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In CABA there are more than 50,000 apartments under construction and which are the most chosen neighborhoods to build - Infobae
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www.infobae.com
October 09, 2023
According to a private analysis, of those that are being executed, 27,000 were started this year, with a marked focus on the northern area of Buenos Aires. On average, almost two and a half million square meters are built per year.
By José Luis Cieri
Housing construction remains very active in the city of Buenos Aires.
Currently, more than 50,000 apartments are under construction in various neighborhoods of the city of Buenos Aires, despite the complex economic and political context.
A report by the Professional Council of Architecture and Urban Planning (CPAU) reveals that approximately 27,000 of these units were started this year.
The entity that brings together experts in the sector indicates that the average number of square meters built in the last 11 years is 2,350,000 m2. In the post-pandemic period, that is, the last two and a half years, this average has remained at 2,400,000 m2 per year. According to the analysis, housing construction remains stable, unaffected by the country's economic fluctuations.
Architect Néstor Magariños, first vice president of the CPAU, told Infobae that this boom has several aspects that justify it: “It is a phenomenon more related to safeguarding the value of surplus pesos than to possible sales, especially works with destined for housing, the flow of production is not matched by the flow of sales, in addition the crisis in the rental supply removes another reason to continue producing, at some point the accumulation of stock can end up slowing down construction.
The analysis is based on the last years of orders managed before this organization. The encomiendas are the previous step, before the professional who will carry out a building work presents the procedures and plans to the Buenos Aires Government. Each work that is going to be studied must be presented to the CPAU.
Source: Professional Council of Architecture and Urban Planning (CPAU)
Currently, the value of m2 in dollars is around USD 800, well below the USD 1,700 it reached in 2017.
The construction of housing is also presented as an alternative to channel idle pesos. Given the scarcity of investment options in other assets, such as the dollar (due to the exchange rate), savers see private construction as an opportunity to obtain a favorable return.
Tabakman added that another factor at play is the expectation of a new political cycle. “Property prices are expected to increase within one or two years. Investing now could capitalize on this period, allowing properties currently under construction to appreciate more in the future. In this way, those who invest in bricks today could obtain greater benefits,” he explained.
Real estate investing has historically proven to be stable and offer sustained value growth. In scenarios of exchange volatility and negative returns on most financial assets, investment in the construction sector emerges as an attractive option.
An additional factor is global dollar inflation, which reduces the attractiveness of saving in this currency.
“This drives demand for property as a means of preserving purchasing power and generating sustainable returns, as well as offering an expectation of long-term appreciation. The challenges of the third decade of the 21st century is varied and evolving rapidly. As developers, we have the responsibility to address these challenges with professionalism, promoting sustainable developments from an ecological point of view and designed for future societies,” Manuel Micieli, director of MCL Studio, explained to Infobae.
Source: Professional Council of Architecture and Urban Planning (CPAU)
When analyzing the first half of 2023, it is observed that May was the month with the highest number of parcels, with a decrease of 30% in June, so it will be necessary to have data from the following months to verify if the general trend towards increase is verified month by month. January and February recorded the lowest number of parcels, in line with what was observed in the quarterly comparison.
Professional Council of Architecture and Urban Planning (CPAU). Here you can see how in the north of Buenos Aires there are more works than in other areas of the city.
The northern area of CABA particularly attracts building investors. According to Magariños, this “is mainly due to the interest of developers who opt for neighborhoods such as Villa Urquiza and Palermo (among others), focusing on products for segments with good purchasing power. The policies of the Buenos Aires Government are also oriented towards these same sectors of the city and the population.”
Experts indicate that construction in this area of the city is due to the fact that home sales are not linked to access to mortgage loans, which are currently scarce and represent a challenge for the next government that takes office in December.
Tabakman added: “It would be ideal for mortgage loans to return soon, but the reality is that the economy must stabilize and inflation must decrease significantly, something that seems unlikely in the short term. This leads to focusing on the market segment that has savings to purchase homes.”
The housing demand, the expected population growth and the high volatility of the global financial market position the real estate sector as an economically and financially stable asset.
“The supply of housing has shown a sustained increase compared to the deeds carried out in 2020. Projects that address the diverse needs of today's world will be quickly absorbed by demand, allowing growth on a market scale,” Micieli concluded.
www.buysellba.com
Source:
Por qué en CABA hay más de 50.000 departamentos en obra y cuáles son los barrios más elegidos para construir
Según un análisis privado, de los que están en ejecución, unas 27,000 se iniciaron este año, con un marcado foco en la zona norte porteña. En promedio, se construyen casi dos millones y medio de metros cuadrados por año
www.infobae.com
October 09, 2023
According to a private analysis, of those that are being executed, 27,000 were started this year, with a marked focus on the northern area of Buenos Aires. On average, almost two and a half million square meters are built per year.
