The increase in the cost of inputs, such as steel, impacts the construction industry.

The shovels and excavation machines echo again in the streets of Mexico City. 

After a year in which the constructions were kept silent, the work has returned with one objective: to build more than 40 thousand homes.

But when the constructions are ready, the price will be higher than planned, due to the increase in the price of inputs such as steel, which has had an increase of between 35 and 40% this year.

Oxford Economics predicted that in August of this year the increase in real estate in Mexico will be around 6% due to steel.

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This trend is supported by the National Chamber of the Housing Development and Promotion Industry (Canadevi) in the Valley of Mexico.

Through its President Yuri Zagorin indicated in an interview with Obras that this increase will be reflected in the starting price for the sale of built properties, by approximately 7.5%.

This increase in the cost of construction materials has already been reflected throughout this year.

The Federal Mortgage Society (SHF) said that during the first semester of 2021, the average price per unit had a rise of 7.1%, reaching a figure of 1 million 324 thousand pesos on average, although other variables such as growth have also influenced GDP and inflation.

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The 40 thousand homes planned by Canadevi developers correspond to those built through the economic reactivation program of Mexico City, in which facilities are provided to the operations of the developers.

The construction of these properties represents an investment of 6 billion dollars, and currently 15 thousand are in the process of being built, in three months 4 thousand more and the rest will begin to be built in the next 12 months.

The densification strategy in the country's capital does not compromise the population's basic supplies, according to the Canadevi executive.

“Each project pays a very important amount of mitigation measures and that money is necessary to renew the service infrastructure. The wrong thing would be horizontal expansion because it is much more expensive and more difficult to maintain.

By building in the areas already served, we are obliged to give them maintenance and anticipate new needs, "he said, within the framework of the presentation of Obra Blanca Exposición, an event that will be held at Expo Santa Fe from October 12 to 14.

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