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Rising costs, high demand, and new hubs: how the real estate business is being redefined and what developers are prioritizing - Infobae
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www.infobae.com
March 26, 2025
Developers from various segments agree that the market is going through a transition period. With strategies adapted to the inflationary context, they emphasize the value of off-plan purchases and target areas with potential for urban and tourism growth.
By José Luis Cieri
Even with increases and decreases in costs and sales, depending on the month of the year, more than 50,000 homes in the city of Buenos Aires remain under construction.
The Argentine real estate market is undergoing a period of reconfiguration. In an environment of high construction costs ( which are only now beginning to stabilize due to falling inflation ) and rising sales prices, developers are deploying various strategies to maintain the pace of their construction and plan new projects.
Uncertainty hasn't halted the sector's growth, although it has slowed down property launches and forced adjustments to financial plans. In this context, more than 50,000 homes remain in operation in various neighborhoods of Buenos Aires.
Alejandro Ginevra , president of GNV Group, stated that rising costs have not yet been fully reflected in property values. “The market is in a period of transition. It is essential to optimize construction budgets and review list prices. Our projects are progressing on schedule. In the Madero Harbour District, we have already built more than 110,000 square meters,” he explained.
Among the developer's most notable projects are the 194-meter-high Harbour Tower and Osten Tower, the group's first Branded Residences project. The open-air shopping and dining promenade, located in the heart of the complex, is also progressing, with 60% already built.
In Puerto Madero, construction work continues while construction budgets are carefully reviewed.
According to Ginevra, direct project management allows for efficient negotiation of contracts with suppliers, a key advantage in highly volatile scenarios.
In line with this analysis, Ezequiel Wierzba, director of the developer WGW and CLICK, noted that current challenges are driving the sector to seek efficiency. “Rising costs require better planning. We strengthen agreements with suppliers, purchase materials in advance, and offer pre-sales to ensure liquidity. We also diversify payment methods to maintain the progress of construction projects,” he explained.
Although they acknowledge that costs complicate new launches, developers agree that there is no general slowdown in work already underway.
“There shouldn't be any impact on construction times. The main difficulty lies in the launches. Many are delayed while we wait for a clearer projection of prices and costs,” Ginevra stated.
Similarly, Wierzba clarified that the ongoing projects are continuing. "We renegotiate costs before halting processes. The greatest pressure is on buyer interest. We must sustain this with clear proposals," he added.
Costs range from USD 1,600 per square meter for standard projects to more than USD 2,000 for high-end projects.
In this scenario, Santiago Magnin , of Deinmobiliarios and a real estate specialist, highlighted that "development lots in areas like Palermo are at historic lows" and "since construction costs have risen so much, the adjustment is taking place in the price of the land."
Based on this trend, there has been a growing interest from developers looking to acquire lots, especially in gated communities. "They're paying cash, something unprecedented. Previously, square meters were always offered in exchange," reported sources in the sector.
Demand for land increased 53% compared to the level recorded in February 2024. Belgrano, Palermo, and Núñez lead the ranking of neighborhoods with the highest number of interested parties in this type of transaction, according to data from Zonaprop.
Faced with the possibility of a drop in construction costs, Magnin believes a reduction in the price of materials is viable through greater access to imports (developers are studying various options, including promoting industrialized construction ). "This move would be beneficial for both construction costs and real estate development," he noted.
Pisarenko agrees with the interest in established residential areas. “We look for neighborhoods that invite end consumers to upgrade. Current demand prioritizes security, integrated services, and higher-quality materials. Design is also gaining prominence,” he indicated.
Wierzba added other growing developments within Buenos Aires. “Villa Urquiza, Chacarita, and Barracas have gained appeal. Palermo, Belgrano, and Núñez remain strong. The greatest demand is for two- and three-bedroom units, well-located, with amenities and green spaces,” he said.
For investors, the most sought-after properties are compact apartments with good profitability and low expenses.
Uriel Broitman , commercial manager at Sygsa, offered a similar perspective, focusing on demand segmentation. “The end consumer is looking for functional, spacious units with outdoor spaces. Investors prefer efficient rental apartments or mixed-use developments with housing, offices, and retail,” he explained.
Chacarita is one of the most promising neighborhoods in the city.
