In an interview with “Del Constructor”, the Headman of Campiglia Constructions, Engineer Eduardo Campiglia, referred to social housing and its reception in the market, after the company he presides inaugurated two buildings. The first one was “Vitis”, located in Millán Ave. and Vilardebó St., in Prado Neighborhood, with 29 apartments of two and three bedrooms. The second one was “El Roble”, located in Millán Ave. and San Martín Ave., with 66 apartments of one and two bedrooms and 41 garages. This last one has been occupied since last December 8th and it has had a very good reception. “We were surprised by the performance of rentals. All owners who bought for investment are very happy because the units are already rented”, marked out Campiglia.

This year, as part of the project on social housing, it is planned the release of the building “Thays”, on Italia Ave., with apartments of 1 and 2 bedrooms and optional garage. It is also expected the delivery of some apartments of the project “Estrella del Sur”, which incluyes one hundred housing units, with the possibility of one garage per apartment. Altogether, Campiglia Constructions is commercializing six projects approved under the law 18.795 of Social Housing, including the two already delivered, and began the construction of the second tower of the Real Estate Development “Estrellas del Sur” that has a 25-storey tower with units of 1 and 2 bedrooms with optional garage, which launch is being prepared.

“The Engineer Campiglia referred to the need of reducing costs and improving productivity,  one of the main goals to achieve increasing the range of accessibility of this kind of enterprises. In this regard, he explained that the Social Housing has financial plans in line with this type of enterprises. “We have Mortgage Bank of Uruguay and Santander Bank that finance up to 80%, and even up to 90% with the “Yo Ahorro” plan of BHU. Then there is the guarantee fund mortgages, where you have to have certain characteristics to apply, and where we have buildings with units falling within the features through which you can finance by guarantee fund mortgages up to 90%. In fact, we have sold under this modality”.

In August this year will be four years after the adoption of the Law 18.795 of Access to Social Housing (VIS). In your opinion, what impact has it had?

It is serving the purpose for which it was created and the results will be seen medium and long term. What is making this law is to add good level products into different areas of the city. We have been able to verify that in those neighborhoods without new constructions for years there is a latent demand that was just not satisfied because there was no offer, both for sale and for rent. In this kind of projects we have sold to both final consumption and investors, who are very happy because they have rented quickly with a higher income that usual.

One of this law’s goals was to maintain investment, and to decompress the construction in the coastal strip, encouraging it in other areas.

We are fully reaching the targets of building in other areas that were not previously regarded with interest by investors and we are also generating occupation.

Do you think the price of these homes is accessible to the middle class?

Yes, we are still working on the challenge of maintaining a good level construction, at lower cost, to make it more accessible yet.

The construction cycle

The construction costs, according to businessmen and investors, are the “Achilles heel” of the sector.

Yes, what happens is that the margins for us are quite bounded. This is because labor force has gone up but productivity did not increase. People to earn well come very well, because it is people who consume, generate wealth and job opportunities for others. The issue is that good salary must be accompanied by good productivity. People want to work fewer hours and earn more, as in some countries. I think this is great, but the matter is that in those countries productivity is far greater. That is what we have to achieve between the guild and the companies.

Productivity is also related to skilled labor, which is another issue where we emphasize. 

Productivity is also related to the quality of projects and the detailed implementation planning, and of course with the qualification of technicians and personnel involved in the works.

You referred to the construction cycle. At what point is this cycle today?

In the case of housing, high level has been attenuated and that is being corrected by the construction of social housing. Next step is to reach to lower costs for social housing.

Source: El Constructor