Dollar credit shortage hinders Venezuela's real estate recovery, sector warns

The Venezuelan real estate sector is facing a critical shortage of dollar-denominated credit, a situation that is hindering the much-needed reactivation of the housing market. Gustavo García, president of the Venezuelan Construction Chamber, issued a stark warning about the consequences of this financial bottleneck.

García emphasized that for the housing market to rebound effectively, a key legislative change is necessary. He called for the repeal of Article 23 of the Mortgage Debtor Protection Law. This article currently presents obstacles to the formalization of loans in foreign currency.

The sector argues that legalizing dollar-denominated loans is essential to combat rampant inflation and provide the financial stability required for construction projects. Without this legal framework, developers and potential buyers are constrained, stalling progress in a sector vital to the country's economy.

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The reactivation of housing demands repealing Article 23 of the Law on Protection of the Mortgage Debtor to legalize loans in foreign currency in the face of inflation.