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Property prices are rising: How high can they go? - El Cronista
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Las propiedades aumentan de precio: hasta dónde pueden llegar
Acumulan un incremento del 6,3% en los últimos 13 meses, pero hay segmentos que registran subas de hasta el 10%. Qué unidades son las más demandadas
www.cronista.com
August 2, 2024
They have accumulated an increase of 6.3% in the last 13 months, but there are segments that register increases of up to 10%. Which units are the most in demand
Property prices in the city have been increasing for 13 consecutive months. With an average price of US$ 2,286 per square meter in July, values have already accumulated an increase of 6.3% compared to the minimum recorded in June 2023, according to data collected by the Zonaprop portal. However, they are still 18.4% below the maximum recorded in March 2019 .
The price increase began slowly in the more established neighborhoods of the northern corridor. But from January onwards it began to spread to other areas of the city. Currently, 85% of the neighborhoods are registering an increase in their values , similar to the indicator of August 2017, when the boom of UVA credits was about to begin.
"The market is more active and it is true that prices are increasing. But when you look at the closing prices, the increase is a little smaller, around 3% to 4% . But there are some segments where it reaches 10% ," says Juan Manuel Vázquez Blanco, economist and general manager of Fabián Achával.
The executive indicates that the market is divided into three well-differentiated segments . In units of up to US$ 100,000, the increases in the second quarter of this year compared to the same period in 2023 were 6% to 10%. For those between US$ 100,000 and US$ 200,000, the growth was more moderate . On the other hand, those of more than US$ 200,000 showed a drop of up to 5% .
Small units
The market is moving, more than anything, due to the boost given by the sales of one- and two-room apartments . And this is clearly reflected in the average amount of the deeds , which in June was just over US$90,000 , according to the Notary Public Association of the City of Buenos Aires."Although there is activity all over the city today, the most in-demand properties are the small apartments in the northern corridor. But there are also more operations in Almagro and Caballito ," added Vázquez Blanco.
In other areas, he said, listing prices may have increased . But when the deals are closed, they are at the same prices as a year ago.
"Some prices for certain products in particular have started to rise, but there is not yet a rapid jump in prices, because this will have to be accompanied by mortgage loans , as people decide to take them out," said Hernán Perrone, from RE/MAX Parque.
The sector believes that the upward trend could continue in the coming months. However, they still see the possibility of reaching the price peaks of 2019 as very far away.
"We expect a new moderate increase in the coming months, supported by credits and money laundering ," added Rafael Baigún, president of Baigún R & N.
For the recovery to be consolidated, he added, there must be political and economic stability : " In Argentina, pre-pandemic prices have not yet recovered, when they were already reached in the world some time ago . If stability is achieved, the sector has no ceiling."
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