Whitewashing of Construction: Will it be able to attract new investments?

The extension instituted by the Government for money laundering intended to promote construction works, arouses positive expectations among entrepreneurs in the sector. In particular, among developers who have works in the well and estimate that the measure could stimulate demand. That is, to attract the buyerscurrently non-existent.

The AFIP is expected to publish tomorrow the “conditions of application” of the extension of the incentives. In principle, the investment should be earmarked for new private works, or who have an advance payment of less than 50%.

This law was passed last year but had a very short “window of applicability” because regulation was delayed. Above all it was scarce the first stage of whitening, that is, for those who “sincere” their dollars or pesos in the first 90 days and pay a rate of 5%, which is the time when the greatest number of “launderers” is expected. The second recycling tranche covers the second 90 days at a cost of 10% and the last 180 days at a rate of 20%.

This time, the expectation of capturing a significant amount to support private activity is higher, whereas last year the first phase was only 10 days e raised 200 million dollarss, says Gustavo Weiss, president of the Argentine Chamber of Construction (CAMARCO). “In any case, it is not possible to estimate how much it will be bleached,” he said.

According to the director of CAMARCO, the sector is going through a good moment driven by public works and housing construction and renovation. “With the inflation out there, people who have pesos are consuming durable goods or investing in their homes or building a lot. If you have dollars, the gap between the official dollar and the blue dollar helps even more, “she explains.

On the other hand, the cost of construction remains convenient: m2 cost between $ 700 and $ 800 to build a “normal” house, when it historically reached $ 1,200 or $ 1,300.

According to Damian Tabakman, head of the Chamber of Urban Developers (ECHR), the money laundering entity «It will serve to motorize the sector. Especially to make the sale in the well more dynamic which also calls investors but not buyers, who do not exist directly, ”he commented. Therefore, the entrepreneur concluded: “we are optimistic” about the impact of money laundering.

For the president of the Chamber of Real Estate Services Companies (CAMESI), Mariano García Malbrán, “the reopening of money laundering can represent an additional private investment of between $ 4,000 and $ 4,500 million e It will serve as an engine for the reactivation of construction and the national production system in general “.

Even for Iván Ginevra, CEO of GNV Group, “the law is a reality investment incentive, economic activity and the production of labor without tax burdens for the state. And he referred to “the urgency of generating measures to reactivate the real economy”.

Contrary to Tabakman’s view, Miguel Di Maggio, director of the DEPA real estate agency, argues that “currently, the real estate developer market lacks investors. With all the risks that this entails in terms of starting a project and the need to ensure that it can be completed, ”he says.

“It happens that investors they are not entirely convinced that they are investing their money in a business as it is not clear whether the price of real estate will continue to fall or not. Prices, according to the entrepreneur, “will not stop falling until there is a climate of foresight and clear rules. And linked to this, with a mortgage market”. According to the manager, money laundering can be positive in a political scenario with a view to change government for next year.

Javier Fuentes, manager of PGK Consultores, on the other hand, thinks that “the results will not be those expected by the Government, Why it won’t be easy to get investors allocate funds to these projects, at least until they are regulated by the Executive Branch, AFIP and BCRA and clearer rules are established in this regard, “he said.” On the other hand, with a depressed real estate market a due to inflation, price uncertainty and poor economic conditions in the country, even the return on investment will not give favorable results for investors, “he said.