The regulations reduce housing presales

Via El Universal, Caracas, February 24, 2010
In major cities, the projects have fallen 40%

Estate object deadlines for construction of houses (File)

The regulations limit the progress of housing developments in major cities.

According to data that are used in the construction sector during 2010 the presales projects in cities such as Caracas, Valencia and Maracaibo are down 40% on average compared to 2009.

The prohibition on payment of the consumer price index in contracts and lower demand have led developers to make smaller projects at other times.

Construction Industry sources point out that families are taking advanced-cost housing developments, those who are in promotion have not had enough demand, because they have to offer at a fixed price.

In June 2009 the Ministry of Public Works banned the collection of the CPI in contracts, and before that decision, the builders have to estimate inflation over the next two years to establish the price of housing in the primary market.

Sources indicate that as the conditions are set sold less.

Last year were in total 100,000 homes, and 70% were completed privately. For this exercise, the inventory of public and private houses fell 33% over the estimate in 2009.

More measures

The regulations, builders estimate will increase when the National Assembly authorizes the Housing Act Preventa.

Real Estate Chamber of Venezuela considers that aspects of the legal framework need to be reviewed, one of which is the maximum period of construction, which is fixed by law for two years.

For real estate processes take longer than two years, because they have to deal with claims, permits for habitable and protocol.

This is in addition to the Indepabis efforts, because the beginning of the projects require the approval of the agency, which for buildings is a step that delayed the projects.

Mayela Armas H.
EL UNIVERSAL