Construction of new houses only resumes in the second half of 2024.
Houses have not been built, but it is forecasted that the sector will start advancing again in the second half of 2024 with the slowing down of inflation.
Purchase of land or house under construction? Specific financing for this process? With the real estate agency Casa no Minuto and the credit intermediaries of Poupança no Minuto, you ensure both services in a personalized way! But first understand how the construction sector in housing is currently doing.
Construction of new homes with brake until mid-2024.
The increase in interest rates in 2023 led to housing projects for the middle and lower-middle class being put on hold.
Even though the cost of construction materials has already reversed the upward trend it had since the end of 2021, the construction of new houses had to be halted.
According to José Matos, general secretary of the Portuguese Association of Construction Materials (APMC), in Sapo, the halt in investments for low-income households was due to the cost of financing for companies and families, since the risk rate will be higher. cost of financing
The forecast is now, with the slowing down of inflation and prices, as well as the stabilization of interest rates, that the investment in the housing construction sector will increase again in the second half of 2024.
"The increase in the cost of living and the current level of interest rates affects, more significantly, the housing segment by creating additional difficulties, both for the start of new real estate projects and for those who intend to purchase or rent a property", according to Manuel Reis Campos, president of the Association of Industrialists of Civil Construction and Public Works (AICCOPN), on Sapo."
In year-on-year terms, until the end of September 2023, data from the municipal licensing of new constructions indicated variations of less than 0.4% in licensed area of residential buildings and less than 10.1% of licenses issued.
Please note that, and considering the October index of new housing construction costs from the National Institute of Statistics (INE), the materials with the greatest scarcity have been steel, concrete, heavy and light profiles, showing a reduction of almost 20% year-on-year. Next on the list is mild and galvanized steel sheet, as well as coating, insulation and waterproofing materials, having decreased by 15%.
However, it should be noted that there are materials with a year-on-year growth of around 10% such as ready-mix concrete, paints, primers, and varnishes.
House purchase: Find the land or property, and hire a construction housing loan.
Want a house still under construction? Then, prepare to purchase finding already the land or property to be built, as well as the most targeted financing, such as a construction home loan.
This funding is provided in tranches (between three and six), parallel to the progress of the construction. In the first period, which can vary between 24 and 36 months, there is a capital grace period, only paying the interest.
Regarding the repayment period, it can be extended, with lower interest rates and the evaluation is based on the architectural project.
This is because you must already have a viable plot of land and, ideally, the project approved by the city council. Even though the project being already approved is not mandatory.
Need to find land or property already under construction? Contact the real estate agency Casa no Minuto to help you in your search and acquisition, in order to have close and personalized support and have a simple and quick process.
Want to move forward with construction home loan? Then, understand better how it works and feel accompanied and informed throughout the entire process with a credit intermediary. At Poupança no Minuto we provide this process for free, presenting you with various options from different banks and choose the right construction home loan for you!