A falling dollar makes home prices more competitive

—How is the real estate market currently five months into this year 2023?

—There are important challenges, there was an economic, macroeconomic situation that had an impact on this development, but despite this, growth is still maintained, let’s say, at a much slower speed, but it is expected to continue developing homes to be able to cover the deficit in the country and in Lima.

—The pandemic complicated the situation of many companies in various sectors. How did it affect the real estate sector?

—Construction costs were significantly impacted, and what was imported registered impacts above 200%, 300%, 400%; and in this context, they knew how to handle the situation to present value offers and find a way out through digital channels.

—The pandemic not only affected the sector but also the socio-political situation. This also had an impact on the sector. How much do you think the impact could be?

—In general, we see that there was an annual average impact of 4%. But the socioeconomic impacts led to a higher value in the dollar, impacted on investment, on confidence, with which investors and families also viewed their investment with some caution. But, without detriment to this, growth is once again resuming and there is a positive impact, and for this the real estate fairs are a great boost.

—Does it mean that the prospects for the remainder of the year are positive due to the fairs, also due to the investment of companies in the real estate sector?

-Yeah. But obviously, as I mentioned at the beginning, you have to be cautious and move forward step by step, and in greater detail where these projects are going to be developed, but of course, there is still room to continue growing.

—Is this a good time to buy a house, an apartment or a piece of land?

—We have had an impact on financing rates, but as is already known, they have stabilized and there is a progressive downward trend, so between what is being projected at an economic level and the projects we have, it is definitely a right moment. And that is seen in activations and fairs.

—How much did interest rates rise in the real estate sector and how did it partly decrease?

—On average before, you could have rates ranging from 6% to 7% and have reached a little over 10% in different first-rate financial institutions; but it is already stabilizing in the order of between 9% and 9.5% and it is expected that for the next few quarters it will continue in line with the BCR’s monetary policy.

—How much did home values ​​go up?

—The prices of homes were adjusted at the appropriate time as a result of the pandemic. Had to rearrange and readjust. But post-pandemic, again with international situations, with a falling dollar price, it will allow the price to be more competitive and adjust even more to the need, reality and economy of families and the Peruvian investor. .

—It is estimated that the price of the dollar will remain at approximately S/ 3.80 by the end of the year. Wouldn’t there be much variation in the price of homes due to this?

—It must be taken into account that the previous year the dollar was above S/ 4.00 and reached S/ 4.12, so there were projects that had already absorbed that cost, and although the trend is to settle at S / 3.80 will make it possible to stabilize housing prices, depending on the area, the footage, the project and the size, including in the stages of real estate development, always finding opportunities in the value of the home.

—And on average, what is the value of the square meter in metropolitan Lima?

—On average we are talking about around US 1,760 per square meter.

—But are there districts where they cost more?

“Yes, definitely yes. It must be taken into account that the highest will always be in Lima top, and the districts that lead this highest value are both Miraflores and Barranco.

—And the prices in those districts, per square meter, how much are they?

—Could be between 2,000, 2,100, 2,200 dollars.

—Do we still have room to grow with larger real estate projects in Lima? Where would the expansion be?

—There is an important area that still needs to be attended to, such as modern Lima and emerging Lima, we are talking about part of downtown Lima, for example, in Pueblo Libre, Jesús María, San Miguel, Lima Cercado, Chorrillos.

—But is there land to build real estate projects?

—Of course, we have areas like Pueblo Libre, San Miguel, Lince.

—Is it state land or private land?

—Private land, mainly, including in areas like La Victoria, where development can continue.

—And what types of apartments are the most purchased by families?

—Families look for apartments that have 3 rooms.

—A double room, and two more for the children.

—Exactly and the living room, dining room and basic services that are normally present in these real estate developments.

—And is it a good option to invest in an apartment to rent later?

—Definitely yes, because you have range and space in what is Lima top. For example, a district like Barranco where this type of investment can be made by projecting the rent.

—What is the value proposition of Invent real estate, which they present to people who bet on buying a home?

—Invent real estate focuses on developing innovative, quality projects that fit the needs of each of our clients, the family or investor client or anyone interested in having a place and space where they can feel that they have Absolutely everything, from common zones and areas that allow distraction, or even a coworking area, swimming pool, a bar, but which in turn can cover the needs of the community, of closeness.

—But these proposals are also presented by other real estate companies in the sector. What is the differential value of you compared to the others?

—In each of our booths you will find everything in one place, from legal advice, commercial advice, financial advice and we bring you closer to everything our clients need, our potential clients to fulfill the dream of their own home. In addition, we give them the facility of being able to finance the initial installment in up to 12 months, which no other real estate agency offers as a facility. In other words, we are present throughout the entire chain in one place, in our booths.

—This is important because many times families get stuck when they want to buy a home because the down payment is not enough, but do you give them the chance to finance the down payment in 12 months?

—Up to 12 months, depending on each of the project situations, because it must be taken into account that some projects are close to being delivered, others are under construction and others are in the launch phase. Depending on the status of the project, we can deliver this value proposition for all those who are analyzing the decision to acquire the property or their own home with up to 12 months of financing of the initial fee.

—Does it mean that they have agreements with some financial institutions to bring families closer to buying a home?

-Exactly. This work is what we have been doing at Invent Inmobiliaria, this close management with financial institutions so that all interested clients can have everything in one place and only worry about how they are going to furnish it.

—And where are the real estate launches located?

—We are in Jesús María, Magdalena, Chorrillos, Barranco, Miraflores and we have recently launched two projects in downtown Lima, one with a Colonial community concept and another in Santa Beatriz, which is another sector to revalue downtown Lima.

—Finally, refresh us the value proposition of the company.

—At Invent Real Estate we have different projects that cover each of the expectations of the interested parties. With us you will find everything in one place and even the facility to finance the initial fee for up to 12 months. There is not much to think about to make that decision and we are delighted to receive them and that they are part of the Invent family and that they start creating stories with us.