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Real estate rebound: driven by credit, deeds increased by 27% in Buenos Aires and 41.5% in CABA - Infobae
Source:
www.infobae.com
December 23, 2024
The increase in transactions is due to the stability of the dollar, opportunity values and an increase in financing. What types of properties lead the demand?
By Jose Luis Cieri
Used properties and mortgage loans boosted the growth of deeds in November, marking a rebound in the Buenos Aires real estate market (Illustrative Image Infobae)
The real estate market in the province of Buenos Aires and in the City closed November with indicators that confirm a sustained recovery and that marked one of the best months of the year. According to data from the Provincial Notary Association, 12,260 deeds of sale were registered, which represents an increase of 26.40% compared to the 9,700 transactions carried out in the same month of 2023.
On a monthly basis, deeds also increased, with an increase of 9.34% compared to October, when 11,213 transactions were signed.
In turn, the data from the City of Buenos Aires are even more encouraging. In November, 5,755 deeds were executed, which implies a year-on-year increase of 41.5%, according to the Buenos Aires Notary Association. The total amount of transactions carried out rose 342.6%, to $584,653 million.
Compared to October this year, the number of deeds fell by 3.9%, as 5,987 deeds were executed in October. Of the total number of transactions, 950 deeds were executed with a mortgage, meaning the increase in this regard was 472.3% compared to the same month last year.
Both figures reflect that the real estate market has reversed the trend and left behind more than 5 years of long crisis.
Provincial results show that November is the month with the highest number of transactions so far this year.
Source: College of Notaries of the Province of Buenos Aires
Guillermo Longhi , president of the College of Notaries of Buenos Aires, highlighted the importance of these figures. “The increase in sales and mortgages shows a positive trend. It is essential that this dynamic can be sustained in the coming months,” he told Infobae .
Money laundering allowed the formalization of assets and the reactivation of operations, while the expansion of mortgage loans was the main driver that facilitated access to housing.
In turn, the president of the College of CABA, Jorge De Bártolo , emphasized: “We are going to close the last quarter of the year with records of almost 6 thousand monthly purchase and sale transactions and this is a good indicator because we will close with 53 thousand total deeds in 2024. With the credit incentive, we noticed that the second half of the year had a boost for the activity and, with all the work done this year, we hope that in 2025 the mortgages will be consolidated and have a floor of a thousand transactions in that sense.”
Longhi was optimistic about the immediate future. “The enquiries in notaries’ offices and the files opened in December point to a start in 2025, with sustained growth in sales and mortgages. We expect that transactions will continue to increase in January and February, consolidating this positive trend,” he added.
Mortgage lending, a segment that had been lagging in recent years, showed a notable rebound. During November, 1,417 mortgages were signed, an increase of 230% compared to the 429 registered in November 2023.
In addition, mortgages grew by 8.33% compared to October, consolidating themselves as a key tool to boost the sector.
Mirta Líbera , president of the Real Estate Chamber of the Province of Buenos Aires (CIBA), explained that several factors have contributed to this recovery.
“The market was driven by the relative stability of the dollar, the repeal of the Rental Law which led to the return of the investing public to the purchase of properties for rental purposes, and the large number of used properties available at competitive prices. Prices between USD 25,000 and USD 60,000 allowed small investors and buyers with savings to access these opportunities,” he said.
Líbera stressed that, although the impact of mortgage credit is still limited, its growth is an encouraging indicator. “As the supply of credit grows and rates moderate, this tool will benefit a greater number of people,” he said. He also stressed that construction costs, which have registered increases, could put pressure on the prices of used properties in the medium term.
However, current values are still 34.6% below the historical peak reached in December 2018, when the average reached USD 2,434, which shows a significant retraction in nominal terms.
In La Plata and nearby towns, used two-room apartments are offered for between USD 30,000 and USD 45,000, while three-room apartments reach prices of up to approximately USD 70,000.
“These options were especially attractive for those looking to invest or buy their first home,” Líbera said.
However, Gomez warned that the reduction in supply could lead to price increases if the buying and selling continues and the available stock begins to decrease.
In towns like Lanús, prices reflect this trend: a brand new two-room apartment starts at USD 80,000, while a house in a PH is around USD 90,000; larger houses, with a garage, can exceed USD 160,000, depending on the location and features.
Gómez concluded that economic reforms, together with money laundering, boosted the market. “However, the consolidation of this trend will depend on exchange rate stability and policies that expand access to financing in 2025,” he explained.
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Source:
Repunte inmobiliario: de la mano del crédito, las escrituras aumentaron un 27% en Buenos Aires y 41,5% en CABA
El incremento en las operaciones se da por la estabilidad del dólar, valores de oportunidad y un aumento del financiamiento. Qué tipos de propiedades lideran la demanda
www.infobae.com
December 23, 2024
The increase in transactions is due to the stability of the dollar, opportunity values and an increase in financing. What types of properties lead the demand?
