The CEO of the group related to Jon Paul Pérez.
With the kind authorization of future proof and triangle BLVD
Construction entrepreneurs are already going to hike up to 20% to compensate for potential prices, a decision that could also increase the prices of new condos and houses, according to the CEO of the developers.
President Donald Trump imposed 25% prices on certain goods from Canada and Mexico, including steel and aluminum, and should follow the broader prices from April 2. Even before these samples take effect, uncertainty about prices and inflation causes many entrepreneurs to increase the costs of the real estate project.
The CEO of the related group, Jon Paul Pérez, said that entrepreneurs have called on seven projects that have been linked to the work, which increases prices.
“We see [subcontractors] Throw an additional cushion in their figures anticipate the prices, “said Pérez at CNBC during a live conversation in wealth.” This could reach 20%, depending on the equipment they get from another country. “”
Pérez said the price increases are driven by higher costs anticipation, rather than current levels, and have noted that it is not clear how higher costs will be divided between the entrepreneur and the developer.
“When you go through their figures in detail and you start to negotiate, you quickly discover that they are somehow padding to protect themselves,” he said.
Consequently, features of the price could add upward pressure of prices on a housing market which is already paralyzed by high prices and high mortgage rates. According to a survey by the National Association of Home Builders, the price increase in building materials could add $ 9,200 to the cost of a typical house.
The related group is one of the most important and most eminent developers of the United States, covering affordable housing with luxury condo buildings, mainly in southern Florida. The company currently has more than 90 projects at a development stage, in particular rentals, affordable housing, development developments and luxury condos.
The founder and president of Releud, Jorge Pérez, said that in addition to pricing concerns, the repression of the Trump administration against immigration could also increase the prices of developments, because the construction industry is based heavily on workers from abroad.
“There will be absolutely a cost effect in our industry, in particular the construction industry,” he said. “Losing these people will have an inflationary effect.”
For the moment, Lié said that the high -end of the real estate market remains solid, especially in Florida. The company sold two condo penthouses during its new exclusive development on Fisher Island near South Beach, Miami, for a total of $ 150 million.
Connection also builds a luxury seaside condos tower at Bal Harbor, Miami, called Rival Residences Bal Harbor, which offers a mega -mation in the sky – combining two pentals that could total more than 20,000 square feet and bring more than $ 150 million.
“The high -end buyer is a very special buyer,” said Jorge Pérez. “These people buy more than $ 10 million in condominiums and they are generally very, very rich. So they are less affected, we do not see a drop in this market.”
President Pérez said that the “intermediate market”, or those that buy condos in a range of $ 1 to 3 million, adopt a more waiting approach given the uncertainties concerning prices and immigration. Many condos buyers in Miami and south of Florida come from Canada and Latin America, and are therefore more sensitive to potential changes in immigration policy.
“South Americans come and say:” What will happen with immigration policies? “Or” am I going to lose my visa? “He said.” We had a project where we have just lost seven or eight Canadian and Mexican buyers who were ready to sign contracts, but when all these things came from prices, they did not want to buy. But I think it will calm down. “