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The president of the Chamber of Developers reveals the formula to reduce construction costs - La Nación Propiedades
Source:
www.lanacion.com.ar
January 15, 2025
The private sector is the only one that can respond with the necessary scale and speed, especially in a scenario where the President of the Nation himself has admitted: “There is no money.”
By Damian Tabakman
To build better, cheaper and faster, a profound transformation is essential in several key areas.Santiago Filipuzzi
Due to the housing deficit that exists in our country, the demand for housing in Argentina is virtually infinite. However, beyond recognizing the magnitude of the problem, it is essential to think of concrete solutions . To address this challenge, it is necessary to recognize that only the private sector can respond with the necessary scale and speed, especially in a scenario where the President of the Nation himself has admitted: “There is no money.”
The solution, then, is to build better, cheaper and faster. And for that to happen, a profound transformation is essential in several key areas.
It is crucial to accompany this progress with a deep deregulation based on trust in the professional and property responsibility of those who carry out the works. A good example of this is the responsible declaration regime used in Madrid, Spain. Under this system, works that meet certain parameters can begin immediately under the responsibility of the owner and the professional in charge, who are subsequently subject to the corresponding regulations and sanctions in the event of non-compliance.
Furthermore, many cities around the world are beginning to use the approval of plans using artificial intelligence , and this is something we should implement in our country as soon as possible.
At the same time, it is essential to improve the financing system for projects, bringing it closer to the model used in the rest of the world, where bank loans for construction are a common practice. This tool would allow developers to have the necessary resources to build in greater volume and at a lower cost.
It is time to adopt modern construction technologies that allow us to build faster and, potentially, at a lower cost.ricardo-pristupluk-11511
Furthermore, it is time to break down prejudices and adopt modern construction technologies that allow for faster and, potentially, lower-cost construction. Lighter materials, such as metal or wood structures, together with innovative enclosures, represent an opportunity to optimize resources without sacrificing quality. Persisting in the use of masonry, as was done centuries ago, is incompatible with current challenges.
It is also essential to move towards a significant reduction in taxes affecting real estate projects , especially those that are currently not viable due to the lack of a reasonable profit margin . Today, building a square meter for the middle or lower middle class has a cost that is well above its sale price, and the tax burden is an important part of that equation.
In line with the reduction in public spending that we are seeing, lowering the tax burden is an important part of ensuring that Argentines have better housing and that has to be a priority. At least in the social housing segment, it is urgent.
Building a tower is more efficient - as any architect or engineer knows - and the prejudice that has been generated with this typology, except in certain places, is not justifiable.
Building for the middle and lower middle class is key to lowering costs. MARCOS BRINDICCI
Today we have the opportunity to reverse this situation. The goal is to substantially reduce housing production costs, thereby facilitating access to housing for more people, especially if this is accompanied by installment financing schemes .
There are infinite lines in which to operate. In addition, it is something of enormous and evident social impact that also arouses the interest of the developer. This is how it works in other countries where the bulk of our activity is oriented towards ventures for the middle and lower middle class.
This is the agenda for the sector in the coming times. It has been the same in the past, but we are convinced that now is the time to accelerate. That is where we are going.
The author is president of the Chamber of Urban Developers (CEDU)
www.buysellba.com
Source:
El presidente de la Cámara de Desarrolladores revela la fórmula para que baje el costo de construcción
El sector privado es el único que puede responder con la escala y velocidad necesarias, especialmente en un escenario donde el propio presidente de la Nación ha admitido: “No hay plata”.
www.lanacion.com.ar
January 15, 2025
The private sector is the only one that can respond with the necessary scale and speed, especially in a scenario where the President of the Nation himself has admitted: “There is no money.”
By Damian Tabakman
To build better, cheaper and faster, a profound transformation is essential in several key areas.Santiago Filipuzzi
Due to the housing deficit that exists in our country, the demand for housing in Argentina is virtually infinite. However, beyond recognizing the magnitude of the problem, it is essential to think of concrete solutions . To address this challenge, it is necessary to recognize that only the private sector can respond with the necessary scale and speed, especially in a scenario where the President of the Nation himself has admitted: “There is no money.”
The solution, then, is to build better, cheaper and faster. And for that to happen, a profound transformation is essential in several key areas.
1) Financing and deregulation: the foundations of change
Long-term, sustainable and accessible mortgage financing is the fundamental pillar for revitalizing the sector. It is encouraging to see how, gradually, this tool is beginning to reappear on the current Government's agenda. However, it is also necessary to move forward in other directions.It is crucial to accompany this progress with a deep deregulation based on trust in the professional and property responsibility of those who carry out the works. A good example of this is the responsible declaration regime used in Madrid, Spain. Under this system, works that meet certain parameters can begin immediately under the responsibility of the owner and the professional in charge, who are subsequently subject to the corresponding regulations and sanctions in the event of non-compliance.
Furthermore, many cities around the world are beginning to use the approval of plans using artificial intelligence , and this is something we should implement in our country as soon as possible.
At the same time, it is essential to improve the financing system for projects, bringing it closer to the model used in the rest of the world, where bank loans for construction are a common practice. This tool would allow developers to have the necessary resources to build in greater volume and at a lower cost.
It is time to adopt modern construction technologies that allow us to build faster and, potentially, at a lower cost.ricardo-pristupluk-11511
2) Productivity and technology: keys to building better
Increasing productivity must become a priority. This requires a cultural change in the sector: remuneration mechanisms based on productivity, which for decades were absent due to inflation, must be seriously encouraged. In the most developed countries, the most productive people receive higher compensation. In our opinion, it is time to adopt this model.Furthermore, it is time to break down prejudices and adopt modern construction technologies that allow for faster and, potentially, lower-cost construction. Lighter materials, such as metal or wood structures, together with innovative enclosures, represent an opportunity to optimize resources without sacrificing quality. Persisting in the use of masonry, as was done centuries ago, is incompatible with current challenges.
3) Economic opening and reduction of the tax burden
Affordable housing also depends on opening up our economy to allow access to more competitive materials and reduce costs, thus promoting access to housing .It is also essential to move towards a significant reduction in taxes affecting real estate projects , especially those that are currently not viable due to the lack of a reasonable profit margin . Today, building a square meter for the middle or lower middle class has a cost that is well above its sale price, and the tax burden is an important part of that equation.
In line with the reduction in public spending that we are seeing, lowering the tax burden is an important part of ensuring that Argentines have better housing and that has to be a priority. At least in the social housing segment, it is urgent.
4) Densification and urban planning codes
Densifying our cities is another essential measure to take advantage of investment in existing infrastructure and thus reduce the impact of land, promoting more efficient urbanization .Building a tower is more efficient - as any architect or engineer knows - and the prejudice that has been generated with this typology, except in certain places, is not justifiable.
Building for the middle and lower middle class is key to lowering costs. MARCOS BRINDICCI
5) The challenge of lowering costs
In recent months, construction costs in dollars have risen considerably. This is partly due to the exchange rate, but also to the need to address certain key issues that were not sufficiently prioritized. With high inflation, this simply wasn't possible.Today we have the opportunity to reverse this situation. The goal is to substantially reduce housing production costs, thereby facilitating access to housing for more people, especially if this is accompanied by installment financing schemes .
There are infinite lines in which to operate. In addition, it is something of enormous and evident social impact that also arouses the interest of the developer. This is how it works in other countries where the bulk of our activity is oriented towards ventures for the middle and lower middle class.
This is the agenda for the sector in the coming times. It has been the same in the past, but we are convinced that now is the time to accelerate. That is where we are going.
The author is president of the Chamber of Urban Developers (CEDU)
www.buysellba.com