By Jose Luis Cieri
Used properties and mortgage loans boosted the growth of deeds in November, marking a rebound in the Buenos Aires real estate market (Illustrative Image Infobae)
The real estate market in the province of Buenos Aires and in the City closed November with indicators that confirm a sustained recovery and that marked one of the best months of the year. According to data from the Provincial Notary Association, 12,260 deeds of sale were registered, which represents an increase of 26.40% compared to the 9,700 transactions carried out in the same month of 2023.
On a monthly basis, deeds also increased, with an increase of 9.34% compared to October, when 11,213 transactions were signed.
In turn, the data from the City of Buenos Aires are even more encouraging. In November, 5,755 deeds were executed, which implies a year-on-year increase of 41.5%, according to the Buenos Aires Notary Association. The total amount of transactions carried out rose 342.6%, to $584,653 million.
Compared to October this year, the number of deeds fell by 3.9%, as 5,987 deeds were executed in October. Of the total number of transactions, 950 deeds were executed with a mortgage, meaning the increase in this regard was 472.3% compared to the same month last year.
Both figures reflect that the real estate market has reversed the trend and left behind more than 5 years of long crisis.
Provincial results show that November is the month with the highest number of transactions so far this year.
Source: College of Notaries of the Province of Buenos Aires
Guillermo Longhi , president of the College of Notaries of Buenos Aires, highlighted the importance of these figures. “The increase in sales and mortgages shows a positive trend. It is essential that this dynamic can be sustained in the coming months,” he told Infobae .
Money laundering allowed the formalization of assets and the reactivation of operations, while the expansion of mortgage loans was the main driver that facilitated access to housing.
In turn, the president of the College of CABA, Jorge De Bártolo , emphasized: “We are going to close the last quarter of the year with records of almost 6 thousand monthly purchase and sale transactions and this is a good indicator because we will close with 53 thousand total deeds in 2024. With the credit incentive, we noticed that the second half of the year had a boost for the activity and, with all the work done this year, we hope that in 2025 the mortgages will be consolidated and have a floor of a thousand transactions in that sense.”
Strong credit presence
Longhi highlighted that 94,505 deeds have been registered so far in 2024, an increase of 14.66% compared to the same period in 2023. “Mortgage credit was decisive in this recovery. There was no financing in 2023 and deeds were very low, but this year the market regained strength thanks to a greater credit offer from banks,” he explained.Longhi was optimistic about the immediate future. “The enquiries in notaries’ offices and the files opened in December point to a start in 2025, with sustained growth in sales and mortgages. We expect that transactions will continue to increase in January and February, consolidating this positive trend,” he added.
Mortgage lending, a segment that had been lagging in recent years, showed a notable rebound. During November, 1,417 mortgages were signed, an increase of 230% compared to the 429 registered in November 2023.
In addition, mortgages grew by 8.33% compared to October, consolidating themselves as a key tool to boost the sector.
Mirta Líbera , president of the Real Estate Chamber of the Province of Buenos Aires (CIBA), explained that several factors have contributed to this recovery.
“The market was driven by the relative stability of the dollar, the repeal of the Rental Law which led to the return of the investing public to the purchase of properties for rental purposes, and the large number of used properties available at competitive prices. Prices between USD 25,000 and USD 60,000 allowed small investors and buyers with savings to access these opportunities,” he said.
Líbera stressed that, although the impact of mortgage credit is still limited, its growth is an encouraging indicator. “As the supply of credit grows and rates moderate, this tool will benefit a greater number of people,” he said. He also stressed that construction costs, which have registered increases, could put pressure on the prices of used properties in the medium term.
Properties at bargain prices
Bargain prices are another key factor in boosting real estate transactions in the province of Buenos Aires. Until November, the average value per square meter in several localities surveyed in the first belt of Greater Buenos Aires (GBA) was USD 1,593, according to Real Estate Report.However, current values are still 34.6% below the historical peak reached in December 2018, when the average reached USD 2,434, which shows a significant retraction in nominal terms.
In La Plata and nearby towns, used two-room apartments are offered for between USD 30,000 and USD 45,000, while three-room apartments reach prices of up to approximately USD 70,000.
“These options were especially attractive for those looking to invest or buy their first home,” Líbera said.
In GBA
Leandro Gómez , from Gómez Properties, emphasized the impact of mortgage loans on the increase in transactions. “The return of loans and the peace of mind offered by a relatively stable dollar generated more interest, especially in properties within the range of USD 70,000 to USD 200,000 between Lanús, Banfield and Lomas de Zamora,” he explained.However, Gomez warned that the reduction in supply could lead to price increases if the buying and selling continues and the available stock begins to decrease.
In towns like Lanús, prices reflect this trend: a brand new two-room apartment starts at USD 80,000, while a house in a PH is around USD 90,000; larger houses, with a garage, can exceed USD 160,000, depending on the location and features.
Gómez concluded that economic reforms, together with money laundering, boosted the market. “However, the consolidation of this trend will depend on exchange rate stability and policies that expand access to financing in 2025,” he explained.
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