Colombia – The Next Star of Latin America
According to a recent interview with Equity International chairman and co-founder Sam Zell, Colombia is going to be, “… the next star of Latin America.”
We at Fontis Capital Group LLC are inclined to agree and have been focused on investment opportunities in the low & middle income residential, built-to-suit, and hospitality real estate sectors throughout Colombia over the past year.
The Republic of Colombia is currently the 4th largest economy in Latin America and the third largest by population. Colombia’s projected annual GDP growth rate of 4.7% through 2015 far exceeds projections for GDP growth in the United States as well as the European Union. The country has experienced a dynamic economic expansion over the past decade, evidenced by a tripling of its exports and a doubling of GDP per capital (a percentage increase of 140%). Through the successful implementation of political and economic policies, Colombia enjoyed average annual GDP growth of 3.9% per year from 2000-2009. In conjunction with the significant reduction in violent crime, Colombia has experienced a large increase in international tourism.
While the country has experienced this solid growth and quickly become the second most popular destination for foreign direct investment (FDI) in South America (after Brazil), real estate development in almost all sectors has not kept pace with demand generated by Colombia’s rapidly growing middle class.
Read more of Zell’s comments here:
Zell to Limit U.S. Real Estate Investing as He Expands in Colombia, India
See the full interview from Bloomberg Television:
