How much does each square meter of a house that is built in a country cost?
2021 was characterized by having a competitive cost of building houses in private neighborhoods for savers in foreign currency. The dollarized price per square meter remained relatively stable, since it began the year trading at US$1,114.70 at the exchange rate blue, and finished it at US$1238,48. When comparing the prices of December of last year with those of the end of 2020, costs increased by 22.5% in ticket dollars, according to a report by Reporte Inmobiliario. Even so, the founder of the entity Germán Gómez Picasso believes that “costs measured in dollars are still lower than what we had at the peak of 2017-2019.”
Despite the increases, people see the current situation as an opportunity since they show a strong will to invest in the item: “People are betting on this window of opportunity since in private neighborhoods and countries there are a number of houses under construction that have not been seen since 2002-2005, another strong devaluation process that momentarily made the cost more attractive”, observes the architect.
In pesos the numbers are different. In the last month of last year, the square meter in these constructions reached $266.000. In other words, with $1 million, a complete 4m² cannot be built. “In the last year, the devaluations of the peso did not offset the increases in the costs of materials in pesos,” he analyzes. In year-on-year terms, these figures showed an increase of almost 59%, that is, the cost of construction for this type of works increased more than eight points above general inflation in the last year.
Faced with this panorama, those who have saved currencies wonder whether or not it is a good time to embark on a project of this type. For Gómez Picasso, “it is still time to start work, although the great unknown for the dollar saver is always how long this window of opportunity will last. Keep in mind that the project process of the house, plan approvals and construction can take more than a year and a half in total. This under the hypothesis that one does not have to go out and buy the land; in that case the process can be longer”.
In turn, the report takes as a construction model a house of 315 m² with a very good level of finishes whose realization would cost $ 83.7 million or $ 390,121 the dollar blue. These sums show a stark contrast with the last peak in May 2020, when a square meter of construction cost US$776.23 according to the marginal foreign exchange market price. At that time, this same model of house could be carried out for US$244,512 or $30.5 million.