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Buenos Aires real estate market: the best August in 6 years was recorded with more than 10,000 deeds - Infobae
Source:
www.infobae.com
October 08, 2024
As in CABA, a favourable change in trend is observed. Mortgage credit is also back in the spotlight, with 747 deeds made through mortgages, an increase of 63.1% compared to July. What are the reasons behind this recovery?
By Jose Luis Cieri
As in CABA, a favourable change in trend is observed. Mortgage credit is also back in the spotlight, with 747 deeds made through mortgages, an increase of 63.1% compared to July. What are the reasons behind this recovery?
A two-bedroom apartment located in Temperley. Properties with these characteristics are among the most sold in the province of Buenos Aires
Similar to CABA ( last August was the best after 75 months ), the real estate market in the province of Buenos Aires shows signs of recovery. The survey by the Provincial Notary Association confirmed that August was the best month in 6 years, with 10,507 transactions, being the most active month in sales of the year. Notarial acts reflect an increase of 11.2% compared to July and 10.7% compared to August 2023.
As for mortgages, mortgage loans are also starting to appear since more than 20 banks have reintroduced them since the end of April. There were 747 registered in August, 63.1% more than in July and a year-on-year growth of 30.4%.
During the period from January to August 2024, the Buenos Aires real estate market experienced a significant increase in sales. Compared to the same period in 2023, where 54,141 transactions were recorded, 61,078 sales were made in 2024. This represents a positive variation of 12.81%, and reflects a recovery that leaves behind more than 5 years of crisis.
“The year-on-year growth confirms the expectations of the real estate market, which points to a recovery. We trust that this trend will be consolidated, especially with the growth of mortgage loans, since we see a growing interest from families, with hundreds of queries and procedures,” Guillermo Longhi , president of the College of Notaries of Buenos Aires, told Infobae.
Another reason for the sector's recovery is that relatively low property prices (in Buenos Aires they fell by 45% since August 2018 to date and not in all cities have values recovered) stimulated the interest of buyers.
Regarding the 63.1% increase in mortgages, Longhi said that the impact is positive for the reactivation of the market. Although it is not yet fully reflected in the statistics, the increase in enquiries and interest in accessing mortgage loans suggest that this will be a key factor in the immediate future. “It must be made clear that this percentage must be taken in context, considering that previous figures were low,” he added.
Another important aspect is the behavior of buyers, who are showing interest in acquiring properties.
Longhi stressed that access to credit will be key to consolidating the market's recovery, especially for those looking for their first home. "In addition, the role of notaries in offering crucial advice to make informed decisions and avoid future legal problems is key," he said.
Ariel José Córdoba , from Córdoba Properties, said that “the money laundering and the reappearance of mortgage loans provided tools that revived the interest of buyers, who began to make more inquiries and agreements through various channels.”
These changes generated enthusiasm and facilitated the completion of sales, especially for properties that had been unable to close for some time.
“Current opportunities, with prices still affordable, suggest that demand will increase before the end of the year, driven by money laundering and credit, which will possibly increase property values in the short term,” Córdoba added.
Growth in sales is also influenced by exchange rate stability and the desire to preserve value in properties.
Santiago López Gastesi , managing partner of López Gastesi Properties, said that “this moderate stability provided predictability and reactivated operations that were on hold due to political and economic uncertainty.”
The trend towards larger homes, with green spaces and in suburban areas such as Tigre, Pilar, Canning City Bell or Gorina (La Plata), has strengthened.
“Mortgages also drive the sale of used properties or properties in emerging neighborhoods, since several buyers use this financing to acquire properties outside the most expensive areas of the province, in properties of up to USD 120,000,” added López Gastesi.
Many buyers are choosing to make transactions in cash, seeking to avoid debt in an uncertain economic environment. This behavior is due, in part, to the high level of informality in the economy, where money under the mattress remains a common resource for financing property purchases.
López Gastesi added: “The rise in transactions also reflects a sense of urgency among those considering buying, pressured by possible future price increases and possible exchange restrictions or adjustments in interest rates.”
Fernando Pozzi , managing partner of Pozzi Inmobiliaria, highlighted that “93% of sales are made in cash, while only 7% involve mortgages. Even so, the interest generated by money laundering and enquiries show that demand continues to grow, which could drive more transactions towards the end of the year.”
Calle 55 between 10 and 11, in La Plata. In the provincial capital, sales have recovered within the local real estate market
The supply of apartments in areas such as Tigre has decreased in the last two years, with drops of up to 46% in brand new units. This, added to the sustained demand, caused a 5% to 6% increase in property prices.
In this context of lower supply and higher demand, Pozzi warns that properties with adjusted prices are receiving few counteroffers, "which ensures faster sales, especially in small units of 1 to 3 rooms in areas such as Vicente López and Tigre."
Regarding the most sold homes in the province of Buenos Aires, houses in gated and suburban neighborhoods led the demand, especially in areas such as City Bell, Pilar and Tigre. These properties, with access to services but far from urban centers,
“Apartments in semi-urban areas also had a good turnover, especially those with amenities and larger size. In the future, with the reactivation of credits and money laundering, stability in prices in dollars is expected,” concluded López Gastesi.
