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Properties: The market continues to show signs of reactivation and price increases - La Nacion Propiedades
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Propiedades: El mercado sigue dando señales de reactivación y aumento de precios
Las operaciones que se cerraron en el cuarto mes del año en la ciudad de Buenos Aires fueron récord; fue el mejor abril en los últimos cinco años, un dato que genera esperanza en el sector
www.lanacion.com.ar
May 23, 2024
The operations that were closed in the fourth month of the year in the city of Buenos Aires were records; It was the best April in the last five years, a fact that generates hope in the sector.
The data on April deeds was known in the city of Buenos Aires
After the month of March registered a significant increase in the number of real estate purchase and sale deeds in the city of Buenos Aires, with a total of 3,399 registrations, 53% more in February -2,213-, the April numbers reflected a certain stability compared to the previous month: 3,636 deeds were signed, 7% more than the third month of the year but 20% more than the same month last year . While the total amount of transactions carried out also grew: 345.4% more than the fourth month of 2023 with $279,237 million , according to the city's College of Notaries .
The data shared reflects this being the best April in the last five years and encourages the sector's expectations after the pandemic debacle, when the sales prices at which a sale ended up closing collapsed by more than 35%.
The new data excites the sector that dreams of replicating the numbers of 2018, the best year in the last 20 years.
The evolution of writings in the city of Buenos Aires in the last 12 months
“We are closing a quarter with a 20% year-on-year increase . If we look at the last four years, it is a picture of climbing step by step. Now we enter a new challenge of taking the elevator up with mortgage loan advertisements. If new loans are generated, we believe that we could double real estate activity,” reflects Jorge De Bártolo, president of the Porteño College of Notaries and presents as an example the last period in which there were loans: during the first four months of 2018, more than 20,000 operations. “ Today, despite the fact that it has been rising, we do not register more than 11 thousand deeds. That is why we insist on working with all real estate actors together , ” says the official.
Other numbers revealed by the report that the College carries out every month is that in the fourth month of the year, the average amount of operations was $76,798,020 ( US$84,195 according to the average official exchange rate): that is, it grew 236 .9% in a year in pesos, but in the US currency it fell 17.4% .
Regarding the comparison with the deeds formalized with a mortgage, only 114 deeds will be generated in April, 5.8% less than the same month last year. While in the balance of the quarter there were 368, which represents a decrease of 3.4%. If a historical analysis is carried out, it is evident that when there is availability of mortgage credit , the real estate market experiences notable growth as reflected in the following graph.
Deeds with mortgage in the last 15 years
This graph explains why the new loan lines announced by 13 banking entities in the last month awaken hope in the sector that is slowly showing signs of reactivation : the average price per square meter (publication) in the City of Buenos Aires registered the largest monthly increase since April 2018, according to the latest Zonaprop report.
The publication value increased 0.8% in April and stands at US$2,219 . If we look at the first four months of the year, prices accumulate an increase of 1.9% , while in the year-on-year comparison prices rise by 2.5%. This rise could be explained by the increase in the cost of construction which , measured in dollars, registers an increase of 40.4% in 2024. Currently, building costs almost triple what it cost in October 2020 , the minimum in the series , and 34.9% above the 2012-2023 average.
On the other hand, 79% of the neighborhoods register a monthly price increase (publication), with well apartments being the ones with the greatest increase. For its part, the average publication price of the apartments rose by 1.9%.
Another positive symptom is reflected in the fact that the volume of apartments for sale discounted has stopped falling in the last six months and remains stable at 18% in the first quarter of 2024. “The drop in the volume of discounted listings is one of the factors that explain the increase in the price registered since July 2023,” says Leandro Molina, director of ZonaProp.
In specific data, a 40 m² studio apartment has a published price of US$98,109 for sale, while a two-bedroom apartment of 50 m² is worth US$117,474 and a three-bedroom apartment of 70 m² is worth US$161,697.
Which banks offer loans and in what amounts?
So far there are 13 banks that have announced UVA mortgage loans: Nación, BBVA, Ciudad, Galicia, Hipotecario, Macro, Del Sol, ICBC, Supervielle, Santander and the provincial Córdoba, Neuquén and Corrientes.The amounts are up to $250 million , although there are cases without a limit such as the Galicia line, BBVA, Macro, Supervielle, Santander and del Sol. In general, they finance between 75 and 80% of the value of a property, although there is only one entity that lends 100%: the bank of Córdoba (Bancor), with a limit of $90 million. Macro finances 75% of properties up to $350,000,000, 60% of those over $350,000,000 and 90% if the person taking the loan is under 30 years old with parents who guarantee the loan and acquires their first home. In the case of the Nación, it is clarified that it is up to 75%, as long as the value of the property does not exceed 120 million pesos.
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