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Access to housing: The great pending issue of governments analyzed by sector experts - La Nación Propiedades
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www.lanacion.com.ar
October 18, 2023
A group of experts analyzed the current situation of the real estate market, while delving into the need to achieve unity and consensus in the sector.
Access to housing: the great pending issue of all governments analyzed by sector experts
The topic of the population's access to housing was one of the axes of reflection at the Real Estate Meeting organized by the University of San Andrés (UdeSA) on the occasion of the 20 years of the Real Estate Business Management and Development Program dictated by that House of Studies. The debate panel had two blocks, the first delved into the market situation and had Pablo Brener as speakers, who presented a report on the real estate market in CABA and GBA that resulted from the joint work between the Mercado Libre platform and UdeSA; and also had the participation of Germán Gómez Picasso, founder of Reporte Inmobiliario. Then it was the turn of the Housing Board, represented by Carlos Spina (AEV), Iván Szczech (CAMARCO), Malí Vázquez (CEDU) and Jorge Pellegrini (UOCRA).
In the first stage of the talk, Brener, Marketplace real estate leader, presented the results of the joint study between Mercado Libre and UdeSA, which showed that the prices of the value per m2 of houses in CABA, GBA north, south and West, if considered from 2019 to now, they decreased by 20%, although he warned that a stabilization is observed. “Publication prices are stable and it is also true that there was honesty; Since the pre-pandemic, prices have fallen, at first reluctantly. The closing value today has a consequently shorter gap ,” said Brener.
Regarding rentals , he made a representative comparison of the current moment that the real estate market is going through, in that sense he clarified that in 2019 on the platform 12% of the publications were about rentals and today they are reaching 5%. “ The supply is very contracted in rentals and grew much more in sales .” The rental supply fell by 50%, which accelerated in the last year and a half. In addition, the mix changed, in 2020 13% of the publications were in dollars and more than 80% in pesos, but in September of this year more than 64% of the rental publications are in dollars,” he warned.
In this context, he clarified that the first to dollarize was the northern area, especially in closed neighborhoods, however, in CABA currently 79% of the offer for long-term rentals is in dollars . “If we take the publication value today, the average price of a one-room apartment in CABA is $288,000 per month, prices are definitely a limitation for access to rented housing ,” Brener said. At the same time, he warned that there was also a sharp drop in the rental supply of one- and two-bedroom apartments and that this has a correlation with the increase in sales of these types.
Prices are a limitation for access to rented housing
For his part, Germán Gómez Picasso, founder of Reporte Inmobiliario, added his view on the housing situation these days and assured that “we are bad but not that bad . ” He explained that we are coming from four and a half years of consecutive price declines in the market. In this drop in prices in dollars: CABA accumulated 36% while in the GBA the drop was 42% and in the interior of the country 41%. “This caused demand to be reactivated. We have a growing demand , in August between CABA and GBA almost 15,000 deeds of sale were made without counting donations and ticket sessions. Prices began to recover slightly . The percentage between the publication value and the closing value in CABA is 6% when a year ago it was 8%, meaning that the gap between publication and closing is shortened,” he explained.
On the other hand, he also mentioned a survey carried out last year with almost 400 people that showed that 74% want to move, that is, they are not satisfied with the place where they live and this data is central for the sector. “The intention they mention is that they want more greenery, gardens, a balcony terrace, a change of neighborhood - to CABA or GBA Norte - modern typology houses,” he explained.
A discouraging fact that Gómez Picasso brought to the debate was that of salaries and access to housing. “To buy a 40 m² apartment we went from 1998, when 4.2 years of salary were needed, to today, when 13.3 full years of salary are required. That is, the salary effort for a worker to buy a home has tripled ,” he maintained. Likewise, the value of traditional rentals in pesos increased in the last 12 months, in CABA it increased by 250%, in GBA 170% and in the interior 137%.
Finally, he concluded that he does not recommend selling at current prices because in real terms we are at values of 2003 or 2004 in dollars and while in Argentina property prices fell in the rest of the world they rose considerably. Finally, he emphasized: “our activity is the only one in the country that has been practically dollarized for more than 50 years and it did not go that badly for us.”
