Colombia is the land of opportunities when it comes to investment possibilities because multiple industries seem to wake up with the new year. As the national economy reactivates following the challenging times 2020 brought, investors show great interest because the country is known for providing profitable opportunities.
Even if the present issues are far from over, and economies worldwide struggle to deal with the effects, many governments lifted some of the restrictions and created plans to help the national industries recover after the shock. A welcome glimmer of hope and normalcy is seen on the horizon in Colombia. Worldwide, countries are struggling to reactivate the economies, reinvigorate commerce and business. Investment in Colombia has grown considerably during the last years, with venture capital investments in start-ups doubling annually from 2016 to 2019. The country's biggest industries also played a significant role in the process because they attracted new players to the market. For example, when Colombia created a legalised landscape for gambling, multiple casino operators that offer tradamonedas and other games opened casinos in the country. At the moment, Colombians can play casino games both online and offline without having to worry they engage in illegal activities.
Colombia is one of the most popular investment destinations because, in recent years, it managed to overcome the political unrest, history of violence, and economic instability. The new system describes itself as a lucrative business environment with the foreign direct investment from the USA increasing 25% only in the third trimester of 2019.
Colombia is the perfect destination for investment due to its diverse opportunities, numerous sectors on the rise, and cities with the needed infrastructure to welcome any business. However, a few cities have paved the way for providing the most lucrative opportunities in Colombia. The capital Bogota, and the coastal city of Cartagena are the hottest destinations in the countries for foreign investors. As expected, Bogotá being the capital, welcomes the most international investment deals, but Cartagena is closely following in its footsteps thanks to its location.
Let's find out what investment opportunities entrepreneurs have if they choose to expand their businesses to Bogota or Cartagena in 2021.
Investment opportunities in Bogota
The economic landscape thrives in Bogotá and offers excellent opportunities to the investors who want to expand their services in Colombia.
Real estate is a viable and robust investment option in Bogota for the ones who want to explore the advantages this industry provides. Lately, Colombia's real estate market registered impressive growth and rising rates. Even if the growth slowed for most of the country after 2018, Bogota's real estate is in continuous development. For example, by the end of 2019, the real estate prices spiked by 8.2% compared with those in the previous year.
The local market offers real estate investors profitable deals with high-income opportunities and protects their business. Bogota has a BAA2 rating on Moody's rating scale for investment protection, which means that it's a region with moderate risk. The market will probably grow even further in 2021, and the rating will increase, attracting even more entrepreneurs.
The tech industry in Bogota also provides a wide range of opportunities for investors. At present, the capital is home to 55% of the national digital animation and online game companies. Considering that Colombia set the trend in legalising online casino games, casinos colombianos online joined the long list of online resources Colombians could access when they want to play. With more people switching to the online environment because of the pandemic, Bogota prioritises the IT industry as one of the focus sectors for investment.
At the present, the specialists working within the industry state that Bogota has the needed services to manage the remote infrastructure, maintain software applications for corporations, and support the present trend of using digital services.
Investment opportunities in Cartagena
Cartagena is also home to many thriving industries that guarantee significant financial returns to investors.
Cartagena's real estate industry is also on the rise lately and registered a consistent and stable growth before the pandemic. Because it's one of the most popular touristic attractions in the country, on a two-hour flight from Florida, it's the perfect destination for many people, including wealthy individuals who want to own a holiday home in an exotic location.
The real estate opportunities are different in Cartagena from Bogota, considering the distinctness of the market. But it doesn't mean they aren't as lucrative for the investors who want to start a business here.
No one is shocked that a coastal city like Cartagena provides tourism and hospitality opportunities because the two industries show tremendous growth potential once people are allowed to travel again. Between 2006 and 2019, the city saw a 300% rise in tourists. Even in the given context, Cartagena is still considered an ideal destination for foreign visitors because it's home to a UNESCO World Heritage Site that attracts people from all over the world.
Sustainability is on the rise not only in Cartagena but throughout Colombia. In the past, the country had problems with sustainable waste management and trash removal. Still, the government supported the initiatives that focused on improving the issue, and now Cartagena and Colombia are known for their emerging sustainability industry.
Many start-ups dedicated to recycling and eco-friendly initiatives are operating in Cartagena because the sustainability industry is growing in prevalence. Also, due to the global pressure for sustainability concerns and eco-friendly practices, the city is working to transform all industries to adhere to environmental policies.
Bogota and Cartagena have robust economies that position them as fantastic investment opportunities. Real estate, tourism, sustainability, technology, and venture building are only some industries that provide excellent investment opportunities for both locals and foreigners. As the cities continue to grow and become competitive business environments, investors will continue to consider them favourable destinations for businesses. And with the widespread dispensation of vaccines, the national economy will soon get back on track.