Builders want to ‘demolish’ pandemic damage – Tech Viral Tips

The Association of Real Estate Developers (ADI), the National Chamber of the Housing Development and Promotion Industry (Canadevi) and the Mexican Chamber of Construction Industry (CMIC) are heading towards a third year with gaps in investments and operations, in addition to the cost of raw materials. growth and facing a market in which the demand for offices, shopping centers and homes is yet to recover.

Nearly two years after the health emergency began in Mexico, builders And real estate developers admitted that despite being recognized as an essential activity in June 2020, they still face serious problems to resume work or projects.

ADI President Enrique Tellez Kuenzler explained that the main challenge this year is to detonate the demand contracted by the pandemic, mainly in sectors such as offices, shopping centers and homes.

“2022 will be a year of stabilization, the pandemic caused a very significant economic downturn and we have worked hard to seek reactivation. Most of the collaborators, mainly in urban areas, that we are focusing on is ensuring that all the projects we are progressing are completed”, he said.

A representative of over 80 real estate developers in the country elaborated that ADI plans to invest $19 billion in 250 works from 2020 to 2025, of which 130 are pending.

“This includes about 250 projects, of which 120 are already in process and 130 are under permits and licenses,” he remarked.

He said that as buildersInflationary pressures pose a new risk in crisis situations, which may delay recovery.

“The prices of some supplies for steel, concrete and installations and finishes have increased on average by between 30 and 50 percent, meaning that construction costs are reducing margins and that part of these costs for new products are starting up. This is happening to be reflected in the prices,” he said.

For ConstructionThe recovery outlook still looks complex, as the decline in work output since the pandemic has yet to pick up, while since last year, the economic crisis has forced operations to suspend operations or cause at least 3,000 companies to disappear. forced to.

CMIC national president Francisco Solares Aleman warned that it will take until 2024 for production to recover to pre-pandemic levels, while one of the biggest challenges is to increase its participation in priority infrastructure tasks that are currently at hand. Huh. Army.

CMIC stressed that the participation of private initiatives in infrastructure works should be increased, for which the organization has identified about 264 communication and transport, housing, tourism, culture, hydrocarbons and education projects, with an estimated investment of Rs 370 billion. add to. peso

Housing will fall reverse

In terms of housing, that has decreased over the past six years, accumulating a contraction of about 34 percent, said Canadevi President Gonzalo Mendez Davalos.

“In 2020 we managed to decline housing placement by only 1.9 per cent, this year we are expecting around 228 thousand houses in terms of new housing placements, it is not a bad year but it is not the year when it is us. We would like to,” he told Tech Viral Tips.

They said they expect to exceed the level of financing for new housing this year, because only in 2020, even with a pandemic, 185 billion in mortgage investments between InfoVit, Fovisstay and banks It was possible to keep more than pesos.

“The decline we will bring from 2015 to 2021 will start to reverse from this year, by 2022 we think we will have 245 thousand new houses and by 2024 we will have 260 or 265 thousand houses. Where is the greatest mobility? Average, popular and without a doubt in traditional accommodation”, he assured.

In the event of a recovery, he said housing has everything to become one of the great engines of the economy, generating more than 6 percent of GDP, affecting 37 of the 42 branches of the industry, 2.3 Creates more than a million jobs, of which 80 percent are in construction.

“This industry has been put to the test in a great economic and health contingency and if this circumstance is able to cope in an extraordinary and resilient way with (…) rebound”, he said.