BuySellBA
Administrator
Real estate market: the 3 reasons why today is a good time to buy - Ámbito
Source:
Mercado inmobiliario: las 3 razones por las que hoy es un buen momento para comprar
El mercado inmobiliario está dando un giro. Los precios están subiendo, la demanda también. Qué tener en cuenta para transformar esta tendencia alcista en una gran oportunidad de inversión.
www.ambito.com
March 16, 2024
By Iván Briones
The real estate market is taking a turn. Prices are rising, so is demand. What to take into account to transform this upward trend into a great investment opportunity.
Is it a good deal to buy a property in Argentina today? This is the perfect time to ask yourself this question again, because the answer is yes. And I would dare to add: “ and soon ”. The real estate market is going through a stage of change that brings opportunities for the entire sector. After the price drop that began in 2020, followed by the devaluation of the dollar in the United States, having dollars under the mattress was no longer a business. But, unlike previous years, people were no longer buying real estate because prices continued to fall. With a thousand dollars, it was increasingly possible to buy more square meters. The reality is that there was no incentive to invest in property in Argentina.
What changed, then? Since the middle of last year , property prices stopped falling and, consequently, greater demand began to be registered . Accompanied by the change of government and in the face of imminent money laundering, which will make many Argentines want to invest dollars to prevent them from losing their value due to being unused. Everything indicates that the trend will continue to rise. In order to take firm steps in such a strategic decision and in a time of uncertainty, these are three good reasons why buying today is appropriate.
- Take advantage of low prices before laundering
Prices are lower than ever, but this is a circumstantial advantage that should not be missed. In the last 4 years, properties have experienced a drop in prices of 30% to 40% in dollars. This means that today, compared to previous years, property values in that currency are cheap. However, these prices won't last forever . The real estate market is not unlimited, and with the imminent whitewashing, an injection of capital is expected that will likely enter the real estate market and impact prices . It won't do it immediately, but it will do it constantly.
- The upward trend will continue during this government
In Argentina, real estate prices are intrinsically linked to politics and the economy. When a government starts with an upward trend, it usually continues throughout its term. The same on the contrary. This is what happened with Javier Milei's government, where prices stopped falling before he took office and then began to rise. Following this theory, prices will likely increase over the next three years.
- To protect the value of money
In December of last year, the tax information exchange agreement was signed with the United States, and thus the money from some 15,000 undeclared accounts was repatriated. How do we know? Because, after years in which people paid to take money out of Argentina, they now had to pay up to 6% to bring it back. Since, in a global scenario of inflation in dollars, still money loses purchasing power , it is very likely that it will turn to real estate. Consequently, a price correction will occur, which can increase by up to 50% .
In conclusion, this is a historic moment to be able to own a property. And, while it is true that salaries are low in dollars, there is a group of people who are already buying properties because they have US currencies in stock or because they are generating income directly in that currency.
When choosing the property, it is important to know which neighborhoods these people choose. The majority are part of the Northern Corridor, which includes Retiro, Recoleta, Palermo, Belgrano, Núñez and also Villa Urquiza and Caballito. And there is a spillover effect towards Saavedra, Coghlan, Chacarita, Colegiales and Villa Crespo .
So, if the demand for properties is increasing, and prices will follow that trend, the only condition to transform this moment into an opportunity is to act soon. Today, investing in the Argentine real estate market is a good decision.
