supply and demand in the area.

Used Home Sales

The monthly census of used housing conducted by La Lonja de Propiedad Raíz de Medellín y Antioquia, which analyzes 150,000 homes in socioeconomic strata four, five, and six in Bello, Envigado, Medellín, and Sabaneta, showed stability during the first half of 2022, despite a 3.5% contraction in the supply of used housing during that period.

On average, selling a used home took seven months, although in areas such as Bello it took four months and in Laureles six months. As a result of economic growth, 51% of the homes on the market were sold in less than six months, representing a slight improvement compared to 2021.

Rental Market Supply

Within the real estate sector, we managed to maintain participation in residential rentals during the first half of 2022. In the areas analyzed, 97% of apartments for rent in Medellín and other residential properties were placed through real estate agencies.

Final Analysis

This analysis allows us to gain a closer understanding of the potential commercial dynamics that may occur in the real estate sector during 2023. It also helps us make informed decisions regarding real estate investment, providing a clearer picture of the market movements observed in recent semesters.