Election Year Slows Property Market in Venezuela
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Loading... - Petra Brandt
- 01 Aug 2024
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Roberto Orta Martínez, president of the Venezuelan Real Estate Chamber, recently reported that the sale and rental of properties in Venezuela have experienced a slowdown in demand during the second quarter of 2024, primarily due to the ongoing electoral period.
"In April and May, we have detected a drop, but this is normal in election years. There is always expectation and investment tends to slow down a bit," Orta Martínez said in an interview with the radio station Éxitos.
Uneven Performance Across Regions
According to Orta Martínez, the real estate sector has shown uneven performance over the last year. Certain states have seen increased demand for real estate, while others have witnessed a decline in activity. He identified Caracas, Valencia (Carabobo), Barquisimeto (Lara), and Lechería (Anzoátegui) as the cities with the highest number of applications. This trend is largely attributed to internal migration driven by the failure of public services in various regions.
Challenges in Accessing Real Estate
Orta Martínez highlighted that the population continues to face significant challenges in accessing real estate, primarily due to a lack of purchasing power and the absence of home purchase loans.
“Currently, the most popular properties are middle-class apartments, and in the case of leasing, the greatest demand is for commercial premises,” explained Orta Martínez.
Market Composition and Trends
According to estimates, the real estate market in Venezuela is composed of 51% rentals and 49% sales. These figures are notably lower compared to previous years, reflecting the current economic and political climate.
Orta Martínez's insights underscore the impact of the election year on the real estate market, with expectations and uncertainties causing a temporary slowdown in property transactions. The demand variations across different regions and the ongoing challenges faced by potential buyers further illustrate the complexities of the Venezuelan real estate landscape.
