Building under construction Photo: Fernando de la Orden
Construction continues to show signs of recovery and is part of the select group of activities that are driving the recovery in employment. For developers, construction costs remain low in dollars (US $ 600 per m2) while property prices, although declining, have decreased to a lesser extent. These reasons suggest that it is still profitable to build. However, the context of a real estate market with very few sales generates doubts among those who have to start a new job. In which cases, then, should silver be used for bricks?
“If a person has to invest money in your home to build or renovate, if convenient because he changes his “blue” dollars and pays him the pesos with which he builds ”, warns Gustavo Weiss, president of the Argentine Chamber of Construction (CAMARCO). In fact, in the interior of the country, self-construction of housing has a great impact. “But for developers looking to tackle a new job, “today is not a good time: the construction in progress was started a long time ago, before the fall of the real estate market which is too calm today. So investors largely pulled out because Today it is not a business to buy into the well and sell the finished product, says the manager. “Before there was a significant difference but now it’s gone and on the other hand, end users don’t even have mortgages to buy, except a few.”
From the Council of Architecture and Urbanism Professionals (CPAU) they warn that “in a context of exchange rate uncertainty and regulations on the purchase of foreign currency, investments in construction are a simple alternative to dollarize savings in pesos “. Furthermore, according to this vision, it is expected that the Government will continue to bet on the sector as the main growth engine not only for the creation of jobs but also for the possibility of raising funds from recycling, a measure to stimulate the economy. was extended a few days ago.
Santiago Levrio, general manager of TBT Real Estate, says that, in the case of CABA, after the modification of the urban regulation, a large amount of land has been incorporated into the offer and this a sharp drop in prices (50% in five years) “, describes. “As far as the cost of construction is concerned, it is still in the lowest average of the last 20 years. Both drops were even more abrupt than the drops in the selling price, for which, if it is possible to succeed in the commercial aspect in terms of product, potential margins are timely. On the other hand, for those seeking refuge from their own resources, the construction still has it inputs valued at the official dollar, so having an asset, in this case real estate, capable of seizing that opportunity is convenient, ”he says.
But what is built sells itself?consulted Clarione. “Little, half of the registrations to the plan become actual works and not all of these works have a sales flow that allows them to be financed without the support of the principal’s capital. However, there are specific segments that have supported the demand, but that’s it, specific segments”Says the entrepreneur.
Fernando Cueto, commercial director of developer Qubo, is thrilled the possibilities that now arise with whitewashing. “This is a measure that can help attract industry investors, although we hope it will also be complemented with some boost to loans that help customers access their homes and resolve end-user access to their homes. their home, “he says. And Sebastián Cantero, of TBSA Toro Brokers SA adds that “the good news is that the dollars that are deposited in the accounts generated by money laundering when they reach the developer, this changes them to the MEP exchange rate, and that’s a big relief to get on with work “.
Cueto stresses that “although prices have been falling in recent years, it is necessary to continue investing in the country because The real estate market has shown us that it is the most stable sector with the best protection of the investment value “, He says. “We developers are focusing on how to market, many of us have our own sales departments in addition to traditional partners such as real estate agencies.” The entrepreneur believes that “you have to be very precise to know what to sell and when to defend the price as much as possible and that the business remains profitable”.
Another businessman in the industry, Oscar Puebla, also adheres to the convenience of building now. “In 2023 there will be an increase in values and the capitalization will be excellent. Today, building the blue dollar in pesos is cheaper than ever, though it won’t last long “, he warns. So now is a good opportunity to build. In addition, whitewashing will speed up the work in progress. Without a doubt, bricks are the best investment of the last 10 years, “she said.
Of which products and areas are the developers targeting, Levrio states that in the project “the goal is to capture the values of a house in an apartment. As for the price, the developers are trying to lower costs by absorbing tasks that had previously been outsourced. As for financing, we observe incipient attempts to finance the payment of dues in the longer term ”, he stresses.
Finally, as regards the most chosen areas, the entrepreneur adds that “in addition to the classic neighborhoods that have more or less demand but always something, neighborhoods closer to Av. Gral Paz have been added that have a great environmental quality for lower population density. . Indeed Villa Urquiza and Villa Devoto today are on the podium of the districts where there are more projects “He says.
Natalia Muscatelli
Source: Clarin