By José Luis Cieri
Housing construction remains very active in the city of Buenos Aires.
Currently, more than 50,000 apartments are under construction in various neighborhoods of the city of Buenos Aires, despite the complex economic and political context.
A report by the Professional Council of Architecture and Urban Planning (CPAU) reveals that approximately 27,000 of these units were started this year.
The entity that brings together experts in the sector indicates that the average number of square meters built in the last 11 years is 2,350,000 m2. In the post-pandemic period, that is, the last two and a half years, this average has remained at 2,400,000 m2 per year. According to the analysis, housing construction remains stable, unaffected by the country's economic fluctuations.
Architect Néstor Magariños, first vice president of the CPAU, told Infobae that this boom has several aspects that justify it: “It is a phenomenon more related to safeguarding the value of surplus pesos than to possible sales, especially works with destined for housing, the flow of production is not matched by the flow of sales, in addition the crisis in the rental supply removes another reason to continue producing, at some point the accumulation of stock can end up slowing down construction.
The analysis is based on the last years of orders managed before this organization. The encomiendas are the previous step, before the professional who will carry out a building work presents the procedures and plans to the Buenos Aires Government. Each work that is going to be studied must be presented to the CPAU.
Damián Tabakman, president of the Business Chamber of Urban Developers (CEDU), told Infobae that one of the factors that keeps hundreds of projects active is the relatively low cost per square meter when measured in dollars. “This cost remains accessible in historical terms, since although inflation affects the peso, the dollar also rises.”
Source: Professional Council of Architecture and Urban Planning (CPAU)
Currently, the value of m2 in dollars is around USD 800, well below the USD 1,700 it reached in 2017.
The construction of housing is also presented as an alternative to channel idle pesos. Given the scarcity of investment options in other assets, such as the dollar (due to the exchange rate), savers see private construction as an opportunity to obtain a favorable return.
Tabakman added that another factor at play is the expectation of a new political cycle. “Property prices are expected to increase within one or two years. Investing now could capitalize on this period, allowing properties currently under construction to appreciate more in the future. In this way, those who invest in bricks today could obtain greater benefits,” he explained.
Real estate investing has historically proven to be stable and offer sustained value growth. In scenarios of exchange volatility and negative returns on most financial assets, investment in the construction sector emerges as an attractive option.
An additional factor is global dollar inflation, which reduces the attractiveness of saving in this currency.
“This drives demand for property as a means of preserving purchasing power and generating sustainable returns, as well as offering an expectation of long-term appreciation. The challenges of the third decade of the 21st century is varied and evolving rapidly. As developers, we have the responsibility to address these challenges with professionalism, promoting sustainable developments from an ecological point of view and designed for future societies,” Manuel Micieli, director of MCL Studio, explained to Infobae.
Source: Professional Council of Architecture and Urban Planning (CPAU)
In which neighborhoods is most built?
The CPAU analysis confirmed that the quarters of 2022 showed a trend of increasing work assignments. The first quarter of 2023 registered a decrease compared to the previous last quarter, showing seasonal behavior, characteristic of the first months of the year. However, the number of parcels was greater than the first quarter of 2022. Likewise, the second quarter of 2023 received more parcels than the same quarter of the previous year, thus reinforcing the trend towards an increase in activity.When analyzing the first half of 2023, it is observed that May was the month with the highest number of parcels, with a decrease of 30% in June, so it will be necessary to have data from the following months to verify if the general trend towards increase is verified month by month. January and February recorded the lowest number of parcels, in line with what was observed in the quarterly comparison.
Professional Council of Architecture and Urban Planning (CPAU). Here you can see how in the north of Buenos Aires there are more works than in other areas of the city.
The northern area of CABA particularly attracts building investors. According to Magariños, this “is mainly due to the interest of developers who opt for neighborhoods such as Villa Urquiza and Palermo (among others), focusing on products for segments with good purchasing power. The policies of the Buenos Aires Government are also oriented towards these same sectors of the city and the population.”
Experts indicate that construction in this area of the city is due to the fact that home sales are not linked to access to mortgage loans, which are currently scarce and represent a challenge for the next government that takes office in December.
Tabakman added: “It would be ideal for mortgage loans to return soon, but the reality is that the economy must stabilize and inflation must decrease significantly, something that seems unlikely in the short term. This leads to focusing on the market segment that has savings to purchase homes.”
The housing demand, the expected population growth and the high volatility of the global financial market position the real estate sector as an economically and financially stable asset.
“The supply of housing has shown a sustained increase compared to the deeds carried out in 2020. Projects that address the diverse needs of today's world will be quickly absorbed by demand, allowing growth on a market scale,” Micieli concluded.
www.buysellba.com
