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Almost 5,000 deeds in CABA: They grew 50% in July and reached the best figure in six years - Infobae
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Casi 5.000 escrituras en CABA: crecieron 50% en julio y alcanzaron la mejor cifra en seis años
Las operaciones inmobiliarias relevadas por el Colegio de Escribanos porteño de julio treparon a $437.194 millones. Asimismo, las transacciones con hipotecas crecieron un 95,6% intermensual
www.infobae.com
August 23, 2024
Real estate transactions surveyed by the Buenos Aires Notary Association in July rose to $437,194 million. Likewise, mortgage transactions grew by 95.6% month-on-month
By Jose Luis Cieri
The real estate market is recovering: the almost 5,000 deeds in July are the best record since May 2018, when 5,944 transactions were carried out (Illustrative Image Infobae)
The real estate market confirmed its improvement with the recent report on deeds from the College of Notaries of the City of Buenos Aires. After more than six years, in July a significant increase was recorded in the total number of deeds of sale of properties.
In the seventh month of 2024, 4,946 deeds were executed, which represents an increase of 47.3% compared to the previous year's level. In addition, the total amount of transactions carried out increased by 450.4%, to 437,194 million pesos. Compared to June, the number of deeds increased by 16.9% (that month, 4,232 deeds had been executed).
The average amount of the acts was $88,393,521 (USD 91,878 according to the average official exchange rate): it grew 280.4% in one year in pesos, and in US currency it rose 10%.
In addition, 225 mortgage deeds were registered in July, which represents an increase of 41.5% compared to the same month last year and 95.6% month-on-month.
Source: College of Notaries of the City of Buenos Aires
This shows that, timidly, the presence of new mortgage loans that are already offered by more than 21 banks is beginning to be noticed and, as Infobae anticipated, inquiries and transactions in real estate agencies have increased .
The best month in six years
According to Jorge De Bártolo , president of the College of Notaries of CABA, the real estate market is at its best in the last 74 months. Since the latter part of 2023, the indices have been increasing, despite electoral uncertainty.“Historically, during election years there was a slight decline, but the last quarter showed a significant push. This growth is partly due to the fact that we are coming from years with low levels, and any movement causes the comparison to rise rapidly. Hundreds of families took advantage of the good market prices and the perception that properties had reached a bottom,” he told Infobae .
Expectations are also high with regard to the recently regulated money laundering and new loans.
“Both sides could further boost the real estate market. At the end of July 2024, there were around 25,000 deeds of sale, one of the best years in recent times. However, to compare it with really good years, in 2018 there were almost 36,000 transactions in the first seven months; in 2007 there were almost 40,000 and in 1998 there were more than 42,000 due to the high level of mortgage credit,” added De Bártolo.
Source: College of Notaries of the City of Buenos Aires
Expectations
Expectations regarding the availability and accessibility of mortgage loans for the coming months are positive.“We always say that credit creates a market. This encourages a family that did not have the full amount to now have the help of a bank, generating more transactions. In July, an initial growth was already perceived with more than 200 deeds formalized with a mortgage, an interesting inter-monthly jump. The challenge is to speed up the handling of requests so that they reach the notary quickly and the transaction is completed safely,” said De Bártolo.
Source: College of Notaries of the City of Buenos Aires
The last record of a similar number of transactions dates back to 2018, when more than 2,300 mortgages were issued in a single month, representing almost 40% of the volume of sales. In contrast, in recent years, the number of mortgages issued per month was barely more than 100.
Recovery factors and real estate voice
The increase in the number of deeds is also influenced by the elimination of the Real Estate Transfer Tax (ITI) , a tax that burdened the seller at 1.5 percent.The growth in the number of mortgages indicates that the credit wheel is turning, although incipiently. According to De Bártolo, “if the trend continues, there could be a significant increase in loan applications and the execution of deeds.”
This increase is also due to several factors, such as the fact that property values are at their lowest level in the last 15 years, which has encouraged the purchase of properties. In addition, the rise in the cost of building new buildings has made used properties more competitive and attractive.
Agustín Walger , director of New Developments at Lepore Properties, said that there are more and more inquiries about real estate transactions with mortgage loans. “This increase should continue in the coming months. Sales, especially of used units, are beneficial because they generate economic movement.”
Two-room apartments are among the preferred ones to buy due to demand
He explained that the most common options are to buy back another property, invest in machinery or save the capital. The first two generate dynamism in the economy by boosting the construction industry and other sectors.
Walger warned that the least favorable option is for the money to remain frozen or externalized, “since this does not contribute to economic movement.”
The growth in the real estate sector is also due to political, economic and macroeconomic confidence factors.
Fernando Pérez , director of Coldwell Banker Desiderio Group, highlighted that “more deeds are beginning to be seen through mortgage loans, thanks to the significant number of banks that are offering them, although the granting mechanism still needs adjustments.”
For the immediate future, the money laundering is also expected to influence sales. This framework and a slight increase in property values across the board add further confidence to the segment.
Demand increased for both used and new properties, although used properties are ahead.
“The lowest prices, below USD 100,000, are the most popular, and two-room apartments are the most popular among buyers,” concluded Pérez.
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