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Mortgage loans and money laundering boosted demand for home purchases - Infobae
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Los créditos hipotecarios y el blanqueo impulsaron la demanda para la compra de viviendas
Las consultas para adquirir viviendas crecieron 50% respecto a 2023. El objetivo de los interesados es aprovechar el apalancamiento bancario para dejar de ser inquilinos y convertirse en propietarios
www.infobae.com
November 15, 2024
Inquiries to purchase properties grew by 50% compared to 2023. The objective of those interested is to take advantage of the banking leverage to stop being tenants and become owners.
By Jose Luis Cieri
(Illustrative Image Infobae)
Following the reactivation of mortgage loans and money laundering , the real estate market in Argentina showed signs of recovery, with increased user interest in purchasing properties. According to recent data from the College of Notaries of the city of Buenos Aires, in September 2024, the total number of deeds of sale grew 30.4% compared to the same period of the previous year. This trend is also reflected in an increase in mortgage transactions, which, starting from very low levels, rose 317.2% year-on-year, accumulating an increase of 74.3% so far this year.
Real estate market sources revealed a renewed dynamism in demand for properties in CABA, driven by new financing options that facilitated access to property, with a growth in searches and demand of 50% year-on-year.
Interest in property purchases remained strong after May, with sustained growth that began at the beginning of the year. After a 45% increase in purchase searches in January, according to data from Zonaprop, the market remained stable even with some variations, such as a slight drop in February. Demand was strongly reactivated in March, April and May, when increases of 21%, 18% and 20% were recorded, respectively, coinciding with the reactivation of mortgage loans and construction incentive programs.
https://www.infobae.com/economia/20...el-ano-que-se-espera-para-los-proximos-meses/
“In the middle of the year, demand experienced a slight decline, but it regained momentum between July and September, and reached levels higher than those of the previous year. This suggests that, despite economic fluctuations, there is still active interest in the buying and selling market,” real estate expert Lisandro Cuello told Infobae .
Demand for home purchases has grown in recent months, driven by the reactivation of mortgage loans and the change in the rental market. After the 2022-2023 crisis, marked by a shortage of supply and the resistance of owners to sign long contracts with inflation adjustments, the outlook began to normalize after the DNU.
Miguel Chej Musse , from the Real Estate Market Statistical Observatory of the Buenos Aires Real Estate Association, explained that “this expansion in the demand for purchases is also linked to the normalization of the rental market. With the repeal of the decree, the owners returned to offering units for rent, which eased the tension in that sector. At the same time, many tenants who had postponed the decision to buy are now willing to take advantage of the new lines of credit and the greater availability of properties.”
The neighborhoods with the highest demand and prices
Palermo, according to Zonaprop and Cabaprop (the portal of the Buenos Aires Real Estate Association), leads the list of the most sought-after neighborhoods for property purchases in CABA, accounting for 15% of all searches and with an average price of USD 3,205 per square meter.
While the interest in renting properties showed some stability, the purchasing sector experienced a more significant rebound, supported by the favorable macroeconomic context for those seeking to dollarize their savings through brick and mortar (Illustrative Image Infobae)
Belgrano follows, with 11% of the inquiries and an average value of USD 3,025, and Caballito, which accounts for 8% of the demand, with a price of USD 2,320 per m2.
At Cabaprop, Almagro (USD 2,162) and Villa Urquiza (USD 2,539 per m2) are added to these preferences as the most in demand.
Other neighborhoods that show significant interest are Recoleta, with 7% of searches and an average value of USD 2,654 per m2, and Villa Urquiza, which represents 5% of the demand.
In contrast, the areas with the least interest are Barracas, which concentrates only 1% of the searches and a price of 1,971 dollars/m2, followed by San Cristóbal, with 2% of the demand and an average value of 1,818 dollars/m2, and Flores, with 3% and an average price of 1,938 dollars/m2.
Boom in demand
According to a recent analysis based on Zonaprop data, demand in the buying and selling market increased by 51% compared to September 2023.Leandro Molina , country manager of Grupo QuintoAndar (which owns Zonaprop) for Argentina and Peru, said that “in 2024 we see a greater inclination in the interest for the acquisition of apartments in condominiums. The demand for this segment grew by 90% in the last twelve months.”
The trend reflects not only a change in consumer preferences, but also greater optimism in the real estate sector in the face of measures aimed at revitalizing the market.
“With expectations placed on the continuity of financing programs and access to credit, it is projected that interest in acquiring properties will remain at high levels for the coming year,” concluded Molina.
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