Venezuela / regulations and failure to limit housing production inputs.
The president, Hugo Chavez in his last speeches has said that the housing problem is a "personal challenge" and therefore is in their investment priorities. However, the regulations imposed by the Executive and the lower production of basic inputs are slowing the construction of housing solutions.
In 2009, 100,000 dwellings were completed, and of that amount, 70% made the private sector and 30% the public sector. In 2010, the manufacture of houses away from the performance recorded last year.
estimated the real estate sector in this financial year 2010 will end up about 20,000 homes, representing a fall of 70% over what was done in 2009 which were 70,000 solutions.
The reasons for this decline are the regulations that have been imposed on the market.
The president of the Real Estate Chamber of Venezuela, Francisco Neri said that laws and government decrees have forced developers to limit the start and finish those projects housing starts in past periods, albeit at a slower pace.
One text that has had an impact on the sector is the decree banning the collection of consumer price index in real estate presale contracts. Given this restriction, the pre- decreased 30% in the first three months of 2010, according to calculations of the construction sector.
The information used in the private sector and public sector, at the end of 2009, 106,000 households had permits in the first quarter and began to build only 10% of that amount.
Together with the decree are the changes in the Law on Access to Goods and Services, which audits increases in housing developments and the Urban Land Act.
sector spokesmen for the restrictions increase the draft Pre-Contract Law Housing & Property Law Social.
Failure to supply
Al
fence regulations generated faults are added to the supply of essential inputs such as steel, cement and aggregates, whose production is largely in the hands of state enterprises.
construction industry representatives indicate that the problems with the supply of materials have worsened, making it impossible to complete the development.
With the suspension of three furnaces of Sidor's electricity crisis, the production of rods and flat steel products decreased, and the generation of inputs by the private steel does not cover the entire demand.
Although government spokesmen announced the import of steel bars, it has not materialized. Additionally, the Government has also approved purchase applications external inputs from the private sector.
A steel failure is added to cement. Production has been declining and there are difficulties with the distribution.
transport units and ships to transport the material is insufficient, thus there are weeks that are difficult to purchase cement in bags.
Neri added that in recent days have emphasized the difficulties get aggregates (stone and sand).
These problems are due to several governors have decided to take control on the exploitation of stone and sand and for this purpose are forming joint ventures, in which regional bodies come to have a share greater than 60%.
marmas@eluniversal.com
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