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Real estate: the sector is close to the levels of 2001 - La Nación
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www.lanacion.com.ar
August 22, 2019
Real estate: the sector is close to the levels of 2001, but far from the crisis of the exchange rate
By: Maria Juliet Rumi
Although there was a month-on-month improvement compared to June, the outlook for August and September is poor due to the post-primary election devaluation
Although in July there was an improvement compared to June, the purchase and sale of real estate in the city of Buenos Aires has been falling for 14 months consecutively, a historical cycle similar to what happened after the 2001 crisis, although still far from the exchange rate. , during the presidency of Cristina Kirchner, who scored 25 months of decline.
Last July there were 3,208 operations, according to the Buenos Aires Notaries Association, 18.7% more than in June , but 27.6% less than the same month of the previous year, when the impact of the devaluation had already begun to be felt. April, which meant that fewer people could access a mortgage loan, the factor that made the number of deeds grow to more than 6,000 per month.
In this way, since April 2018 a downward curve began that, it seems, will continue. "We are looking at old data because after the primary elections the perspective is worse. Until August 11, we came with some calm due to the exchange rate tranquility, but the devaluation bomb of the order of 30% makes us think that with this, more the uncertainty due to the October elections, the numbers of deeds for August and September are going to be lower," explained Soledad Balayan, head of Maure Inmobiliaria.
"I am not optimistic. We have been talking about adjusting values in dollars so that there are more transactions and those values today are even more out of date ," he added.
In accordance with this, the little movement in the market comes from people who do not need access to credit, which is seen in the increase in the value of the average ticket that, for July, was $6,034,194 (US$137,924 dollars). according to the average official exchange rate). The amount grew 64% in one year in pesos, while in US currency it rose 6%.
Mindful of the situation, the president of the College of Notaries of Buenos Aires, Claudio Caputo, reiterated the request for a consultation table with the State and all the related actors "to find a way out of this scenario." "There are 14 months of consecutive year-on-year decline, something rarely seen in Argentine real estate history," he said.
According to the statistics of the Buenos Aires College, which start in 1998, between February 2001 and March 2002 there were 14 months of decline in operations (the historical minimum was in February 2002 when there were 1,557 deeds) and, from January 2012 to June 2014, 25 months down.
In Buenos Aires, the drop in the sale of real estate in June was similar in percentage to that of the city of Buenos Aires with a drop of 28.6%. 6,771 deeds were registered with respect to the same month of the previous year, in which 9,481 had been registered. The data comes from the statistics prepared monthly by the College of Notaries of the Province of Buenos Aires.
Regarding the comparison between July and June of this year, there was an increase of 4.4% in the number of deeds (6,487 had been registered last June).
Maria Juliet Rumi
www.buysellba.com
Source:
Inmuebles: el sector se acerca a los niveles de 2001, pero lejos de la crisis del cepo cambiario
Inmuebles: el sector se acerca a los niveles de 2001, pero lejos de la crisis del cepo cambiario
www.lanacion.com.ar
August 22, 2019
Real estate: the sector is close to the levels of 2001, but far from the crisis of the exchange rate
By: Maria Juliet Rumi
Although there was a month-on-month improvement compared to June, the outlook for August and September is poor due to the post-primary election devaluation
Although in July there was an improvement compared to June, the purchase and sale of real estate in the city of Buenos Aires has been falling for 14 months consecutively, a historical cycle similar to what happened after the 2001 crisis, although still far from the exchange rate. , during the presidency of Cristina Kirchner, who scored 25 months of decline.
Last July there were 3,208 operations, according to the Buenos Aires Notaries Association, 18.7% more than in June , but 27.6% less than the same month of the previous year, when the impact of the devaluation had already begun to be felt. April, which meant that fewer people could access a mortgage loan, the factor that made the number of deeds grow to more than 6,000 per month.
In this way, since April 2018 a downward curve began that, it seems, will continue. "We are looking at old data because after the primary elections the perspective is worse. Until August 11, we came with some calm due to the exchange rate tranquility, but the devaluation bomb of the order of 30% makes us think that with this, more the uncertainty due to the October elections, the numbers of deeds for August and September are going to be lower," explained Soledad Balayan, head of Maure Inmobiliaria.
"I am not optimistic. We have been talking about adjusting values in dollars so that there are more transactions and those values today are even more out of date ," he added.
In accordance with this, the little movement in the market comes from people who do not need access to credit, which is seen in the increase in the value of the average ticket that, for July, was $6,034,194 (US$137,924 dollars). according to the average official exchange rate). The amount grew 64% in one year in pesos, while in US currency it rose 6%.
Mindful of the situation, the president of the College of Notaries of Buenos Aires, Claudio Caputo, reiterated the request for a consultation table with the State and all the related actors "to find a way out of this scenario." "There are 14 months of consecutive year-on-year decline, something rarely seen in Argentine real estate history," he said.
According to the statistics of the Buenos Aires College, which start in 1998, between February 2001 and March 2002 there were 14 months of decline in operations (the historical minimum was in February 2002 when there were 1,557 deeds) and, from January 2012 to June 2014, 25 months down.
The numbers in the province of Buenos AiresIn Buenos Aires, the drop in the sale of real estate in June was similar in percentage to that of the city of Buenos Aires with a drop of 28.6%. 6,771 deeds were registered with respect to the same month of the previous year, in which 9,481 had been registered. The data comes from the statistics prepared monthly by the College of Notaries of the Province of Buenos Aires.
Regarding the comparison between July and June of this year, there was an increase of 4.4% in the number of deeds (6,487 had been registered last June).
Maria Juliet Rumi
www.buysellba.com
