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An unthinkable phenomenon: Inquiries and property sales grow during electoral times - La Nación Propiedades
Source:
www.lanacion.com.ar
October 23, 2023
The real estate market began to register a hot phenomenon before the elections: inquiries grow and purchase decisions are made quickly.
By Carla Quiroga
In recent weeks the apartments were sold in record time
In the final sprint before the elections, the real estate market began to register a hot phenomenon: inquiries for small and medium-sized units are growing . This week, purchasing decision making was accelerated, taking advantage of the opportunity to pay a low advance in dollars and enter the payment regime in installments in pesos for products in the well or under development.
The concrete fact is that in a climate of uncertainty about what is to come in the economic and institutional life of the country , consultations for small and medium-sized units increased and decisions are made to protect the pesos and take advantage of the financing opportunity. “Since the middle of the year, consultations began and interest remained after the PASO. There is no doubt that in contexts of uncertainty, brick is a refuge of value ,” says Gabriela Goldszer, director of Ocampo Propiedades, who details that all tickets and even used units are moved. “I am optimistic about what will happen to the real estate market regardless of who wins the elections,” adds the broker who this week received a flood of queries for Quartier Bajo Belgrano where apartments under construction are sold at an average of US3000/m².
His colleague, Miguel Ludmer, director of Interwin, agrees with this view. “Despite high annual inflation, we see renewed activity. There is no wait and see as usually happens in the months before the general elections.” The broker affirms that in the two months prior to the elections, he registered an acceleration in Hub, the project located in Cabildo and Jaramillo, in front of Plaza Balcarce. “Sales accelerated notably, also driven by the advanced level of the work, which at this point can already be seen from everywhere,” explains Ludmer, who also assures that developments in consolidated locations are a safe bet for investors due to their high projection. revaluation and income.
Along the same lines, Carlos Spina, partner of Argencons, the company that owns the Quartier brand, acknowledges being especially surprised by the number of sales registered in the last 20 days prior to the election: “We had more than 30 operations in three weeks both in projects that are just being launched in which the units are paid for with pesos and in those that have brand new finished apartments that can be paid in cash and that sell for an average of US$2,500/m².” The businessman believes that in turbulent times financiers allow fly to quality, but in this sector fly to trust happens: “People say: 'I have the pesos, they burn me'. And they wonder where it puts them in an environment of little trust and there they look for bricks in projects with support. We are even selling high ticket apartments: between US$400,000 and US$700,000,” says Spina, who has 330,000 meters under construction, including a condominium in Bajo Belgrano where the square meter averages US$3,000/m².
An aerial view of Quartier Bajo Belgrano with US$3000/m2 apartments
"We had more than 30 operations in three weeks, including cases of finished units that are paid in cash." Carlos Spina, director of Argencons
“In four weeks, 210 units of the Open Buenavista project were reserved ,” says Martín Boquete, director of Toribio Achával, master broker of the project when it is launched on the market. The successful pre-sale was closed under the friends and family format at a value between 15% and 20% cheaper than the amount with which it will be launched to the general public. “For us it is an unprecedented sale, we have never seen this level of sales in apartments,” he says, surprised. The specialist maintains that “demand is eager to buy. Today there is an acceleration in sales prior to the final presidential election. “This is something that never happened. I don't want to jump to conclusions but when people go out to buy something it is because they believe that the price will rise."
"There are unprecedented sales, we have never seen this level of sales in departments." Martín Boquete, director of Toribio Achával.
Brokers are surprised by the level of inquiries and sales made in recent weeks
“Today the market has movements in pesos in order to convert them to meters (dollar-linked) by companies and individuals who want to seek a refuge of value . It is an indirect way of buying dollars at a very good value because the cost of construction is, in historical terms, very cheap today,” Alan Mohadeb, partner at CEK, the developer with 11 projects, elaborates on the phenomenon of these times. in execution that sells finished units at an average of US$3,500/m² .
