BuySellBA
Administrator
Change in the Buenos Aires real estate market: the keys to the recovery after 6 years of decline - Infobae
Source:
www.infobae.com
July 08, 2024
The recovery is due to the change in expectations, the increase in the price per square meter, the increase in the cost of construction in dollars and new lines of mortgage credit.
More deeds are being made month by month. The main factor for the reactivation was the change in expectations, which began towards the end of 2023 (Illustrative Image Infobae)
According to the survey by the College of Notaries of the City of Buenos Aires, the latest report for May marked a record number of deeds registered after 65 months, confirming a positive change in trend after a prolonged crisis in the sector. The total number of notarial acts of real estate sales in May 2024 registered a 36% year-on-year increase, reaching 4,590 deeds.
This situation seems to leave behind the worst since May 2018 until today. There are several keys that explain this improvement. The main factor for the recovery was the change in expectations, which began towards the end of 2023.
Fabián Achával , who runs Radar Inmobiliario and is the owner of Fabián Achával Properties, told Infobae that “this change was based on the sharp fall in the price per square meter and gained more strength when prices changed trend, beginning the upward path. This came hand in hand with the sharp increase in the cost of construction in dollars. Recently, the news of the launch of different lines of mortgage credit and the money laundering revitalized demand even more.”
In this context, the reactivation of the real estate market is presented as a viable alternative to protect assets. Property prices in Argentina are at a historic low similar to that of 2004, but they are no longer falling and in several Buenos Aires neighborhoods they have risen again by up to 10% year-on-year , so those who acquire properties will not only buy at a bargain price, according to the sector, but also, in the short term, they will do better business due to the expected appreciation of the value.
According to Zonaprop, the average price per m2 in CABA is USD 2,269, 5.5% above the average recorded in July 2023 but 19% below the maximum reached in 2019.
“The recent arrival of mortgage loans, both from private and public banks, has revived hope for access to housing. This factor is crucial, since more than six million people in the country are looking for a housing solution. Access to these loans not only boosts the demand for properties, but also encourages the development of the sector and generates a virtuous circle of economic growth,” said Mariano García Malbrán , president of the Chamber of Real Estate Services Companies of Argentina.
The political impact was positive. The tax package that contemplates money laundering after the approval of the Ley Bases has generated more questions in recent days.
For new mortgage loans, in addition to the 25% to access the purchase, you must also have an additional amount to pay the bank processing costs, deed and the real estate commission (Illustrative Image Infobae)
In fact, the Argentine Real Estate Chamber has asked the Government that the funds from the Asset Regularization Regime can be used to purchase used properties, exempting them from paying the tax. The proposal, “within the framework of the Law on Palliative Fiscal Bases and Measures, seeks to promote access to housing and mobilize savings towards the formal economy,” says the request that was sent to Javier Milei , the President of the Nation.
Marina Di Paolo , from the developer Newland, highlighted the positive internal and external repercussions of the measure. “In addition, we have people who buy from all over Argentina, especially from the interior, for example in Recoleta or Palermo, near subway D, the Faculties of Medicine and Economics, close to Avenida Córdoba. In addition, several Argentines who live abroad are investing in properties in CABA.”
Beyond the concrete impact, the change in expectations motivated people in need to meet the real estate demand, both locally and abroad, although the proportion of foreign buyers remains low.
Another key factor was the DNU that repealed the Rental Law. Achával highlighted that “this allowed us to recover a significant part of the demand that was oriented towards the rental business.”
As for mortgage loans, it was crucial that the Central Bank eliminated the parking for accessing the MEP dollar in real estate transactions, given that there was (and still is) a lot of uncertainty about how to obtain dollars.
Di Paolo added: “The ease offered by modern finishes, such as easy-to-clean porcelain floors and double glazing that maintains temperature and reduces noise, increased the appeal of these features in properties.”
In the used market, apartments with balconies and in good condition are preferred. Although the garage is important, it is not what defines the purchase the most. Demand tends to acquire two- and three-room units for final use, with an average price of USD 90,000.
According to Obetko, the projections for the coming months are positive, with prices touching bottom. “This led more people to make purchasing decisions, further boosting the sector.”
For the market to achieve a path of sustained growth, it is essential to lift the exchange rate restrictions, achieve exchange rate stability and reduce inflation.
“At the same time, it is essential that wages in dollars recover so that mortgage loans can be activated strongly,” Achával concluded.
www.buysellba.com
Source:
Cambio en el mercado inmobiliario porteño: las claves del repunte tras 6 años de caída
La reactivación se debe al cambio de expectativas, el repunte del precio del metro cuadrado, el aumento del costo de la construcción en dólares y nuevas líneas de crédito hipotecario
www.infobae.com
July 08, 2024
The recovery is due to the change in expectations, the increase in the price per square meter, the increase in the cost of construction in dollars and new lines of mortgage credit.
