Factors that Influence the Price of Housing

The price of housing is a complex issue, influenced by multiple variables that impact both buyers and developers. At Le Baron, we are aware of how these factors shape the real estate market and we work to adapt to its dynamics. Below we explore some of the key elements that affect the final cost of properties.

1. Growing Demand

The rise in single-person households and the shift to urban areas have increased the need for housing. However, supply has not grown at the same pace, creating constant pressure on prices, especially in metropolitan areas.

2. Shortage of Qualified Labor

The construction sector faces a significant shortage of trained professionals. This not only slows down the development of projects, but also increases labour costs, directly impacting the final price of homes.

3. Increase in the Cost of Materials

Global inflation and supply chain disruptions have driven up the price of building materials. These increases impact all projects, from new construction to renovations, making it difficult to access affordable housing.

4. Availability of Urban Land

The lack of building land is one of the main barriers to increasing the housing supply. In large cities, available land is scarce and expensive, which drives up the price of residential developments.

5. Innovation and Technology

Home automation is gaining ground in the real estate market. From heating control to management of photovoltaic panels and electric vehicle chargers, these solutions not only improve quality of life, but also optimize the use of resources.

6. Impact of Taxation

Taxes associated with the construction and sale of real estate represent a considerable burden that affects both developers and buyers. A more flexible tax framework could help balance the market.

7. Complexity in Rehabilitation

Property renovation is a key way to increase housing supply, but the costs of intervention and administrative bureaucracy make it less attractive. Incentivising this type of project would be a viable solution to relieve pressure on the market.

A Market in Transformation

At Le Baron, we understand that the real estate market is constantly evolving and that we face significant challenges. That is why we work with an innovative and responsible approach to offer solutions that respond to current and future needs.

What factors do you think are most relevant in terms of housing prices? Let's reflect together on how to build a more accessible and balanced market.