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Opportunity in the midst of the crisis: There are more than 30,000 apartments for less than USD 85,000 - Infobae
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Oportunidad en medio de la crisis: hay más de 30.000 departamentos por menos de USD 85.000
El sector inmobiliario muestra signos de recuperación, con una oferta amplia de propiedades económicas en venta que atraen a inversores y usuarios finales
www.infobae.com
March 20, 2024
The real estate sector shows signs of recovery, with a wide range of affordable properties for sale attracting investors and end users
By José Luis Cieri
For less than USD 85,000 there are more than 30,000 properties for sale. CABA remains a real estate market of opportunity for end users or investors
In the midst of a very difficult situation, homes located in the city of Buenos Aires (CABA) remain an investment opportunity in the real estate market. With more than 30,000 properties available below USD 85,000, home prices recorded a significant reduction, comparable to 2004 values, adjusted to dollar value.
This situation, derived from political uncertainty, the economic impact of the pandemic, exchange control, among other factors, consolidated a favorable environment for investors, as Mariano García Malbrán , president of the Chamber of Real Estate Services Companies , highlighted to Infobae ( Camesi).
This phenomenon is reflected in the growth of inquiries and transactions in the sector, as well as interest in property visits, which indicates a significant revitalization of the market.
“During the last semester of 2023, the market had a reactivation that confirmed a growth in the number of purchase and sale operations,” stated García Malbrán.
And last January, almost 2,000 deeds were made, the best start to the year since 2018.
Lisandro Cuello , from the real estate company of the same name, explained that “the consumer now sees the opportunity to make changes, since they can sell their property at current market values and acquire another one at the same time, under the same conditions and rules. In other words, with the difference available, he can make the transition happen.”
For their part, many investors are making trading decisions when they realize that they are purchasing at prices lower than historical prices in the sector.
There are apartments in good condition for values similar to other times. The drop in prices makes it tempting for those who have savings in hand to bet on the brick
“They maintain the expectation of an increase in prices in the medium term, especially if the Government corrects macroeconomic disconnections, such as inflation, in the short term and stimulates production,” Cuello added.
Where are you
The apartments for sale, which are mostly more than 35 years old, are located in traditionally valued areas such as Belgrano or Recoleta , where the price per square meter fell to USD 2,000 per m2 (especially in the final closing values of operations), as well as in more accessible areas such as Flores, Floresta, Monserrat, San Telmo , and Constitución . The historical sales value in Recoleta and Belgrano does not drop below an average of USD 2,800 per square meter.The possibility of acquiring and renovating these properties generates a rapid appreciation of value.
Cuello added: “Whoever has savings after completing the operation can recycle them and thus quickly obtain an appreciation of at least 20%.”
For less than USD 85,000 there is a wide range of apartments of various types available for that value, generally without a garage, but most have a balcony or other exterior connection, since those that lack these features are not sold.
For example, in well-located areas of Agronomy, a two-room apartment is available for less than USD 60,000, in Enzo Bordabehere at 2800, for 55 m2. Or a three-bedroom on Avenida Independencia at 2200, in San Cristóbal, costs USD 85,000 with 70 m2 and a balcony.
The balcony is key to having sales success. This property is between Balvanera and Montserrat
In Belgrano, in Moldes at 2300, a two-room apartment of 68 m2 is worth USD 72,000, also with a balcony. And a three-room apartment on Fragata Sarmiento at 1800, almost on the border between Villa General Miter and Paternal, measuring 70 m2 and with its own terrace, costs USD 78,000.
It is estimated that the fall in values has reached its lowest point. García Malbrán explained: “This is mainly due to the increase in the cost of construction in dollars in recent months . With replacement value on the rise, real estate developers are not willing to lose money. If the price of new properties adjusts to these circumstances, it is likely that in four months the used property market will also reflect an increase in sales prices.”
More advantages
The advantage is not only limited to the purchase and renovation of properties, but also the potential for profitability in both traditional and temporary rentals.However, after the repeal of the Rental Law by the Government's DNU, the real estate market maintains that housing rentals are now more profitable, offering an annual return of 5% in dollars, compared to temporary rentals in dollars. , due to the lower existing demand.
Investing in apartments to use them in more flexible rental contracts, where adjustments are shorter and losses to inflation are minimized, is especially attractive today.
The trend in the stock market, especially in shares of Argentine companies listed on both the United States and local stock exchanges, suggests a positive omen for the real estate sector. “Stocks have grown exponentially in recent times and whenever this happened, behind it was always the increase in real estate values,” concluded García Malbrán, highlighting the synergy between both markets.
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