After a year of business growth, according to several real estate developers, 2023 generates some uncertainty about how the market will evolve during the next election year. On the one hand, they expect the government to invest more in public works, a situation that would give energy to the sector. But they do not escape the consideration that private works are exposed to other economic variables such as the evolution of the exchange rate, inflation, the deterioration of the population’s wages and, therefore, a potential inertia in making decisions in the face of the unknown. electoral.
Diego Aguirre, managing director of Construya al Costo, is among those who believe that “the activity will largely depend on public investments and the reactivation of the works that the Government carries out. Obviously, it is expected that public investment will grow during the election period ”, he points out.
According to the entrepreneur, “prospects at the macro level are quite consistent between companies working in public works and private works. “A 65% or 70% expect activity to stabilize in the coming months and the rest is distributed, in small percentages, between decreases and increases. Therefore, these types of indicators speak of a stable situation,” he considered.
Among the challenges that 2023 will have to face, the president of the Association of Housing Entrepreneurs of the Argentine Republic (AEV), Carlos Spina, assures that it will be full of uncertainties, like every election year. “But more in this case where we see that, somehow, we are at a pivotal point, facing structural changes in Argentina.”
“There will be people who, as in all these processes, will slow down before the decision-making process and others who, on the contrary, will accelerate to anticipate the change”, He says. According to the leader, “the big problem we see is the deterioration of the general purchasing power of Argentina, because we Argentines are the ones with the least purchasing power to face the housing deficit that we have. Undoubtedly it will be a challenge for the incoming government to be able to deal with this and, gradually and with the work of the associated chambers, improve everyone’s situation,” he said.
From the CEK group, developer of the residential market in the northern corridor of the city of Buenos Aires, Alan Mohadeb predicts “a limited demand that portends a good future for the sector, with prices that have bottomed out and that today represent an opportunity for buyers , taking into account that the incidence of premium land is increasing its value month after month, together with an increase in the cost of construction. These two variables will gradually increase the values, “he said .
For her part, the commercial director of Grupo Coria Daniela Pérez de Graffe anticipates it It won’t be an easy year. “Election years are generally complicated, the consumer is waiting for what will happen in the country’s situation, and large-scale plans, such as buying real estate, are somewhat postponed.”
Regardless of the context, Mariano Gubitosi, of Grupo Portland, expects a year of intense activity. “We know it may have some instability, as a result of the economic situation and the election year, but that doesn’t stop us. Our business project is long-term,” he says, ready to launch five of the projects he has in the pipeline. “The key for 2023 will be have the strength and clear vision of the future that allow us to overcome the difficulties that may arise. The Argentine market is dynamic and surprising,” he describes.
As for the building materials industry, Edgardo Gioia, from the Cámara del Ladrillo (CICER) foresees a good year, “with the logical uncertainty they generate for us -as well as for the whole economy- inflationary indices, the evolution of the exchange rate and an election year”To explain.
Source: Clarin
