"Something has to be done fast": Gene Towle on the lack of social housing supply

“Something has to be done fast”: Gene Towle on the lack of social housing supply

“Something has to be done quickly,” said Gene Towle, director of the Softec real estate consulting firm, when explaining the slowdown in the production of social housing in the country, where although the demand exists, there is a lack of supply derived from certain factors.

According to the specialist, this lack of supply of social housing, with a value below 600,000 pesos, is a consequence of the increased requirements for obtaining permits, licenses and feasibility; the partial closure of municipal, state and federal offices, as well as stricter requirements by financial intermediaries to grant construction loans.

“There are buyers, but not products. Yes, the management of municipal, state and federal permits has become more complicated and slow, but there is the opportunity generated by the annual formation of almost 1 million households that are not taking advantage of and are eager to buy,” Towle said. developers.

According to Towle, the market for living place from 2020 to 2021 it had a drop of about 19,000 million pesos, due to the fact that sales were reduced 6% in that period; however, in the segment of social housingthis reduction was 22% from one year to the next.

The specialist pointed out that from 2020 to 2021 the social housing it went from generating a value of 36.5 billion pesos to 28.6 billion pesos, which explains the 22 percent reduction.

“Something has to be done quickly, because these are families that are going to look for one way or another to buy or build a living place, with more risks of irregularities than those offered by the industry, which has very strict surveillance on top. After all, the industry delivers houses that are built to standards, with full ownership papers, inheritable and fully serviced,” said Towle.

For the director of Softec, although it represents a challenge to solve the management, obtain land and capital, it is worth betting on this market because there are few cases of developers that have generated a good business model in this market.

“It represents a great challenge to resolve the complex management, obtain land and capital, but: Of course it’s worth it!”, he stressed, adding that developers such as RUBA, ARA and SADASI have taken advantage of the opportunities in this segment, which has helped them record figures in the last year.

“Many entrepreneurs withdraw because they feel uncertainty about the markets. They lack information about the effective opportunities that exist for the planning, financing, production and efficient marketing of living place“, limited the director of the firm specialized in consulting and advice on the real estate segment.

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