Construction Sector Declines in Costa Rica

In 2011, 17% less square meters were constructed as compared to 2010, when projects undertaken covered 6 million square meters.

Tuesday, November 8, 2011

The sector has failed to recover and with the economic uncertainty that looms for 2012, forecasts for next year by the College of Engineers and Architects (CFIA in Spanish) are very conservative.

At this juncture, small companies are most affected; the construction of lower and middle class housing alone fell by 9.5% compared to 2010.

"We are facing a national situation that is preventing the sector from moving out of crisis. The problems are high prices in the construction market, low investment in housing development and fiscal uncertainty" Carlos Alvarez, president of CFIA, told La Prensa Libre.



More on this topic

Construction Continues to Contract in Costa Rica

September 2014

In the first seven months of the year the number of square meters approved for construction of new buildings fell by 10,1% compared to the same period in 2013.

From a statement issued by the Costa Rican Chamber of Construction (CCC):

In the first 7 months of this year, the number of square meters processed fell by 10.1% compared to the same period last year.

Panama: Building Permits Show Reduction

September 2011

Between January and July the value of approved constructions fell by 14% compared to the same period in 2010.

The most valuable investments are also those that have shown the greatest decline, especially in the case of residential buildings.

Data from the Panamanian Chamber of Construction show that the largest reduction has been in high-value projects, showing that the amount of building permits issued in the period under review fell by $78 million compared to the same period in 2010 .

Costa Rica: Construction Falls by 5%

July 2011

The number of square meters registered in the College of Engineers and Architects is 3.6 million, down 5% compared to the same period in 2010.

The June 2011 report to the Association of Engineers and Architects (CFIA) in Costa Rica contains information on the number of square meters registered by those professionally liable, and is analyzed by province and type of work.

50% Drop in Building Permits in Costa Rica

April 2009

The most affected sectors are cement and concrete with a decrease in demand of 20% and 30% respectively.

According to Carlos Gonzalez, country director for Cemex (company which closed 5 concrete plants in Costa Rica), the reactivation of the Costa Rican economy would be achieved with three levers: State investment in infrastructure, increased credit to encourage domestic consumption and "encouragement of direct foreign investment through incentives or improvements to the free trade zone law."

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