The company is developing and building four social housing projects in La Aguada, Cordón, Barrio Sur and Prado. The first will be ready by 2015. The buyer may be the end user or an investor.

Campiglia adds to its businesses a new front that several other private companies are tackling: social housing. The demand of the middle class and the attractive benefits of the new social housing law passed by the government in late 2011, were a very tempting for Campiglia who decided to embark on four major projects of this type.

The company is not only acting as a builder, but also as a developer of projects located in different neighborhoods of Montevideo.

Two of the initiatives (called El Roble and Vitis) are already being built, while the two others (Estrellas del Sur and Índigo) will be launched and put on sale in the coming months. All the units sold in Indexed Units (UI), with the goal that buyers can stop worrying about the variations of the dollar.

Alejandra Gonzalez, from Campiglia’s Commercial Department, clarified to “Café & Negocios” that the company "has already made ​​several housing renovations" and now, thanks to the facilities provided by the law, comes back to a business offering a very affordable financing.

 Your Own Home

Construction of the project called El Roble has already begun and is located on the edge of the neighborhoods of Aguada and Goes, a strategic location as it is right on two major avenues: Millán and San Martín.

This seven storey building has 66 apartments with one or two bedrooms, includes parking spaces and a fully furnished communal room with barbeque on the ground floor that owners can use.

The rooms are spacious; the open plan kitchens have lower cabinets and worktops. It also has air conditioning provision both in the master bedroom and in the living room.

Gonzalez clarified that both, the open plan kitchen and the provision for air conditioning are two features "that it’s not included in the social housing law, but Campiglia want to keep in its projects to maintain its quality."

She also noted that El Roble is very close to all services and enjoys excellent transport links. Its facade will be exposed brick (see photo).

Gonzalez said that the building will be ready by January 2015 and is being sold very well. It was launched in December and 25% of the units are already sold. The values ​​of the apartments are between USD 80,000 (one bedroom) up to USD 90,800 (two bedrooms) and the prices are in UIs.

The second project is called Vitis and is already under construction, will be ready in October 2014. This is an eight-story building located in Millán and Vilardebó (Prado) with 29 apartments of two and three bedrooms.

Vitis offers a bit more luxury, since it has a solarium on the top floor, rooftop and communal room with barbeque. A price level is a bit more expensive: ranging from USD 123,000 (two bedrooms) to USD 151,000 (three bedrooms).

About to be Launched

Alongside these projects, Campiglia has two new initiatives to be launched, as announced by Gonzalez, in the coming months.

"Estrellas del Sur" is a building located in Ejido and Isla de Flores (in the former Strauch factory, in the Barrio Sur neighborhood) that have three apartment towers (totaling 300 units) and will contain some shops.

The second venture is the "Índigo" building, located in Fernández Crespo and Cerro Largo, in the Cordón neighborhood. It is a tower with 79 one to three bedrooms apartments from which you can see the Bay of Montevideo.

Atractive Installments

For Gonzalez, one of the main advantages that Campiglia offers to its customers is the bank financing.

The company signed an agreement with Banco Hipotecario - involved in all housing projects approved by the National Housing Agency - and with Banco Santander.

During the construction period, the buyer has to make a payment of between 20 and 25% of the cost of the apartment, which is paid through a down payment and small installments up until occupancy. The remaining percentage is financed in 240 installments that the customer will pay off within 20 years.

Gonzalez said that the customer must pay a fee equivalent to a lease: "For a one bedroom apartment you can pay a fee of $ 8,500, and for a two bedroom, in El Roble, you can pay $ 10,000."

An option for the investor

She said that these projects are designed not only for the end users but also for investors.

That’s how the new law understands it, González clarified; it provides benefits to investors who buy and then rent. A single investor can buy, say, five or ten units.

In this regard, she stressed that the price in UIs allows buyers to save in Pesos and not be conditioned to the rise or falls of the dollar.

According to the law, buyers are also exempt from paying ITP (Property Transfer Tax) which is 2% over land registry which is one of the costs that is always paid when buying an apartment. "This benefits both the buyer (final user) as the investor," she said.

The developer also is exempt from paying VAT. The construction company, in this case Campiglia, does not pay VAT on the materials it purchases to build and this makes possible offering "much more affordable prices," said Gonzalez.

The law also provides an exemption for 10 years from paying Wealth Tax and Income Tax. "These last two benefits are well targeted to investors," concluded González from Campiglia.