VPO construction down 90% in ten years due to price difference

The construction of officially protected residences (VPO) has now become a part of real estate business. This is evidenced by statistics that reflect: a collapse of at least 90% in the last decade in the state. While searching for an explanation, the price difference appears to be the main reason, so the Ministry of Housing puts an end to a new regulation that includes an update of square meters, taking into account the issues such as which municipality it will be in. develop the project or building costs. Organizations participating in the preparation of this regulation, They criticize the prioritization of rent and purchasing aids go less.

Data released by the Ministry of Transport, Mobility and Urban Agenda shows that VPO promotions have experienced a major setback in recent years, something the province of Alicante has failed to escape. According to these figures, qualifications or, with the same meaning, permission to build such houses, They went from 1,089 in 2011 to just 94 in 2021. Also, the golden age of this real estate activity between 1996 and 2005, when annual scales were around 4,000 points, is a long way off. As a result, something similar has happened with sales falling from 481 to 51 over the past decade.

So what happened that this drastic reduction took place? Jesualdo Ros, general secretary of the Real Estate Developers Association of the State of Alicante (Provia), cites several reasons, primarily prices. “He argues that the conditions they ask of us cannot be met for companies because cannot afford construction costs. We also see that there is a lot of dogmatism and there is no response even to the files submitted,” adds Ros. rent and rehabilitation have left sales in the background”.

Antonio Fernández, CEO of Maisa Promociones, similarly stated, “Our company has grown hand in hand with subsidized housing, and it turns out that, We don’t build anymore for 14 or 15 yearsThe contractor emphasizes that this is because “Management has arrogantly bet on leasing, and the aid schemes for the buyout have actually disappeared.” Moreover, all this was due to an autonomous self-government who came to manage the VPO segment at that time, to the point where it exhausted its quotas and took the leftovers from other regions. in the community.” Fernández also touches on prices. “We assume we can lose margins, but we should at least cover the costs“.

Generalitat appears to be aware of this problem and is actually putting an end to a new regulation to replace existing ones. This was stated by Alejandro Aguilar, the Regional Secretary for Housing and Social Affairs, who stressed that the Public Incentive Arrangements date back to 2007 and the private regulation to 2009 and 2013, when the “price issue was outdated”. Thus, the current maximum price is It will increase from 1,819 Euros to 2,200 Euros per usable square meter.. The district official explains that this figure will be lower depending on the state of each municipality, but he agrees that the highest will be concentrated in the “most stressed” coastal areas. However, Consell will insist on the lease commitment and emphasize that the prices set will also form the basis for determining the leases.

The organizers, who participated in the preparation of the regulations with their proposals, hope that they will be approved as soon as possible. Aguilar sets this target before the end of the year.

Reducing free housing promotions

The complex context currently being experienced will reduce free housing promotions this last time of the year. This is expressed by Jesualdo Ros, secretary general of the Real Estate Contractors Association of the State of Alicante (Provia), pointing out that factors such as the high costs of construction materials and economic uncertainty will cause many companies to delay their projects. He had already planned.

“We are in the era of folding the sails, avoiding problems and ensuring the survival of companies, because the landscape is getting complicated.” The industry had predicted 6,000 homes would start this year, but “we don’t think we’re going to get there,” adds Ros.

The same is the opinion of producer Antonio Fernández, who is not afraid to point out that he will take his foot off the accelerator pedal. “There are many reasons for this, starting with inflation and skyrocketing interest rates and rising costs. In this case, it is difficult for an entrepreneur to risk starting some houses that must be delivered within two years».

Source: Informacion

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