Residential construction costs increased 11.4%, and single-family home construction costs increased 5.4%.

Taking into account possible exchange rate changes and possible inflationary impacts on the market, the Bolivian Chamber of Real Estate Developers (CBDI) proposed this Thursday the implementation of a “Construction Cost Index” (ICC-CBDI).

The application of this method revealed Notable Trends in Construction CostsFor example, the difference between the fourth quarter of 2023 and the first quarter of 2024 calculated by ICC-CBDI shows an 11.4% increase in total residential construction costs and a 5.4% increase in total single-family home costs.

During a conference held at its headquarters in Cainco, Santa Cruz, the CBDI said that in Bolivia the real estate sector is not only a safe haven for value, but also one of the main forms of investment. Household Savings and Wealth CreationAccording to a new Credit Suisse report, 74% of Bolivia’s non-financial wealth comes from real estate, highlighting the capital importance of the sector.

Carlos Hossen, Director of the CBDI, explained that the CBDI ICC is based on the methodology of the Argentine Chamber of Construction, which has been successfully used for more than thirty years and adapted to the Bolivian market. Once a quarter It involves analyzing and averaging three quotes from formal suppliers/companies for each element that forms part of the construction, from materials to labor and equipment.

Hossen insisted that the shortage of US dollars and diesel has caused serious problems for the import of construction materials and their transportation to marketing points. He stressed that in this context, Construction costs are getting higher This led to paralysis of different projects.

“Due to this situation, apartment construction has increased by 11.4 percent and housing construction by 5.4 percent. Apartments have become more expensive because they require more imported materials,” said Hossen, accompanied by CBDI president Juan Pablo Saavedra.

He added that through the ICC-CBDI, Bolivians will be able to invest in the real estate market and be sure that they are supported by reliable and accurate tools, ensuring that their investments and their future are made in an informed way.

According to CBDI, the tool helps plan with clarity and invest with confidence in a time when uncertainty seems to be the only constant.

• Legafamiliar: Every property acquired under the guidance of ICC-CBDI is a step towards a secure future.
• Revenue generation: Property not only provides shelter, but also offers the opportunity for rental income, contributing to the financial stability of many families.
• Safe investment: The real estate market offers superior returns compared to other investments, especially in times of crisis, as real estate can maintain and increase its value.
• Investment protectionn: Investing in real estate can protect assets, taking into account exchange rate changes that may affect the value of a currency.