(CNN Argentina Radio) – Sebastián OrlandiSpoke with head of Flamma Real Estate CNN Radio and analyzed the current situation in the construction industry.
“Looking at 2022, the brick business is coming in with double-digit growth in jobs and operations. To put it bluntly, it’s coming with a tailwind., the job is just deed paid in cash on the table, unencumbered. They are cash transactions. CABA has received more than 3,000 title deeds for 3 months in a row, which is a good number,” he said. morning airof the William Panizza.
“What happens when you see the price issue, which is another variant? Before the pandemic, let’s say in 2019, the buyer bought it at a very high price. According to today, these prices have been adjusted between 30% and 40%. You made a low, the quantities started flowing and the price stabilized today. Some of the most sought-after products are starting to rise in dollars depending on what is built in order,” he added.
A build has three costs: construction (materials, labor), land and taxes, architect and others.
For Orlandi, “When you see the construction and the cost, 2021 was a cheap year to build in dollar terms because there was a shift in the exchange rate. But when you see it today, you say beware. Construction inflation in the last 12 months was 81%. When you see what happened to the dollar, they all rushed below that inflation. At some point, this will be reflected in the prices.”
“Imagine if I have a property for 100 and I’m selling it for 50. It’s down 50% and needs to grow 100% to return to the previous price. That’s a hard thing to happen. I prefer to leave, sell and move to do business with more profitability and space in the future so if I lose 50 I will have 100 again by reinvesting them properly”explained.
In a general diagnosis, he exemplified: “You have a record at Capital today that you requested a building permit. You go for a walk and you see a lot of new job postings and it’s because the cost of construction has come down and those with the capital are telling you it’s time”.
By keeping more units in the market, the price will continue to stabilize.
Looking to the future, Orlandi said, “In the pandemic, we started to spend a lot of time at home and started repairing it. Then we thought, if I have capital, savings and time, why not. I have more sun, I am more green I believe what will happen today, It’s a slow return to the cities, because a big house, a neighborhood like this, two cars, transportation is expensive to maintain.”.
In this context, he added: “Back to the office is also forcing people to get closer to the city, and this movement will start to form. Alongside General Paz in Gran San Martín, we have a lot of movements designed around what people are looking for and needing. Close to General Paz are two towers with lots of activities to get to the highlights fast. That means not being 60 kilometers from Buenos Aires, but not living in the center of the city.”
“I see a good 2023. There are many sales and investments in the well that you cannot see because a ticket is sealed but there is no place to verify how many tickets have been made. And today comes the dynamism of the market. From here. Election years always create uncertainty, but it does not stop. In any case, it is talked about more, but the operation is carried out. I am optimistic for the future, 2023 and 2024 will be very good years.”Top.
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