“Until Friday was a special week for all those who seek to protect their holdings and make intelligent investments, and it can be seen in the dynamics of the business, which accelerated in the last 15 days, especially before the vote,” says Camilo Herzovich, director commercial of NorthBaires, the developer that builds projects located in the city of Buenos Aires for the ABC1 segment. The company has two high-demand projects. OM Palermo, which will be delivered in 30 months, with units that are sold financed in 70 installments and that allow the buyer to move in in the 30th installment and continue paying as if it were a rental. The sales price starts at US$2,600/m² with tickets for a one-bedroom unit of 33 square meters starting at US$98,000. The phenomenon registers a lot of interest among investors looking for an income via international temporary rental platforms, such as Airbnb.
"We are registering not only more inquiries than usual, but purchasing decision making is happening faster than the average for the year" Camilo Herzovich, commercial director of NorthBaires
Business dynamics accelerated in the last 15 days
The avalanche of inquiries was also replicated for his other venture located in Recoleta. In terms of values, the sales price of the units starts at US$3,500/m² with tickets for a two-room, 60-square-meter unit starting at US$205,000.
The project being built where the América cinema was on Callao Avenue
Another specific case of a sales boom occurred in one of the projects that will be built in the Innovation Park. 150 apartments were sold in a month and a half . “We went on sale in July and in the first three days we sold 18 apartments, even with the political and economic context that the country is going through. The original project had offices but we identified a greater demand for housing, we reconfigured it and the following week we offered more apartments. Between July and August we sold 150 units and managed to close eight operations in one day ,” says Mariano Gubitosi, commercial manager of the developer Grupo Portland that is carrying out the venture. It is a mixed-use project for which US$38 million will be invested. 65% of the 191 units have a minimum ticket of US$101,000.
The aerial view of the Innovation Park, the area of the city that concentrates the largest number of new ventures
Another no small fact about the dynamics of the real estate market is that products that target the middle segment also registered activity. “ There is a need to decide, and to do it quickly . We noticed that the level of conversion from inquiry to purchase has accelerated a lot since the month began, and this last week before the elections the purchases were decided more quickly ,” says Diego Defranceschi, project director at Saltum, the developer that has two projects in two neighborhoods in the northern part of the city: WH Coghlan and H Bajo Belgrano. In the first case, the price of the apartments starts at US$2,500/m² , with units from 38 m² in single-room mode to 145 m² in four rooms. ”It is finished but it can be purchased with financing in pesos, while in Bajo Belgrano there is a pre-sale in progress, pre-launch,” adds the executive.
Along those lines, Ludmer explained that the paradox of a market without debt is the good and bad news: “On the one hand, there is no bank pushing for it, so people try to associate the value of the purchase with what they paid or tie it , and many People even prefer to postpone the sale. That is, the adjustment is by rhythm and not by price,” he details.
In short, in the market there is agreement that Argentina “is given away” in real estate matters. “If one looks at historical data to project where we are, it shows that the prices we have today were only lower in constant currency than now in 2002 and 1989,” Soldati compares.
On the other hand, the representatives affirm that the sales values have hit a floor and that there is a demand that adds to those who have been postponing the decision to move and those who have a flow of pesos that, given the impossibility of buying dollars, allocate it to the properties.
Gonzalo de la Serna, CEO of Consultatio delves into what is happening in the real estate market and relates it to the financial market. A year ago, stocks were 70% below their highs and real estate seemed more resilient, but in the last 12 months the value of companies has doubled (or more) in dollars. This adjustment in relative prices implied that the sales values of the properties reached their floor and gives the perspective that they will rise. “What happens is that financial assets, being more liquid, move faster but they anticipate what can happen in the brick,” he says.
The developer Gerardo Azcuy, president of the homonymous developer, puts the value of the construction cost on the discussion table . He assures that it remained stable, it is still 10 percent below the average for the decade. That is to say, it is not the opportunity of October 2020 when it hit its historical floor of the last 20 years, but it is still an attractive investment . “This means that the income from a project from start to finish is around 40 percent,” he says. De la Serna insists that “the brick is more resilient than other assets such as financial assets that can yield more at some point and not at another.”