Since 2016, 30,000 apartments have been made per year in CABA.
Regarding the housing problem, he highlighted “many say that the problem is the lack of public housing supply and if we look at the numbers, there are years in which the construction of public housing was 18% or 20%, so clearly it is not there.” there was the solution. While 70% and 80% of private work is housing.” At the same time, he reaffirmed the importance of the Housing Roundtable and assured that, although there are points in which its representatives disagree, they also find many points in common and the key is to achieve solutions based on consensus.
Malí Vázquez, architect and executive director of the Business Chamber of Urban Developers (CEDU) and president of Mujeres Real Estate, another of the panelists at the meeting at UdeSA, agreed with that spirit. “I highlight the importance of joining institutions because there is truly strength in unity. Believe me, it is true that even large companies need unity, whether to go talk to the government, unity to achieve anything from a procedure or whatever. ”, he warned.
At the same time, he stressed that although they defend different interests, they must seek consensus and make their way through collaboration without seeking individual personal or institutional benefits. Regarding the housing deficit, he maintained that the last census showed that there are four million more homes than in 2010, however, he explained that 50% is informality and the other 50% corresponds to 11% of public policy homes and the another 39% is private . “The housing deficit is not going to be solved by the private sector,” he concluded.
For his part, Jorge Pellegrini, member of the steering committee of the Construction Workers' Union of the Argentine Republic (UOCRA) said that he is clear that, on the one hand, there are the interests of local actors and, on the other, there is the common goal, but a strategic union is needed for the industry to improve.
“At UOCRA we care about taking a step forward and being social actors beyond what a union in itself means,” he warned. In that sense, he highlighted the work of UOCRA, which, for example, through the Workers' Housing Institute, has built some 7,000 homes throughout the country that are awarded in a preferential percentage to construction workers. “At this moment, about 500 homes are being built in Salta and some more in the province of Buenos Aires,” he highlighted and underlined other milestones such as the construction of 300 apartments in the Santa Rita neighborhood of CABA or the Plaza building in Puerto Madero that they built. along with three other developers.
The last census showed that there are four million more homes than in 2010, however, 50% is informal and the other 50% corresponds to 11% public policy homes and the other 39% is private.
“Belonging to a chamber means wanting to do not for yourself but for the whole,” said Iván Szczech builder, CEO of the Szczech Group and president of the Argentine Chamber of Construction (CAMARCO). “The changes are achieved from the proposals of the institutions, then, at a moment, some political sector that takes it and carries it forward, that conviction comes from the institutions and that is why it is so important to participate in them” , he highlighted. He in turn reflected on the importance of understanding that “we are all in the same boat, the reality is that if the boat sinks we are all there and that there are no companies without workers nor workers without companies.” He mentioned the important work of the Housing Roundtable that began in 2018 as a way to find joint solutions for the sector.
“The truth is that we came up with good ideas, two became bills, one was money laundering and the other was mortgage loans that were not discussed,” he said. In turn, he explained that CAMARCO encouraged the creation of an Infrastructure Policy Council, “with the intention of creating a private agenda to indicate to the State what the investment needs are for the next 20 years . ” That is, what we consider to be the works that Argentina needs to develop its productions, its exports and its social economy,” he concluded.
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Acceso a la vivienda: el gran tema pendiente de los gobiernos analizado por expertos del sector
Un grupo de expertos analizó la situación actual del mercado inmobiliario, a la vez que profundizó sobre la necesidad de lograr unión y consenso en el sector
www.lanacion.com.ar
October 18, 2023
A group of experts analyzed the current situation of the real estate market, while delving into the need to achieve unity and consensus in the sector.
