With the drop in food prices, reducing the cost of rent should be one of the main objectives to alleviate the pocket of Colombians, however, and according to data from the Executive Directorate of Economic Studies of Grupo Bolívar
in alliance with El Libertador, the increases for April are worrying, even exceeding 10 percent in the case of premises in some cities.
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The Libertador Rent Index (Elri) is an indicator product of the alliance between the Executive Directorate of Economic Studies of Grupo Bolívar and El Libertador that reflects the Variation in the cost of renting residential and non-residential real estate in the country and its behavior over time.
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In some cities the increase has been maintained for a year.
Mauricio Moreno / EL TIEMPO
It should be noted that in residential real estate, the index only takes into account strata 4, 5 and 6. For the month of April these were the results.
Increases in houses and apartments
According to data from Elri, the increase in the cost of residential real estate in the national territory continued its upward trend and in April it achieved an increase of 7.7 percent in houses and 7.5 percent in apartments, compared to the same month of the previous year.
Since this type of information was collected four years ago, this is the highest annual variation recorded in the costs of residential units, even if those observed during the pandemic period are added.
Only in April, compared to March of this year, the increase was 0.76 percent for houses and 0.88 percent for apartments and although it seems a bleak outlook, the report highlights that, compared to the monthly variations of previous months during 2023, a slight slowdown abated, although the rise is still higher than the rates recorded in 2021 and 2022.
This increasing trend YoY constant has been presenting since February 2022when the rise in prices reached a rate of 7 percent year-on-year for houses and 6.7 percent for apartments, doubling the readings for the same month in 2021.
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Inflation, the main cause of rent increases
Photo: César Melgarejo/ CEET
Reasons for the price increase
According to the report, What mainly causes this behavior is the closing of 13.12 percent of inflation in 2022“bearing in mind that, on the occasion of the renewal of lease contracts for occupied real estate, by law the fee can be increased up to that rate.”
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Another factor that directly influences the increase in rental costs for houses and apartments is the low supply of used homes. The availability rate of these properties to rent and to buy is at its lowest levels in recent years, according to figures from The Real Estate Gallery.
Cities with the highest increases
for houses, the cities with the highest increase in rental fees were Barranquilla, with an annual increase of 8.7 percent; followed by Medellín, with 8.2 percent; in third place is Cartagena, with 7.8 percent; Bogotá, with 7.7 percent; and Cali, with 7.5 percent.
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Barranquilla is one of the cities where the cost of renting houses and apartments has been suggested the most.
In the case of apartments, the cities that presented the greatest increase in price increases were Cartagena, with 8.4 percent; Bogotá, with 7.7 percent; Cali, with 7.6 percent; Barranquilla and Medellín, with 7.4 percent; and Other cities, with 7.3 percent.
Costs in offices, businesses and others
In April of this year, the ELRI increased 9.6 percent in warehouses, 9.3 percent in stores, and 8.7 percent in offices, compared to the same month of the previous year.
If the data is compared with previous months, all the variables presented an increase in their percentage variation, except for the office sector, which had a drop compared to March of this year, when it had a rate of 8.9 percent.
The office sector had a slight drop in the cost of leasing.
A difference from the residential segment, the highest point of the cost variation in these properties occurred in mid-2021. Only in June of that year, the increase for warehouses was 14.1 percent, that of premises was 17.2 percent, and that of offices was 11.8 percent.
However, both sectors (residential and non-residential) share adjustments in contracts due to inflation and lower availability of real estate as causes of their increases.
non-residential lease
The cities with the largest increase in prices of rent in premises were Cartagena, with 11.9 percent; Medellín, with 10.1 percent; Cali, with 9.7 percent; Barranquilla, with 9.2 percent; Bogotá and Other Cities, with 8.7 percent.
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As for the wineries, among those with the greatest increase, Cartagena was the most affected with 16.4 percent; Barranquilla and Bucaramanga had a rate of 11.4 percent; Medellín, with 10.4 percent; and Cali with , 9.9 percent.
The capital of Antioquia had one of the largest increases in non-residential rental costs.
Medellin’s town hall
Finally in offices, Barranquilla was the one that obtained the highest increase in rental fees, with 12.6 percent; followed by Cartagena, with 11.6 percent; Medellín, with 9.7 percent; Cali, with 8.5 percent; and Bogota, with 7.8 percent.
JUAN DAVID CANO LOPERA
School of Multimedia Journalism EL TIEMPO
ECONOMY WRITING
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