Market Trends of Honduras Construction Industry
Increase in residential constructions is boosting the market
- In Latin America, more than 3.9 million Central American households in El Salvador, Guatemala, and Honduras have homes built with poor quality or scrap materials, dirt floors, and a lack of drinkable water, toilets, or showers. They also live on land that isn't theirs. From southern Chiapas, Mexico, to Guanacaste, Costa Rica, the Central American Dry Corridor runs. It stretches about 1,600 kilometers along the Pacific coast and spans 30% of Central America. The El Nio-Southern Oscillation and climate change have given this portion of the continent a dual climatic character. This implies that households in the Dry Corridor endure a period of severe drought followed by catastrophic rainfall and floods every year.
- In 2022, the demand for residential property has soared. The destruction caused by tropical storms is one of the key reasons. Furthermore, as a result of their previous experience, the general population is looking for residences that are at higher elevations in order to avoid flooding. Independent houses/villas are in more demand than apartments among the sub-segments.
- The influence of COVID-19 on this sector has resulted in a decrease in the number of homes and apartments being built, despite the fact that the government has decreased its interest rate in order to stimulate the economy and create jobs for employees.
- The impact of a rise in cement bag prices also results in a little drop in construction activity so does COVID-19. Following an agreement with the Ministry of Economic Development, the price of a bag of cement was raised with effect from January 2022. As a result, a bag of grey cement that was formerly priced at HNL190 is now selling for at least HNL200, depending on the logistics involved.
- Some recent developments are ROATN (Honduras) – The first tower of the Duna Residences, an all-inclusive mixed-use real estate complex that will benefit from Prospero's unrivaled business ecosystem, has begun construction by Apolo Group, a prominent Honduran developer. The building will serve as a landmark for the first phase of this project in Roatan Próspera. Duna Tower 1 will be a 14-story structure with 85 apartments, three levels of collaborative office space, parking, and a podium retail area on the ground floor. Commercial space has already been reserved in the amount of 35%, and it is the first of four towers that were revealed earlier in 2022. construction of a mixed residential/commercial property in San Pedro Sula was commenced in the first quarter of 2022. The project will comprise nine stories of single-family residences in a commercial zone to give condominium owners convenient service services. Amenity amenities include a fitness facility, café, rooftop terrace, and commercial spaces. There will be a total of 23 apartments and a two-story penthouse, each having a living room, dining room, and kitchen, two to three bedrooms, two bathrooms, and two parking places.
- Construction of four 16-story towers for one-, two-, and three-bedroom apartments is planned for San Pedro Sula. It will have a variety of features, including the following: Each tower will feature a lobby; three swimming pools will be developed in perfect harmony with nature and comfort; a Jacuzzi area and social areas will be available. The home will have security, maintenance, and service available 24 hours a day, seven days a week. It will contain a state-of-the-art fitness center, a multifunctional playground, and a dynamic multi-sports green space. It will be equipped with an attractively conditioned event hall.
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Energy and utilities construction is driving the market
- Honduras is currently dependent on diesel power as a source of energy generation, but the country aims to generate 60% of demand from renewables in 2022. Scatec developed the Agua Fria Solar PV Park project and is currently active. It is a 59.6MW solar PV power project. It is located in Valley, Honduras. Agua Fria Solar PV Park is a ground-mounted solar project that is spread over an area of 70 hectares.
- The project generates 103,000MWh of electricity and supplies enough clean energy to power 25,826 households, offsetting 66,167t of carbon dioxide emissions (CO2) a year. The project cost is USD 125m. Scatec and Norfund currently own the project, having an ownership stake of 40% and 30%, respectively.
- The First Wind Project in Honduras, consisting of 51 2MW wind turbines, generates 345,970MWh of energy every year, which will be put into the National Interconnected System of Honduras. The turbines started producing energy in 2011, with the operational lifetime of the project expected to be at least 20 years. The project is preventing the emission of 226,978 tonnes of CO2e every year it is operational by replacing energy in the national grid generated from burning fossil fuels with energy from wind power. In addition, 57,000 trees have been planted over 34 acres around the project site, including 10,000 Quercus purslane, which is a species of oak that is native to Central America and is classified as vulnerable by the International Union for the Conservation of Nature (IUCN).
- On May 12, 2022, the National Congress approved the Special Law to Guarantee Electricity Service as a public good of national security and a human right of an economic and social nature. The Special Energy Law ordered the ENEE to review all generation contracts signed that have yet to start operations to adjust the start of their operation as established in the new law.
- Similarly, the board of directors and the general management of the ENEE are authorized to carry out a review of human resources and an administrative and technical restructuring of the company. National Electric Power Company (ENEE), the state-owned company, has 90 contracts with different private power generators, which are broken down into 41 contracts with hydraulic power generators, 17 with solar power generators or photovoltaic, 13 contracts with biomass-based power generators, 3 contracts with wind power generators, 1 contract with coal-based power generators and 1 contract with geothermal-based power generators as of June 2022, which drives the market in the coming years.
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