Colombia is not just watching the artificial intelligence boom from the sidelines. In October, Colombia’s construction sector experienced 2025 with more headaches than celebrations. On paper, 2024 brought some recovery, especially in civil works, but behind the numbers there are warning signs in social housing and big infrastructure projects. Colombia’s construction crisis has been a reality in 2025.
A recent analysis from Corficolombiana says the sector is “in a maze,” hit by the suspension of the “Mi Casa Ya” program, cuts in housing budgets, and slow progress in 4G and 5G road concessions.
Housing in check, what happened to “Mi Casa Ya”
For several years, “Mi Casa Ya” was the star of social housing policy. It helped more than 60,000 families every year to buy a home with a mix of down‑payment subsidies and interest‑rate coverage.
That changed in December 2024, when a circular from Fonvivienda stopped new applications and pre‑assignments for the subsidy. At the same time, the 2025 budget for Fonvivienda was cut by 40%.
Without that support, many households with incomes below 2,5 minimum monthly salaries now face much higher monthly payments. The door to a formal VIS home (social housing), which already was not wide open, feels even smaller.
VIS households and builders under pressure
Corficolombiana gives a concrete example. A family planning to buy a VIS home worth around 135 SMMLV (one minimum monthly salary, or SMMLV, is approximately US$381), with an interest rate near 11%, expected to pay about COP1,200,000 per month. Without the subsidy, that quota climbs close to COP1,700,000.
For a low- or middle‑income household, that extra COP500,000 each month can be a deal breaker. The result is simple, fewer people can qualify for mortgages, and many decide to keep renting or stay in informal housing.
Builders also feel the hit. With fewer buyers who can pay, especially in VIS, companies hold back on new projects. For small- and mid‑size firms, which depend on social housing, this becomes a serious risk for jobs and cash flow.
Infrastructure, civil works grow but not enough
On the infrastructure side, the picture is mixed. Civil works grew around double digits in 2024, but total production of infrastructure is still more than 25% below prepandemic levels.
Part of the problem is timing. 4G highways, which once put more than US$2.6 million a year into the economy, are in their final phase, with many works above 90% execution.
Meanwhile, the new 5G concessions have not yet taken the relay with enough strength. Out of the first‑wave projects, only a few are under construction, and their execution remains low compared with what was planned.
Second‑wave 5G projects are even further behind, still in feasibility or early approvals. Without a steady flow of works, the sector loses rhythm, and regions wait longer for better roads.
Why this matters and what could help
Construction is not just cranes and concrete; it is a big source of jobs and local activity. When housing and infrastructure slow down at the same time, the effects reach banks, suppliers, and families who depend on these projects.
Corficolombiana and other analysts suggest several paths to avoid a deeper slump. One is to design new tools to support VIS, even if “Mi Casa Ya” does not return in the same form.
Another is to speed up public decisions around 5G and other civil works, so investment does not fall into a hole between concession waves. Stable rules, faster approvals, and clear funding would help reduce uncertainty.
There is also room to link these efforts with sustainability goals, using infrastructure projects to push cleaner transport, better materials, and more resilient cities, as several recent studies suggest.
A decisive year for Colombia’s construction maze
In 2025, Colombia’s construction sector has faced a fork in the road. One path leads to more delays, fewer VIS projects, and a long pause in big roads. The other requires quick action in housing policy and infrastructure planning.
The choices made in the next months will decide whether construction remains stuck in its maze or finds new exits that protect families, support builders, and keep the country’s development on track.