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Mortgage loans: USD 175 million were granted in November, already exceeding those granted at the start of the Macri era- Infobae
Source:
www.infobae.com
December 09, 2024
This was revealed by a private analysis that confirmed that there was a pause in the inter-monthly advance. October was better, but some banks raised rates and a consolidation in the growth of plans is expected. In CABA, mortgage deeds exceeded 2016 levels.
By Jose Luis Cieri
Mortgage loan purchase and sale transactions boosted the real estate market in 2024 (Illustrative Image Infobae)
Mortgage lending in Argentina registered a dual performance in November. While UVA loans to families decreased 4.1% in pesos compared to October, in dollars there was a slight growth of 0.6%, driven by the fall in the official exchange rate.
In total, operations reached USD 175.3 million, a figure that is above the first months of Mauricio Macri 's administration in 2016, when UVA-adjustable mortgage loans began to be implemented.
Federico González Rouco , an economist at the consulting firm Empiria and specialized in the real estate market, told Infobae that this change could reflect a stabilization in the levels reached. “It is possible that the first impulse of demand has reached a ceiling. This is not negative, since it consolidates levels much higher than those of 2020-2023. What we could observe now is a more stable flow,” he explained.
This upturn is also related to exchange rate stability. The improvement in wages measured in dollars and the perception that inflationary accelerations are not expected were key to maintaining the demand for UVA-adjustable mortgage loans.
The first tranche of loans in 2024 was faster than in 2016, “but at that time there was an initial learning period in which society and banks had to learn to think and work in UVA, in addition to the fact that having indexed loans was something new,” González Rouco highlighted.
In October 2024, mortgage deeds amounted to 944 transactions, an increase of 300% compared to the same month in 2023. This growth is also reflected in the annual cumulative figure: until November, it is estimated that approximately 3,300 mortgage deeds will be recorded, more than double the 1,563 registered in 2016 for the same period.
This data confirms a structural change in the real estate sector, which managed to overcome the crisis that marked the final years of Mauricio Macri 's government and the first years of the current administration with Javier Milei .
In addition, the Buenos Aires real estate market as a whole reached record levels. Last October, 5,987 notarial acts were carried out , the highest number in seven years, approaching the peak of 6,154 deeds recorded in October 2017, during the effervescence of UVA credits.
According to Jorge De Bártolo , president of the Buenos Aires Notaries Association, the record increase in deeds registered in October is part of a growth cycle that began more clearly a year ago, in a context of electoral uncertainty. “This interannual cycle began in 2021, although it was initially compared to the worst months of the pandemic. Since then, we have accumulated 31 months of interannual increases,” he said.
Source: College of Notaries of the City of Buenos Aires
This rebound confirms the sector's recovery and consolidates its performance compared to the most critical years.
"For this year, we expect to exceed 50,000 deeds, although a historically very good year ended with more than 70,000 (like 1998). This indicates that there is still room for further growth," he said.
De Bártolo predicted that 2025 could maintain this positive trend if the current stability is consolidated. “With more predictable scenarios, families are encouraged to take the step towards the property they dreamed of, and this translates directly into the upturn in real estate transactions,” he added.
Source: Empiria Consultants
According to the consultancy The First Capital Group, mortgage credit lines, including those adjustable by UVA, registered an increase of 21.9% in November compared to October and accumulated a nominal growth of 151.7% so far this year, although still below the registered inflation.
Banks are considering securitizing mortgage portfolios in 2025 to obtain new funds. In addition, six banks adjusted interest rates —between 0.5 and 3.5 points— and reduced financing terms or percentages, as reported by Infobae .
The biggest challenge is affordability. Buying an average home in Argentina requires an income equivalent to two average salaries over a period of eight years.
This factor, combined with the impact of higher rates in some banks, could slow down the dynamism observed throughout 2024. However, “the government's economic policies, focused on containing inflation and stabilizing the dollar, could contribute to sustaining the full recovery of mortgage credit in the medium term,” concluded González Rouco.
www.buysellba.com
Source:
Créditos hipotecarios: en noviembre se otorgaron USD 175 millones y ya superan los del arranque de la era Macri
Así lo reveló un análisis privado que confirmó que hubo una pausa en el avance intermensual. Octubre fue mejor, pero algunos bancos elevaron las tasas y se espera una consolidación en el crecimiento de los planes. En CABA las escrituras con hipoteca superaron los niveles de 2016
www.infobae.com
December 09, 2024
This was revealed by a private analysis that confirmed that there was a pause in the inter-monthly advance. October was better, but some banks raised rates and a consolidation in the growth of plans is expected. In CABA, mortgage deeds exceeded 2016 levels.
