The Government announced this week the implementation of divisible mortgages for properties intended for real estate projects, a measure designed to boost the real estate and construction sector.
Looking ahead to 2025, the expectations of both developers and companies dedicated to the production of construction materials point to a recovery in both areas and a improvement in property values.
Days ago, Banco Hipotecario held an exclusive event establishing itself as the “Home Bank”, leading the housing credit segment. Members of IRSA and important leaders of the construction sector such as Carlos ISLA, CRIBA and ILVA SA participated in the event, where they spoke with each other about the expectations generated by the new measure and the perspectives towards 2025.
2025 outlook for real estate and construction
Throughout the event, The drop in inflation and an incipient economic recovery stood out in the last months of the year and the improvement in salaries. “The most likely scenario is that the economy grows,” they explained at the beginning of the panel. The developers began celebrating the measure of divisible mortgages: “We came from an investor market many years ago, that produced a stock of small units and what we are going to see now is that Users are going to demand other types of products and this is a great opportunity for developers.“explained Jorge Cruces, representative of IRSA.
In the talk, the potential going forward with the promotion of mortgage loans was highlighted due to the low percentage of mortgage loans vs GDP compared to the rest of the region. To give an idea, Mortgage credit in Argentina represents just 0.2% of GDP and is the lowest percentage in 80 years. In Latin America it represents between 5 and 10% of GDP (in Chile it is close to 30%).
In this sense, the real estate and construction sector highlighted that in 2025 “prices will continue to rise” for properties and there will be “competitiveness” in development.
“There was a change with the challenges. Last year’s challenges were having stock in distribution, this year the focus is on competitiveness,” remarked the CRIBA representative, Santiago Tarasido.
Real estate and construction united by lower taxes
In another part of the talk, the weight of the tax burden on properties was highlighted. “The tax burden in the real estate sector is 45%. In construction, only for gross income it is applied in a chain to the inputs and is 14% of the total prices. It is a tax that does not exist in Uruguay,” remarked Santiago Tarasido of CRIBA.
For his part, Alejandro Renghini from ILVA SA (company that is responsible for manufacturing porcelain, technical and enameled ceramics) assured that it is not possible to transfer the tax to cost. “The units did not increase, but the costs did,” he added.
Finally, From his sector he spoke about the impact of the opening of imports. “Labor is what has the most impact on costs, as does the opening of imports. What has to generate competition from abroad is a 50% direct impact on an industry at the national level.” Real estate and construction agreed on something basic: lowering taxes will be the way to improve competitiveness. .
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
