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Property sales prices rose in almost all Buenos Aires neighborhoods: which ones appreciated the most and why - Infobae
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www.infobae.com
August 02, 2024
The causes of the downward trend reversal. Recommendations for buying before the values rise further
By Jose Luis Cieri
A couple looks at the horizon while touring a house with the intention of buying. The trend has reversed and apartment prices are beginning to recover in CABA (Illustrative Image Infobae)
After months of sustained declines, the real estate market in Buenos Aires is showing signs of a change of trend. According to the latest data, 85% of Buenos Aires neighborhoods registered increases in the value of used properties, reversing the decline that had lasted until October of last year. At that time, apartment prices had fallen by up to 40%, with units being offered at prices similar to those of 18 years ago.
Various analyses have now confirmed the improvement in the sector. The Real Estate Report, which is prepared together with Re/Max and the University of the Center for Macroeconomic Studies of Argentina (Ucema), the Square Meter Index for Real Estate Operations, recorded an increase of up to 10% in prices . For its part, the ZonaProp portal showed an average increase of 5% so far in 2024.
This recovery in values is due to several key factors. On the one hand, the stabilization of the dollar and the slowdown in inflation have restored some of the confidence of investors in real estate, according to the real estate market. In addition, the lack of new stock of properties for sale has generated a scarcity effect that is pushing values up.
Mario Gómez , director of Le Bleu Negocios Inmobiliarios, was blunt in a conversation with Infobae : “It's time to buy.”
"This increase is the result of the change in expectations brought about by the new government. If economic agents perceive greater legal security, they will be more inclined to invest," he said.
The incipient emergence of mortgage credit, launched by more than 20 banks throughout the country, is a factor that played in favor of both those interested in buying on credit and those who have the money in cash and do not want another potential buyer to leave them without the home they chose.
Evolution of the average sales price in the City (Zonaprop)
"With the appearance of credit, certain demand made people decide to buy with savings in hand, and the incipient rise in prices caused the completion of transactions to be accelerated," added Gómez.
The possibility of money laundering is another factor that favours the business climate.
Source: Zonaprop
Gómez stressed that “Colegiales has always been a sought-after area for real estate demand. The recent addition of new green spaces such as the enhancement of the Railway Park adds significant value to this neighbourhood. The demand for young people to buy in the area has grown.”
Almagro, Caballito and Parque Patricios, between the center, south and west of Buenos Aires, also appreciated up to 9% when measured year-on-year.
Other areas that appreciated by up to 5% are Villa Devoto, Villa del Parque, Saavedra, Barracas, Villa Pueyrredón and Mataderos. The price per m2 in CABA ranges from USD 2,349 for two-room apartments and USD 2,319 for three-room apartments.
“This phenomenon is influenced by the gradual recovery since the pandemic, with a reduction in the accumulated stock and an increase in construction costs that make new construction more expensive. As a result, used properties become relatively cheaper, thus attracting demand for these properties,” said Juan Manuel Vázquez Blanco , economist and general manager of Fabián Achával Propiedades.
In the most dynamic neighborhoods, such as Palermo, Belgrano, Núñez and Caballito, there is a tendency towards a shortage of quality units. The best-located and best-conditioned properties are leaving the market, leaving older or worse-conditioned properties in circulation.
One-bedroom units are the ones that have appreciated the most recently (Illustrative Image Infobae)
Vázquez Blanco added: “This has led to an increase in demand for smaller, more affordable units, such as one-bedroom apartments, which now predominate in transactions.”
Data shows that units under $100,000 saw prices rise by 8% to 10% compared to last year.
“But properties in the range of USD 100,000 to USD 200,000 saw more moderate increases, between 5% and 6%. On the other hand, units that exceed USD 200,000 registered moderate falls of between 3% and 5%, indicating that this segment of the market remains the most stagnant,” said Vázquez Blanco.
Gómez pointed out that “the supply of properties for sale decreased, partly due to the increase in the supply for rent. The most benefited neighborhoods are Colegiales, Almagro, Villa Ortúzar and Parque Chas, where credit has a more direct impact and business opportunities are growing.”
The number of transactions also increased according to the records of the College of Notaries of Buenos Aires. The percentage of haggling in counteroffers decreased, and transactions are closed at values closer to those published.
Leandro Molina , country manager of Grupo QuintoAndar (which owns Zonaprop) for Argentina and Peru, concluded that “based on the data from the portal and on the exchange with clients, it is expected that in the remainder of 2024 there will be an upward trend in the price per square meter, especially in properties of up to USD 100,000.”
www.buysellba.com
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Los precios de venta de las propiedades subieron en casi todos los barrios porteños: cuáles se apreciaron más y por qué
Las causas de la reversión de la tendencia a la baja. Recomendaciones para comprar antes de que los valores suban más
www.infobae.com
August 02, 2024
The causes of the downward trend reversal. Recommendations for buying before the values rise further
By Jose Luis Cieri
A couple looks at the horizon while touring a house with the intention of buying. The trend has reversed and apartment prices are beginning to recover in CABA (Illustrative Image Infobae)
After months of sustained declines, the real estate market in Buenos Aires is showing signs of a change of trend. According to the latest data, 85% of Buenos Aires neighborhoods registered increases in the value of used properties, reversing the decline that had lasted until October of last year. At that time, apartment prices had fallen by up to 40%, with units being offered at prices similar to those of 18 years ago.
