Real estate projects may be on the rise once again. The commercial banks still have the ability to give loans to promising projects, like one apartment complex that already has most units sold before even starting construction.
The focus is to give financing and firm leasing contracts to develop projects that are already progressing .Between November and December, three tower projects were approved by Banco Nacional. 60% of the units were pre-sold.
We saw a collapse in this market during the first half of 2020 and then a slight increase in financing loans, up 2.9% from October 2019 to October 2020. In May 2020, the year-on-year figure was down 6.4%. The construction decrease was much harsher, at 11.9%.
Demand for credit increased once again, in the last quarter of 2020. We are seeing more confidence and will see the execution of projects in 2021. Construction is no longer halted, as long as sanitary measures are executed.