At the same time, Boquete questions that Argentines “ are used to looking at the situation to make decisions but the truth is that real estate is a product that transcends the situation: when values are recovered, that is when people remember that “real estate is for life.”
The lagoon that is part of Nuevo Bella Vista
As for marketing, tickets start at US$79,000, with the option of financing in pesos and CAC adjustment in 24 months, that is, the construction period of the work, while the price per square meter starts at US$1,399. “We are also launching the first residential projects, which, together with office projects, will complete a new concept of life,” says Boquete, who received a wave of inquiries about another venture that he did not even launch : Bosque Tortugas, a condominium in Pilar in where units start from US$110,000 to US$500,000.
Tortugas Forest is built in Pilar
Another surprising launch of the year was the first Pininfarina tower in the country. The project is being built by the Britos : they hired the creative team of the king of Italian luxury car design - and also of the emblematic Torino - to create a real estate project in which they will spend about US$30 million on its construction alone . It will have 35 floors and 90 apartments that today sell from US$500,000 - those of 82 square meters - to US$1,500,000 - semi-flats of 240 meters -, although it also has penthouses for US$3.5 million.
"We sell for US$6,000 per square meter and we had more demand than supply." Marcos Brito, businessman
“We had more demand than supply ,” admits Brito, surprised, who sells per square meter for US$6,000 , a value above what finished properties are offered in the youngest and most expensive neighborhood of the city. “The market validated those prices because the apartments are a kind of fixed term in dollars : a different project with an international brand with a benefit that goes directly to the value of the unit,” analyzes the businessman who plans to finish the venture in three years.
This will be the tower that Brito builds in the youngest neighborhood of the city
“We are preparing for any scenario ,” the businessman responds when asked about how a sudden devaluation would impact the project. Brito is convinced that today it is not a good business to stock dollars and that brick in high-end ventures is a refuge of value. “Not only the pesos burn; the dollars, too,” he says. Maybe that was the reason why in less than a year he sold more than 60 percent of the apartments .
Another launch announced with great fanfare this year is the mega-project that will be carried out in Núñez, on the property where the former Federal Tire operated: the Werthein Group advances with the Udaondo project of US$180 million investment without considering the value of the land. This figure will drive the construction of three 100-meter-high premium towers with residences, a five-star hotel and branded residences with a sustainable matrix. Although there is still no defined date for its commercialization, initial calculations indicate that the value of the units would exceed US$6,000 per square meter when the pre-sale begins.
The Udaondo project, the most important in the Innovation Park, will be carried out on the land that the Wertheins bought
The data points towards a general trend of reactivation and the figures showed surprising results. With a total of 4,135 deeds carried out in August, a notable increase of 32.7% was observed compared to the same period of the previous year, according to the Buenos Aires College of Notaries. Furthermore, this increase represented an increase of 23.2% compared to the previous month. The surprising thing is that this growth has been sustained for 17 consecutive months , one of the longest streaks in the history of the sector.
HUB, the Interwin venture that registered an increase in sales in recent months
So far in 2023, a total of 23,398 deeds have been accumulated , which is equivalent to a notable increase of 17% compared to the same period last year and 7.6% above the volume achieved in 2019. However, It is important to note that, despite this vigorous performance, the number of writes remains significantly lower than the historical average of 41,000.
The growth in the number of real estate transactions shows for now that the expectations of a new government and economic program are weighing more than the wait and see typical of presidential election times .
In the case of Puertos, Eduardo Costantini's other neighborhood, located in the new Escobar, enjoys the benefits of the market's tailwind. Orillas, the latest release of more than 430 lots, also sold at full speed. “The lots will only be delivered in two years, but people buy as a guarantee of investment because, in addition, until then, they do not generate expenses because expenses are not paid,” explains Mariano Monteverdi, director of the residential area of Ports at LJ Ramos.
