Construction industry celebrates the acknowledgment of changes to the Urban Planning and Housing Ordinance

This Thursday, what many players in the construction industry had been expecting happened: the Office of the Comptroller General of the Republic took note of the changes that the Ministry of Housing and Urbanism (Minvu) imposed on the General Ordinance of Urbanism and Housing (Oguc). The measure, applauded by the market, modifies residential density and the dimensional condition for harmonious complexes. From Ingevec they stated: "We positively value the taking of note of the OGUC, as it opens new development opportunities and will allow expanding the supply of and access to housing. At the same time, this greater densification reinforces our commitment, as companies, to promote projects in balance with communities and their surroundings. All in all, this is excellent news for the sector." Sebastián Echeverría, CEO of Echeverría Izquierdo Soluciones Habitacionales, pointed out that "the taking of note of the new OGUC is very good news," highlighting that "the regulation updates density to the reality of today's Chile and gives more incentives to build near the metro and major road corridors, which makes it possible to offer homes with a more accessible entry price. By making viable projects that today cannot be developed, it is a concrete incentive to reactivate real estate investment and construction, and with them employment. Since projects that already have permits will be able to take advantage of the new regulation, that effect may be seen earlier in the start of works." The real estate consultancy Colliers valued the materialization of these changes, which now only await their publication in the Official Gazette, describing them as "a bold measure. For the first time the State clearly acknowledges that part of the rise in housing prices comes from its own regulation, and decides to correct it knowing it would face opposition. The Comptroller's Office requested formal adjustments, but the core remained intact." With this variable cleared, Sergio Correa, real estate manager at Colliers, values the certainty that enters the market since "there were stalled projects waiting to know under what rules they would be evaluated, and that is now cleared up." Colliers details that the measure, by correcting the density from 4 people per dwelling to 2.8, "means more homes fit on the same plot of land, and the cost of the land is spread among more families. The same goes for the harmonious complex, which can now be applied on smaller plots with better incentives, and with the reduction of parking spaces near public transportation. All of that lowers the cost of producing each home, and it is the most direct path for prices to stop drifting away from what families can afford, especially in well-located neighborhoods." The executive director of the Association of Real Estate Developers (ADI), Slaven Razmilic, emphasized that "it is important to rule out that this modification will generate phenomena of unbalanced hyper-densification, since the change will operate within the framework of local planning. The adjustment of demographic parameters does not alter what has been planned; rather, it aims to achieve its effective materialization, while the adjustments to urban regulations are limited and are designed to favor better use of connectivity infrastructure, that is, in line with urban planning." This came after several mayors warned that some of the measures could favor the construction of so-called "vertical ghettos." From Colliers they stated that "we understand the reaction of some mayors, but we believe it responds to how the incentives are structured. A municipality is accountable to its current residents, and the families who want to live in that municipality and today cannot afford it have no voice in that discussion." NEWSLETTER Pulso PM Monday to Friday, 12:30 PM The most relevant news on markets, companies and business: timely information, context and content to make better decisions. By subscribing you are accepting the Terms and Conditions and Privacy Policies of La Tercera.