In 2022, the first steps were taken to leave the covid-19 pandemic behind, which generated hope in companies when it came to outlining their strategies for the coming year. In this frame, Coffee & Business revealed the opinions of dozens of senior executives who contributed their perspectives for their business, the sector to which they belong and Uruguay. In this context, the CEOs of the real estate sector gave their vision.
Altius Group
It will be a busy year, with several buildings completed; some of them very iconic for Montevideo such as Nostrum Malvin, More Buceo and Bilu Biarritz, and others important for other departments such as the Punta del Este mega-project where we will finish the first phase of Atlántico Shopping and More Atlántico.
We will also be beginning the works of the two new projects that we launched this year, Nostrum Cordón in the middle of July 18 and Flow in Tres Cruces/Parque Battle. This will bring Altius to 20 projects for sale, giving clients ample choice.
We see demand as strong, supported by small investors and we hope that many families will take advantage of the growth, job stability and the supply of mortgage loans to make their dream of owning a home come true, considering the low interest rates that these loans have maintained in recent years. last years. Today customers can access their own brand new home for a fee very similar to the value of a rental.
Meanwhile, 2023 will be a challenging year from the standpoint of international costs and exchange rate developments. In addition, we see challenges at the local level because the electoral struggle will intensify while there are key reforms that the government intends to promote.
On the other hand, the good performance of Uruguay, its fiscal control and the context of the region, we understand, will favor foreign investment and the development of the country.
Juan Balsa, Balsa & Associates
John Raft
Next year we hope that the country will continue to grow and that this growth will help our sector by accompanying a growth in demand. 35% of the waste generated in the country corresponds to the construction sector. In turn, the sector consumes 40% of the energy.
Therefore, it seems important to us that greater awareness is achieved in terms of the use of renewable energies, greater awareness of sustainability and that together we can make a change and try to improve the impact of the carbon footprint on our sector. Our commitment at this point from Balsa&Asociados is key. For this reason we started on this path and all our neighborhoods aim to neutralize the carbon footprint as much as possible and offset all our emissions in 2023.
German Campiglia, Campiglia
German Campiglia
Real estate developers are all waiting to see what happens with the economy and the market.
The last few years have been full of activity and competition, which has turned to many projects encouraged both by what was promoted housing and by what Comap is in mega projects. These are years of intense activity and in real estate projects, being two, three years or more, the movements always occur in the long term.
In other factors, the increase in world rates affects the cost of financing for us and also for potential investors.
The dollar that is very low, – I think with an imbalance here in Uruguay – affects what is the internal rate of return of the projects due to increased costs, which makes all developers very expectant to see how The dollar is going to move, if it rises or if it stays, and that is obviously going to affect the sale prices of our products.
In short, 2023 will continue to be a year of great activity, but it is possible that some of the projects that are not confirmed will slow down for these reasons and for the increase in costs that are not yet being absorbed by the market. Surely if there is no increase in the price of the dollar, the units sold in this currency will have to be worth a little more.
I can add that today the property, basically the apartments, continue to be a very attractive option as an investment to generate savings or maintain assets in the medium and long term. The demand for rentals continues to be very high, which is why it continues to be a very attractive option for investors.
Mauricio La Buonora, La Buonora
Ines Guimaraens
Mauricio La Buonora
I imagine that during 2023 Uruguay will continue to receive a flow of immigrants with good purchasing power because it has the capacity to offer the necessary conditions for it to happen.
In recent years, the real estate market has undergone a series of interesting changes compared to what we were used to because “enjoying your home” has become a trend within the field and that, I think, will continue.
Having said the above, I fervently believe in the need to lead a “healthier” lifestyle, where connecting with oneself and the environment that surrounds it is commonplace, and this will allow us to continue increasing demand for the entire East area. from the country.
Therefore, and in relation to our company, we continue to challenge ourselves to present innovative projects capable of exceeding consumer expectations. We have the responsibility of generating attractive products, where people are seduced by the idea of having a unique space, full of activities, innovation, designed for all ages. Our objective at this time and for the year that is about to begin will be to continue capturing the famous internal migration which occurs to the East.
In addition, another great challenge that we have to continue working on is creating our own investment fund, specifically for real estate. The idea is that it attracts capital from large funds that contemplate long-term investments. This will allow us to speed up processes and scale the number of projects in the pipeline, whether in the national or regional territory.
Ventura, Fabian Kopel
Fabian Kopel
For the company, the prospects are for very important growth because we closed the year with a lot of units under construction and with a brand that can be seen throughout the city. In the first quarter of next year, what is seen on the street today will almost double with the new projects that we are going to be doing. Perhaps next year we will have a moment in which we have some 2,500 units in the process of commercialization, execution and development. It is a very important volume for what the country is.
In what has to do with the sector, there are international factors that we have to consider how are the rates in the world. It seems to me that Uruguay is more shielded from what is happening and, at the regional level, it is very well positioned.
At the same time, we understand that the marketing prices of properties today are cheap, they should be much higher due to the current exchange rate and the construction index that has been rising and we developers have not adjusted yet. If conditions continue, we project that in March there should be an increase in property values in dollars.
