Offering more amenities in residential complexes and maintaining the discounts offered in housing fairs for longer are some of the strategies applied by real estate developers in Costa Rica to increase sales of new homes.
According to the most recent figures from the National Institute of Statistics and Censuses (INEC), between the first half of 2018 and the same period in 2019 the number of houses built in Costa Rica fell by 11% from 10,753 to 9,620.
Expanding to $150.000 the range of homes with preferential interest and guaranteeing real estate leasing are two of the changes that could boost a recovery of activity in Panama.
Construction in the country has reported a downward trend in recent years, however, representatives of the Panamanian Chamber of Construction (CAPAC) expect that with the arrival of a new government and the start of major works such as Metro lines 4 and 5, the sector may re-emerge.
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.
In the first five months of the year the number of square meters approved for construction of new buildings decreased by 9.5% compared to the same period in 2013.
Data from the Costa Rican Chamber of Construction (CCC) shows that the type of buildings seeing the greatest decline are for commercial purposes, which experienced a 31.6% reduction in the number of square meters processed during the first five months of the year.
For 2013, the Chamber of Builders of Nicaragua projects an increase in housing construction of between 10% and 12%, the lowest percentage in the past three years.
"In the last three years, not including the current one, between 12,000 and 14,000 homes were built, that's a ratio of about 4000 houses per year, for this reason we believe that this year growth will not have the same level bringing acceleration," said Alberto Atha, vice president of the Chamber of Urban Builders (Cadur).
In the first quarter of 2013 a decline was registered in the construction sector reflected by lower cement consumption and lower volumes of construction loans.
A report by the Salvadoran Chamber of Construction (Casalco) reveals that during this period, 9,017 bags of cement weighing 42.5 kilograms were consumed, a figure which represents a decrease of 7% compared to the amount consumed in the same period in 2012.
In Costa Rica, this niche market was hit hardest by the U.S. housing crisis.
According to the Costa Rican Chamber of Construction the outlook is not encouraging and they do no foresee recovery in the short term.
Jose Alfredo Sanchez, vice president of the group, said "In Costa Rica, there has been a dramatic effect on the coast, where (project development) has not recovered in the short term because this would require strong economic growth in the U.S., which is not happening. "
The Chamber of Construction Companies is urging the Government to create a new financing model for home purchases.
Employers propose that the government subsidize up to four interest rate percentage points for the purchase of homes under $38,000 and up to two points for homes between $38,000 and $51,000. Current interest rates fluctuate between 7.5% and 9%.