Economic activity marked a slight improvement in February. According to the National Institute of Statistics and Census (Indec), it amounted to 0.8% per month and bounced for 5.7% of the year. At the same time, there is a restoration of real estate activities (+4.7%) and construction (+4%), which were very beaten. Thus, after several months, it focused on the energy and financial sector, investors begin to look at the construction of construction.
“Since the economy is normal, some opportunities for real estate and construction sector will be consolidated. Probably, with another business, where there is a lower margin, but a much wider scale of projects, ”says Adrian Yarde Buller, the chief economist of Faceimex for El Chronico.
Key elements for rebound
To do this, it will be necessary to repay the loan. “While today mortgage loans are already a reality, there is an excellent opportunity for their section, since this would allow to cover the wider universe of the investors to increase financing.”
Thus, first, he allocates the possibility of deepening access to mortgage loan as dynamification. “Secondly, this is the key to achieving a greater ability to finance large projects, reducing profit rates necessary in a more ordered economy, and new financial vehicles are created to get Anchief,” he says. And, in -Three, he mentions “large investments in technology that allow more effective costs.”
Thus, this will be the key to creating a greater ability to finance large projects and new financial vehicles to get Anchief when reducing profit rates.
To which Leonardo Anzalone, the director of Cepec, adds that it would also be necessary, “what is, at least, some impulse from public work, has practically slowed down today.”
He believes that “construction can give opportunities in the Argentinean capital market, although everything will depend on whether the restoration is able to support.”
“It seems that the rebound still has a route, but it depends on several factors,” says Gorasio Miguel Aran, an economist in the Basic International Fund. In fact, the actions related to the field sign, the improvement of the “expectation of a mortgage loan in the medium term, the possibility of more trust in the construction and stability of the exchange rate from the new regime.”
What actions are convenient if the construction is restored
But what are the best tools to use the script in which the construction improvement is consolidated? There are many real estate companies that quote in the stock market, as well as suppliers from the construction sector, such as cement and manufacturers of specific materials or items.
“In the case of large cement companies, the impulse would be more if public works were reactivated, but I think that this rebound, which was noticed, is more connected with the private, therefore, some companies, such as Ferrum, which produces bathtub accessories,” says Jose Ignacio Bano, a market analyst.
Anzalon sees opportunities in local actions related to cement and building materials, such as Holsim or scrap, Nevra; In corporate bonds of the developer, as well as in financial trusts related to real estate projects, which may offer attractive profitability if this improves demand.
For example, other companies with an interesting prospect related to construction, and IRSA.
