Financial Superintendency of Colombia says housing recovery will be gradual as shallow credit and low savings constrain demand

In published remarks, the Superintendent of the Financial Superintendency of Colombia said the recovery of the country's housing sector is expected to be gradual and will depend on macroeconomic stability, stronger domestic savings and more favorable financing conditions. He said Colombia's low credit depth relative to international standards is limiting household access to financing and restraining real estate market activity, while weak domestic savings continue to reduce households' ability to buy homes and support formal demand. The remarks also pointed to progress in housing conditions. The housing deficit has been gradually reduced, driven mainly by improvements in the quality of existing housing units and wider access to basic services, underscoring the need for public policies and institutional efforts focused not only on new construction but also on housing improvement. The Superintendent also linked low liquidity in the economy to limited credit depth and a restrictive monetary policy stance, reflected in scarce liquidity and high financing costs. The Superintendency reiterated its focus on technical analysis, continuous monitoring of the financial system and support for a sustainable housing market in Colombia.