The 10 communities with the most home sales that take the longest to approve real estate projects

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Macul leads the ranking of the ten communes (with the most home sales in the Metropolitan Region during the last five years) that take the longest to approve new real estate projects, with a total time of 2,214 days, according to an analysis by the consulting firm Colliers.

The study considered the dates of construction and the main municipal procedures required for the development of real estate projects: preliminary project, municipal permit, project modification, real estate co-ownership and final reception.

“Today it is taking us on average more than five years to carry out a housing project and about half of that time is for permit approval. Even the municipalities that have the lowest deadlines at the national level exceed any rational measure,” explains Jaime Ugarte, Executive Director of Colliers.

In second place in the ranking is La Cisterna, with 2,046 days. Further back are Estación Central with 1,964; Ñuñoa with 1,957, La Florida with 1,842; San Miguel with 1,781; Lo Barnechea with 1,714, Providencia with 1,573, Santiago with 1,506 and Las Condes with 1,475.

The report details that, if the times used were appropriate, in some communes, such as Macul, the housing deficit could be reduced by up to 12%, and in Ñuñoa the figure would be reduced by 10%.

“The impact generated by the permit directly affects investment, increases housing prices and worsens the housing deficit. If the extra deadline in municipal procedures were the same as 10 years ago, it would translate into a total investment of USD 13,750 million at the national level. On the other hand, considering the extra financial cost of the extra deadline in permits and receptions, it is estimated that 11% of the average housing price is a product of this delay,” explains Ugarte.

Colliers also highlights that, considering the execution of projects with the same deadlines as 10 years ago, 100 thousand new jobs would be achieved.

“It is very important that the deadlines for approving new projects be shortened; For this, technical and objective criteria must prevail when reviewing the files, in addition to having experienced and trained professionals for these jobs,” says Ugarte.

He adds that the law has provided years ago for the institution of independent reviewers, people with high qualifications in regulatory matters, to facilitate the work of the Municipal Works Directorates and compliance with deadlines in form and substance.

The manager affirms that, since the independent reviewers are alien to the political interests of clearly minority sectors, the political authorities of the moment have de facto marginalized them from the processing of permits.

“The delay in permits is a clear consequence of not exercising their function with the support and safeguards that the law provides,” says Ugarte.

 
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