Access to housing: the great pending issue of all governments analyzed by sector experts
The topic of the population's access to housing was one of the axes of reflection at the Real Estate Meeting organized by the University of San Andrés (UdeSA) on the occasion of the 20 years of the Real Estate Business Management and Development Program dictated by that House of Studies. The debate panel had two blocks, the first delved into the market situation and had Pablo Brener as speakers, who presented a report on the real estate market in CABA and GBA that resulted from the joint work between the Mercado Libre platform and UdeSA; and also had the participation of Germán Gómez Picasso, founder of Reporte Inmobiliario. Then it was the turn of the Housing Board, represented by Carlos Spina (AEV), Iván Szczech (CAMARCO), Malí Vázquez (CEDU) and Jorge Pellegrini (UOCRA).
In the first stage of the talk, Brener, Marketplace real estate leader, presented the results of the joint study between Mercado Libre and UdeSA, which showed that the prices of the value per m2 of houses in CABA, GBA north, south and West, if considered from 2019 to now, they decreased by 20%, although he warned that a stabilization is observed. “Publication prices are stable and it is also true that there was honesty; Since the pre-pandemic, prices have fallen, at first reluctantly. The closing value today has a consequently shorter gap ,” said Brener.
Sales and rental prices
However, he warned that although apartment prices fell in the same proportion, in CABA they began to rise as a rebound effect after having hit a floor . He at the same time detailed that CABA has a greater growth in inquiries for the purchase of houses and apartments, while the most in-demand neighborhoods are Caballito, Palermo, Belgrano, Recoleta and Balvanera . “These concentrate 40% of the demands, 45% of the visits focus on one- and two-bedroom units,” he said.Regarding rentals , he made a representative comparison of the current moment that the real estate market is going through, in that sense he clarified that in 2019 on the platform 12% of the publications were about rentals and today they are reaching 5%. “ The supply is very contracted in rentals and grew much more in sales .” The rental supply fell by 50%, which accelerated in the last year and a half. In addition, the mix changed, in 2020 13% of the publications were in dollars and more than 80% in pesos, but in September of this year more than 64% of the rental publications are in dollars,” he warned.
In this context, he clarified that the first to dollarize was the northern area, especially in closed neighborhoods, however, in CABA currently 79% of the offer for long-term rentals is in dollars . “If we take the publication value today, the average price of a one-room apartment in CABA is $288,000 per month, prices are definitely a limitation for access to rented housing ,” Brener said. At the same time, he warned that there was also a sharp drop in the rental supply of one- and two-bedroom apartments and that this has a correlation with the increase in sales of these types.
Prices are a limitation for access to rented housing
For his part, Germán Gómez Picasso, founder of Reporte Inmobiliario, added his view on the housing situation these days and assured that “we are bad but not that bad . ” He explained that we are coming from four and a half years of consecutive price declines in the market. In this drop in prices in dollars: CABA accumulated 36% while in the GBA the drop was 42% and in the interior of the country 41%. “This caused demand to be reactivated. We have a growing demand , in August between CABA and GBA almost 15,000 deeds of sale were made without counting donations and ticket sessions. Prices began to recover slightly . The percentage between the publication value and the closing value in CABA is 6% when a year ago it was 8%, meaning that the gap between publication and closing is shortened,” he explained.
Construction cost and salaries
Regarding the cost of construction, Gómez Picasso revealed that it is 15% below the average of the last 15 years, however, there is uncertainty about its evolution and this affects the sale price, "it cannot be sold at cost current because it is not known what the future cost will be,” he said. At the same time, he highlighted that private construction activity is very active and since 2016, 30,000 apartments have been built per year in CABA.On the other hand, he also mentioned a survey carried out last year with almost 400 people that showed that 74% want to move, that is, they are not satisfied with the place where they live and this data is central for the sector. “The intention they mention is that they want more greenery, gardens, a balcony terrace, a change of neighborhood - to CABA or GBA Norte - modern typology houses,” he explained.
A discouraging fact that Gómez Picasso brought to the debate was that of salaries and access to housing. “To buy a 40 m² apartment we went from 1998, when 4.2 years of salary were needed, to today, when 13.3 full years of salary are required. That is, the salary effort for a worker to buy a home has tripled ,” he maintained. Likewise, the value of traditional rentals in pesos increased in the last 12 months, in CABA it increased by 250%, in GBA 170% and in the interior 137%.
