1) More expensive construction materials:
Projections in terms of imports, inputs, directly related to construction, are one of the main factors that influence the rise in housing prices. One of the consequences of the pandemic has been the general rise in the prices of various products on the market, since, despite the low supply, the demand remained the same. According to the latest Building Costs Index of the Chilean Chamber of Construction (CChC), in the last 12 months the values of materials have risen by 14.94%.
2) Higher demand:
As there is greater liquidity, as a result of economic benefits such as withdrawals of 10% and the IFE, the demand for houses and apartments has increased since the end of 2020. And as a consequence of the increase in demand, prices in the real estate market also increased.
3) Increase in fees:
From January to date, the average mortgage interest rate went from 2.3 to 3.1% and for this next year projections estimate that the rise will continue to consolidate, complicating access to housing loans. When rates go up, prices go up, and people also start to have doubts about when to make a purchase decision.
4) Less labor:
According to the data of the CChC, during the month of July of last year is when the strongest fall was registered in terms of the number of workers linked to the construction sector. If in June they were 526,736, the following month the figure dropped to 499,226.
“Since there is an inflationary effect, we have to one way or another reduce costs and technology allows us precisely to reduce those costs”, explained Eduardo Embry, acting as general BPM Consulting Services, SCI PropTech 4.0.
“Shortening business processes and the amount of hours that are invested in routine matters is vital. On average, in most companies, without efficient technology, without data engines, it takes three to five weeks to obtain useful and refined information for decision making. Counting on centralized information, report engines, business intelligent online, this is shortened to zero time, to one click, therefore decisions are immediate, as required by contingency, “said the analyst.
“In addition, you can be attentive, online with customers, capturing their needs and modifying the offer in real time. Being able to raise or lower prices, improve some type of promotion, which cannot be delayed, it has to be immediate”added the expert.
Thinking about optimization, the Chilean company E-Corebusiness developed a world class technological platform, which solves the dispersion of these processes, and centralizes them, along with all the tasks of the real estate sector, generating immediate results, saving resources and increasing the sales.
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