Presidente de Socovesa: “2024 estuvo lejos de transformarse en un año de repunte” - La Tercera

Socovesa's 2024 Performance: A Challenging Year

Socovesa, Chile's leading real estate company, faced a difficult 2024, marking five years of continuous crisis in the real estate market. Despite achieving its financial goals, including reducing debt from UF 19 million to UF 15-16 million, the company missed its sales targets, reaching UF 5.3 million instead of the projected UF 7 million.

Key Challenges and Strategies

• Missed Sales Targets: The company fell short of its projected sales, highlighting the ongoing challenges in the Chilean real estate market.
• Debt Reduction: Socovesa successfully reduced its debt organically, without selling assets or raising capital.
• Operational Efficiency: The company implemented a restructuring plan to improve efficiency and reduce costs.
• Reduced Land Purchases: Socovesa adopted a more selective approach, suspending the purchase of new land and prioritizing existing properties.
• Focus on Social Housing: The company plans to increase its participation in social housing projects (DS-19 and DS-49).

While 2024 showed losses (reduced from $25.299 billion in 2023 to $19.809 billion), Socovesa anticipates a recovery in sales by 2027, leveraging its existing land bank.

Future Outlook

Despite the ongoing challenges, Socovesa projects a gradual recovery, expecting to achieve its previous sales levels by 2027. The company's focus on operational efficiency, strategic land management, and expansion into social housing projects are key elements of its recovery plan.