📖Problem description

Problem description

The real estate market presents a series of challenges such as the following:

Rising interest rates The rise in mortgage interest rates makes financing more difficult for homebuyers to access. Most real estate investments are made through bank loans.

The increase in the cost of raw materials and fuels makes the construction costs of real estate projects more expensive. This can lead to losses in previously sold projects that considered lower costs. Projects are sold in phases and with breakeven points, so increases during construction have negative consequences.

Burnout effect There is a lot of competition and low demand in fixed income projects, given the current economic context.

Political uncertainty and two ongoing wars affect the global and local economy.

BUYERS ONE BY ONE: LIMITED LIQUIDITY

Most real estate projects are focused on building family homes, without any economic objective, only a family one, which forces the property to be sold for a total value to a single holder.

This can be a problem in countries with high foreign traffic, but whose local economy is in recession due to political situations, which causes for fixed income a panic sale for mass migration. Supply increases and demand decreases.

There is a lot of competition and low demand in fixed income projects, given the current economic context.

SLOW AND INEFFICIENT ACCESS TO LIQUIDITY:

inefficient sales: Developer

In the real world, most real estate projects are affected by the increase in supply and the reduction in demand.

The reduction in demand is caused by the rise in prices in a small community, which generates a real estate bubble, thus creating unreachable offers for medium-income investors, further closing the real estate market for high-income investors, who become indecisive due to the increase in supply.

Slow liquidity: Owner

The same effect of the real estate bubble causes a problem of slow liquidity for the owner of the property since selling can be a slow process, even forcing the sale at negative prices compared to the previous paid price, due to emergency situations.

SOCIAL AND ENVIRONMENTAL IMPACT

Some construction projects do not take into account bioclimatic thinking, eco-efficient technology, or gray water reuse, environmental compensation. We seek to reduce the environmental impact of each project, and increase social interaction spaces, reduce the environmental impact through the consumption of green energy and the reuse of gray water, we can also reduce the costs of basic public services for each property.

The development of sustainable and inclusive construction is key to moving towards environmentally responsible and socially just cities.