To give a more precise idea of the phenomenon: during the first half of the year, the firm launched two neighborhoods: Silvestre in Nordelta and Orillas in Puertos. Each of 100 lots of between US$150,000 and US$250,000 . In both cases they sold everything within a week . De la Serna reveals another factor that could work in his favor. In numbers, the cost of construction is “stable in the last year and 10% below the decade.” That is, for now, building is still good business.
“Today, the sale of lots in gated communities is experiencing a boom ,” summarizes Boquete, from Toribio Achával, who two weeks ago sold 90% of the lots in Aluen, a gated community in the southern area, in one hour. In a virtual line similar to the one music fans make for recitals, 62 buyers accessed their plot of land and left only eight vacant plots of the 70 that are being marketed in this instance of the project. The most curious thing about the record is that they are not lands that are sold at a bargain price. These are tickets that start at US$50,000, an amount with which one could buy a studio apartment in an average neighborhood of the city.
“ Without promotion, we carried out a pre-sale of a new project to get ahead of the elections and we sold 62 lots in just one day ,” explains a surprised Mariano Galeazza, partner at Desarrollos Norte. He is referring to Verona Pilar, a venture located 700 meters from kilometer 47 of the Panamericana Pilar branch. The project has 181 lots of 600 to 800 square meters, which are sold between US$70,000 and US$130,000 with financing options in up to 36 installments. Galeazza seeks to replicate the success of Azzurra Tortugas, the developer's first neighborhood located at kilometer 38 of the Panamericana Pilar branch: he launched it in the middle of the pandemic and it is already 95% sold. “People who know the area buy and who know that the same land in a consolidated project costs US$180,000,” he explains.
Azzurra Tortugas was launched in the middle of the pandemic: today it has families living and 60 houses under construction.
“People began to understand that there will soon be a shortage, and they buy,” analyzes Galeazza, who sold Azzurra Tortugas in record time: there are already families living there and 60 houses under construction. “So far this year, we have sold more than 70 lots, 15 of them facing the lagoon, at values between US$400,000 and US$450,000. We only have 13 left in the water,” she details.
“It is important to highlight that even in times of elections and in a context of instability like the current one, investment in housing is one of the safest alternatives and resists all variables because it is a long-term bet,” analyzes José Iribarren, Director Eidico commercial. He adds that demand continues in consolidated areas, such as Pilar, Escobar, Tigre or Canning and also in economic lots in the shorter term, two years. The company launched the San Antonio neighborhood, part of the Canning Village masterplan. “The lots are between 600 and 995 m², with values ranging from US$35,000 to US$64,500,” details the executive. The project includes two stages, of which the first has so far been launched with 60% subscription.
In an unpredictable Argentina, the brick boom gains prominence as one of the phenomena of these times. This unexpected event is proof that tangible goods are winners in an uncertain context.
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Un fenómeno impensado: crecen las consultas y las ventas de propiedades en tiempos electorales
El mercado inmobiliario comenzó a registrar un fenómeno caliente antes de las elecciones: crecen las consultas y las decisiones de compra se toman rápidamente
www.lanacion.com.ar
October 23, 2023
The real estate market began to register a hot phenomenon before the elections: inquiries grow and purchase decisions are made quickly.
By Carla Quiroga
In recent weeks the apartments were sold in record time
In the final sprint before the elections, the real estate market began to register a hot phenomenon: inquiries for small and medium-sized units are growing . This week, purchasing decision making was accelerated, taking advantage of the opportunity to pay a low advance in dollars and enter the payment regime in installments in pesos for products in the well or under development.
The concrete fact is that in a climate of uncertainty about what is to come in the economic and institutional life of the country , consultations for small and medium-sized units increased and decisions are made to protect the pesos and take advantage of the financing opportunity. “Since the middle of the year, consultations began and interest remained after the PASO. There is no doubt that in contexts of uncertainty, brick is a refuge of value ,” says Gabriela Goldszer, director of Ocampo Propiedades, who details that all tickets and even used units are moved. “I am optimistic about what will happen to the real estate market regardless of who wins the elections,” adds the broker who this week received a flood of queries for Quartier Bajo Belgrano where apartments under construction are sold at an average of US3000/m².