More deeds are being made month by month. The main factor for the reactivation was the change in expectations, which began towards the end of 2023 (Illustrative Image Infobae)
According to the survey by the College of Notaries of the City of Buenos Aires, the latest report for May marked a record number of deeds registered after 65 months, confirming a positive change in trend after a prolonged crisis in the sector. The total number of notarial acts of real estate sales in May 2024 registered a 36% year-on-year increase, reaching 4,590 deeds.
This situation seems to leave behind the worst since May 2018 until today. There are several keys that explain this improvement. The main factor for the recovery was the change in expectations, which began towards the end of 2023.
Fabián Achával , who runs Radar Inmobiliario and is the owner of Fabián Achával Properties, told Infobae that “this change was based on the sharp fall in the price per square meter and gained more strength when prices changed trend, beginning the upward path. This came hand in hand with the sharp increase in the cost of construction in dollars. Recently, the news of the launch of different lines of mortgage credit and the money laundering revitalized demand even more.”
In this context, the reactivation of the real estate market is presented as a viable alternative to protect assets. Property prices in Argentina are at a historic low similar to that of 2004, but they are no longer falling and in several Buenos Aires neighborhoods they have risen again by up to 10% year-on-year , so those who acquire properties will not only buy at a bargain price, according to the sector, but also, in the short term, they will do better business due to the expected appreciation of the value.
According to Zonaprop, the average price per m2 in CABA is USD 2,269, 5.5% above the average recorded in July 2023 but 19% below the maximum reached in 2019.
“The recent arrival of mortgage loans, both from private and public banks, has revived hope for access to housing. This factor is crucial, since more than six million people in the country are looking for a housing solution. Access to these loans not only boosts the demand for properties, but also encourages the development of the sector and generates a virtuous circle of economic growth,” said Mariano García Malbrán , president of the Chamber of Real Estate Services Companies of Argentina.
The political impact was positive. The tax package that contemplates money laundering after the approval of the Ley Bases has generated more questions in recent days.
For new mortgage loans, in addition to the 25% to access the purchase, you must also have an additional amount to pay the bank processing costs, deed and the real estate commission (Illustrative Image Infobae)
In fact, the Argentine Real Estate Chamber has asked the Government that the funds from the Asset Regularization Regime can be used to purchase used properties, exempting them from paying the tax. The proposal, “within the framework of the Law on Palliative Fiscal Bases and Measures, seeks to promote access to housing and mobilize savings towards the formal economy,” says the request that was sent to Javier Milei , the President of the Nation.
Marina Di Paolo , from the developer Newland, highlighted the positive internal and external repercussions of the measure. “In addition, we have people who buy from all over Argentina, especially from the interior, for example in Recoleta or Palermo, near subway D, the Faculties of Medicine and Economics, close to Avenida Córdoba. In addition, several Argentines who live abroad are investing in properties in CABA.”
More causes
In real estate agencies, demand has grown between 30% and 50% since mortgage loans were launched. Daniel Obetko , from Interwin Marketing Inmobiliario, stressed that “this change in cycle is a great opportunity due to mortgage loans. Although few banks are finishing implementing them internally, the income of the couple, the children and even the parents in dollars is driving expectations.”Beyond the concrete impact, the change in expectations motivated people in need to meet the real estate demand, both locally and abroad, although the proportion of foreign buyers remains low.
Another key factor was the DNU that repealed the Rental Law. Achával highlighted that “this allowed us to recover a significant part of the demand that was oriented towards the rental business.”
As for mortgage loans, it was crucial that the Central Bank eliminated the parking for accessing the MEP dollar in real estate transactions, given that there was (and still is) a lot of uncertainty about how to obtain dollars.
Which departments are sought after
The current shift in the real estate market is focused on the preference for modern properties. Buyers are choosing units with floor-to-ceiling windows, double glazing, modern finishes and amenities such as gyms, grills and pools if they are brand new.Di Paolo added: “The ease offered by modern finishes, such as easy-to-clean porcelain floors and double glazing that maintains temperature and reduces noise, increased the appeal of these features in properties.”
In the used market, apartments with balconies and in good condition are preferred. Although the garage is important, it is not what defines the purchase the most. Demand tends to acquire two- and three-room units for final use, with an average price of USD 90,000.
To future
Buyers have returned to the Buenos Aires property market due to rising prices. Buying now is more profitable than waiting, as prices are on the rise.According to Obetko, the projections for the coming months are positive, with prices touching bottom. “This led more people to make purchasing decisions, further boosting the sector.”
For the market to achieve a path of sustained growth, it is essential to lift the exchange rate restrictions, achieve exchange rate stability and reduce inflation.
“At the same time, it is essential that wages in dollars recover so that mortgage loans can be activated strongly,” Achával concluded.
www.buysellba.com
