Related groups -CEO Jon Paul Pérez.
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Builders are already moving up to 20%to compensate for potential tariffs.
President Donald Trump imposed 25% tariffs on certain goods from Canada and Mexico, including steel and aluminum, and is expected to pursue more duties from April 2. Even before these more comprehensive taxes become effective, many contractors prompted to increase real estate project costs.
Jon Paul Pérez, CEO of the related group, said that the contractors, who offered seven projects who were in the work in the work, increase prices.
“We see [subcontractors] Throw an additional pillow into your numbers that anticipate the tariffs, “said Pérez CNBC during a live -in -wealth discussion.” It could take up to 20%depending on which material you get from another country. “
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Pérez said that the price increases are more likely to be due to the expectation of higher costs than the current level, and found that the higher costs are divided between contractors and developers.
“If you go through your numbers in detail and start negotiating, you will quickly find out that you only have a kind of upholstery to protect yourself,” he said.
As a result, collective bargaining could apply a further price pressure to a real estate market, which is already crippled due to high prices and increased mortgage interest. According to a survey by the National Association of Home Builders, increasing prices for building materials could give 9,200 US dollars at the costs of a typical house.
The related group is one of the largest and best -known developers in the United States and includes affordable apartments in luxury owner apartment buildings, mainly in South Florida. The company currently has more than 90 projects in any development phase, including rental, affordable residential units, developments with mixed use and luxury owner apartments.
The founder and chair of Related, Jorge Pérez, said that the Trump approach against immigration in addition to the tariff concerns could also increase the prices for developments, since the construction industry is heavily dependent on workers from overseas.
“In our industry, especially in the construction industry, there will be absolutely a cost effect,” he said. “Losing these people will have an inflationary effect.”
Overall, relatives said that the high -end of the real estate market, especially in Florida, remains strong. The company sold two condominiums in its exclusive new development on Fisher Island near South Beach, Miami, for a total of 150 million US dollars.
In Bal Harbor, Miami, named Rivage Residences Bal Harbor, also builds a luxurious condominium tower by the sea that offers a mega-K candidate in the sky.
“The high-end buyer is a very special buyer,” said Jorge Pérez. “These people buy over $ 10 million condominiums and they are usually very, very wealthy. So they are less affected, we see no decline in this market.”
The chairman Pérez said the “middle market” or those who buy condominiums in the range of $ 1 million to $ 3 million, and more a waiting-and-lake approach are pursuing in view of the uncertainties about tariffs and immigration. Many condominium buyers in Miami and Südflorida come from Canada and Latin America and are therefore more sensitive to possible changes in immigration policy.
“South Americans come and say: 'What will happen to immigration policy?' Or: “Will I lose my visa?” He said. But I think that will calm down. “