High inflation and the increase in interest rates to curb price rises have homebuilders in the country on edge, and may end up undermining buyer confidence.
(‘The dollar goes down, but some construction supplies don’t.’)
In an interview with Portfolio, Luis Aurelio Díaz, president of OikosHe said that interest rates affect the financial closings of construction companies, because in some cases, projects must be aborted because they do not meet the resource goal or because they have slower sales.
«Obviously the construction companies are concerned about taking long-term loans with rates that close their ability to pay with the bank»Diaz added.
(Bogotá, Medellín and the Caribbean: the best areas to invest in housing).
For its part, the effect of the increase in the cost of credit is also transferred to buyers, who stop buying when faced with higher rates.
However, the sector is confident that as inflation subsides and rates will be reduced, better benefits for buyers.
(Rents: they are going up by less than what is authorized by law).
“While the buyer does not have peace of mind and confidence that these rates are going to be competitive, there will be a slowdown in the economy. Today we are seeing both in Colombia and worldwide, that as inflation subsides and the Banco de la República is reducing rates, benefits are being seen for buyers”, Diaz stated.
The construction sector estimates that very competitive rates will be seen in about 12 to 16 monthswhich is why today is an excellent time to buy.