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Costa Rica Middle Class Untapped Housing Market

Article Summary:

Many of the current condo projects are far from affordable for the middle class in Costa Rica, who represents just over 70% of the population, so for the Costa Rican Chamber of Construction this represents the bulk of the housing market that is unattainable. Thus, the organization believes that from the standpoint of business, the government should create programs in the national financial system to provide loans for this untapped market.

Photo Credit: Prensa Libre

Original Article Text From Prensa Libre via Google Translate :

HIGH COSTS PREVENT A MIDDLE CLASS LIVING IN CONDOS

Vertical housing projects have been booming in the western metropolitan area in recent years. The idea behind this initiative was born as a housing solution for the middle class, however, today this sector of the population is excluded by real estate.

That difference in treatment focuses on the difficult access of the average population to finance, in addition to high costs in the payment of fees and premiums.

This has led to pessimism on the part of developers, promoting more betting sectors of the population have a greater opportunity to access financing system.

Many of the offers currently being handled in the vertical housing market outweigh the economic expectations of an average family of middle class who are between 30 million and ¢ ¢ 40 million, making it impossible to give a financial institution credit .

In many of the familiar spaces in these buildings exceeds the economic value ¢ on average 90 million. In addition, other challenges to achieve putting a middle class family is the premium of around 20% of total space (¢ 20 million).

“Cost is the main problem that hinders a vertical project for middle class. If you look at the current offer, the value per square foot is $ 1,500. There are projects more expensive than this and even in gray work,” said Gonzalo Delgado, president Costa Rican Chamber of Construction (CCC).

LOW VISION

The Costa Rican middle class represents just over 70% of the population, so for the Costa Rican Chamber of Construction this represents the bulk of the housing market in Costa Rica and is not used for vertical urban projects.

Hence, the organization believes that from the standpoint of business should make proposals with facilities in the national financial system.

For Delgado, it is necessary to rescue the housing projects that are still sleeping upright in state institutions. States that there must be a “major commitment” to a sector that is not being taken into account.

“The most vulnerable have access to bonds or other programs and more resources sector has credit facility. The middle class is in a limbo where no housing program or financial assistance,” he said Delgado.

For the Chamber is vital reorganization of the housing credit system which includes and protects the country’s working class and revive the vertical housing projects archived for decades in state institutions.

Link to Original Article:

From Prensa Libre

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