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The manufacturing of materials to build grew amid the uncertainty - Infobae
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www.infobae.com
November 07, 2023
This measurement of companies that manufacture materials rose 14.9% at a seasonally adjusted level in October, although in the accumulated since January it is still below last year
By José Luis Cieri
Experts argued that the costs of materials used in housing construction are notably affected by rising inflation.
In a context marked by the presidential runoff on November 19 in Argentina, the Construya Index (IC), which measures the evolution of the volumes sold to the private sector of construction products manufactured by the companies that comprise it, registered a monthly seasonally adjusted increase of 14.9% and was 1.9%, above October 2022.
With a cumulative 7.4% below the same period of the previous year, this measurement provides a vision of how the sector performs in times of political and economic uncertainty.
According to data from the Construya Group (the entity that has carried out the IC since 2002), once again, construction materials emerge as a reliable option in times of uncertainty.
The index measures the evolution of the volumes sold to the private sector of the following construction products manufactured by the leading companies that make up the Construya Group: ceramic bricks, Portland cement, lime, long steel, aluminum carpentry, adhesives and pastes, paints waterproofing, sanitary, boilers and home and heating systems, taps and water pipes, ceramic floors and coverings.
Specialists argued that the costs of materials used in housing construction are notably affected by rising inflation. Furthermore, the constant rise of the dollar in the free market exerts a particular influence on products that depend on imports, such as surface coatings, elements necessary for the production of paints, faucets for both bathrooms and kitchens, and quartz used in countertops, among others. others.
In this context, experts in the field of development and construction maintain the opinion that it is appropriate to continue trusting in investments linked to construction.
Source: Grupo Construya
The entity reported that it is convenient to clarify that the Synthetic Indicator of Construction Activity (ISAC) that will be published will refer to the month of September 2023, therefore, it is not comparable with this Construya Index, corresponding to the month of October last.
This dynamism in the sector also extends to the province of Buenos Aires, covering several districts in said territory such as Vicente López, Tigre, 3 de Febrero, San Martín and Esteban Echeverría, among others.
Source: Grupo Construya. Here you can see how the activity behaved from July 2022 to last October
However, it is important to highlight that, among building materials, notable price increases were recorded. Cement bags, for example, experienced an increase of more than 20% in just one month. Costs vary depending on the brand and the quantity purchased, reaching more than $4,300 per 50 kilo unit. In the case of taps, a significant increase has also been observed, with increases of more than 18% in one month. Currently, more than $125,000 pesos are requested for a complete bathroom set, which includes the shower. In addition, paints, both 10-liter latex for interior and exterior, increased between 25% and 30% in the same period, with cans of various brands exceeding 15,000 pesos.
Damián Tabakman , president of the Business Chamber of Urban Developers (CEDU), told Infobae that : “The cost of construction in dollars continues to be historically low. It is always advisable to take advantage of it as an investor, since construction is one of the few activities where it is valuable to channel surplus pesos into a dollarized asset, thus transforming pesos into bricks once the home is finished, which protects the assets.
In CABA, there are currently more than 50,000 homes under construction
For the future, experts consider that two of the main factors are rents and mortgage loans, which can stimulate demand. These issues have been problematic in recent years, and it is crucial that the next national government addresses macroeconomic problems and inflation.
In the 2024 budget, VAT stands out as the most relevant tax, representing 1.17% of GDP. However, VAT has exemptions that add up to 0.55% of the Product, including medical benefits to social works (0.23% of GDP), educational services (0.11%), among others. Furthermore, within the VAT, there are differential regimes that represent 0.62% of GDP, the most relevant being the reduced rates for foods such as meat, vegetables, fruits, legumes and vegetables (0.31%), followed by the construction of homes (0.15%)
“We are concerned and oppose the elimination of the reduced VAT. It has not yet been discussed in the national Congress, but it would be harmful. It has already failed with rents and regulations. I hope that housing construction is not eliminated, because if this reduction is removed it would impact the sales values of the units, something we do not want,” Tabakman concluded.
www.buyselba.com
Source:
Creció la fabricación de materiales para construir viviendas en medio de la incertidumbre del balotaje
Esta medición de las empresas que fabrican materiales, subió 14,9% a nivel desestacionalizado en octubre, aunque en el acumulado desde enero sigue abajo del año pasado
www.infobae.com
November 07, 2023
The manufacturing of materials to build homes grew amid the uncertainty of the runoff election
This measurement of companies that manufacture materials rose 14.9% at a seasonally adjusted level in October, although in the accumulated since January it is still below last year
By José Luis Cieri
Experts argued that the costs of materials used in housing construction are notably affected by rising inflation.
