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Furor over divisible mortgages: the only bank that grants loans in a conglomerate analyzes more than 30 projects in CABA - Infobae
Source:
www.infobae.com
February 03, 2025
Developers are confident that this modality will become established as a tool for financing buyers of homes under construction, especially in the initial stages. Which units are most sought after by demand and what are their values in CABA?
By Jose Luis Cieri
Divisible mortgages are an innovative model that allows financing properties under construction with exclusive options for the Buenos Aires market
The launch of divisible or future-property mortgages by the Government, whose final implementation is in the hands of the Ministry of Economy of the Nation , promises to boost the private housing construction sector.
The divisible mortgage is still in the regulatory stage. Meanwhile, Banco Ciudad launched the first proposal that allows for the purchase of a house in a hole through a novel financing scheme , in response to a demand that until now lacked alternatives in mortgage credit. This launch, presented at the end of 2024, marked a milestone in the CABA real estate market.
This line of credit, aimed at the acquisition of homes under construction, seeks to facilitate access to property in the initial stages of development, a strategy that generated great interest among both buyers and developers.
Construction and development companies highlight the importance of this tool to promote new projects and guarantee financing to buyers, especially in a challenging economic context. Although the mechanism has raised expectations, it also poses operational challenges that the sector is working to resolve. Currently, the bank is analyzing more than 30 projects in different neighborhoods of the city. Since its launch, an average of more than one development per day has been recorded.
Among the initiatives under evaluation, developments located in neighborhoods such as La Boca, Barracas, Balvanera, Saavedra, Núñez, Villa Devoto, Villa Urquiza and Parque Patricios stand out , among others. These areas present a great diversity of residential proposals that range from compact units to larger homes, adapting to the varied demand of the Buenos Aires market.
The bank's president, Guillermo A. Laje , stated: "We are proud to add to our wide range of housing offerings this innovative line of credit, a pioneer in the financial system, which will allow families to acquire units from scratch in CABA . "
This tool is expected to boost investment in construction works, especially in the initial stage.
This credit model, as reported by Infobae, will facilitate the purchase of homes in the initial stages of construction and will allow families to access new properties in the long term.
Banco Ciudad launched new mortgage loans for the purchase of single-family homes under construction, focusing on small and medium-scale projects. These loans finance up to 75% of the value of the property, with terms of up to 20 years and a maximum amount of $350 million.
During the construction, the bank offers a loan for up to 30% of the value of the unit, paying only interest until the deed is signed, at which time the financing is completed with a mortgage loan. The buyer must have 25% of the capital plus additional expenses to access the loan.
With units mostly up to 70 square meters and preferential rates for developments
However, it is still presented as an incipient measure due to the limited inclusion of qualified developers and the exclusivity of this instrument for the purchase of a first home.
Rodrigo Saldaña , commercial manager of Oslo Properties, explained: “Today, as it is planned by Banco Ciudad, it is aimed at 1 or 2-room first-time homes and small apartments . ”
Despite the optimism surrounding the measure, developers point to challenges for its mass implementation. Several factors, such as strict requirements for projects to qualify, slowed its adoption.
Carlos Spina , president of AEV and commercial director of Argencons, said: “We do not believe that it will impact the prices of properties under construction, but it could gradually promote greater accessibility . ”
He also stressed that these tools do not create bubbles in the market, unlike loans for finished or used properties.
Other players in the sector agree that the lack of efficient communication channels and the delay in integrating more banking entities limit the scope of this proposal. According to Saldaña: “It is key that there is not a single player. Banks need to compete with each other to make the product more widespread and offer better conditions . ”
This is vital to encourage not only sales, but also the development of new ventures.
Although expectations about the impact of this tool on the market remain high, experts warn of the need for patience.
Developers say divisible mortgages will not affect prices but could gradually improve affordability. There are currently more than 50,000 homes under construction in CABA
The developer and construction sector estimates that its use could generate between 30% and 50% of the volume of real estate transactions when it is fully operational. This scenario would be similar to that of 2016-2017, when a significant percentage of transactions were leveraged by conventional mortgages.
Hernán Pisarenko , director of HA Emprendimientos, stressed that the measure would allow currently excluded segments to enter the market: “It is expected that this will allow a very significant percentage of the population that is currently outside this sector to enter the market. The buyer who would be entering is surely a family with two incomes and with children in their care . ”
Pisarenko also projects that the new panorama will encourage the construction of larger units, such as two- and three-bedroom apartments , adjusting to the real needs of end buyers and not exclusively to investors.
In terms of prices, the market from the well maintains competitive values in certain areas of the city.
According to data collected by Oslo Properties, projects such as Charcas and Humboldt, in Palermo, offer units with an average of USD 3,100 per square meter , while another in Luis María Campos, also in Palermo, reaches USD 3,600 per square meter.
Companies are also consulted for homes that exceed USD 2,300 per m2.
Saldaña said that this price dynamic still reflects a delay compared to pre-2019 values, but he expects progressive adjustments thanks to the growth in demand projected for 2025.
This opinion is shared by several consulting firms, who consider it essential that divisible mortgages become a financing model widely adopted by developers and families.