His colleague, Miguel Ludmer, director of Interwin, agrees with this view. “Despite high annual inflation, we see renewed activity. There is no wait and see as usually happens in the months before the general elections.” The broker affirms that in the two months prior to the elections, he registered an acceleration in Hub, the project located in Cabildo and Jaramillo, in front of Plaza Balcarce. “Sales accelerated notably, also driven by the advanced level of the work, which at this point can already be seen from everywhere,” explains Ludmer, who also assures that developments in consolidated locations are a safe bet for investors due to their high projection. revaluation and income.
Along the same lines, Carlos Spina, partner of Argencons, the company that owns the Quartier brand, acknowledges being especially surprised by the number of sales registered in the last 20 days prior to the election: “We had more than 30 operations in three weeks both in projects that are just being launched in which the units are paid for with pesos and in those that have brand new finished apartments that can be paid in cash and that sell for an average of US$2,500/m².” The businessman believes that in turbulent times financiers allow fly to quality, but in this sector fly to trust happens: “People say: 'I have the pesos, they burn me'. And they wonder where it puts them in an environment of little trust and there they look for bricks in projects with support. We are even selling high ticket apartments: between US$400,000 and US$700,000,” says Spina, who has 330,000 meters under construction, including a condominium in Bajo Belgrano where the square meter averages US$3,000/m².
An aerial view of Quartier Bajo Belgrano with US$3000/m2 apartments
"We had more than 30 operations in three weeks, including cases of finished units that are paid in cash." Carlos Spina, director of Argencons
“In four weeks, 210 units of the Open Buenavista project were reserved ,” says Martín Boquete, director of Toribio Achával, master broker of the project when it is launched on the market. The successful pre-sale was closed under the friends and family format at a value between 15% and 20% cheaper than the amount with which it will be launched to the general public. “For us it is an unprecedented sale, we have never seen this level of sales in apartments,” he says, surprised. The specialist maintains that “demand is eager to buy. Today there is an acceleration in sales prior to the final presidential election. “This is something that never happened. I don't want to jump to conclusions but when people go out to buy something it is because they believe that the price will rise."
"There are unprecedented sales, we have never seen this level of sales in departments." Martín Boquete, director of Toribio Achával.
Brokers are surprised by the level of inquiries and sales made in recent weeks
The US$70 million investment venture that surprised the brokers themselves is developed by Grupo Portland and CEK. It has four eight-story buildings . Of the four buildings, only three were launched for sale, amounting to 250 units in total and of which 210 were reserved in record time . In numbers, the pre-sale to the closed circle came out at US$2,200/m², but in the open launch that value will rise to US$2,700/m² with the expectation that once finished it will cost above US$3,000 per square meter, a figure they manage new projects completed nearby.“Today the market has movements in pesos in order to convert them to meters (dollar-linked) by companies and individuals who want to seek a refuge of value . It is an indirect way of buying dollars at a very good value because the cost of construction is, in historical terms, very cheap today,” Alan Mohadeb, partner at CEK, the developer with 11 projects, elaborates on the phenomenon of these times. in execution that sells finished units at an average of US$3,500/m² .
“Until Friday was a special week for all those who seek to protect their holdings and make intelligent investments, and it can be seen in the dynamics of the business, which accelerated in the last 15 days, especially before the vote,” says Camilo Herzovich, director commercial of NorthBaires, the developer that builds projects located in the city of Buenos Aires for the ABC1 segment. The company has two high-demand projects. OM Palermo, which will be delivered in 30 months, with units that are sold financed in 70 installments and that allow the buyer to move in in the 30th installment and continue paying as if it were a rental. The sales price starts at US$2,600/m² with tickets for a one-bedroom unit of 33 square meters starting at US$98,000. The phenomenon registers a lot of interest among investors looking for an income via international temporary rental platforms, such as Airbnb.
