CChC: Real Estate Sales Fell By Up To 40% After Social Crisis

The Chilean Chamber of Construction (CChC) explained that the greatest impact of real estate sales has been in the urban areas. In recent weeks, these areas have been affected by the protests. 

The real estate sector usually reflects the movement of economic activity. In the midst of the social outbreak, the housing market is experiencing the same complication the Chilean economy is facing. 

“In recent weeks, sales have decreased. This is especially in urban areas as they have been the victim of most of these acts of violence and vandalism. We have received an estimate of a 40% decrease in property sales. The fall in sales is associated with the situation we have experienced in the past weeks. There is a mixture of factors,” said the president of CChC, Patricio Donoso, on Wednesday.

“Without a doubt, the situation that we are experiencing requires all individuals and companies to review their investment decisions. There is no certainty about what is going to happen in the future,” he added.

In addition, Donoso states that, while there has been a normal level of work, productivity has fallen by at least 50%, mainly in urban areas. This is the consequence of an increase in travel time to workplaces. Also, the work days have had to end earlier than normal. 

“Just as there are days that have been normal, there are other days where working hours have not lasted long,’ he explained.

In any case, he indicated that situations have been different depending on where the work is located.

On the other hand, he argued that the main focus for companies has been to keep up productivity levels. However, sometimes the service supply has been irregular.
“There is a concern for logistics, especially in work that are more exposed to downtown areas. The biggest concern has been to maintain the logistics chain; the development of work involves the coordination of many resources” he said. 

“We are worried about maintaining the productive chain in the construction sector.”

“Work that is still in progress will continue as normal, however work in the urban environment have been more affected by the situation we are seeing. Work outside this area have had a normal level of development,” he stressed. 

Regarding the effect that the crisis has had on jobs, he commented that “work teams have been maintained. Facilities are developing their functions, both for access and exit. The first concern has to be for the integrity of our workers.”

Regarding a possible postponement of projects by investors, he said that “is part of the reflection that must be done.’

Therefore, ‘the call we make is to channel this whole process on a solutional path. A path for certainty and functioning institutions.”

“Our country is experiencing a turning point and the destiny of current and future generations will depend upon what we are able to build together. That is why, today, we make an urgent call for everyone to resume the responsibility and leadership that corresponds to the political class and different State powers. The same goes for other social actors, civil society and businessmen,” he concluded. 

Disclaimer:
Translated from ‘CChC: en hasta 40% bajó la venta de viviendas tras crisis social‘