news agency
Home sales are 20% below the pre-pandemic level

Home sales are 20% below the pre-pandemic level

During 2022, the real estate was able to complete the sale of 16,000 new homes in Lima and Callao, achieving a growth of just 3% compared to what was placed in 2021, according to figures from the Association of Real Estate Companies of Peru (ASEI).

However, despite the fact that a positive result has been registered, it has not yet been possible to exceed the levels obtained prior to the pandemic.

“In 2019 we reached 20,000 homes and now we are 20% below,” he explained to The Republic Juan Carlos Tassara, president of ASEI.

However, by 2023, the expectation of real estate agents is that the sector can continue to grow, although the sales of 2019 would not be reached either due to inflation and the increase in interest rates on mortgage loans.

Along these lines, both ASEI and the Association of Real Estate Developers (ADI) pointed out that the Government must grant more resources to the Mivivienda Fund (FMV) to make the sector more dynamic, since there is an unsatisfied demand for low-income housing, precisely the segment that concentrates the largest real estate sales.

“2022 and 2021 have been hard for all industries and real estate has not been the exception. The supply has dropped and that means that we cannot meet the demand, especially in the Home and Own Roof segments, which are long-term projects term,” added Tassara.

Purchase is postponed

Although the real estate unions indicated that home sales would not be impacted by the current social upheaval, it would cause the decision to purchase a property to be postponed for a few weeks due to existing traffic restrictions.

“Segment C and D need a house yes or yes, so it’s not a decision that they can put off for a long time, suddenly they postpone it for a weekend because the road is closed, but when this opens up those people go to the places of sale or digitally and are involved in the purchase process,” Antonio Amico, president of ADI, told this outlet.

housing price

The increase in the price of construction materials has been reflected in the value of housing, which from January to November 2022 had an increase of 4.4%, costing an average of S/7,417 per square meter in Lima. and Callao.

In this regard, the president of ASEI mentioned that “as long as there are inflationary scenarios and rising prices in construction materials, this growth will be reflected in the price of homes.”

Meanwhile, the representative of ADI estimated that there could be an increase of around 8%; However, he considered that the impact could not be felt much due to the increase that has been given to housing subsidies granted by the State.

In detail, the Family Housing Bonus is now S/43,312.5 for the purchase of a home and S/29,700 for the construction of a house. Meanwhile, the Good Payer Bonus ranges between S/10,800 and S/25,700, depending on the value of the home to be purchased.

Interest rate

Finally, regarding the mortgage interest rate, which can be found at 9.5% and 10%, the president of ASEI mentioned that this indicator could continue to rise if political instability continues.

“If we really continue with an unstable policy, the rates (of mortgage credit) could go up as we have had before, to 12% or 15% per year,” he concluded.

“Investments are cautious, there is uncertainty”

Juan Carlos Tassara, president of ASEI, reveals that, due to the political climate, real estate entrepreneurs are being very cautious with your investments.

“Investments are very cautious, we are still in a period of uncertainty. Until that happens, it means that investments are going to be more cautious,” he adds.

For his part, Antonio Amico, president of ADI, points out that investment is being made in the sector, however, now it is betting on areas where real estate companies have other projects.

We are going to invest, but instead of being bolder and investing in areas where we are not, we will develop projects where the market has been proven to work“, write down

Source: Larepublica

You may also like

Hot News

TRENDING NEWS

Subscribe

follow us