"We are registering not only more inquiries than usual, but purchasing decision making is happening faster than the average for the year" Camilo Herzovich, commercial director of NorthBaires
Business dynamics accelerated in the last 15 days
"There is no doubt that in contexts of uncertainty, brick is a refuge of value" Gabriela Goldszar, director of Ocampo PropertiesThe avalanche of inquiries was also replicated for his other venture located in Recoleta. In terms of values, the sales price of the units starts at US$3,500/m² with tickets for a two-room, 60-square-meter unit starting at US$205,000.
The project being built where the América cinema was on Callao Avenue
Another specific case of a sales boom occurred in one of the projects that will be built in the Innovation Park. 150 apartments were sold in a month and a half . “We went on sale in July and in the first three days we sold 18 apartments, even with the political and economic context that the country is going through. The original project had offices but we identified a greater demand for housing, we reconfigured it and the following week we offered more apartments. Between July and August we sold 150 units and managed to close eight operations in one day ,” says Mariano Gubitosi, commercial manager of the developer Grupo Portland that is carrying out the venture. It is a mixed-use project for which US$38 million will be invested. 65% of the 191 units have a minimum ticket of US$101,000.
The aerial view of the Innovation Park, the area of the city that concentrates the largest number of new ventures
Another no small fact about the dynamics of the real estate market is that products that target the middle segment also registered activity. “ There is a need to decide, and to do it quickly . We noticed that the level of conversion from inquiry to purchase has accelerated a lot since the month began, and this last week before the elections the purchases were decided more quickly ,” says Diego Defranceschi, project director at Saltum, the developer that has two projects in two neighborhoods in the northern part of the city: WH Coghlan and H Bajo Belgrano. In the first case, the price of the apartments starts at US$2,500/m² , with units from 38 m² in single-room mode to 145 m² in four rooms. ”It is finished but it can be purchased with financing in pesos, while in Bajo Belgrano there is a pre-sale in progress, pre-launch,” adds the executive.
Is it time to buy?
When it comes to answering whether it is time to buy, Leandro Soldati, partner of the real estate company of the same name, assures that the local real estate market is going through a moment with ideal conditions for the purchase of a property . “It is difficult for the owners to accept the price drop because the nominal value is recorded without realizing that they can make larger purchases. That is why the upward processes are fast, we all ride the boom and the downward ones are slow,” he explains.Along those lines, Ludmer explained that the paradox of a market without debt is the good and bad news: “On the one hand, there is no bank pushing for it, so people try to associate the value of the purchase with what they paid or tie it , and many People even prefer to postpone the sale. That is, the adjustment is by rhythm and not by price,” he details.
In short, in the market there is agreement that Argentina “is given away” in real estate matters. “If one looks at historical data to project where we are, it shows that the prices we have today were only lower in constant currency than now in 2002 and 1989,” Soldati compares.
On the other hand, the representatives affirm that the sales values have hit a floor and that there is a demand that adds to those who have been postponing the decision to move and those who have a flow of pesos that, given the impossibility of buying dollars, allocate it to the properties.
Gonzalo de la Serna, CEO of Consultatio delves into what is happening in the real estate market and relates it to the financial market. A year ago, stocks were 70% below their highs and real estate seemed more resilient, but in the last 12 months the value of companies has doubled (or more) in dollars. This adjustment in relative prices implied that the sales values of the properties reached their floor and gives the perspective that they will rise. “What happens is that financial assets, being more liquid, move faster but they anticipate what can happen in the brick,” he says.
The developer Gerardo Azcuy, president of the homonymous developer, puts the value of the construction cost on the discussion table . He assures that it remained stable, it is still 10 percent below the average for the decade. That is to say, it is not the opportunity of October 2020 when it hit its historical floor of the last 20 years, but it is still an attractive investment . “This means that the income from a project from start to finish is around 40 percent,” he says. De la Serna insists that “the brick is more resilient than other assets such as financial assets that can yield more at some point and not at another.”
