Expenses advanced above inflation also in November

The expenses continue to rise and During November they rose again above inflation. They accelerated 3.45%, while the expected price increase is between 2.7% and 3%, according to private pollsters, and they accumulate an increase of 154.02% in 2024, according to the survey of Octopus Proptech.

He average value was $169,236 for households registered on the platform that provides digital solutions to all people who manage or live in buildings, countries, or neighborhoods. Meanwhile, the average value for October was $163,596.

These figures reflect the average of all the consortium’s expenses: salaries, service payments, purchases, public services, security, cleaning, maintenance, professional fees, among other costs.

Increase in expenses: how does the increase in services impact?

In relation to the services included in the expenses, a continuous increase is observed so far in 2024. Between May and November, the impact on the value of the expenses varied in this order:

• May: 10.29%
• June: 13.71%
• July: 14.09%
• August: 15.38%
• September: 17.74%
• October: 18.97%
• November: 18.01%

“The rates come with a level of repressed inflation, which we are now seeing corrected. This is what generates the sustained increase in the item of public services in expenses,” he says. Nicolas BaccigalupoCEO & Founder of Octopus PropTech.

And he adds: “The difference this year with previous ones is the speed and intensity with which the rates were adjusted, which are trying to reach values ​​that are more related to the cost structure of the supplier companies. This situation reflects on us as a result that the weight of item 2 in expenses is increasingly higher, exceeding 18% in October and maintaining it in November. This dynamic is inevitable as long as the rate update persists, which generates significant pressure on consortia that already face other increases. such as the labor costs of building managers. In this context, managing expenses efficiently is key to cushioning the impact.

Collectability: still below 90%

In 2023, the collectibility rates They remained stable and above 90% until the last two months, when in November and December they fell below this threshold, closing the year at 89.5%.

During 2024, this downward trend deepened, with a minimum recorded in May, when collectability reached 83.67%. This situation shows a deterioration in the payment capacity of the co-owners and consequently an increase in difficulties in meeting the monthly obligations of the consortia. In November 2024, collectability stood at 84.36%.

“We see that the downward trend in collectibility is a wake-up call for the entire sector. It is crucial that administrations and neighbors work together to find solutions that maintain a more stable and sustained flow of income, since this directly impacts the operation and financial health of the consortia,” he concludes. Nicolas BaccigalupoCEO of Octopus Proptech.