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Deeds: The real estate market closes its best period after six years of crisis - Infobae
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www.infobae.com
December 10, 2024
The balance in CABA and the province of Buenos Aires shows an improvement of more than 30% compared to 2023, with a jump of 113% in mortgage transactions. What is happening in other parts of the country?
By Jose Luis Cieri
Real estate operations are not only expanding in CABA, but throughout the country, the balance is positive and 2024 seems to leave behind the worst years of the sector (Illustrative Image Infobae)
The real estate market in the Autonomous City of Buenos Aires is experiencing its best moment in more than six years, with a sustained increase in sales transactions. According to data from the Notary Association, 5,987 deeds were registered in October 2024 , which represents a year-on-year increase of 31.3% compared to the 4,559 of a year earlier.
This performance makes October the best since April 2018, when the impact of the UVA credits implemented during Mauricio Macri 's government was still being felt .
The preliminary balance for 2024, although it does not yet include the data for November and expected for December - they will be available in 2025 - projects a 30% increase compared to 2023, with 40,000 deeds registered in CABA.
“With the last month of the year, which is historically better, even in times of crisis, it is estimated that the total number of transactions will reach 52,000. It would be the highest record since 2017. This growth occurs despite the restrictions of the exchange rate, which did not exist in that period,” Alejandro Braña , a real estate expert and member of the Buenos Aires Real Estate Association, told Infobae.
October was the second best record in 16 years, only surpassed by 2017, with 6,154 operations.
As for mortgage loans , 944 deeds were executed, 300% more than in October 2023, exceeding the total accumulated in the first seven months of 2024 and marking a significant change in the market.
The return of mortgage loans after six years of almost zero and the offer of almost 25 banks with lower interest rates expanded access to financing.
In addition, money laundering has led to transactions of less than USD 100,000, known as “ant laundering,” according to Braña.
Another factor behind the rebound is that property values are at historically low levels, comparable only to the most critical moments of the 1980s and the corralito of 2001-2002. This, combined with a stable dollar that has depreciated in real terms since January 2024, encouraged buyers to make investments.
Jorge De Bártolo , president of the Buenos Aires Notaries Association, stressed that the increase in deeds is part of a recovery cycle that has been consolidating since 2021.
“Although at that time the comparisons were against the worst months of the pandemic, today we see more sustained growth. This year we expect to exceed 50,000 operations, although a historically good year always ended with more than 70,000,” De Bártolo told Infobae .
The calm exchange rate encourages families to plan and invest. “If this scenario continues, 2025 could be even better,” said De Bártolo.
Regarding the impact of mortgage loans , the notary stated: “It creates a market and generates a virtuous circle in which those who sell tend to reinvest in another property. Although most loans are aimed at used homes, some banks began to promote loans for new units, expanding options for buyers.”
The challenge, according to De Bártolo, is to streamline the procedures associated with credit to avoid delays that discourage operations.
“At the College we work with the Real Estate Registry to reduce times and guarantee legal security. Our motto is: saving time is saving money,” said De Bártolo.
Guillermo Longhi , president of the Notaries Association of the province, attributed this progress to an economic situation that is beginning to show stability , with lower inflation and a more controlled dollar. “These conditions reactivate the real estate market, a traditional investment in our country,” he explained.
The 141% year-on-year jump in mortgages also reflects a significant change in access to credit. Longhi stressed that mortgage credit dynamizes the market, although its sustainability requires greater economic stability, lower inflation and lower interest rates.
Córdoba registered a 76.2% increase in year-on-year transactions at the end of September 2024, according to data from the Professional Association of Real Estate Agents (CPI) based on the Economic Trends consultancy for the entity's Real Estate Statistics Center. This increase, one of the largest in years, is due to double access to mortgage credit in eight months and to historic low prices inherited from the previous year.
Lucas Péndola , president of the CPI, highlighted that the role of private banks was key in the recovery of the market. Sales are concentrated in apartments in key areas such as Nueva Córdoba and General Paz, duplexes in gated communities and lots, with an increase of 118.5% compared to 2023. In contrast, commercial premises and houses in traditional neighborhoods maintain low demand.
Rosario shows an increase in deeds that has been accentuated in recent months and represents a 20% increase compared to 2023. Demand was concentrated on used properties with 3 and 4 rooms, with values between USD 85,000 and USD 100,000, acquired by end consumers and investors.
Diego Ferreyra , from the Rosario College of Real Estate Brokers (Cocir), said that “the fall of the dollar accelerated purchases with savings. Sales generate turnover because those who sell tend to reinvest, boosting the market.”
