CONCERNS THAT HAVE ARISEN AS A RESULT OF THE PANDEMIC IN THE REAL ESTATE SECTOR
Many of our clients, throughout this situation, have expressed their concerns regarding their properties or investment projects. We have decided to support them by clarifying some of the questions they have raised.
What will happen to properties? Will they increase or decrease in value?
To answer this, it is important to distinguish between residential properties and commercial properties. In the residential sector, there has been noticeable market movement and significant dynamism; in fact, in September a historic figure was reached for the sale of new and used properties. It is important to clarify that the prices of apartments for sale in Medellín have not changed—we can say that prices were frozen during the pandemic, which shows that the market remains stable. However, commercial properties present a very different scenario; currently, we are seeing high vacancy rates in offices, retail spaces, and commercial houses, creating great uncertainty in this sector. This is where we see a clear difference between buyers and sellers.
Let’s talk first about sellers: they are in a position where they believe prices may increase and tend to expect appreciation, while buyers are looking for opportunity prices due to high supply. This creates a gap between the two parties, indicating that prices tend to decline because of the excess supply.
