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Latin America Investment News on Viva Tropical

Housing Deficit Grows High in Guatemala

Article Summary:

The deficit between supply and demand for housing solutions in Guatemala is growing every year, requiring state policies for the creation of credit systems for low-income sectors.

Photo Credit: Siglo21

Original Article Text From Siglo21 via Google Translate :

Housing Deficit Grows By 55 Thousand Units Per Year

Each year the country’s housing demand is growing between 55 and 60 thousand units. In late 2012 the housing shortage will approach 1.7 million units, according to the Guatemalan Chamber of Construction (CGC).

The president of this union, Jorge Montenegro Pasarelli, argues that to stop this trend figures to be built similar to the growth in demand, but the building of new properties barely 20 thousand a year.

“Today we have an efficient mechanism for construction and financing for the middle class and poor solutions up to the value segment with less ability to pay,” said the businessman, who added that the phenomenon is the lack of stable policies to address this sector, and the lack of financial guarantees for the population to have access to credit.

The construction sector analyst, the Association for Research and Social Studies (Asies), Pablo Urrutia, said the country’s housing deficit is precisely in the popular sectors, made up of families who have no ability to pay or do not meet the formalities required by the financial system.

The analyst of the International Centre for Human Rights Research (CIIDH), Jorge Santos, argues that there has been a public policy to address the housing problem, which will continue to grow if the country’s institutions do not assume the appropriate role.

Housing Act
The Law on Housing and Human Settlements, recently approved by Congress, has elements that will contribute to eliminate the housing deficit, but does not solve the problem, said CGC president, who said that measures and pending legislation that can create a better legal framework.

Other difficulties must be addressed on the issue of social housing, as is the available land space, which is very expensive, so vertical housing must be encouraged to have better prices, analyst ASIES emphasized.

The role of private companies can also help to achieve progress. Currently there are companies already exploring the social housing market. Rosul Group, since 2009 built and sold two residential projects of this kind, and encourages a third party, as general manager of Marketing and Sales, Juan Carlos Martinez.

“The interest in addressing the economically lower segment, grew out of the crisis of 2008 and 2009, anticipating the market downturn, we identified what was the ability to pay for decent housing, a figure we set ranged from Q1, 200 and Q1 , 500, “explained Martinez.

The move caused the company discovered an underserved market, offered apartments of 60 square meters in buildings 4 and 5 floors, with prices ranging from Q180 Q240 thousand thousand (read: The qualitative and quantitative ).

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From Siglo21

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