The price of brand new properties rose between 10% and 15%, while the price of used properties remained stable due to the absorption of stock, according to Ferreyra.
In Rosario the market is active for the purchase and sale of units of up to 3 bdrooms
Mendoza has reached 7,500 deeds so far this year, with a monthly average of 700 transactions, according to data from the Mendoza Property Registry. Specific sectors such as private neighborhoods and suburban areas of the capital of Cuyo show a sustained recovery driven by mortgage loans.
Anahí González Caro , an analyst of the Mendoza real estate market, identified the factors that favored activity. “Expectations of a less restrictive economy, added to measures such as mortgage loans and money laundering, encouraged both inquiries and operations. However, most transactions are still carried out without bank financing, but it is estimated that they will expand towards 2025,” she highlighted.
The gated communities of Luján de Cuyo, Maipú and Guaymallén lead the list of preferences with 4-room houses priced at an average of USD 150,000. This segment also attracts young families who prioritize large lots and green spaces. At the same time, apartments in areas such as Godoy Cruz and Mendoza, with prices close to USD 60,000, are attracting interest among investors seeking rental returns.
www.buysellba.com
Downtown area of Mendoza capital, a dynamic area where demand grew in 2024 to buy properties
Regarding prices, González Caro explained that there was an increase of nearly 20% in properties with higher demand, along with a reduction in negotiation margins, which went from offers 20% below the published price to closings with discounts of 7% or 10 percent. “The outlook is positive. Inquiries continue to grow and sales times have been significantly shortened for properties at market values,” he concluded.
Source:
Escrituras: el mercado inmobiliario cierra su mejor período tras seis años de crisis
El balance en CABA y provincia de Buenos Aires muestra una mejora de más del 30% respecto a 2023, con un salto de 113% en operaciones con hipotecas. ¿Qué sucede en otras plazas del país?
www.infobae.com
December 10, 2024
The balance in CABA and the province of Buenos Aires shows an improvement of more than 30% compared to 2023, with a jump of 113% in mortgage transactions. What is happening in other parts of the country?
By Jose Luis Cieri
Real estate operations are not only expanding in CABA, but throughout the country, the balance is positive and 2024 seems to leave behind the worst years of the sector (Illustrative Image Infobae)
The real estate market in the Autonomous City of Buenos Aires is experiencing its best moment in more than six years, with a sustained increase in sales transactions. According to data from the Notary Association, 5,987 deeds were registered in October 2024 , which represents a year-on-year increase of 31.3% compared to the 4,559 of a year earlier.
This performance makes October the best since April 2018, when the impact of the UVA credits implemented during Mauricio Macri 's government was still being felt .
The preliminary balance for 2024, although it does not yet include the data for November and expected for December - they will be available in 2025 - projects a 30% increase compared to 2023, with 40,000 deeds registered in CABA.
“With the last month of the year, which is historically better, even in times of crisis, it is estimated that the total number of transactions will reach 52,000. It would be the highest record since 2017. This growth occurs despite the restrictions of the exchange rate, which did not exist in that period,” Alejandro Braña , a real estate expert and member of the Buenos Aires Real Estate Association, told Infobae.
October was the second best record in 16 years, only surpassed by 2017, with 6,154 operations.
As for mortgage loans , 944 deeds were executed, 300% more than in October 2023, exceeding the total accumulated in the first seven months of 2024 and marking a significant change in the market.
The engines of recovery
Braña explained that several factors converged to drive this recovery. “The change of government at the end of 2023 was decisive. The repeal of the Rental Law by Javier Milei through DNU 70/2023 marked a turning point and improved the expectations of the sector since the beginning of 2024,” he said.
The return of mortgage loans after six years of almost zero and the offer of almost 25 banks with lower interest rates expanded access to financing.
In addition, money laundering has led to transactions of less than USD 100,000, known as “ant laundering,” according to Braña.
Another factor behind the rebound is that property values are at historically low levels, comparable only to the most critical moments of the 1980s and the corralito of 2001-2002. This, combined with a stable dollar that has depreciated in real terms since January 2024, encouraged buyers to make investments.
Perspectives
The sector highlighted that the market ceiling could be higher if economic conditions remain favorable in 2025, although they agree that the almost six-year crisis seems to be behind us . Between August 2018 and February 2023, the prices of used homes in CABA fell 42%, while in the interior the drop reached almost 48% in dollars.Jorge De Bártolo , president of the Buenos Aires Notaries Association, stressed that the increase in deeds is part of a recovery cycle that has been consolidating since 2021.