At the same time, Boquete questions that Argentines “ are used to looking at the situation to make decisions but the truth is that real estate is a product that transcends the situation: when values are recovered, that is when people remember that “real estate is for life.”
Launch boom
Boquete recognizes that the context also drives the launch of projects. In fact, he launched Nuevo Bella Vista, an urbanization with a park, low-density gated communities, condominiums, commercial sectors , a gastronomic plaza, the Sagrada Familia School, studios and offices.
The lagoon that is part of Nuevo Bella Vista
As for marketing, tickets start at US$79,000, with the option of financing in pesos and CAC adjustment in 24 months, that is, the construction period of the work, while the price per square meter starts at US$1,399. “We are also launching the first residential projects, which, together with office projects, will complete a new concept of life,” says Boquete, who received a wave of inquiries about another venture that he did not even launch : Bosque Tortugas, a condominium in Pilar in where units start from US$110,000 to US$500,000.
Tortugas Forest is built in Pilar
Another surprising launch of the year was the first Pininfarina tower in the country. The project is being built by the Britos : they hired the creative team of the king of Italian luxury car design - and also of the emblematic Torino - to create a real estate project in which they will spend about US$30 million on its construction alone . It will have 35 floors and 90 apartments that today sell from US$500,000 - those of 82 square meters - to US$1,500,000 - semi-flats of 240 meters -, although it also has penthouses for US$3.5 million.
"We sell for US$6,000 per square meter and we had more demand than supply." Marcos Brito, businessman
“We had more demand than supply ,” admits Brito, surprised, who sells per square meter for US$6,000 , a value above what finished properties are offered in the youngest and most expensive neighborhood of the city. “The market validated those prices because the apartments are a kind of fixed term in dollars : a different project with an international brand with a benefit that goes directly to the value of the unit,” analyzes the businessman who plans to finish the venture in three years.
This will be the tower that Brito builds in the youngest neighborhood of the city
“We are preparing for any scenario ,” the businessman responds when asked about how a sudden devaluation would impact the project. Brito is convinced that today it is not a good business to stock dollars and that brick in high-end ventures is a refuge of value. “Not only the pesos burn; the dollars, too,” he says. Maybe that was the reason why in less than a year he sold more than 60 percent of the apartments .
Another launch announced with great fanfare this year is the mega-project that will be carried out in Núñez, on the property where the former Federal Tire operated: the Werthein Group advances with the Udaondo project of US$180 million investment without considering the value of the land. This figure will drive the construction of three 100-meter-high premium towers with residences, a five-star hotel and branded residences with a sustainable matrix. Although there is still no defined date for its commercialization, initial calculations indicate that the value of the units would exceed US$6,000 per square meter when the pre-sale begins.
The Udaondo project, the most important in the Innovation Park, will be carried out on the land that the Wertheins bought
Concrete signs
During the last few months, the real estate market in the Autonomous City of Buenos Aires gave signs of being in a recovery process , evidencing a change of cycle in the dynamics of the sector. Despite the complexity added to the Argentine economic panorama after the primary elections (PASO), which included the devaluation and the increase in the exchange gap and generated an increase in inflation, the real estate market has maintained surprising dynamism.The data points towards a general trend of reactivation and the figures showed surprising results. With a total of 4,135 deeds carried out in August, a notable increase of 32.7% was observed compared to the same period of the previous year, according to the Buenos Aires College of Notaries. Furthermore, this increase represented an increase of 23.2% compared to the previous month. The surprising thing is that this growth has been sustained for 17 consecutive months , one of the longest streaks in the history of the sector.
HUB, the Interwin venture that registered an increase in sales in recent months
So far in 2023, a total of 23,398 deeds have been accumulated , which is equivalent to a notable increase of 17% compared to the same period last year and 7.6% above the volume achieved in 2019. However, It is important to note that, despite this vigorous performance, the number of writes remains significantly lower than the historical average of 41,000.
