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Building Houses Sky High - Reporte Inmobiliario
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Construir casas por la nubes, noticias sobre COUNTRY en Reporte Inmobiliario
Construir 1 m2 casa tipo country ya supera los 3M de pesos. Con la baja del dólar de agosto el costo volvió a subir a otro récord en dólares y se espera que esto se acreciente estos meses por la baja del billete.
www.reporteinmobiliario.com
October 14, 2024
The cost of building a country-style house has now surpassed 3 million pesos per square meter. With the drop in the dollar in August, construction costs have risen to another record high in dollars, and this trend is expected to continue in the coming months due to the declining exchange rate.
The cost of constructing a premium home in a gated community or private neighborhood, including taxes and professional fees, exceeded 3,000,000 Argentine pesos per square meter by the end of August. To build the house we analyze month by month, which measures 315 square meters, a total of $948,090,460 is now required. In 12 months, costs have multiplied by 3.7 when measured in pesos.
As we have been stating, costs measured in U.S. dollars remained stable for more than two years, fluctuating with inflation in pesos and constant devaluations. However, inflation over the last 11 months in pesos, combined with the rise in the official dollar and a more stabilized blue dollar, has pushed costs to a new level when measured in U.S. dollars, placing them at a new peak that is concerning for builders.
Construction Costs in Gated Communities
The paradoxical and alarming fact is that if we applied a hypothetical 4% inflation to these costs from the end of August corresponding to September, with a dollar value at the end of September of $1,235, the cost measured in dollars would rise again to another historical record, being 40% above the peak of 2018. To make matters worse, in the first days of October, the value of the dollar continued to drop.
This situation was imminent; several months ago, we reiterated that “there are many doubts generated regarding this issue; the great unknown is how inflation in pesos will continue to evolve, along with the exchange rates of the blue and official dollars—all elements that impact the cost of carrying out a construction project. The truth is that today the only way to start a project would be to begin it with a cost measured in pesos and update it monthly based on a reliable index. The data shows that it is very difficult to establish a cost in dollars in this situation and then realistically cover those costs or vice versa.”
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