By Jose Luis Cieri
Mortgage loan purchase and sale transactions boosted the real estate market in 2024 (Illustrative Image Infobae)
Mortgage lending in Argentina registered a dual performance in November. While UVA loans to families decreased 4.1% in pesos compared to October, in dollars there was a slight growth of 0.6%, driven by the fall in the official exchange rate.
In total, operations reached USD 175.3 million, a figure that is above the first months of Mauricio Macri 's administration in 2016, when UVA-adjustable mortgage loans began to be implemented.
Federico González Rouco , an economist at the consulting firm Empiria and specialized in the real estate market, told Infobae that this change could reflect a stabilization in the levels reached. “It is possible that the first impulse of demand has reached a ceiling. This is not negative, since it consolidates levels much higher than those of 2020-2023. What we could observe now is a more stable flow,” he explained.
This upturn is also related to exchange rate stability. The improvement in wages measured in dollars and the perception that inflationary accelerations are not expected were key to maintaining the demand for UVA-adjustable mortgage loans.
The first tranche of loans in 2024 was faster than in 2016, “but at that time there was an initial learning period in which society and banks had to learn to think and work in UVA, in addition to the fact that having indexed loans was something new,” González Rouco highlighted.
Mortgage deeds almost double in 2016
According to data from the Notary Association of the city of Buenos Aires, 563 mortgage deeds were executed in October 2016, an increase of 19% compared to the same month of the previous year. These represented 13.6% of the total number of notarial acts registered, compared to 13.4% the previous year. In comparison, the current performance of the market shows a significant improvement.In October 2024, mortgage deeds amounted to 944 transactions, an increase of 300% compared to the same month in 2023. This growth is also reflected in the annual cumulative figure: until November, it is estimated that approximately 3,300 mortgage deeds will be recorded, more than double the 1,563 registered in 2016 for the same period.
This data confirms a structural change in the real estate sector, which managed to overcome the crisis that marked the final years of Mauricio Macri 's government and the first years of the current administration with Javier Milei .
In addition, the Buenos Aires real estate market as a whole reached record levels. Last October, 5,987 notarial acts were carried out , the highest number in seven years, approaching the peak of 6,154 deeds recorded in October 2017, during the effervescence of UVA credits.
According to Jorge De Bártolo , president of the Buenos Aires Notaries Association, the record increase in deeds registered in October is part of a growth cycle that began more clearly a year ago, in a context of electoral uncertainty. “This interannual cycle began in 2021, although it was initially compared to the worst months of the pandemic. Since then, we have accumulated 31 months of interannual increases,” he said.
Source: College of Notaries of the City of Buenos Aires
This rebound confirms the sector's recovery and consolidates its performance compared to the most critical years.
"For this year, we expect to exceed 50,000 deeds, although a historically very good year ended with more than 70,000 (like 1998). This indicates that there is still room for further growth," he said.
De Bártolo predicted that 2025 could maintain this positive trend if the current stability is consolidated. “With more predictable scenarios, families are encouraged to take the step towards the property they dreamed of, and this translates directly into the upturn in real estate transactions,” he added.
The negative trend was reversed
The real estate market is reflecting a positive trend. In October, the average price of registered properties reached USD 104,000, with almost 6,000 transactions registered, with an increase of 19% compared to the same month in 2023 and a year-on-year increase of 16 percent.
Source: Empiria Consultants
According to the consultancy The First Capital Group, mortgage credit lines, including those adjustable by UVA, registered an increase of 21.9% in November compared to October and accumulated a nominal growth of 151.7% so far this year, although still below the registered inflation.
Banks are considering securitizing mortgage portfolios in 2025 to obtain new funds. In addition, six banks adjusted interest rates —between 0.5 and 3.5 points— and reduced financing terms or percentages, as reported by Infobae .
The biggest challenge is affordability. Buying an average home in Argentina requires an income equivalent to two average salaries over a period of eight years.
This factor, combined with the impact of higher rates in some banks, could slow down the dynamism observed throughout 2024. However, “the government's economic policies, focused on containing inflation and stabilizing the dollar, could contribute to sustaining the full recovery of mortgage credit in the medium term,” concluded González Rouco.
www.buysellba.com
