QCOSTARICA – Construction of housing condominiums is slowing down according to the Costa Rican Chamber of Construction, the Cámara Costarricense de la Construcción (CCC).
The CCC says 2014 figures are down 14% over 2013. For 2015, the drop in the first two months was 32% compared to the same period last year.
The CCC includes low-rise and high-rise condominium projects in its report that indicates a negative trend since 2009, except for 2012, that experienced a growth.
According to CCC president, Guillermo Carazo, the construction sector in general is showing an atypical slowdown behavior in all categories because of lack of investment in new projects, although there is macroeconomic stability.
“Lost are some 5,000 jobs in the construction sector since the middle of last year,” said Carazo. “We believe that this year will continue to see a negative change,” predicts Carazo. “Investors need a sign of confidence,” he added.
Despite the decline in construction, vertical construction have gained popularity in Costa Rica’s housing supply, mainly due to the high cost of land, forcing developers to maximize area.
However, the CCC data only takes into account projects offered at the Expo Construcción that took place last February.
According to official data of the CCC and the Association of Engineers and Architects (Colegio Federado de Ingenieros y Arquitectos – CFIA), in the past decade condominium construction has represented between 15 and 38 percent of the housing supply.