What construction materials pushed sales by 7.5% so far this year

According to the Construya Index (CI), shipments of construction materials accumulated in the first two months of the year an increase of 7.20% compared to the same months of the previous year and in February a 10.5% increase compared to February 2021.

These data confirm the advance in sales driven by the number of housing works, both public and private, when the worst of the pandemic seems to have passed. This was stated by Grupo Construya, an entity that groups together several companies that manufacture building materials. The good news had also come at the end of the year with offices that almost matched the level of sales recorded in 2015, with 27.2%, and industry sources confirmed that lost ground was recovered in 2020 and also in 2018-2019.

The worst in history had come with the lowest value in April 2020 (there the decline had reached 74%), as a result of the total shutdown of the economy that caused the initial quarantine. “Over the last months of last year, the value of CI stabilized, with small monthly increases and decreases, consolidating supplies for residential works at a general level that we believe will continue during this year,” engineer Pedro Brandi, president of Grupo Construya, confirmed to Infobae.

The dispatches of thick materials (hollow bricks, portland cement, lime and round iron) were among the most dynamic. Over the months the finishing materials (floors, tiles, paintings, among others) will reach the former due to the natural progress of the works, they recognized from the segment.

Brandi argued that “the favourable development is primarily due to the fact that construction is one of the most chosen shelters of value in the face of the inflationary process and the current exchange rate in our country. And secondly, to the significant drop in the cost of construction in free dollars. It should be noted that this fall is an opportunity to seize in the short term.”

They also carry out the Construya Opinion Study where entrepreneurs and professionals in the sector are optimistic about what will be the current year. 68% of respondents trust that in 2022 they will continue on this growth path.

On the possible agreement with the International Monetary Fund (IMF), Brandi added that “any factor internal or external to the country that could threaten macroeconomic stability has an impact on the sector. In that sense, the agreement with the IMF prevents a worsening of the overall picture and that helps to ensure that general activity and construction in particular are not harmed, with the negative impacts that this entails on the economic and social level.

On the other hand, from the segment they clarified that the war between Ukraine and Russia is negative from every point of view and for Argentina in particular that it affects the level of input and energy prices.

Good demand

From the segment they say that there is good demand and especially by the development companies as people who undertake recycling of their homes.

Agustín Giffi, commercial manager of Grupo Anacleto, a member of the Metro2 Network, told Infobae that they most often buy in advance to store between 6 months and a half years. “Currently and as autumn approaches, they start looking to heat the house, steel and imported products, these are in great demand and are tied to the official dollar and consumers want to take advantage of it and the stock is limited.”

Due to inflation, there were increases of 25 to 30% in faucets and other products for terminations so far in 2022.

Now 12 and Now 18 are used, where “a customer who buys 10 washbasin faucets will spend $325,000 in cash, but if he does so for Now 12, he will end up paying $389,000 in a year with the interest of approximately 20%, being able to face fees of $32,600 per month,” Giffi clarified.

Valuing housing

Many people who are about to sell their unit or who want to have greater comfort in case of carrying out a reform will boost their investment and make them better defend the listing of the property.

Juan Bautista Arnaude, director of the Arnaude Brokers real estate agency, told Infobae, that “with a moderate investment, it is possible to protect the property for sale much better. Making new bathrooms and kitchens could improve the price by 15 to 20% the value of the property. If the repair were total: the price improvement would be at least 20% and up to 30% in some cases.”

Experts usually recommend to those who want to sell their property that it has a very good presentation: from the paint in good condition and attractive decoration, to having the rooms well cleared. A good location, with a fair market value and if accompanied by a good presentation, creates a pleasant first impression.

“Today those who know how to find opportunities can make good real estate transactions. Renovations continue to be carried out and these types of actions are favorable because they help to speed up the market by benefiting all the parties involved; in addition to rejuvenating and extending the life of the property,” Arnaude added.

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