The sale of real estate grew 21% in the first half of this year

According to information provided by real estate consultant Julio Villamide, during the first half of the year there was a greater dynamism in the real estate market, a fact that is consistent with other indicators such as the good expectations open in the sector, the dollar prices that have continued to rise , as well as a rebound recorded in economic activity in general.

The data provided by the General Directorate of Registries to "The Observer" show that in the first half of 2017 "the total number of sales operations registered in Montevideo was 10,488, compared to 8,657 in the same period last year." In this way, the figures show a growth of 21% in the year-on-year comparison. The peak of operations in this sense was obtained in 2011 when during the first 6 months the number of purchase-sales was 12,174, that is, 15% more.

Using specific data, the business moved at least US $ 775 million during the semester studied (this figure was calculated by the newspaper El Observador, from the collection corresponding to the Tax on Asset Transmittal – ITP – collected by the General Directorate Tax in our country).

The note that develops data contributed by Julio Villamide, also mentions that these US $ 775 million are an approximation to the negotiated amounts – since they are superior -, since the base of calculation of the tax is the cadastral value that is usually smaller to the prices of the actual purchase agreements. The ITP also does not reach Promoted Housing (VP – former Social Interest Housing), which is exempted in the first sale and which is the engine of the new construction market.

The expert also expects this to be a better year in both new and used homes, continuing the upward trend that began to be noticed in the third quarter of 2016. Although data are not yet available on the latter, it is expected that the aforementioned dynamism has continued in the second quarter of 2017.

On the other hand, between January and March, the number of new units marketed climbed to 472, with 260 raised under the VP regime (which continues to be the mode that energizes the market). The remaining 212 are private promotion. This represents a 24.5% growth in the year-on-year comparison.

The president of the Uruguayan Real Estate Chamber, Wilder Ananikian, also told El Observador that during the second half of 2017, it is expected to continue processing the improvement associated with the wide offer that exists in the market. According to his words: "The market is a seller. (…) The dollar rising gives a position of comfort and waits for the one who has them in the bank, but with projections that can reach (as a ceiling) $ 30 a end of the year (the investor) is passed to invest in real estate ".

Prices up

The Real Estate Price Index of El Observador, indicated that the average price that the owners of the capital ask for their real estate, accumulated in July 10 consecutive months of increase in dollars: rose 0.7% that month and was located one 4.6% above the levels of the same month last year.

Among the 17 districts surveyed, La Blanqueada (12.3%), Aguada (8.1%) and Punta Carretas (7.5%) had the highest price increases in the mobile year. In contrast, the neighborhoods that lowered the average price of the square meter – in supply – during that period were Jacinto Vera (-4.2%) and La Unión (-1%).

The cost of building increased by 8.25%

Taking into account a year ago since July 2017, the Construction Cost Index (ICC) was increased by 8.25%, making it the third consecutive yearly increase in 2017. According to the latest data published recently by the trade union of the sector, the costs associated with social laws and the labor force were the ones that pushed this increase to a greater extent.

Material generated from the information of the site:

Compare listings