Colombia, as a country with a growing urban population, has utilized social housing programs to both increase activity in the construction sector and increase homeownership for those who have never owned a home before. Housing projects, tailored to the needs of multiple income groups, from those with lower-incomes in the informal sector to the growing middle class, have been made possible through a combination of subsidies, government decentralization, and policy incentives for developers.
Historically and looking forward, the private sector has played a key role in the provision of affordable housing. In 2018, Overseas Private Investment Corporation committed $50 million to the Avenida Capital Colombia Real Estate Fund II with the intent to target low and middle income developments. This investment is expected to deliver a range of benefits, including increased productivity, social mobility, incomes, and therefore, freed up resources for investments and consumer spending.
Source:
Oxford Business Group. (2020) Emerging markets strive to solve housing deficits amid rising urbanisation. OBG.