Colombia. Bogota's corporate real estate market is going through a period of slowdown in its post-pandemic-induced recession recovery cycle. During this time, demand has begun to pick up as prices stabilize and conditions improve, striking a balance between supply and demand.
However, a number of factors could contribute to this phase persisting, at least for this year. Among them, the slowdown in the country's economic growth stands out, since, according to the National Planning Department (DNP), the economy experienced a growth of 7.5% in 2022, but by 2023, this rate has been reduced to 3.5%. This phenomenon could be affecting the demand for corporate spaces in the city.
Despite this, the office vacancy rate in Bogotá decreased by 3.6% at the end of the third quarter of 2023 compared to the previous period. This decrease signals a reduction in the availability of office spaces, indicating that companies are gradually returning to face-to-face work and that there is a latent demand for this type of space. "Although the recovery is evident in the market, demand is still 54% lower than the average recorded in the same quarter of 2020 and 26% lower than the level observed in 2019," said Gustavo de la Torre, LATAM Real Estate Director, for MTS Consultoría + Gestión.
Bogota's corporate real estate market is in a phase of gradual recovery. 78.3% of office inventory is in delivered projects, 9.3% in the head of the builder, while 10.4% is under construction. Only 2% are in the pre-sales stage. The office turnover rate is projected to decline to a 50-month average in 2026, with inventory growth concentrated in the Otros, Calle 100 and Chicó submarkets. According to Gustavo de la Torre, "Since 2019, the corporate market has experienced a growth of 15.6%, mainly in sectors such as Centro Internacional, Salitre-Calle 26, Chicó and Nogal"
The data indicates that Bogota's corporate real estate market is experiencing a recovery in the demand for high-specification offices, which translates into a decrease in vacancy of this type of space. Despite this uptick, overall demand for offices remains at low levels, and there is a reduction in the construction of new corporate projects.