Here’s the most surprising place for a construction boom

The city of Caracas is defying all expectation

New York Weekend Edition /
Jun.June 23, 2018 09:13 AM

Despite inflation running over 20,000 percent, money is still working in Venezuela, albeit in an unexpected way.

With a lack of alternatives thanks to cash and currency-exchange controls, the country’s wealthy are turning to investing in real estate and funding a spate of new ground-up construction in Caracas, according to Bloomberg.

“Investors are wisely deciding to invest in brick,” developer Alfred Scheer of Vantage Latin America told Bloomberg. “We trust that a political change will come sooner or later and we want to be prepared.”

That attitude is behind the construction boom of about 72 ongoing projects in the Caracas neighborhood of Las Mercedes.

The problem, however, is finding buyers. At one high-end condo project, for example, a four-bedroom unit is asking for 1.1 trillion bolivars–a figure that’s about 411 times the average person’s monthly salary. [Bloomberg]Erin Hudson


Related Articles

arrow_forward_ios
SL Green’s director of leasing Steve Durels and One Vanderbilt. (SL Green, One Vanderbilt)
SL Green to offer flex offices at One Vanderbilt
SL Green to offer flex offices at One Vanderbilt
Katie Kurtz and Silverstein Properties chairman Larry Silverstein (Silverstein, Getty)
Silverstein Properties hires Katie Kurtz as new CFO
Silverstein Properties hires Katie Kurtz as new CFO
U.S. District Court Judge Dabney Friedrich (Senate/Chris Coons, iStock)
Judge strikes down federal eviction ban
Judge strikes down federal eviction ban
Sen. Brian Kavanagh and RSA President Joe Strasburg (Getty, Strasburg via Jeffersons Siegel)
Rent relief hinges on dwindling goodwill
Rent relief hinges on dwindling goodwill
Colliers International CEO Jay Hennick (Colliers, iStock)
Colliers’ acquisitions help boost company’s Q1 revenue
Colliers’ acquisitions help boost company’s Q1 revenue
The Howard Hughes Corporation CEO David O'Reilly (LinkedIn via David O'Reilly)
Howard Hughes’ (slightly less) big Seaport project approved
Howard Hughes’ (slightly less) big Seaport project approved
Innovo Property Group CEO Andrew Chung and 1110 Oak Point Avenue 1110 Oak Point Avenue. (New York Expo Center, Innovo)
Innovo Property Group aims to raise $140M for Bronx industrial site
Innovo Property Group aims to raise $140M for Bronx industrial site
Sen. Brian Kavanagh (Getty, iStock)
New York votes to extend eviction ban through August
New York votes to extend eviction ban through August
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...