“Although at that time the comparisons were against the worst months of the pandemic, today we see more sustained growth. This year we expect to exceed 50,000 operations, although a historically good year always ended with more than 70,000,” De Bártolo told Infobae .
The calm exchange rate encourages families to plan and invest. “If this scenario continues, 2025 could be even better,” said De Bártolo.
Regarding the impact of mortgage loans , the notary stated: “It creates a market and generates a virtuous circle in which those who sell tend to reinvest in another property. Although most loans are aimed at used homes, some banks began to promote loans for new units, expanding options for buyers.”
The challenge, according to De Bártolo, is to streamline the procedures associated with credit to avoid delays that discourage operations.
“At the College we work with the Real Estate Registry to reduce times and guarantee legal security. Our motto is: saving time is saving money,” said De Bártolo.
In the province of Buenos Aires
In line with the recovery observed in CABA, the Buenos Aires real estate market recorded its best performance in 7 years in October 2024. According to the Notary Public Association of the Province of Buenos Aires, 11,213 deeds were executed, 15.25% more than the 9,729 in the same month of the previous year.Guillermo Longhi , president of the Notaries Association of the province, attributed this progress to an economic situation that is beginning to show stability , with lower inflation and a more controlled dollar. “These conditions reactivate the real estate market, a traditional investment in our country,” he explained.
The 141% year-on-year jump in mortgages also reflects a significant change in access to credit. Longhi stressed that mortgage credit dynamizes the market, although its sustainability requires greater economic stability, lower inflation and lower interest rates.
Dynamics inside
The recovery of the sector also reached cities such as Córdoba, Rosario and Mendoza, which also showed an increase in sales.Córdoba registered a 76.2% increase in year-on-year transactions at the end of September 2024, according to data from the Professional Association of Real Estate Agents (CPI) based on the Economic Trends consultancy for the entity's Real Estate Statistics Center. This increase, one of the largest in years, is due to double access to mortgage credit in eight months and to historic low prices inherited from the previous year.
Lucas Péndola , president of the CPI, highlighted that the role of private banks was key in the recovery of the market. Sales are concentrated in apartments in key areas such as Nueva Córdoba and General Paz, duplexes in gated communities and lots, with an increase of 118.5% compared to 2023. In contrast, commercial premises and houses in traditional neighborhoods maintain low demand.
Rosario shows an increase in deeds that has been accentuated in recent months and represents a 20% increase compared to 2023. Demand was concentrated on used properties with 3 and 4 rooms, with values between USD 85,000 and USD 100,000, acquired by end consumers and investors.
Diego Ferreyra , from the Rosario College of Real Estate Brokers (Cocir), said that “the fall of the dollar accelerated purchases with savings. Sales generate turnover because those who sell tend to reinvest, boosting the market.”
The price of brand new properties rose between 10% and 15%, while the price of used properties remained stable due to the absorption of stock, according to Ferreyra.
In Rosario the market is active for the purchase and sale of units of up to 3 bdrooms
Mendoza has reached 7,500 deeds so far this year, with a monthly average of 700 transactions, according to data from the Mendoza Property Registry. Specific sectors such as private neighborhoods and suburban areas of the capital of Cuyo show a sustained recovery driven by mortgage loans.
Anahí González Caro , an analyst of the Mendoza real estate market, identified the factors that favored activity. “Expectations of a less restrictive economy, added to measures such as mortgage loans and money laundering, encouraged both inquiries and operations. However, most transactions are still carried out without bank financing, but it is estimated that they will expand towards 2025,” she highlighted.
The gated communities of Luján de Cuyo, Maipú and Guaymallén lead the list of preferences with 4-room houses priced at an average of USD 150,000. This segment also attracts young families who prioritize large lots and green spaces. At the same time, apartments in areas such as Godoy Cruz and Mendoza, with prices close to USD 60,000, are attracting interest among investors seeking rental returns.
www.buysellba.com
Downtown area of Mendoza capital, a dynamic area where demand grew in 2024 to buy properties
Regarding prices, González Caro explained that there was an increase of nearly 20% in properties with higher demand, along with a reduction in negotiation margins, which went from offers 20% below the published price to closings with discounts of 7% or 10 percent. “The outlook is positive. Inquiries continue to grow and sales times have been significantly shortened for properties at market values,” he concluded.
