The cost of rental fees, both for residential properties (houses, apartments), as well as non-residential ones (premises, warehouses) showed a marked slowdown last January, as can be seen from the behavior of ‘El Libertador Rent Index’, the which analyzes the behavior of that variable over time.
over time and that is elaborated by El Libertador, along with the address
Executive of Economic Studies of the Bolívar Group.
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Said indicator has doubled, warned the most recent report from these companies in which it is noted that this indicator jumped from 3.1 percent for houses and 2.5 percent for apartments from January 2022 to 6, 4 and 6 percent, respectively.
«El Libertador Income Index (ELRI) for residential real estate shows a prolongation and continuous acceleration in the variation of the value of the canons of
rent in the country, which as of January 2023 already exceeded 6 percent annually for both apartments and houses, more than doubling the growth rates of
a year ago,» the report states.
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These values already exceed those observed in mid-2021, when, according to the aforementioned report, the values of the leases were adjusted after the slowdowns in
2020.
The reason for this rapid growth is the high inflation, which is the maximum limit that the cost of rentals in the country can be adjusted this year (13.12 percent), a level that could be reached by the end of this year.
From the analysis it follows that Barranquilla (7.1 percent), Medellín and Bogotá (6.7 percent); lead the table of Colombian cities where it is currently more expensive to rent a house, while for apartments the values of rental fees are higher in Cartagena (6.9 percent), Barranquilla and Bogotá (6.1 percent).
«Compared to the previous month, in houses, Bogotá presented the highest increase (1 percent), instead cartagena had a slight sequential decrease of 02 percent. As for apartments, Bogotá and other cities stood out with a monthly expansion of 0.8 percent,» the report explains.
Another piece of evidence from the study is that for all quintiles there was both monthly and annual growth, although the higher the quintile, the greater the monthly or annual increase in houses and apartments. «The highest quintile concentrated the highest annual variations in both residential segments (8.9 percent in houses and 7 percent in apartments); on the other hand, quintile 1 perceived the lowest rates (5.2 percent in houses and 5.3 percent in apartments).
Premises, offices and warehouses
But in residential real estate they are not the only ones in which leasing costs have been adjusted, also in non-residential real estate definitions are presented, but not in equal proportions, indicates the analysis of El Libertador and Grupo Davivienda.
«If we observe the behavior of the index for non-residential real estate, in January it is clear that the ELRI trend for these buildings was maintained. The series for commercial premises continues to rank without much change over the other types of
real estate, while offices maintain a significant lag of about 5.1 units compared to premises”, the analysts point out.
Thus, for the first month of 2023, the rental fees will increase annually in all cities for commercial premises: stand out
due to its growth Cartagena (12.2 percent), Cali (9.1 percent) and Medellín
(8.8 percent). Monthly, other cities (1.2 percent) and Cartagena (0.9 percent) were the ones with the highest increase.
When reviewing the office market all cities also grew compared to the same month in 2022. Medellín (10 percent), Barranquilla (9 percent), Cartagena (8.8 percent) and Cali (8.6 percent) increased above the total variation . Compared to the previous month, Bogotá was the one with the greatest expansion with a rate of 0.6 percent, followed by Bucaramanga, Cartagena and other cities with 0.5 percent.
The report points out that for cellars, Cartagena (12.4 percent) was the one with the highest annual increase. Bucaramanga, Barranquilla and Bogotá, for their part, also had growth that exceeded 9 percent per year.
