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Mortgage loans have boosted the number of deeds: the number of transactions is the highest in 7 years in the province of Buenos Aires - Infobae
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Los créditos hipotecarios dispararon las escrituras: la cantidad de operaciones es la más alta en 7 años en la provincia de Buenos Aires
Al igual que en CABA, el Colegio de Escribanos bonaerense confirmó un cambio de tendencia: se realizaron más de 11.000 escrituras, con un crecimiento del 141% interanual en hipotecas, razones del crecimiento de operaciones y que es lo que más se vendió
www.infobae.com
November 27, 2024
As in CABA, the College of Notaries of Buenos Aires confirmed a change in trend: more than 11,000 deeds were executed, with a 141% year-on-year growth in mortgages, reasons for the growth in operations and what was sold the most
By Jose Luis Cieri
Access to mortgage credit and economic stability boost real estate transactions, restoring buyers' confidence after years of crisis, according to the sector (Illustrative Image Infobae)
The statistics of the real estate market in the province of Buenos Aires reflected significant growth in October, consolidating a change in trend in the sector. According to the College of Notaries of Buenos Aires, 11,213 deeds were executed, the highest number of the year and 15.25% higher than the 9,729 registered in October 2023.
This increase also translated into a 12.65% increase compared to the 9,954 operations carried out in September.
The Notaries Association highlighted that this performance places October as the best month (see graph below) for the Buenos Aires real estate market in the last 7 years. In September and October 2018, 8,200 and 8,700 deeds had been registered, respectively, in a context where the sector was beginning to feel the impact of the economic crisis and inflation was affecting the UVA credit installments at that time. The latest survey from October shows a clear improvement compared to those numbers.
They also noted that mortgages were the main driver of growth, in line with what was observed in the city of Buenos Aires , where a change in trend was also recorded.
Source: College of Notaries of the Province of Buenos Aires
The rise in mortgages was another of the highlights of the month. In total, 1,308 mortgages were signed, a 53% increase compared to the 854 in September and a jump of 141% compared to the 543 registered in October of last year. This performance suggests a renewed interest on the part of buyers in accessing mortgage loans, a tool that had lost importance in recent years.
While interest rates are challenging, trading volume reflects buyers looking to take advantage of current market conditions.
High levels
The Buenos Aires real estate market closed October with strong growth in deeds and mortgages, reaching levels not seen since 2017. Guillermo Longhi , president of the College, highlighted the change in trend: “The year-on-year growth in sales is an encouraging fact and reflects the movement that we already noticed in our notaries' offices.”The 141% year-on-year jump in mortgages was key to this rebound. In October, 1,308 were signed, a growth that Longhi attributed to the improvement in credit conditions: “The values show that it was the best October, with figures close to those of 2017, when there was a furor for UVA mortgage loans during the Mauricio Macri era . We believe that access to mortgage credit is key to sustaining this advance.”
This growth is part of a context of greater credit supply driven by both public and private banks ( there are 23 entities that grant them for now ), which reactivated a market that until last year showed little activity.
The Notaries Association pointed out that mortgages play a dynamic role. Longhi emphasized that the recovery of this segment is reminiscent of the 2017 scenario: “The similarities between 2017 and 2024 are a stable economy and a market that has mortgage credit, factors that dynamize real estate transactions.”
The rise in property deeds is also related to signs of macroeconomic stability, such as low inflation and control of the dollar, which have encouraged investment in properties. In addition, the implementation of measures such as money laundering injected resources into the sector and favored transactions. These factors, according to Longhi, are fundamental to consolidate the trend: “A more stable economy and lower interest rates will allow this upturn to continue to expand.”
Indicators show a market in recovery that could maintain its pace in the coming months if stability is maintained.
Source: College of Notaries of the Province of Buenos Aires
Longhi concluded: “After years of sustained crisis, with depressed values, we are seeing a return of activity that gives us optimism for what is to come. The current conditions are an important step towards the normalisation of the sector.”
Competitive values
In the province, property values have fallen by 45% since 2018 and have started a slight recovery of an average of 5% in the last year. This adjustment, combined with better credit conditions, is boosting the buying and selling in the sector.Mirta Líbera , president of the Real Estate Chamber of the province of Buenos Aires, highlighted that the current context generates opportunities for buyers. “We are in a market full of opportunities. Although credits are not yet fluid, they generate positive expectations, and this could lead to an increase in prices in the near future,” she said.
The stability of the dollar encourages those who plan to invest, since the purchase of real estate allows for better preservation of assets compared to keeping dollars unchanged.
In October, the most sold properties in La Plata and Greater Buenos Aires wereoe- and two-bedroom apartments, with prices above USD 55,000, and three-room houses, starting at USD 90,000.
Líbera also mentioned the prospect of new options such as divisible or future-property mortgages , which once banks offer them, could open up greater possibilities in the future for the purchase of homes in a short period of time.
However, he stressed that the main limitation remains the ability to qualify with credit institutions.
“To achieve broader growth in the sector, it is essential to improve salaries to allow more people to access financing and boost the sector,” concluded Líbera.
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