Construction prices rise due to rising cost of materials

The price increase in metal products, plastic, wood and glass, necessary for the building housing, is causing many real estate companies to be affected and even choose to increase their prices. A recent study of National Institute of Statistics and Informatics (INEI) points out that, only in the month of March, the prices of construction materials in Metropolitan Lima increased by 1.68%.

In Lima, the price per square meter of housing increased by 12.7%, according to a recent analysis by the Association of Real Estate Companies of Peru (ASEI). Meanwhile, the study carried out by Navigare Real Estate, states that in Paracas the price per square meter increased between 25% and 40%.

“The increase in real estate prices in the Bay of Paracas is due both to the increase in construction costs and to an increase in the demand for smaller formats. The increase in construction costs is due to the rise in prices of imported materials and iron,” says José Manuel Losno, a real estate specialist at the Association of Family Businesses (AEF Peru).

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Sales increase in Paracas

Despite the inconveniences caused by the increases in construction costs, the spokesperson for AEF Peru and director of the Navigare Paracas project, highlights that the sale of smaller format projects in the city of Ica is in full growth.

“We are being part of the growth of investors who find in Paracas an investment alternative outside of Lima. The properties in the bay of Paracas were house formats with more than 5 rooms. However, we came to present them with options for small apartments with 2 bedrooms and 2 bathrooms that are an excellent investment to later rent them on applications such as Airbnb” precise.

Finally, the specialist from the Association of Family Businesses (AEF Peru), highlighted that with a view to 2023 they hope to expand their investments and continue their growth through new and innovative proposals in the real estate sector.