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Eduardo Costantini: “Properties are cheap and the blue dollar is expensive” - La Nación Propiedades
Source:
www.lanacion.com.ar
September 29, 2023
The creator of Nordelta affirmed that brick continues to be a refuge of value
By Candelaria Reinoso Taccone
Eduardo Costantini affirmed that dollarization is not viable
“The only real incentive that can drive the real estate market is economic stability.” The phrase corresponds to Eduardo Costantini, the businessman who created Nordelta. He said it at the lunch he shared with businessmen. He also acknowledged that it is surreal that only a sector of the population can buy land and build a house with their savings in dollars without credit.
Costantini presented his vision of the future of the economy to businessmen.
On the other hand, he recognized that the real estate market is currently affordable due to the high price of the dollar. Well-conceived developments that target a specific segment of buyers, he believes, are the ones that sell successfully and generate reasonable margins.
However, the businessman also expressed his concern about the housing deficit that Argentina is experiencing due to the lack of credit and low salaries. In this sense, he mentioned that the dollar should remain in a range between $350 and $750, $350 is low; It should be 20% or 30% up to avoid price distortions in various sectors of the economy, including property. “With this nominality that is galloping, putting a price on it is like shooting at a moving target,” he deepened.
He also compared the situation of the Argentine real estate market to others such as that of Florida in the United States. In the past, land in Argentina had a value of around US$4,500/m², in Florida it could be purchased for US$1,500 dollars in 2009, later of the stock market crisis. Today those same pieces of land in Florida are worth more than US$10,000. Additionally, the cost of construction in Argentina increased significantly, exceeding US$8,000.
When asked about investment advice, the businessman focused on the importance of diversifying. He also stated that he would buy dollars and not pesos. “Any government that takes office will devalue, and there will be a rise in inflation,” he was honest.
Regarding the value of the properties, he acknowledged that “they are cheap” and that, perhaps, that is why people are buying. “Brick is a refuge of value,” he emphasized and continued: “there is continued interest in real estate investment in Argentina, both by companies seeking refuge in property and by family investors seeking to diversify their assets amid uncertainty. economic”.
When talking about macro, he admitted that he does not see dollarization as feasible because there are no dollars, net reserves are negative and the Central Bank is bankrupt. “The reasonable thing for a country is that it has its currency, that the BCRA is independent due to its charter, that it guards the value of the currency. Let there be fiscal discipline and monetary discipline,” he concluded.
Candelaria Reinoso Taccone
www.buysellba.com
Source:
Eduardo Costantini: “Las propiedades están baratas y el dólar blue, caro”
El creador de Nordelta afirmó que el ladrillo sigue siendo refugio de valor
www.lanacion.com.ar
September 29, 2023
The creator of Nordelta affirmed that brick continues to be a refuge of value
By Candelaria Reinoso Taccone
Eduardo Costantini affirmed that dollarization is not viable
“The only real incentive that can drive the real estate market is economic stability.” The phrase corresponds to Eduardo Costantini, the businessman who created Nordelta. He said it at the lunch he shared with businessmen. He also acknowledged that it is surreal that only a sector of the population can buy land and build a house with their savings in dollars without credit.
Costantini presented his vision of the future of the economy to businessmen.
On the other hand, he recognized that the real estate market is currently affordable due to the high price of the dollar. Well-conceived developments that target a specific segment of buyers, he believes, are the ones that sell successfully and generate reasonable margins.
However, the businessman also expressed his concern about the housing deficit that Argentina is experiencing due to the lack of credit and low salaries. In this sense, he mentioned that the dollar should remain in a range between $350 and $750, $350 is low; It should be 20% or 30% up to avoid price distortions in various sectors of the economy, including property. “With this nominality that is galloping, putting a price on it is like shooting at a moving target,” he deepened.
He also compared the situation of the Argentine real estate market to others such as that of Florida in the United States. In the past, land in Argentina had a value of around US$4,500/m², in Florida it could be purchased for US$1,500 dollars in 2009, later of the stock market crisis. Today those same pieces of land in Florida are worth more than US$10,000. Additionally, the cost of construction in Argentina increased significantly, exceeding US$8,000.
When asked about investment advice, the businessman focused on the importance of diversifying. He also stated that he would buy dollars and not pesos. “Any government that takes office will devalue, and there will be a rise in inflation,” he was honest.
Regarding the value of the properties, he acknowledged that “they are cheap” and that, perhaps, that is why people are buying. “Brick is a refuge of value,” he emphasized and continued: “there is continued interest in real estate investment in Argentina, both by companies seeking refuge in property and by family investors seeking to diversify their assets amid uncertainty. economic”.
When talking about macro, he admitted that he does not see dollarization as feasible because there are no dollars, net reserves are negative and the Central Bank is bankrupt. “The reasonable thing for a country is that it has its currency, that the BCRA is independent due to its charter, that it guards the value of the currency. Let there be fiscal discipline and monetary discipline,” he concluded.
Candelaria Reinoso Taccone
www.buysellba.com
