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Mortgage lending has grown again and in 2024 reached its best level since 2018 - Infobae
February 24, 2025
This was confirmed by a private report, which recorded more than 11,000 loans granted in the country. What were the average amounts and what types of homes were sold the most?
By Jose Luis Cieri
The mortgage market rebounded after a period of crisis, marking a milestone not seen since 2018. Keys to how this financial tool recovered (Illustrative Image Infobae)
The reactivation of UVA mortgage loans marked a turning point in the real estate market in 2024, with more than 11,000 loans granted and an average amount of USD 75,000 per beneficiary, the best performance since 2018, confirmed an analysis by the Tejido Urbano Foundation.
Although it started from a low point, this type of lending line rebounded strongly in the second half of the year and provided important lessons for its future sustainability.
The economic recovery was a key factor. A start to the year characterized by distrust and economic instability — in which significant credit lines were not launched until April — gave way in the second half to sustained monthly growth.
According to the analysis, “ during the first six months, mortgage activity was practically zero ,” while the second half of the year marked a notable dynamism.
Mortgage loan of up to 200 thousand soles at Banco de la Nación. (Reference photo/Andina)
However, the lower credit demand from the government to the financial system freed up financing capacity and the official approach contributed to silencing the speeches that considered the UVA scheme as “a problem to be solved.”
The executive director of the Tejido Urbano Foundation, Fernando Álvarez de Celis , explained to Infobae that both financial institutions and borrowers were already familiar with the model implemented between 2016 and 2019, which facilitated a smoother adoption in this new stage. His words underlined that “ a significant learning curve was not necessary ,” which accelerated the implementation process once conditions began to improve.
“Money laundering also played a complementary role, helping to consolidate the sector's recovery,” said Álvarez de Celis , who also pointed out that these combined factors managed to give vitality to a market that had been stagnant for years.
Despite this significant increase in operations, the expert clarified that prices remained “stable in general terms” , except in some areas with higher specific demand.
Additionally, the large inventory of available properties allowed buyers to evaluate various options within an abundant market.
One-bedroom apartments among the best-selling apartments in Buenos Aires and the province
However, future projections for UVA mortgage loans are not without challenges. Since the last quarter of 2024, there has been a gradual increase in interest rates by banks , which generates uncertainty around the scheme. Although the impact on demand has been limited so far, “ there is a risk that this trend will complicate access to financing in the medium term ,” experts warn.
Álvarez de Celis also pointed out that the securitization of these loans could be key to guaranteeing their long-term continuity, allowing banks to transfer these portfolios to entities that can take on longer-term loans. However, he warned that it is still necessary to surpass the levels reached in better times, such as during the years 1996-1997, when mortgage lending in Argentina had one of its strongest moments.
These units, due to their value and size, became the most sought-after options for those who obtained financing.
According to Lisandro Cuello , a real estate expert, demand for properties remains active and enquiries continue, although seasonality has had an impact on a slight slowdown in recent months. “However, activity is expected to regain momentum after March, when more transactions are usually completed following the economic recovery in the first quarter.”
Most buyers who access mortgage loans are those who have more than 30% of the value of the property in their own savings.
"This support allows them to comply with banking requirements and meet additional expenses associated with the purchase, such as taxes, deeds and commissions, which facilitates the approval of financing," Cuello concluded.
www.buysellba.com
February 24, 2025
This was confirmed by a private report, which recorded more than 11,000 loans granted in the country. What were the average amounts and what types of homes were sold the most?
By Jose Luis Cieri
The mortgage market rebounded after a period of crisis, marking a milestone not seen since 2018. Keys to how this financial tool recovered (Illustrative Image Infobae)
The reactivation of UVA mortgage loans marked a turning point in the real estate market in 2024, with more than 11,000 loans granted and an average amount of USD 75,000 per beneficiary, the best performance since 2018, confirmed an analysis by the Tejido Urbano Foundation.
Although it started from a low point, this type of lending line rebounded strongly in the second half of the year and provided important lessons for its future sustainability.
The economic recovery was a key factor. A start to the year characterized by distrust and economic instability — in which significant credit lines were not launched until April — gave way in the second half to sustained monthly growth.
According to the analysis, “ during the first six months, mortgage activity was practically zero ,” while the second half of the year marked a notable dynamism.
A challenging context and strategic changes
The economic outlook had a significant impact on market performance. A combination of high inflation, high rates and a sluggish financial market had driven the mortgage sector to historic lows.
Mortgage loan of up to 200 thousand soles at Banco de la Nación. (Reference photo/Andina)
However, the lower credit demand from the government to the financial system freed up financing capacity and the official approach contributed to silencing the speeches that considered the UVA scheme as “a problem to be solved.”
The executive director of the Tejido Urbano Foundation, Fernando Álvarez de Celis , explained to Infobae that both financial institutions and borrowers were already familiar with the model implemented between 2016 and 2019, which facilitated a smoother adoption in this new stage. His words underlined that “ a significant learning curve was not necessary ,” which accelerated the implementation process once conditions began to improve.
Real estate market and economy
The resurgence of mortgage lending had a direct impact on the real estate market, increasing both demand and transactions. Statistics show that during December 2024, 68% more deeds were completed compared to the same month of the previous year , reaching the highest level of real estate activity in the last seven years.“Money laundering also played a complementary role, helping to consolidate the sector's recovery,” said Álvarez de Celis , who also pointed out that these combined factors managed to give vitality to a market that had been stagnant for years.
Despite this significant increase in operations, the expert clarified that prices remained “stable in general terms” , except in some areas with higher specific demand.
Profile of borrowers and the future
Regarding current borrowers compared to previous cycles, Álvarez de Celis highlighted an important change: “ The lack of credit in previous periods led several families to take advantage of this new opportunity, aware of how difficult access had been in the past .”Additionally, the large inventory of available properties allowed buyers to evaluate various options within an abundant market.
One-bedroom apartments among the best-selling apartments in Buenos Aires and the province
However, future projections for UVA mortgage loans are not without challenges. Since the last quarter of 2024, there has been a gradual increase in interest rates by banks , which generates uncertainty around the scheme. Although the impact on demand has been limited so far, “ there is a risk that this trend will complicate access to financing in the medium term ,” experts warn.
Álvarez de Celis also pointed out that the securitization of these loans could be key to guaranteeing their long-term continuity, allowing banks to transfer these portfolios to entities that can take on longer-term loans. However, he warned that it is still necessary to surpass the levels reached in better times, such as during the years 1996-1997, when mortgage lending in Argentina had one of its strongest moments.
Dynamism
Studio apartments for less than USD 60,000 , one-bedroom apartments for less than USD 80,000 and two-bedroom houses for less than USD 100,000 were the properties most sold through mortgage loans, especially in CABA and the province of Buenos Aires.These units, due to their value and size, became the most sought-after options for those who obtained financing.
According to Lisandro Cuello , a real estate expert, demand for properties remains active and enquiries continue, although seasonality has had an impact on a slight slowdown in recent months. “However, activity is expected to regain momentum after March, when more transactions are usually completed following the economic recovery in the first quarter.”
Most buyers who access mortgage loans are those who have more than 30% of the value of the property in their own savings.
"This support allows them to comply with banking requirements and meet additional expenses associated with the purchase, such as taxes, deeds and commissions, which facilitates the approval of financing," Cuello concluded.
www.buysellba.com
