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Construction supplies sales recovered in July and grew by 12 percent - Infobae
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La venta de insumos para la construcción se recuperó en julio y creció un 12 por ciento
Así lo registró el Índice Construya (IC) que observó una recuperación el último mes, aunque se mantuvo 16,50% por debajo del nivel de julio de 2023. El lento regreso de la demanda y la reaparición del crédito comenzaron a impactar positivamente en el sector
www.infobae.com
August 6, 2024
This was recorded by the Construya Index (IC), which observed a recovery in the last month, although it remained 16.50% below the level of July 2023. The slow return of demand and the reappearance of credit began to have a positive impact on the sector.
By Jose Luis Cieri
The image shows a person fixing up an empty apartment that they had just bought. Demand for buying construction materials is gradually recovering (Illustrative image Infobae)
In July, the Construya Index (IC), which measures the evolution of the volumes sold to the private sector of construction products manufactured by the companies that make up the Construya Group, registered a seasonally adjusted monthly recovery of 12.09% . Despite this growth, sales remained 16.50% below the level of July 2023.
For the fourth consecutive month, in July, they noted a gradual recovery in demand with higher levels of shipments for new construction and renovations. “We believe that the gradual macroeconomic stabilization, as well as the reappearance of credit for the private sector, including mortgages, are beginning to have a positive impact on the dynamics of the sector,” explained Grupo Construya, an entity chaired by Pedro Brandi .
Throughout the period from January to July 2024, Construya Group shipments were 30.60% lower than those made during the first seven months of 2023. However, the upward trend in recent months generates positive expectations for the immediate future of the sector.
The IC measures the evolution of the volumes sold to the private sector of construction products manufactured by the leading companies that make up the group.
These products include ceramic bricks, Portland cement, lime, long steel, aluminium carpentry, adhesives and pastes, paints and waterproofing, sanitary ware, boilers and home systems and central heating, taps, water and gas conduction systems, floors, ceramic coverings, and electrical and electronic materials.
The entity confirmed that cement, sand, lime, taps and floor coverings are among the building materials that are currently being sold the most.
Challenging panorama
The average construction cost is approximately USD 1,100 per square meter, although this value may vary depending on the neighborhood in the city of Buenos Aires or locality.The impact of land prices ranges between USD 500 and USD 800 per square meter in CABA.
And although costs are not at the levels of two years ago when the value per m2 fluctuated by 30% of what it is now, housing construction is continuing at a good pace.
According to Zonaprop, the cost of construction measured in dollars increased by 6.1% in 2024. This increase is one of the reasons that drives the price of brand new apartments.
Source: Construya Index generated by the Construya Group
Building today costs 2.3 times more than it did in October 2020, the lowest in the series, and 2.3% above the 2012-2023 average.
Hernán Siwacki , managing partner of Capital Brokers, maintains that the gap for developers has narrowed considerably. “Although there is an increase in prices for the pre-sale or sale of developments, the increases do not accompany the increases in costs. In this sense, there is an opportunity for the buyer who is looking to invest more cheaply in developments; today it is advisable to do so before the values of the houses rise more strongly.”
Transfer to housing costs in pit
Since March, sales prices have increased by approximately 15%, also in dollars, due to the increase in costs that have been passed on to the final price of the homes.Damián Tabakman , president of the Chamber of Urban Developers (CEDU) highlighted that, unlike March and April, “when the abrupt increase in construction costs caused concern, the outlook is now more optimistic. This improvement boosted demand in several real estate developments, which are finding more favorable projected profitability levels.
In addition, banks have started offering credit options for developers, which also contributes positively.
Tabakman said mortgages are starting to provide financing for real estate developments. “This combination of lower costs and greater access to credit creates a favorable scenario for real estate developers in the coming months.”
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