MercoPress. South Atlantic News Agency

Construction industry boom in Magallanes Region

Magallanes and Aisen regions in the extreme south of Chile are undergoing a boom in the construction industry pushed by urban development, real estate and public works, according to the latest report from the Chilean Construction Chamber.

Aisen which reports an 87.7% boost this year has benefited from the building of the Austral Highway, (a project to link the extreme north and south of the country by land) while in Magallanes it has been mostly the private sector that has helped the 60% expansion compared to the same period in 2005.

In Magallanes the main thrust came from the building of two brand new hotels, Rey Felipe and Diego de Almagro in Punta Arenas, plus culverts, sewage and water drainage.

The rate of expansion in the two regions also proved to be highest for the construction industry in Chile based on the Regional Construction Index that takes into account cement consumption, sector employment and new building permits.

"The index reflects variations in the construction industry and is a good guide for activity in the different regions", said Luis Nario president of the Construction Chamber.

At national level the Monthly Activity Index showed that the construction industry in Chile expanded 5.2% in the third quarter compared to the same period a year ago. Metropolitan Santiago represented over 50% of the aggregate increase equivalent to 2.7 points.

However other regions experienced a considerable drop in construction activity, Biobio 10.9% and Antofagasta 3.2%. The latter is attributed to a significant dip in cement consumption following the completion of expansion works in the mining industry.