Various analyses have now confirmed the improvement in the sector. The Real Estate Report, which is prepared together with Re/Max and the University of the Center for Macroeconomic Studies of Argentina (Ucema), the Square Meter Index for Real Estate Operations, recorded an increase of up to 10% in prices . For its part, the ZonaProp portal showed an average increase of 5% so far in 2024.
This recovery in values is due to several key factors. On the one hand, the stabilization of the dollar and the slowdown in inflation have restored some of the confidence of investors in real estate, according to the real estate market. In addition, the lack of new stock of properties for sale has generated a scarcity effect that is pushing values up.
Mario Gómez , director of Le Bleu Negocios Inmobiliarios, was blunt in a conversation with Infobae : “It's time to buy.”
"This increase is the result of the change in expectations brought about by the new government. If economic agents perceive greater legal security, they will be more inclined to invest," he said.
The incipient emergence of mortgage credit, launched by more than 20 banks throughout the country, is a factor that played in favor of both those interested in buying on credit and those who have the money in cash and do not want another potential buyer to leave them without the home they chose.
Evolution of the average sales price in the City (Zonaprop)
"With the appearance of credit, certain demand made people decide to buy with savings in hand, and the incipient rise in prices caused the completion of transactions to be accelerated," added Gómez.
The possibility of money laundering is another factor that favours the business climate.
Those who rose the most
Colegiales, Núñez, Belgrano, Palermo, Villa Ortúzar, and Villa Urquiza, all in the northern corridor of Buenos Aires, are those that appreciated the most year-on-year, climbing up to 12% in several cases according to Zonaprop and Mercado Libre-Universidad de San Andrés, which also publish reports periodically.
Source: Zonaprop
Gómez stressed that “Colegiales has always been a sought-after area for real estate demand. The recent addition of new green spaces such as the enhancement of the Railway Park adds significant value to this neighbourhood. The demand for young people to buy in the area has grown.”
Almagro, Caballito and Parque Patricios, between the center, south and west of Buenos Aires, also appreciated up to 9% when measured year-on-year.
Other areas that appreciated by up to 5% are Villa Devoto, Villa del Parque, Saavedra, Barracas, Villa Pueyrredón and Mataderos. The price per m2 in CABA ranges from USD 2,349 for two-room apartments and USD 2,319 for three-room apartments.
Differences
In recent times, property listing prices in CABA have shown a general increase, although it is important to distinguish between these values and actual closing prices.“This phenomenon is influenced by the gradual recovery since the pandemic, with a reduction in the accumulated stock and an increase in construction costs that make new construction more expensive. As a result, used properties become relatively cheaper, thus attracting demand for these properties,” said Juan Manuel Vázquez Blanco , economist and general manager of Fabián Achával Propiedades.
In the most dynamic neighborhoods, such as Palermo, Belgrano, Núñez and Caballito, there is a tendency towards a shortage of quality units. The best-located and best-conditioned properties are leaving the market, leaving older or worse-conditioned properties in circulation.
One-bedroom units are the ones that have appreciated the most recently (Illustrative Image Infobae)
Vázquez Blanco added: “This has led to an increase in demand for smaller, more affordable units, such as one-bedroom apartments, which now predominate in transactions.”
Data shows that units under $100,000 saw prices rise by 8% to 10% compared to last year.
“But properties in the range of USD 100,000 to USD 200,000 saw more moderate increases, between 5% and 6%. On the other hand, units that exceed USD 200,000 registered moderate falls of between 3% and 5%, indicating that this segment of the market remains the most stagnant,” said Vázquez Blanco.
Optimism
Several indicators that are being monitored from the real estate market are favourable in contrast to 2023. The number of purchase enquiries has increased compared to last year, between 25% and 35% depending on the area.Gómez pointed out that “the supply of properties for sale decreased, partly due to the increase in the supply for rent. The most benefited neighborhoods are Colegiales, Almagro, Villa Ortúzar and Parque Chas, where credit has a more direct impact and business opportunities are growing.”
The number of transactions also increased according to the records of the College of Notaries of Buenos Aires. The percentage of haggling in counteroffers decreased, and transactions are closed at values closer to those published.
Leandro Molina , country manager of Grupo QuintoAndar (which owns Zonaprop) for Argentina and Peru, concluded that “based on the data from the portal and on the exchange with clients, it is expected that in the remainder of 2024 there will be an upward trend in the price per square meter, especially in properties of up to USD 100,000.”
www.buysellba.com
