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Milei's reforms and the real estate market: Is it better to buy or wait?
December 6, 2023
Recommendations from industry experts. What are the Buenos Aires properties that have sold the most in recent months?
By José Luis Cieri
Dollars and bills to buy homes. Experts notice an improvement and users with savings are buying properties in CABA (Photo: Getty)
2024 is shaping up to be a crucial year for the Argentine real estate market. After a prolonged period of uncertainty and economic challenges, the sector is in the midst of a recovery process that promises to renew general confidence. The proximity of the inauguration of President-elect Javier Milei injected confidence and dynamism, generating a notable impact in the days prior to his taking office.
Industry experts pointed out that this situation influences the decision-making of those with available savings, who consider investing in properties during this period of political and economic changes.
What do experts recommend and what options are best for those looking to rely on brick, expand their living space, or wait?
Diego Migliorisi, real estate broker, lawyer and political analyst, highlighted to Infobae that “a more optimistic outlook is observed in the city of Buenos Aires. Inquiries grew significantly, especially for family properties intended for permanent housing. Likewise, there was an increase in inquiries for land for building. “Both buyers and sellers show greater expectations.”
If macroeconomic variables begin to stabilize, a very positive stage could begin for both the real estate market and construction.
The decline in prices no longer appears significant; The valuations were honest and only experienced a slight reduction in the final closing price of real estate transactions, in the dynamic game of supply and demand. Currently, those with available savings are capitalizing on opportunity prices, which have decreased more than 40% in the city of Buenos Aires over the last four years.
Sandra Zanelli, from C21 Guerra-Zanelli, assured that “the expectation for the inauguration of the new president is very high, although, as we know, Argentina is unpredictable. What we do know is that the real estate market has been consolidating for several months. As a highlight, in October 4,559 deeds of sale were carried out in CABA, a figure that is among the best in recent years, with a cumulative increase of 53.3% compared to the level of a previous year.
From the area of Buenos Aires Real Estate they warn that they are witnessing an active market after a prolonged lethargy.
Real estate operations are being expedited in CABA given the perspective of a change in the political and economic cycle
“End users and investors who were waiting are making purchase decisions, because they observe that prices remained stable and perceive a possible rebound for 2024,” Francisco Altgelt , of Altgelt Negocios Inmobiliarios, told Infobae.
What types of properties are most interesting?
According to Migliorisi, buyers are choosing to acquire properties for their own use, excluding the intention of renting them out. “This trend ranges from smaller family units to larger properties of 1, 2, 3 and even more rooms. Those who were waiting for the right time to move now see that it is opportune to do so,” she said.The homes, both used and brand new, that are purchased vary between USD 90,000 and USD 200,000 in Buenos Aires neighborhoods such as Palermo, Villa Crespo, Caballito, Almagro, Barrio Norte, Chacarita, Saavedra, Barracas, Núñez, Villa Luro and Liniers. Values ranging from USD 1,300 to USD 3,000 per square meter are paid there.
“2 and 3-bedroom apartments are the most in demand. I emphasize that a large part of the buyers come from the interior of the country and, under normal circumstances, they could have chosen to rent. However, due to the scarcity of rental offers, they choose to make the financial effort and purchase a property,” said Altgelt.
Despite the volatility of the parallel dollar, a growth in prices is observed in certain areas of CABA. For example, in Belgrano, Palermo, Villa Urquiza and Caballito, where the average publication value per m2 experienced a slight increase, especially in 1 and 2 room units.
Zanelli said that “buyers show a preference for properties that have at least a balcony, if possible in front, and that are bright. In addition, demand leans towards those units that offer amenities such as a pool and grill.”
The Argentine real estate market presents promise and confidence for 2024. Although challenges may arise, especially in the first quarter, a period of recovery and growth is foreseen.
“Hopefully 2024 marks a turning point with opportunities that have the potential to revitalize the segment, driving economic recovery and stability,” Migliorisi concluded.
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