In a context marked by the presidential runoff on November 19 in Argentina, the Construya Index (IC), which measures the evolution of the volumes sold to the private sector of construction products manufactured by the companies that comprise it, registered a monthly seasonally adjusted increase of 14.9% and was 1.9%, above October 2022.
With a cumulative 7.4% below the same period of the previous year, this measurement provides a vision of how the sector performs in times of political and economic uncertainty.
According to data from the Construya Group (the entity that has carried out the IC since 2002), once again, construction materials emerge as a reliable option in times of uncertainty.
The index measures the evolution of the volumes sold to the private sector of the following construction products manufactured by the leading companies that make up the Construya Group: ceramic bricks, Portland cement, lime, long steel, aluminum carpentry, adhesives and pastes, paints waterproofing, sanitary, boilers and home and heating systems, taps and water pipes, ceramic floors and coverings.
Specialists argued that the costs of materials used in housing construction are notably affected by rising inflation. Furthermore, the constant rise of the dollar in the free market exerts a particular influence on products that depend on imports, such as surface coatings, elements necessary for the production of paints, faucets for both bathrooms and kitchens, and quartz used in countertops, among others. others.
These two variables had an impact on increases of 150% year-on-year, according to reports from various consulting firms.
In this context, experts in the field of development and construction maintain the opinion that it is appropriate to continue trusting in investments linked to construction.
Source: Grupo Construya
The entity reported that it is convenient to clarify that the Synthetic Indicator of Construction Activity (ISAC) that will be published will refer to the month of September 2023, therefore, it is not comparable with this Construya Index, corresponding to the month of October last.
The bet on brick is still active
Currently, more than 50,000 apartments distributed in various neighborhoods are under construction in the city of Buenos Aires. Palermo, Núñez, Villa Crespo, Villa Devoto, Caballito and the nearby area with Paseo del Bajo (between Monserrat and San Telmo) are those who lead the construction of new proposals.This dynamism in the sector also extends to the province of Buenos Aires, covering several districts in said territory such as Vicente López, Tigre, 3 de Febrero, San Martín and Esteban Echeverría, among others.
Source: Grupo Construya. Here you can see how the activity behaved from July 2022 to last October
However, it is important to highlight that, among building materials, notable price increases were recorded. Cement bags, for example, experienced an increase of more than 20% in just one month. Costs vary depending on the brand and the quantity purchased, reaching more than $4,300 per 50 kilo unit. In the case of taps, a significant increase has also been observed, with increases of more than 18% in one month. Currently, more than $125,000 pesos are requested for a complete bathroom set, which includes the shower. In addition, paints, both 10-liter latex for interior and exterior, increased between 25% and 30% in the same period, with cans of various brands exceeding 15,000 pesos.
What is missing to grow
The construction cost per square meter stood at USD 524.87, marking a notable decrease compared to the average of the last 8 years according to some consulting firms. In 2017, this cost peaked at USD 1,700 per square meter.Damián Tabakman , president of the Business Chamber of Urban Developers (CEDU), told Infobae that : “The cost of construction in dollars continues to be historically low. It is always advisable to take advantage of it as an investor, since construction is one of the few activities where it is valuable to channel surplus pesos into a dollarized asset, thus transforming pesos into bricks once the home is finished, which protects the assets.
In CABA, there are currently more than 50,000 homes under construction
For the future, experts consider that two of the main factors are rents and mortgage loans, which can stimulate demand. These issues have been problematic in recent years, and it is crucial that the next national government addresses macroeconomic problems and inflation.
In the 2024 budget, VAT stands out as the most relevant tax, representing 1.17% of GDP. However, VAT has exemptions that add up to 0.55% of the Product, including medical benefits to social works (0.23% of GDP), educational services (0.11%), among others. Furthermore, within the VAT, there are differential regimes that represent 0.62% of GDP, the most relevant being the reduced rates for foods such as meat, vegetables, fruits, legumes and vegetables (0.31%), followed by the construction of homes (0.15%)
“We are concerned and oppose the elimination of the reduced VAT. It has not yet been discussed in the national Congress, but it would be harmful. It has already failed with rents and regulations. I hope that housing construction is not eliminated, because if this reduction is removed it would impact the sales values of the units, something we do not want,” Tabakman concluded.
www.buyselba.com
