The increase in dollars rose sharply, increasing 11.45% compared to October, being the highest nominal value in the North American currency since 2008
Constructing a building reached the highest value in dollars since 2008. Last November, constructing a building of just over 1,000 total m² in eight-story horizontal property required an initial budget close to $1.4 billion, according to a recent Real Estate Report report.
The impact of the increase in construction cost For the brand new property market it is evident. The report states that the construction cost measured in pesos, it increased 3.02% in November compared to October.
Due to the effect of the increase in pesos and the evolution of the exchange rate, the increase in dollars escalated sharply, increasing 11.45% in relation to October, being the highest nominal value in dollars since 2008.
Thus, taking the parallel market price of the North American currency, the cost per salable m2 was US$1,615 and the total value to be invested in the construction of a typical building was above US$1.27 million.
It should be noted that today used properties are still at affordable prices. In addition to this, almost all mortgage loans are aimed at this type of property, so the interest is even higher.
Another thermometer in the sector
In December, the Construya Index (IC), which measures the evolution of volumes sold to the private sector of construction products, registered a seasonally adjusted monthly decrease of 1.25%, and remained 6.6% below the December level. of 2023.
“During 2024, there was a reduction in sales of materials for the construction with a few months of rebound. We believe that the recovery process will be slow and will be associated with the reactivation of private works, driven mainly by the expansion of mortgage credit and the search for investment in bricks” explained from Construya. In this way, the accumulated January-December 2024 closed 27.2% below the same period of the previous year.
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 systems and heating plants, taps and systems for water and gas conduction, floors, ceramic coatings and electrical and electronic materials.
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.