Spina concluded that, “with the reactivation of credit, projects with larger units will begin to emerge, since the end user prioritizes large homes. On the other hand, in periods without financing, investors predominate, opting for small units to diversify.”
www.buysellba.com
Source:
Furor por las hipotecas divisibles: el único banco que otorga créditos en pozo analiza más de 30 proyectos en CABA
Las desarrolladoras confían en que esta modalidad se consolide como herramienta para financiar a compradores de viviendas en construcción, en especial en las etapas iniciales. Qué unidades son las más buscadas por la demanda y cuáles son sus valores en CABA
www.infobae.com
February 03, 2025
Developers are confident that this modality will become established as a tool for financing buyers of homes under construction, especially in the initial stages. Which units are most sought after by demand and what are their values in CABA?
By Jose Luis Cieri
Divisible mortgages are an innovative model that allows financing properties under construction with exclusive options for the Buenos Aires market
The launch of divisible or future-property mortgages by the Government, whose final implementation is in the hands of the Ministry of Economy of the Nation , promises to boost the private housing construction sector.
The divisible mortgage is still in the regulatory stage. Meanwhile, Banco Ciudad launched the first proposal that allows for the purchase of a house in a hole through a novel financing scheme , in response to a demand that until now lacked alternatives in mortgage credit. This launch, presented at the end of 2024, marked a milestone in the CABA real estate market.
This line of credit, aimed at the acquisition of homes under construction, seeks to facilitate access to property in the initial stages of development, a strategy that generated great interest among both buyers and developers.
Construction and development companies highlight the importance of this tool to promote new projects and guarantee financing to buyers, especially in a challenging economic context. Although the mechanism has raised expectations, it also poses operational challenges that the sector is working to resolve. Currently, the bank is analyzing more than 30 projects in different neighborhoods of the city. Since its launch, an average of more than one development per day has been recorded.
Among the initiatives under evaluation, developments located in neighborhoods such as La Boca, Barracas, Balvanera, Saavedra, Núñez, Villa Devoto, Villa Urquiza and Parque Patricios stand out , among others. These areas present a great diversity of residential proposals that range from compact units to larger homes, adapting to the varied demand of the Buenos Aires market.
The bank's president, Guillermo A. Laje , stated: "We are proud to add to our wide range of housing offerings this innovative line of credit, a pioneer in the financial system, which will allow families to acquire units from scratch in CABA . "
This tool is expected to boost investment in construction works, especially in the initial stage.
This credit model, as reported by Infobae, will facilitate the purchase of homes in the initial stages of construction and will allow families to access new properties in the long term.
Banco Ciudad launched new mortgage loans for the purchase of single-family homes under construction, focusing on small and medium-scale projects. These loans finance up to 75% of the value of the property, with terms of up to 20 years and a maximum amount of $350 million.
During the construction, the bank offers a loan for up to 30% of the value of the unit, paying only interest until the deed is signed, at which time the financing is completed with a mortgage loan. The buyer must have 25% of the capital plus additional expenses to access the loan.
With units mostly up to 70 square meters and preferential rates for developments
However, it is still presented as an incipient measure due to the limited inclusion of qualified developers and the exclusivity of this instrument for the purchase of a first home.
Rodrigo Saldaña , commercial manager of Oslo Properties, explained: “Today, as it is planned by Banco Ciudad, it is aimed at 1 or 2-room first-time homes and small apartments . ”
Obstacles to the mass adoption of mortgages
Despite the optimism surrounding the measure, developers point to challenges for its mass implementation. Several factors, such as strict requirements for projects to qualify, slowed its adoption.
Carlos Spina , president of AEV and commercial director of Argencons, said: “We do not believe that it will impact the prices of properties under construction, but it could gradually promote greater accessibility . ”
He also stressed that these tools do not create bubbles in the market, unlike loans for finished or used properties.
Other players in the sector agree that the lack of efficient communication channels and the delay in integrating more banking entities limit the scope of this proposal. According to Saldaña: “It is key that there is not a single player. Banks need to compete with each other to make the product more widespread and offer better conditions . ”
This is vital to encourage not only sales, but also the development of new ventures.
Projections and expected behavior
Although expectations about the impact of this tool on the market remain high, experts warn of the need for patience.
Developers say divisible mortgages will not affect prices but could gradually improve affordability. There are currently more than 50,000 homes under construction in CABA
The developer and construction sector estimates that its use could generate between 30% and 50% of the volume of real estate transactions when it is fully operational. This scenario would be similar to that of 2016-2017, when a significant percentage of transactions were leveraged by conventional mortgages.
Hernán Pisarenko , director of HA Emprendimientos, stressed that the measure would allow currently excluded segments to enter the market: “It is expected that this will allow a very significant percentage of the population that is currently outside this sector to enter the market. The buyer who would be entering is surely a family with two incomes and with children in their care . ”
Pisarenko also projects that the new panorama will encourage the construction of larger units, such as two- and three-bedroom apartments , adjusting to the real needs of end buyers and not exclusively to investors.
Price expectations and evolution
In terms of prices, the market from the well maintains competitive values in certain areas of the city.
According to data collected by Oslo Properties, projects such as Charcas and Humboldt, in Palermo, offer units with an average of USD 3,100 per square meter , while another in Luis María Campos, also in Palermo, reaches USD 3,600 per square meter.
Companies are also consulted for homes that exceed USD 2,300 per m2.
Saldaña said that this price dynamic still reflects a delay compared to pre-2019 values, but he expects progressive adjustments thanks to the growth in demand projected for 2025.
This opinion is shared by several consulting firms, who consider it essential that divisible mortgages become a financing model widely adopted by developers and families.
Spina concluded that, “with the reactivation of credit, projects with larger units will begin to emerge, since the end user prioritizes large homes. On the other hand, in periods without financing, investors predominate, opting for small units to diversify.”
www.buysellba.com