Broitman also highlighted the progress of projects outside traditional urban centers. “Tourist areas like Bariloche and Pinamar Norte offer concrete opportunities. We've detected high demand for properties that allow for a combination of personal use and rentals, even year-round. In those cases, the response exceeded our expectations,” he stated.
In this context, the purchase of homes off the ground remains a key tool. "It represents a store of value. The buyer recovers their investment and more. In our projects, this appreciation is exponential," Ginevra said.
Pisarenko added that it allows for setting prices by paying only for a portion of the good, which is strategic in contexts of high inflation and delayed exchange rates.
Wierzba and Broitman agreed that the attractiveness of off-plan purchases depends on the buyer's profile and the chosen project. The possibility of accessing installment payment plans, progressively converting savings into dollars, and customizing units remain relevant factors. "The key is to choose wisely. Today, the profit margin isn't as wide as it once was, but it's still a valid option," Wierzba noted.
Looking ahead to the coming months, industry leaders maintain an optimistic, albeit cautious, outlook.
Palermo remains among the neighborhoods with the highest number of buildings under construction.
For Ginevra, the market is going through a phase of readjustment between prices and costs. Pisarenko warned that a higher volume of transactions is only now beginning to be recorded. "We came from a non-market, where transactions were only carried out out of necessity. Today, it's beginning to reactivate," she stated.
Broitman projected a dynamic market, with sustained demand, but conditioned by macroeconomic variables. "The stability of the dollar, the evolution of credit, and the preference for less congested areas will influence demand. If certain conditions consolidate, the recovery could continue," he concluded.
www.buysellba.com
Source:
Costos en alza, alta demanda y nuevos polos: cómo se redefine el negocio inmobiliario y qué priorizan los constructores
Desarrolladores de distintos segmentos coinciden en que el mercado atraviesa una etapa de transición. Con estrategias adaptadas al contexto inflacionario, destacan el valor de las compras en pozo y apuntan a zonas con potencial de crecimiento urbano y turístico
www.infobae.com
March 26, 2025
Developers from various segments agree that the market is going through a transition period. With strategies adapted to the inflationary context, they emphasize the value of off-plan purchases and target areas with potential for urban and tourism growth.
By José Luis Cieri
Even with increases and decreases in costs and sales, depending on the month of the year, more than 50,000 homes in the city of Buenos Aires remain under construction.
The Argentine real estate market is undergoing a period of reconfiguration. In an environment of high construction costs ( which are only now beginning to stabilize due to falling inflation ) and rising sales prices, developers are deploying various strategies to maintain the pace of their construction and plan new projects.
Uncertainty hasn't halted the sector's growth, although it has slowed down property launches and forced adjustments to financial plans. In this context, more than 50,000 homes remain in operation in various neighborhoods of Buenos Aires.
Alejandro Ginevra , president of GNV Group, stated that rising costs have not yet been fully reflected in property values. “The market is in a period of transition. It is essential to optimize construction budgets and review list prices. Our projects are progressing on schedule. In the Madero Harbour District, we have already built more than 110,000 square meters,” he explained.
Among the developer's most notable projects are the 194-meter-high Harbour Tower and Osten Tower, the group's first Branded Residences project. The open-air shopping and dining promenade, located in the heart of the complex, is also progressing, with 60% already built.
In Puerto Madero, construction work continues while construction budgets are carefully reviewed.
According to Ginevra, direct project management allows for efficient negotiation of contracts with suppliers, a key advantage in highly volatile scenarios.
In line with this analysis, Ezequiel Wierzba, director of the developer WGW and CLICK, noted that current challenges are driving the sector to seek efficiency. “Rising costs require better planning. We strengthen agreements with suppliers, purchase materials in advance, and offer pre-sales to ensure liquidity. We also diversify payment methods to maintain the progress of construction projects,” he explained.
Although they acknowledge that costs complicate new launches, developers agree that there is no general slowdown in work already underway.
“There shouldn't be any impact on construction times. The main difficulty lies in the launches. Many are delayed while we wait for a clearer projection of prices and costs,” Ginevra stated.
Similarly, Wierzba clarified that the ongoing projects are continuing. "We renegotiate costs before halting processes. The greatest pressure is on buyer interest. We must sustain this with clear proposals," he added.
