BuySellBA
Administrator
Real Estate: Due to money laundering and credits, developers speak of a "change of era" for the sector - El Cronista
Souce:
Real Estate: por blanqueo y créditos, los desarrolladores hablan de "cambio de época" para el sector
Los principales desarrolladores inmobiliarios de la Argentina expresaron sus visiones en la primera jornada de la Expo Real Estate, que se desarrolla en el Hotel Hilton. El sector dialoga con el Gobierno porteño por el nuevo proyecto de Código Urbanístico, que restringe las construcciones nuevas...
www.cronista.com
August 14, 2024
Argentina's leading real estate developers expressed their views on the first day of the Expo Real Estate, which is taking place at the Hilton Hotel. The sector is in dialogue with the Buenos Aires Government over the new Urban Development Code project, which restricts new construction in the City.
Real Estate: Due to money laundering and credits, developers speak of a "change of era" for the sector
The impact of mortgage loans and bank financing on new projects and expectations about the money laundering of the real estate sector dominate the agenda of the broad real estate value chain , whose main market representatives agree that we are on the threshold of a "change of era".
The new edition of the Congress of Real Estate Developments and Investments known as Expo Real Estate exceeded expectations due to the conditions specific to the sector and a more auspicious macroeconomic context for the sector and whose main representatives did not hide their enthusiasm about the new scenarios.
The first scenario for the sector was described by Issel Kiperszmid, CEO of Dypsa , who noted that "after facing old problems, new problems arise and in this situation, mortgage credit, money laundering and the drop in inflation rates have emerged, which puts the industry in a transition and facing new challenges."
" 2024 will finally be a great year for real estate companies. But next year will be the year of developers," Kiperszmid predicted. "With a more reasonable economy and an opening that is looming, it allows us to think of a return to Argentina 30 or 40 years ago or what Peru, Uruguay and Chile are today."
Stability for growth
In a similar vein, Santiago Tarasido, CEO of Criba - a company carrying out a US$400 million development in Punta del Este - celebrated that "starting to control a macro that was lost 10 years ago and thinking in a long-term context, it is a scenario of stability that allows us to think about developing projects like any normal country ."Tarasido emphasized that this industry has three indicators that, compared to countries like Colombia or Brazil, speak of Argentina's growth potential of multiplying the current 400,000 construction jobs by four; increasing foreign direct investment by ten; and increasing the mortgage loan to GDP ratio by 25 times.
Alejandro Furst, CEO of Landamark Developments , did not mince his words when he spoke of " a significant change in trend with an explosion in the signing of tickets in the Pilar development, which has a lot to do with money laundering and the need of investors to have white assets to make investments, even validating rising prices ."
The executive of Landmark , the developer of the Werthein group that is carrying out the most important project in Argentina, with two 100-meter towers for premium housing and a third for a five-star hotel and corporate demand on Libertador and Udaondo avenues, considered that, beyond the incipient mortgage credit, it is important to maintain the trusts for construction, an active market for many years that is not regulated by the CNV and that worked very well .
Landmark's premium towers reflect a luxury market in demand
Money laundering and financing
Gustavo Menayed, CEO of Grupo Portland , highlighted that the developer "in the next nine months will have 460,000 square meters in 14 projects, all funded with pre-sales" and is waiting for " new, very interesting financing tools for development" until the dynamic of "mortgage loans that have not existed in Argentina for more than 30 years " is resumed .The company, which provides everything from inputs to real estate projects, is developing the emblematic Libertador y Bullrich tower designed by Iranian architect Zaha Hadid. It stressed that "the market is so broad that it does not allow for a single formula" for financing and requires "remodeling the real estate business" not only with the mortgage revolution but with other instruments to expand access and lower costs."
Regarding the emergence of new conditions in the market for resources such as money laundering and credit, Daniel Mintzer, partner at GYD Developers , recalled that at the same event a year ago it was highlighted that "the keys were prices, construction costs and dealing with uncertainty, waiting for money laundering and mortgage credit to arrive."
"Today we have credit," he stressed, "it is not perfect yet, but we have to use it; and money laundering is extraordinary, because the black money in Argentina never ceases to amaze and in the short term it is good that real estate companies and developers can take advantage of it to have many sales opportunities."
But the most celebrated news of the day was the one presented by Gonzalo de la Serna, CEO of Consultatio - Eduardo Costantini 's firm -, who today announced "the first line of credit for a project in development" that the company is carrying out in Huergo 475, following an agreement with the Hipotecario bank.
" Today you can buy an apartment under construction for 30 years and that is a before and after in the industry , which although it is a specific development is totally replicable. When the macro does not interfere, it is possible to sit down and work and solve these situations and we are in that transition that reflects a change of era," added De la Serna.
Finally, Patricio Lanusse, a partner at Eidico , was one of those who referred to the uncertainty caused by the urban changes in the City of Buenos Aires and the Province of Buenos Aires, and the possible impact on the projects, which " generated a state of alert, even though it is not a bad law , but the problem comes from the complementary regulations."
" We are trying to understand the positive side in order to see the opportunities for improvement, but everything that is being done cannot be stopped because a new regulation comes along ," he said when addressing the provincial government's announcement to "debate another framework for territorial and urban planning" to that established by Decree Law 8912/77 and Law 14449/12 on access to habitat.
The presence of the Buenos Aires City Government Chief, Jorge Macri, and the Secretary of Urban Development of the City, Álvaro García Resta , is expected on Thursday, after meeting with the main representatives of the construction sector and developers on Tuesday and agreeing to continue working for the sustainable urban growth of the City "that preserves the profile and identity of the low-rise neighborhoods."
The meeting was held to discuss the draft update of the Urban Planning Code sent to the Legislature, and to provide clarifications on Decree of Necessity and Urgency 2/24, which suspended for 180 consecutive days the start of new procedures in the areas of low-rise houses identified in the Code as USAB 1 and 2.
" This measure does not affect the continuity of any ongoing procedures, nor the validity of building permits already granted, and allows the start of works already processed. In this way, the continuity of construction and real estate activities is guaranteed while the Urban Planning Code is being discussed ," the Buenos Aires City Government announced.
The project, however, was criticized and rejected by businessmen in the sector.
www.buysellba.com
