Report of the National Housing Agency

According to the data of the report provided by the National Housing Agency in October 2013, the real estate market has a total of 61,761 young people who meet the requirements necessary to access a mortgage loan. These young people comprise 11% of the population between the ages of 18 and 29 years.

This percentage is transferred to 5% for those young people in the age bracket between 18 and 24 years of age and amounts to 20% for those included between 25 and 29 years.

The report also indicates that in our country, there is a 17% young population -data contributed by the last national census- which results in a total of 569,026 people, which are divided into two equal halves for men and women.

Of that number, 45% reside in the capital of the country, and the remaining 55% is distributed in the different departments of the interior.

Of all young people between 18 and 29 years old, there is a 78% who perceive some type of income. This percentage is coincident both in Montevideo and in the interior of our country. Regarding the labor market, 68% are employed. In matters concerning the home, 113,500 are young people, and of these, 17,000 are owners of their home.

Because of these data, the report revealed that one of the ways they use to solve their housing situation, is requesting a long-term mortgage credit, in order to get the property thanks to the payment of a monthly fee. This fee can not exceed 25-30% of the monthly income of the requesting members. On the other hand, it is also necessary to have a certain degree of savings previously, as well as the perception of formal income that exceeds the values ​​required by financial institutions.

The report also gives an account of the main obstacle among young people to access housing, is the level of income received. On the other hand, the hypothesis was also verified that as the age increases, the number of people able to access a loan granted by the Banco Hipotecario del Uruguay (BHU) is greater. It was inquired that there is a 23% of people between 18 and 45 years who are qualified to receive such a loan.


The sale is another of the items included in this study. An indicator was created that is capable of measuring the volume of monthly income needed to access a typical house. We have for example the calculation that if in 2012, the total income of a Montevidean household was used to purchase a home in the capital, it took 44 months to complete the payment of an average home.

This period of time is less than that required in the year 2004, where 66 months were required, but at the same time, it is greater than the 39 months required for the year 2000.

In order to create this indicator, the average income of those households without locative value and without a bonus was taken into account, data that is thrown from the Continuous Household Survey (ECH). The price of the house is found by multiplying the average value of each year by the average area in 2009 for the horizontal property (PH), which corresponds to 69m2.

In 2012, some 17,900 purchases were verified, of which 60% belong to a horizontal property and the rest comprises a common property (PC).

6.4% of the total sales of homes in PH during 2012, were new housing, meaning a fall in relation to what was observed during 2009.

In 2011, there was a record in the participation of new homes, reaching 10.9% in 2011. With the terminology of “New Housing” allusions are made to those properties that are less than 5 years old, according to the concept managed by the National Directorate of Cadastre.

Of the number of homes available in Montevideo (some 520,538 as specified by the 2011 census) it is found that 3.2% had a change of ownership in 2012. The highest degree of participation in the sale of total housing occurred in the Centro neighborhood, the Old City, Cordón and Palermo, with 6.2%, leaving the next coastal zone with 5.8%

The study also showed that in recent years, “the proportion of tenant and occupant homes to the detriment of the owners has increased.” The increase was four points, going from 22% to 26% between 2006 and 2012 (in Montevideo), and from 11% to 15% in the interior of the country.

The proportion of households that own their homes has been reduced in the last seven years, falling from 60% in 2006 to 52% in 2012. The aforementioned fall, however, was offset by a rise in the proportion of households tenants and occupants, in other words, who reside in a home of which they are not the owners, whether or not they have permission from the owner.

These households are related to middle income as well as younger heads of household. It responds in the same way in all income quintiles, and without differentiating between Montevideo and the interior. Household heads, while younger, more frequently make up the tenant population. To illustrate, the median age of heads of tenant households was 39 years, and the general median is 51 years.

In 2012, tenant households spent an average of 18% of their income on the payment of housing, while owners who are paying a purchase fee designated 10%, according to data provided by the ECH 2012.

Housing of social interest

The Real Estate Market Report issued by the National Housing Agency mentions the movements registered as of the effective date of Law 18.795 of Promotion of Social Interest Housing. Until November of 2013 (when the note from which we read the material for this publication was published) nearly 800 sworn sales declarations were registered. And in the period between October 2012 and September 2013, it was carried out at an average price of US $ 1656 per square meter in the capital of our country.

The average in neighborhoods like Parque Batlle, Prado or Ciudad Vieja exceeds US $ 1,900 per square meter, but in Belvedere, Unión or Jacinto Vera, it does not reach $ 1,600 per square meter.

In the interior, the most expensive price per square meter was tracked in Paysandú, with $ 1,267, followed by Maldonado with 1,218 us $.

The transactions of this period, mostly responded to the demand for two-bedroom homes in 62% of cases. In second place, they were requested with a bedroom (29%) and finally, with three bedrooms (by 9%).

Within this law, by September 30, 2013, 210 projects with 7115 homes had been submitted. Of the projects, 153 contain 4556 homes, and are distributed in Montevideo; 22 are distributed in Maldonado with 1987 housing; 12 in the Canarian department with 184 properties. The remaining 23 projects amount to 388 homes, and are divided between the departments of Colonia, Florida Paysandú, Durazno, Salto, San José, Soriano and Cerro Largo.

Most projects are small (58%), 25% are medium, and 17% are large. The latter account for 63% of the homes presented, the medium ones 24% and the small projects, 13%.

The majority of investors have opted for the construction of new works: 74% of the projects presented – some 6,615 homes – are included in the aforementioned category.

It follows in order of importance the recycling projects with 20% of those presented (819 homes), and for the renovation, expansion or completion of incomplete works, 12 projects were verified (6%), encompassing some 219 homes.

All large projects will be responsible for erecting new works. The medians will also cover them, but they also include the completion of unfinished works (recognized as skeletons) as well as recycling. Finally, small projects will mount new works, but will be responsible for the same way of expansions, recycling and spare parts.

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