The Colombian government has released a draft decree setting a maximum cap of 135 minimum wages for social interest housing (VIS). The measure aims to ensure clear pricing and prevent automatic indexations in contracts. The document will be open for comments until January 25.
On January 10, the Ministry of Housing, City and Territory published a draft decree titled “by which the general cap on the value of Social Interest Housing is established, the current regulatory regime is harmonized, consumer rights are strengthened, and other provisions are issued.” This initiative aims to change how construction companies handle sales of new social interest housing (VIS) and priority (VIP) units.
According to the draft, the general maximum value for VIS will be equivalent to 135 current legal monthly minimum wages (SMLMV), as per articles 91 of Law 388 of 1997 and 293 of Law 2294 of 2023. All contracts, such as reservations, purchase promises, or trust assignments, must explicitly state the total price in Colombian pesos, which will be the only enforceable amount until contract completion.
The government stresses that automatic indexation to the minimum wage will not be allowed after initial agreements. Price adjustments in pesos will only be permitted for extraordinary reasons affecting input costs, supported by the Building Construction Cost Index (ICCE) from DANE.
For legal transactions started before the decree's effective date, prior regulations will apply to consolidated cases, but without indexation on the final price at the time of deed execution. The draft will be available for comments on the Ministry's website until January 25, inviting input from stakeholders to refine the proposal.