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Source:
Mercado inmobiliario bonaerense: se registró el mejor agosto en 6 años con más de 10.000 escrituras
Al igual que en CABA, se observa un cambio favorable de tendencia. El crédito hipotecario también vuelve a tener protagonismo, con 747 escrituras realizadas a través de hipoteca, un aumento del 63,1% respecto a julio. ¿Cuáles son las causas detrás de esta recuperación?
www.infobae.com
October 08, 2024
As in CABA, a favourable change in trend is observed. Mortgage credit is also back in the spotlight, with 747 deeds made through mortgages, an increase of 63.1% compared to July. What are the reasons behind this recovery?
By Jose Luis Cieri
As in CABA, a favourable change in trend is observed. Mortgage credit is also back in the spotlight, with 747 deeds made through mortgages, an increase of 63.1% compared to July. What are the reasons behind this recovery?
A two-bedroom apartment located in Temperley. Properties with these characteristics are among the most sold in the province of Buenos Aires
Similar to CABA ( last August was the best after 75 months ), the real estate market in the province of Buenos Aires shows signs of recovery. The survey by the Provincial Notary Association confirmed that August was the best month in 6 years, with 10,507 transactions, being the most active month in sales of the year. Notarial acts reflect an increase of 11.2% compared to July and 10.7% compared to August 2023.
As for mortgages, mortgage loans are also starting to appear since more than 20 banks have reintroduced them since the end of April. There were 747 registered in August, 63.1% more than in July and a year-on-year growth of 30.4%.
During the period from January to August 2024, the Buenos Aires real estate market experienced a significant increase in sales. Compared to the same period in 2023, where 54,141 transactions were recorded, 61,078 sales were made in 2024. This represents a positive variation of 12.81%, and reflects a recovery that leaves behind more than 5 years of crisis.
“The year-on-year growth confirms the expectations of the real estate market, which points to a recovery. We trust that this trend will be consolidated, especially with the growth of mortgage loans, since we see a growing interest from families, with hundreds of queries and procedures,” Guillermo Longhi , president of the College of Notaries of Buenos Aires, told Infobae.
Another reason for the sector's recovery is that relatively low property prices (in Buenos Aires they fell by 45% since August 2018 to date and not in all cities have values recovered) stimulated the interest of buyers.
Regarding the 63.1% increase in mortgages, Longhi said that the impact is positive for the reactivation of the market. Although it is not yet fully reflected in the statistics, the increase in enquiries and interest in accessing mortgage loans suggest that this will be a key factor in the immediate future. “It must be made clear that this percentage must be taken in context, considering that previous figures were low,” he added.
Another important aspect is the behavior of buyers, who are showing interest in acquiring properties.
Longhi stressed that access to credit will be key to consolidating the market's recovery, especially for those looking for their first home. "In addition, the role of notaries in offering crucial advice to make informed decisions and avoid future legal problems is key," he said.
Reasons
The Buenos Aires real estate market is experiencing greater predictability compared to 2023, when uncertainty was widespread and properties were overvalued.Ariel José Córdoba , from Córdoba Properties, said that “the money laundering and the reappearance of mortgage loans provided tools that revived the interest of buyers, who began to make more inquiries and agreements through various channels.”
These changes generated enthusiasm and facilitated the completion of sales, especially for properties that had been unable to close for some time.
“Current opportunities, with prices still affordable, suggest that demand will increase before the end of the year, driven by money laundering and credit, which will possibly increase property values in the short term,” Córdoba added.
Growth in sales is also influenced by exchange rate stability and the desire to preserve value in properties.
Santiago López Gastesi , managing partner of López Gastesi Properties, said that “this moderate stability provided predictability and reactivated operations that were on hold due to political and economic uncertainty.”
The trend towards larger homes, with green spaces and in suburban areas such as Tigre, Pilar, Canning City Bell or Gorina (La Plata), has strengthened.
“Mortgages also drive the sale of used properties or properties in emerging neighborhoods, since several buyers use this financing to acquire properties outside the most expensive areas of the province, in properties of up to USD 120,000,” added López Gastesi.
Many buyers are choosing to make transactions in cash, seeking to avoid debt in an uncertain economic environment. This behavior is due, in part, to the high level of informality in the economy, where money under the mattress remains a common resource for financing property purchases.
López Gastesi added: “The rise in transactions also reflects a sense of urgency among those considering buying, pressured by possible future price increases and possible exchange restrictions or adjustments in interest rates.”
Which homes sold the most?
The change of Government, like those who sold a property to buy another, also drives operations.Fernando Pozzi , managing partner of Pozzi Inmobiliaria, highlighted that “93% of sales are made in cash, while only 7% involve mortgages. Even so, the interest generated by money laundering and enquiries show that demand continues to grow, which could drive more transactions towards the end of the year.”
Calle 55 between 10 and 11, in La Plata. In the provincial capital, sales have recovered within the local real estate market
The supply of apartments in areas such as Tigre has decreased in the last two years, with drops of up to 46% in brand new units. This, added to the sustained demand, caused a 5% to 6% increase in property prices.
In this context of lower supply and higher demand, Pozzi warns that properties with adjusted prices are receiving few counteroffers, "which ensures faster sales, especially in small units of 1 to 3 rooms in areas such as Vicente López and Tigre."
Regarding the most sold homes in the province of Buenos Aires, houses in gated and suburban neighborhoods led the demand, especially in areas such as City Bell, Pilar and Tigre. These properties, with access to services but far from urban centers,
“Apartments in semi-urban areas also had a good turnover, especially those with amenities and larger size. In the future, with the reactivation of credits and money laundering, stability in prices in dollars is expected,” concluded López Gastesi.
www.buysellba.com