Finally, he concluded that he does not recommend selling at current prices because in real terms we are at values of 2003 or 2004 in dollars and while in Argentina property prices fell in the rest of the world they rose considerably. Finally, he emphasized: “our activity is the only one in the country that has been practically dollarized for more than 50 years and it did not go that badly for us.”
Since 2016, 30,000 apartments have been made per year in CABA.
Union and consensus
The other block of the table on access to housing included the analysis of the diversity of voices that make up the Housing Table. From different sectors, the speakers reaffirmed the importance of coming together to be heard and advance with the needs of the sector. One of the referents, Carlos Spina, director of Argencons and president of the Association of Housing Entrepreneurs (AEV), assured that the problems are shared and that a search for consensus is necessary.Regarding the housing problem, he highlighted “many say that the problem is the lack of public housing supply and if we look at the numbers, there are years in which the construction of public housing was 18% or 20%, so clearly it is not there.” there was the solution. While 70% and 80% of private work is housing.” At the same time, he reaffirmed the importance of the Housing Roundtable and assured that, although there are points in which its representatives disagree, they also find many points in common and the key is to achieve solutions based on consensus.
Malí Vázquez, architect and executive director of the Business Chamber of Urban Developers (CEDU) and president of Mujeres Real Estate, another of the panelists at the meeting at UdeSA, agreed with that spirit. “I highlight the importance of joining institutions because there is truly strength in unity. Believe me, it is true that even large companies need unity, whether to go talk to the government, unity to achieve anything from a procedure or whatever. ”, he warned.
At the same time, he stressed that although they defend different interests, they must seek consensus and make their way through collaboration without seeking individual personal or institutional benefits. Regarding the housing deficit, he maintained that the last census showed that there are four million more homes than in 2010, however, he explained that 50% is informality and the other 50% corresponds to 11% of public policy homes and the another 39% is private . “The housing deficit is not going to be solved by the private sector,” he concluded.
For his part, Jorge Pellegrini, member of the steering committee of the Construction Workers' Union of the Argentine Republic (UOCRA) said that he is clear that, on the one hand, there are the interests of local actors and, on the other, there is the common goal, but a strategic union is needed for the industry to improve.
“At UOCRA we care about taking a step forward and being social actors beyond what a union in itself means,” he warned. In that sense, he highlighted the work of UOCRA, which, for example, through the Workers' Housing Institute, has built some 7,000 homes throughout the country that are awarded in a preferential percentage to construction workers. “At this moment, about 500 homes are being built in Salta and some more in the province of Buenos Aires,” he highlighted and underlined other milestones such as the construction of 300 apartments in the Santa Rita neighborhood of CABA or the Plaza building in Puerto Madero that they built. along with three other developers.
The last census showed that there are four million more homes than in 2010, however, 50% is informal and the other 50% corresponds to 11% public policy homes and the other 39% is private.
“Belonging to a chamber means wanting to do not for yourself but for the whole,” said Iván Szczech builder, CEO of the Szczech Group and president of the Argentine Chamber of Construction (CAMARCO). “The changes are achieved from the proposals of the institutions, then, at a moment, some political sector that takes it and carries it forward, that conviction comes from the institutions and that is why it is so important to participate in them” , he highlighted. He in turn reflected on the importance of understanding that “we are all in the same boat, the reality is that if the boat sinks we are all there and that there are no companies without workers nor workers without companies.” He mentioned the important work of the Housing Roundtable that began in 2018 as a way to find joint solutions for the sector.
“The truth is that we came up with good ideas, two became bills, one was money laundering and the other was mortgage loans that were not discussed,” he said. In turn, he explained that CAMARCO encouraged the creation of an Infrastructure Policy Council, “with the intention of creating a private agenda to indicate to the State what the investment needs are for the next 20 years . ” That is, what we consider to be the works that Argentina needs to develop its productions, its exports and its social economy,” he concluded.
www.buysellba.com