The growth in the number of real estate transactions shows for now that the expectations of a new government and economic program are weighing more than the wait and see typical of presidential election times .
Another boom: lots in gated communities
Another election effect is the boom experienced in the sale of lots in gated communities . Although the phenomenon is not massive, it is surprising, above all, because of the context in which it occurs: in a year of presidential elections in which the devaluation of the peso is also discounted, periods in which the real estate market usually paralyzes. Real estate brokers seek to explain what is happening. “Demand is robust and is matched by those investing in the future. “They look through the wall of this political cycle and buy real assets as an investment refuge,” analyzes de la Serna, from Consultatio, the developer of Nordelta and Puertos.In the case of Puertos, Eduardo Costantini's other neighborhood, located in the new Escobar, enjoys the benefits of the market's tailwind. Orillas, the latest release of more than 430 lots, also sold at full speed. “The lots will only be delivered in two years, but people buy as a guarantee of investment because, in addition, until then, they do not generate expenses because expenses are not paid,” explains Mariano Monteverdi, director of the residential area of Ports at LJ Ramos.
To give a more precise idea of the phenomenon: during the first half of the year, the firm launched two neighborhoods: Silvestre in Nordelta and Orillas in Puertos. Each of 100 lots of between US$150,000 and US$250,000 . In both cases they sold everything within a week . De la Serna reveals another factor that could work in his favor. In numbers, the cost of construction is “stable in the last year and 10% below the decade.” That is, for now, building is still good business.
“Today, the sale of lots in gated communities is experiencing a boom ,” summarizes Boquete, from Toribio Achával, who two weeks ago sold 90% of the lots in Aluen, a gated community in the southern area, in one hour. In a virtual line similar to the one music fans make for recitals, 62 buyers accessed their plot of land and left only eight vacant plots of the 70 that are being marketed in this instance of the project. The most curious thing about the record is that they are not lands that are sold at a bargain price. These are tickets that start at US$50,000, an amount with which one could buy a studio apartment in an average neighborhood of the city.
“ Without promotion, we carried out a pre-sale of a new project to get ahead of the elections and we sold 62 lots in just one day ,” explains a surprised Mariano Galeazza, partner at Desarrollos Norte. He is referring to Verona Pilar, a venture located 700 meters from kilometer 47 of the Panamericana Pilar branch. The project has 181 lots of 600 to 800 square meters, which are sold between US$70,000 and US$130,000 with financing options in up to 36 installments. Galeazza seeks to replicate the success of Azzurra Tortugas, the developer's first neighborhood located at kilometer 38 of the Panamericana Pilar branch: he launched it in the middle of the pandemic and it is already 95% sold. “People who know the area buy and who know that the same land in a consolidated project costs US$180,000,” he explains.
Azzurra Tortugas was launched in the middle of the pandemic: today it has families living and 60 houses under construction.
“People began to understand that there will soon be a shortage, and they buy,” analyzes Galeazza, who sold Azzurra Tortugas in record time: there are already families living there and 60 houses under construction. “So far this year, we have sold more than 70 lots, 15 of them facing the lagoon, at values between US$400,000 and US$450,000. We only have 13 left in the water,” she details.
“It is important to highlight that even in times of elections and in a context of instability like the current one, investment in housing is one of the safest alternatives and resists all variables because it is a long-term bet,” analyzes José Iribarren, Director Eidico commercial. He adds that demand continues in consolidated areas, such as Pilar, Escobar, Tigre or Canning and also in economic lots in the shorter term, two years. The company launched the San Antonio neighborhood, part of the Canning Village masterplan. “The lots are between 600 and 995 m², with values ranging from US$35,000 to US$64,500,” details the executive. The project includes two stages, of which the first has so far been launched with 60% subscription.
In an unpredictable Argentina, the brick boom gains prominence as one of the phenomena of these times. This unexpected event is proof that tangible goods are winners in an uncertain context.
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