Values
Construction costs, measured in dollars, have increased by 2.8% so far in 2025 and have accumulated a 107% increase since October 2023. According to Zonaprop, construction today costs 3.1 times more than in October 2020, when the series low was reached, and is 34.1% above the average between 2012 and 2024.Costs range from USD 1,600 per square meter for standard projects to more than USD 2,000 for high-end projects.
In this scenario, Santiago Magnin , of Deinmobiliarios and a real estate specialist, highlighted that "development lots in areas like Palermo are at historic lows" and "since construction costs have risen so much, the adjustment is taking place in the price of the land."
Based on this trend, there has been a growing interest from developers looking to acquire lots, especially in gated communities. "They're paying cash, something unprecedented. Previously, square meters were always offered in exchange," reported sources in the sector.
Demand for land increased 53% compared to the level recorded in February 2024. Belgrano, Palermo, and Núñez lead the ranking of neighborhoods with the highest number of interested parties in this type of transaction, according to data from Zonaprop.
Faced with the possibility of a drop in construction costs, Magnin believes a reduction in the price of materials is viable through greater access to imports (developers are studying various options, including promoting industrialized construction ). "This move would be beneficial for both construction costs and real estate development," he noted.
Robust financing
For Hernán Pisarenko , commercial director of HA Emprendimientos, the current situation requires solid financing models. The company avoids relying on pre-sales to initiate a project. "When we start a project, we already have the necessary capital. We don't finance ourselves with buyers," he stated. This strategy, he explained, allows for greater predictability and reduces the risk of halting projects due to market fluctuations.What areas are being strengthened today?
The location of the projects also becomes decisive at this stage. GNV Group sees opportunities on two fronts. On the one hand, premium developments with unique services, located in established areas like Puerto Madero. On the other, affordable housing options in the south of the city, where there are ample land areas and good connectivity. "Cost pressures will accentuate the need for residential development. The southern zone has great potential for urban development," Ginevra emphasized.Pisarenko agrees with the interest in established residential areas. “We look for neighborhoods that invite end consumers to upgrade. Current demand prioritizes security, integrated services, and higher-quality materials. Design is also gaining prominence,” he indicated.
Wierzba added other growing developments within Buenos Aires. “Villa Urquiza, Chacarita, and Barracas have gained appeal. Palermo, Belgrano, and Núñez remain strong. The greatest demand is for two- and three-bedroom units, well-located, with amenities and green spaces,” he said.
For investors, the most sought-after properties are compact apartments with good profitability and low expenses.
Uriel Broitman , commercial manager at Sygsa, offered a similar perspective, focusing on demand segmentation. “The end consumer is looking for functional, spacious units with outdoor spaces. Investors prefer efficient rental apartments or mixed-use developments with housing, offices, and retail,” he explained.
Chacarita is one of the most promising neighborhoods in the city.
Broitman also highlighted the progress of projects outside traditional urban centers. “Tourist areas like Bariloche and Pinamar Norte offer concrete opportunities. We've detected high demand for properties that allow for a combination of personal use and rentals, even year-round. In those cases, the response exceeded our expectations,” he stated.
In this context, the purchase of homes off the ground remains a key tool. "It represents a store of value. The buyer recovers their investment and more. In our projects, this appreciation is exponential," Ginevra said.
Pisarenko added that it allows for setting prices by paying only for a portion of the good, which is strategic in contexts of high inflation and delayed exchange rates.
Wierzba and Broitman agreed that the attractiveness of off-plan purchases depends on the buyer's profile and the chosen project. The possibility of accessing installment payment plans, progressively converting savings into dollars, and customizing units remain relevant factors. "The key is to choose wisely. Today, the profit margin isn't as wide as it once was, but it's still a valid option," Wierzba noted.
Looking ahead to the coming months, industry leaders maintain an optimistic, albeit cautious, outlook.
Palermo remains among the neighborhoods with the highest number of buildings under construction.
For Ginevra, the market is going through a phase of readjustment between prices and costs. Pisarenko warned that a higher volume of transactions is only now beginning to be recorded. "We came from a non-market, where transactions were only carried out out of necessity. Today, it's beginning to reactivate," she stated.
Broitman projected a dynamic market, with sustained demand, but conditioned by macroeconomic variables. "The stability of the dollar, the evolution of credit, and the preference for less congested areas will influence demand. If certain conditions consolidate, the recovery could continue," he concluded.
www.buysellba.com
