The WSJ reports,"architect Richard Meier's new residential building will feature his signature jutting planes and surfaces carved from white steel and glass. The 37 apartments, starting at about $2 million, are 73% sold even though ground won't be broken until June. The project, named Vitrvm, and the buzz surrounding it, is what you might expect from the designer of L.A.'s Getty Center except for one thing: It is in Bogotá, Colombia".
"Why not Bogotá?" asked Mr. Meier. "The economy is strong and there are people that want quality buildings to live and work in."
The real-estate market of Bogotá, population about 8 million, tells a more positive story today than what some might expect from the capital, which has a history of political and drug-related violence. Prices per square foot for new construction have more than tripled from 2003 to 2013, says a report published by Colombia's Bank of the Republic. Existing-home prices also have risen over the decade.
New buildings that have top-notch amenities and that are listed above $370 a square foot have sprouted around the city, bringing rare amenities such as gyms, media rooms, and tennis or squash courts; a few top buildings feature conference rooms for executive meetings. International real-estate firms, such as Engel & Völkers, a Germany-based luxury brokerage with offices in 38 countries, are setting up shop in the city.
Meanwhile, the kidnappings that gave rise to Colombia's fearsome reputation fell by more than 90% between 2002 and 2009; there were 43 kidnappings last year in the city, states a report by the U.S. Department of State, citing Colombian government figures. Peace talks between the government and guerrillas aim to put a cap on a 50-year conflict, local officials say.
One developer, Neos Group, recently has completed two high-end residential buildings in the city and has four more slated to be finished by 2016. Sales have been brisk at $400 to $600 a square foot, said Neos sales and marketing director Valentina Grajales, who moved to Colombia last year after 10 years selling real estate in Miami.
She is encouraging Neos to use Thermador and Teka appliances and Venetian marble, based on their popularity in high-end condos in Miami. The company also is focused on designing bigger bathrooms and kitchens for wider appeal, she said.
Mr. Seda, of Royal Property Group, who moved from Los Angeles to Colombia in 2007, is securing permits to build 60 apartments and 80 hotel rooms as part of Charlee Hotel, a project in which individual investors will own most of the hotel rooms. An important client base for him is executives who work for multinational corporations that have recently established headquarters there, he said. In the past few years, international companies such as consultant A.T. Kearney, HRG Logistics andFacebook have opened offices in Bogotá.
"Our thought process is all these companies need somewhere to put their Latin American headquarters, so they are buying offices and residential," Mr. Seda said.
Real-estate brokers and developers say most of the demand for luxury housing is from Colombians. All of the buyers so far of the Richard Meier building are locals, said partner and head of sales José Luis Caleya, of developer Icono Urbano. But Americans, typically with some tie to Colombia such as a Colombian spouse, also are exploring the market, said Sam Miller, managing director of Colombia International Real Estate, a Bogotá-based consultancy. Mauricio Jaimes, founder of Buy Colombia Realty, which works exclusively with foreign investors, said his client base is 60% American, 30% European and 10% Middle Eastern.
