In recent weeks the cost of building has risen sharply. So much so, that in the last three months, it grew more than 80%.
According to a Real Estate Report report, the cost of construction measured in pesos, it slowed down its rate of increase compared to what it had experienced during the last two months and increased by 9.04%. However, the reduction in the price of the dollar and its subsequent stabilization in a range close to $1,000 caused the rate of increase in the cost of building a m2 in dollars during March to be 26% compared to the previous month.
How much does it cost to build
Thus, taking the parallel market price of the North American currency, the cost per salable m2 reached US$1,318.82 and the total value to be invested in the construction of the typical building was above one million dollars. It should be noted that at the beginning of December the cost per m2 was US$714/m².
The report also highlights that the construction cost In March, measured in nominal dollars, it was the highest recorded since August 2008 and exceeded the highest level until then in mid-2018 by almost 11%.
The December devaluation had a full impact on prices. The rise in inflation and the increase in the official dollar, which went from $400 to $800, were a lethal combo for the sector
A recent report carried out by the Association of Construction SMEs (Apymeco) coincides with these numbers, which specified that building one m2 already costs more than one million pesos.
What about the developments underway
The situation of the developments that are underway is very diverse. A few began to transfer prices to sales. Others left projects on standby for the moment until they had a clearer cost outlook. Those who already have all the capital to build continue to move forward.
Sale of inputs
The Construya Index (IC), which measures the evolution of volumes sold to the private sector of construction products manufactured by the companies that comprise it, registered a seasonally adjusted monthly increase of 6.8% in February, but remained at 26%. .6% below the February 2023 level.
“In the second month of the year we observed a slight improvement in the sale of materials for the construction, but we are still well below last year. Uncertainty about the near future is still very high and companies are waiting for the evolution of the economic plan that the new government is implementing.” They explained from Construya.
In this way, the accumulated from February to December closed 28% below the same period of the previous year.
Source: Ambito
