PER SQUARE FOOT ANALYSIS OF CARTAGENA REAL ESTATE PRICES 2011

By Paul Juan, April 27th 2011

Friends, colleges, and clients… I gladly present this analysis of real estate prices listed in my websites: www.cartagenarealty.com and www.cartagenainmuebles.com.

The good news is that Cartagena shows a steady increase in real estate prices which establishes our market as one of Colombia's most important realty investment.

Thanks to our strong Colombian national economy, we have been able to side-step much of the world credit/real estate crisis, known as the "bubble". There were fewer foreign buyers during 2009 and 2010, but a change seemed to occur with our new President Juan Manuel Santos. Where the previous president did a wonderful job the market reacted positively over Santos, resulting in many important business closings that took place by the end of 2010. So far, 2011 continues to show positive activity.

The outlook is very promising: with such established results in pre-sales of the projects: Barceloneta, the inauguration of Las Ramblas, the announcement of the world's most important hotel franchise now developing in Cartagena, and the launching of San Lazaro. All of these are all very important factors for the City.

Figures below are shown in U.S. Dollars and square feet, and are based on: $1 U.S. Dollar = $1,800 Colombian Pesos, (1 square meter = 10.76 square feet).

Historic Center shows the widest spread of prices per sq.ft. having the most expensive property priced at $568/sq.ft. and the lowest price at $206/sq.ft. This phenomenon is due mainly to the physical conditions of the properties which are priced accordingly as if they are restored or not restored. As a general reference we can say the average price per square foot of restored, or new property, in the Old City is $516 dollars, and $206 dollars per sq. feet, for non renovated property.

Price/sq.ft in the analysis of June 18, 2008: $361 with an increment: -2%. I think that this is an error, due to the fact that June 2008 report, I did have few listings in the Old City, and currently there are now many Getsemani (Old City) listing which lower the median.

In Castillogrande we have prices from $134 to $361 dollars per square feet. The prices are influenced mainly by existing inventory in projects such as: Puerta del Mar, Puerto Velero, Malibu, Bahia Concha and Bahia Grande.

Price/sq.ft in the analysis of June 18, 2008. $196 increment: +44%. It shows the highest appreciation due to the upscale property market in the area.

The foreign investor has a perception that Castillogrande prices are much more expensive than Bocagrande. The numbers however show that the prices are very comparable. For instance, if we take the prices of Infinito, Palmetto Eliptic and the high end apartments fronting the Bocagrande bayside, we have comparable prices to those in Castillogrande.

Price/sq. ft. in the analysis of June 18, 2008. $196. increment: +23%.

Laguito is a very active market with a wide variety of low cost apartments available, as well as different sizes, quality, and physical condition. All of this tends to equalize the prices toward the lower price limits.

Price/sq.ft in the analysis of June 18, 2008. $165. increment: +3%.

Manga shows great dynamism by attracting both foreign and local investors with successful projects like: Regatta, Vista, Barlovento 106, Opalo, etc.

Price/sq.ft in the analysis of June 18, 2008. $187 increment: +2%.

Recently launched Project such as: Cabrero 272, Porto Castello, and Vida, show the great attraction of this charming area which blends the vintage with the mondern. Altamar, Zafiro y Terrazas de San Sebastián exert strong positive influence in the prices.

Price/sq.ft in the analysis of June 18, 2008. $172 increment: +6%.

A great future is departing from traditional neighborhoods with the construction of the tunnel which will improve traffic and the expansion of the beaches. The success of project Terrazas del Caribe and the final kick off of Beach Club are signs of the importance of Crespo in the residential and commercial market.

Price/sq.ft in the analysis of June 18, 2008. $140 increment: +22%.

Cielo Mar is the beginning of the North Zone, and the dominant presence of the 5 Star Hotel Las Americas complex, make of Cielo Mar, always a winner. Successful project Mistral and the availability of upscale homes close to the beach, generate interesting investment deals.

No data available for the analysis of June 18, 2008.

La Boquilla flourished as the most appealing area for luxury vacation apartments in Cartagena. With the constant thrive of Conceptos Urbanos and their Morros complexes; Murano and Atabeira offer the demanding tourist and exclusive second home solution. Apartments with privileged unobstructed views are priced around $261 dollars/ft2, comparable to Castillogrande properties.

Price/sq.ft in the analysis of June 18, 2008. $187 increment: +22%.

Barlovento is the given name to the area starting from the corner of Las Ramblas spanning north, covering Barcelona de Indias, Barceloneta, Laguna Club, Terranova, Puerta de las Americas, etc.

This is the area of city growth, where continued investment efforts are being made. Barlovento offers houses of great value and apartments in open areas that are affordable for young Cartagena families.

Special mention to Karibana, offering upscale apartments, with or without golf club membership, to attract primary local live in families. Prices range from $261 to $313 Price/sq.ft.

No data available for the analysis of June 18, 2008.