Jon Paul Pérez, CEO of the relevant group.
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The CEO of the developer-related group said construction contractors have hiked up to 20% to offset potential tariffs, a move that could also increase the prices of new apartments and homes.
president Donald Trump There have been 25% tariffs on certain commodities in Canada and Mexico, including steel and aluminum, and are expected to follow broader tariffs starting April 2. Even before these broader taxes came into effect, uncertainty about tariffs and uncertainty over inflation led many contractors to drive real estate projects costs.
Jon Paul Pérez, CEO of the relevant group, said the contractor bid for seven projects related to the related projects is raising prices.
“We are seeing (subcontractors) adding figures of expected tariffs to their numbers,” Perez told CNBC in one of the firsts. Living in a conversation about wealth. “This could be as high as 20%, depending on the material they get from another country.”
Perez said the price increase was driven by expectations of higher costs rather than current levels of expectations, noting that it is unclear how higher costs are allocated between contractors and developers.
“When you go into detail about their numbers and start negotiations, you quickly find that they are just a little filled to protect yourself,” he said.
As a result, tariff fears could increase price pressures in the housing market, which has been weakened by high prices and rising mortgage rates. According to a survey by the National Association of Home Builders, rising prices of building materials could increase the cost of a typical home by $9,200.
The relevant organizations are one of the largest and most prominent developers in the United States, covering luxury apartment buildings (mainly in Florida). The company currently has over 90 projects at some stage of development, including rent, affordable housing, mixed-use development and luxury apartments.
Jorge Pérez, founder and chairman of Reless, said that in addition to tariffs, the Trump administration’s crackdown on immigration could also raise the price of development, as the construction industry relies on workers overseas.
“In our industry, especially the construction industry, there will definitely be cost-effectiveness,” he said. “Losing these people will have an inflationary impact.”
For now, Reals says the high end of the real estate market remains strong, especially in Florida. The company sold two apartment penthouses in an exclusive new development on Fisher Island near Miami South Beach for a total of $150 million.
Related also builds a luxurious beachfront apartment tower in Miami Bar Harbor called Rivage Residences Bal Harbor, which offers a giant cannabis harbor in the sky – combining two penthouses that can total over 20,000 square feet and earn more than $150 million in price.
“The high-end buyers are a very special buyer,” said Jorge Pérez. “These people buy apartments over $10 million and they are usually very, very rich. So they are less affected and we don’t see a decline in that market.”
Chairman Pérez said that “middle markets” or those who buy apartments are taking more waiting methods given the uncertainty of tariffs and immigration. Many apartment buyers in Miami and South Florida are from Canada and Latin America, so they are more sensitive to potential changes in immigration policies.
“South Americans, ‘What happens to immigration policy?’ Or, “Am I going to lose my visa? “We have a project where we just lost seven or eight Canadian and Mexican buyers who were ready to sign a contract, but when all of this stuff comes from tariffs, they don’t want to buy it. But I think this will calm down. ”
