The Real Deal New York

Here’s the most surprising place for a construction boom

The city of Caracas is defying all expectation
June 23, 2018 09:13AM

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