The real estate sector is in a period of adjustment, but it is tending to stabilize, says Alfredo Volio, Executive Director of Portafolio Inmobiliario

2024 will be a year in which the real estate sector continues to report adjustments due to macroeconomic variables, specifically the exchange rate and interest rates, but it is expected that in the near future adequate measures will be implemented to address these challenges, assured Alfredo Volio, Executive Director of Real Estate Portfolio.

There is a significant increase in the demand for vertical homes and housing solutions in urban environments.

“We expect to see a significant increase in activity in the construction sector, driven by the nearshoring phenomenon, which has led to an increase in foreign direct investment, particularly in the medical and pharmaceutical industries. This effect has generated a positive impact in the free zones,” he assured.

How does greater economic growth and lower interest rates benefit by 2024?

For now, there is a slowdown in the sector since the pandemic, a rate of decrease compared to the situation between 2021 and 2022, and the entry into force of the VAT increase to 13% for construction; as well as a significant increase of up to 76% in the prices of materials, according to data from the Construction Price Index, prepared by the Costa Rican Institute of Statistics and Censuses (INEC).

This circumstance has prevented, to date, a sustained positive impact from being produced both for development and construction companies and for end clients in the private sector.

What are the real estate trends that people are looking for?

At Portafolio Inmobiliario we have noticed a continued interest among people in living in vertical apartment buildings, and this trend has been present for many years. The convenience and quality of life offered by these projects are key factors.

Apartments in vertical buildings usually have amenities, services, security and a maintenance fee that makes life easier

Our projects are mixed-use and align with current trends that seek to offer people a complete and more sustainable lifestyle, which includes a wide range of services and amenities. In these communities, you can find everything you need to live comfortably and peacefully, and there are even people who choose to live in these projects and work in the same place.

Furthermore, concentrating housing in urban areas has multiple advantages: reducing travel times improves quality of life by minimizing traffic congestion and facilitating more agile access to services and job opportunities. This approach also promotes the conservation of green areas and open spaces, thus contributing to the preservation of the natural environment.

Is there an increase in shared apartments?

Until now, it has not been a predominant trend among our audience. We observe that vertical homes are being purchased mainly by young couples, small families and older adults. These customer profiles show an interest in various amenities, security and proximity to essential services as key factors when looking for a vertical home.

Is sustainability incorporated into the real estate industry?

Currently, the interested parties linked to the business, and who allow Portafolio Inmobiliario to be a leader in the sector, demand concrete actions that generate social, environmental and financial value.

With regard to residential projects, there is an increasing demand from people looking for properties that are energy efficient and respectful of their environment.

This also has a value in investment, since those that integrate sustainable practices tend to offer long-term economic benefits, such as energy efficiency, optimization of water consumption, risk identification and adaptation to climate change.

Portafolio Inmobiliario has placed sustainability at the center of our business, implementing more sustainable construction practices and standards, from the planning and design of buildings to their construction, operation and maintenance.