Real estate & construction
The construction sector looks set to return to pre-pandemic numbers, which in turn will lead to a boost for the real estate market.
OUR COMPANY was the first in Colombia to certify a LEED building, driven by Novartis’ requirement to certify the construction of its main offices in the country. Following this pioneering experience, we established a sustainability department within the company. This department not only possesses the capacity to certify buildings with sustainable labels such as LEED or EDGE but also ensures the implementation of best practices in the industry. Our commitment to sustainability has allowed us to develop processes for managing demolition materials, reusing construction site water, and monitoring air quality at construction sites, among other initiatives. Importantly, these practices often precede emerging legal requirements, showcasing our proactive stance in response to the growing demand for improved processes in the construction industry. On top of this, Arpro has developed excellent capabilities in creating building information models (BIM).
COLOMBIA ONCE LAGGED other countries in terms of infrastructure. There were no ports or airports of note. And of course, infrastructure precedes real estate, and its provision has meant that many areas of the country experience a real estate expansion. Colombia has a population of 50 million, and there are over 20 cities with more than 30,000 inhabitants. There is a particularity as well, in that main cities are located in the center of the country, and not on the coast, which leads to the need for convenient access to maritime ports. Therefore, real estate opportunities in the country are huge. This could happen soon depending on the political situation, but the requirements are in place, so it is a matter of time. I believe that 2024 and 2025 will be good years for real estate. As concerns infrastructure, many companies are arriving in the country to export and import. Meanwhile, office installations have been slower because the home office model remains largely in place, although offices are at 73% of their capacity.
THE MAIN CHANGE is the orientation of the company. The group has been active in Chile and Peru working on infrastructure and building projects. In Colombia, we entered the day-to-day market and today we have a 25% market share, supplying sewer products, elements used in urbanization, and road maintenance, for example, inspection wells and drains, which are standard products and yet some construction companies in Colombia still manufacture them on-site. We entered this market because many projects yield good economic results, but we depend on the variables of particular situations, investors, and government actions. The creation of the sewer product line has been a process of obtaining approval documents from different local regulatory entities to have the necessary permits to supply these products. At the same time, we have worked to understand and recognize the market needs. Our main competitor has over 80 years of experience in the market and is therefore well known; competing with it has been interesting.
LAST YEAR was undoubtedly challenging for the Colombian economy, particularly for the construction industry. After 33 years in the market, Prodesa remains solid regarding of its finances, team, projects, customer relations, and environmental initiatives. We also have the support of suppliers, contractors, and the capital and financial markets. While we faced challenges in 2023, we are optimistic about 2024, given the more optimistic prospects. It is reassuring to see Prodesa recognized among the best in the country for the third consecutive year, acknowledged by esteemed institutions such as Javeriana University, Banco de Bogotá, and Deloitte, spanning the academic, financial, and auditing sectors. This accolade underscores Prodesa’s commitment to implementing best practices across all operational facets. We conduct a comprehensive review of our practices annually with the guidance of an expert. Through interviews and collaborative meetings across company departments, we communicate and refine the practices that elevate our organization.