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The 65 key phrases to understand what is happening in the property market - La Nacion Propiedades
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Qué pasará con las propiedades: precios, demanda y dónde están las oportunidades
Más de 25 speakers participaron del Summit de Real Estate, el evento que todos los años organiza LA NACION, en donde los referentes anticipan la agenda que viene en el sector inmobiliario
www.lanacion.com.ar
July 6, 2024
More than 25 speakers participated in the Real Estate Summit, the event organized every year by LA NACION, where the leaders anticipate the upcoming agenda in the real estate sector
By Carla Quiroga
The ninth chapter of the Real Estate Summit organized by LA NACION left 65 key phrases to understand the current real estate market
Real estate industry leaders attended a new edition of the Real Estate Summit, which has been organized for nine years by LA NACION, the only media outlet in Argentina with its own team of journalists specialized in the real estate market that covers the sector on a daily basis on lnpropiedades.com.ar
This year, the proposal of what has already become the most important meeting and networking space of the year, was to debate the future of the real estate industry at a pivotal moment , a topic that dominated the conversation both on and off the stage. There were 10 panels and more than 25 speakers, closely followed by a luxury audience with very active representatives in investments and in the search for business in the sector.
The dynamism of the discussions kept the audience on alert, and they also followed the conversation live on LA NACION's website and on YouTube, and were surprised by some of the statements made by the leaders on camera.
The event, which lasted more than four hours, managed to answer all the questions that investors need to know before betting on real estate as an investment refuge and what are the best opportunities at the door of a change of cycle: from how the economic scenario influences what will happen with prices, the neighborhoods with potential and the ventures in which it is convenient to invest today to close a good deal. Below are the 65 phrases that the meeting of the year left for those who want to anticipate the agenda of the sector .
Leandro Molina (Zonaprop)
"The price per square meter in the City of Buenos Aires increased by 4.3% in the first half of the year. In June, the increase was 1.2%, the largest monthly increase since April 2018. In a short time, apartments will not be available for less than US$100,000."
Leandro Molina (Zonaprop)
Carlos Spina (Argencons)
"There are opportunities with apartments that are sold at last year's construction cost because the work is finished or almost finished. In Quartier del Bajo for example."
Carlos Spina (Argencons)
"After the sharp increase in 2023, initial rental prices fell by around 40% adjusted for inflation compared to November. Today, the scheme is more consistent with Argentina's economic reality: more regular updates mean that the need for coverage, of putting money into uncertainty, is no longer there."
Federico Gonzalez Rouco (Empiria)
Mariano Galeazza (Northern Developments)
"Regarding the increase in construction costs, I think the worst is over, there will be inflation, but it will be lower. The expectation is for greater general calm, which is why we sell in dollars, which is something we did not do before."
Mariano Galeazza (Northern Developments)
Gabriela Goldszer (Ocampo Properties)
"It is a pivotal moment. The market had begun to reactivate in 2023, at the end of the year, and during this first semester that recovery accelerated. In this context, we identified that interest turned to the segment of finished and used projects."
Gabriela Goldszer (Ocampo Properties)
"If we can ensure that credit is also provided for construction projects, we will avoid excessive increases in used loans and the so-called bubbles."
Gonzalo de la Serna (Consultation)
Santiago Isern (Cushman & Wakefield)
"One of the opportunities offered by the warehouse sector is the conversion of old industrial spaces into unique locations. These properties are often repurposed as logistics facilities for smaller companies. This is a product that is in high demand."
Santiago Isern (Cushman & Wakefield)
"Bricks are not only a store of value, but in special products, they are a value multiplier. You have to be patient and keep up with things month by month."
Marcos Juejati (Northbaires)
"Those who have dollars in hand can freeze prices and may end up paying the same for a finished apartment as for a detached one."
Miguel Ludmer (Interwin)
"In the first half of the year, the figures were very different from the previous ones, but I do not attribute this to mortgage loans yet because, to date, operations carried out with a mortgage portfolio do not reach 0.20%."
Sebastian Sosa (RE/MAX)
"With the new loans, people can take out $100 million with a payment of $500,000, like rent. They are granted starting from a salary of $2,000,000 that can be added between two people."
Hernan Villegas (Supervielle Bank)
Santiago Mieres (Mieres Properties)
"A lot of stock went off the market at the end of last year because people were waiting for the new government to come. What was sold was sold, what was taken off the market hasn't come back yet and there is still caution about renting or selling. But the second half of the year is coming with a tailwind."
Santiago Mieres (Mieres Properties)
Luis Ramos (LJRamos)
"The time involved in a project, from the idea to its completion, spans two government periods. It takes a year for the project to be approved. With these times, a project ends up costing 80% more."
Luis Ramos (L..J.Ramos)
Sebastian Dominguez (SDC Tax Advisors)
"The reform of Personal Property Tax will allow for lower taxes, improving the profitability, for example, of those who have investments in rental properties, who could even stop paying Personal Property Tax because the non-taxable minimum for properties used as residential housing will be $350 million added to the general non-taxable minimum of $100 million."
Sebastian Dominguez (SDC Tax Advisors)
"A few months ago we went to 50 installments in dollars because we needed to raise prices and installments in pesos with CAC adjustment were bad news due to the increase in construction costs, and we did well."
Mariano Galeazza (Northern Developments)
"After years of silence and pure expectation, the launch of the loans broke the conversation in the sector. In the last three months, there has been an avalanche of mortgage loans: one was announced every three days and 21 banks suddenly announced their mortgage lines."
Federico Gonzalez Rouco (Empiria)
"I think there is a climate change situation, there is a more positive expectation going forward, if one looks at the value of m² it is 7% higher than last year."
Sebastian Sosa (RE/MAX)
Enrique Shaw (Pinamar SA)
"There is an understanding among all the actors that there is a huge opportunity. We are at a low level of activity and this crisis can be seen as an opportunity. We need stability for that and there are many folders waiting to get started. In several aspects we are back to square one, the change can be very big."
Enrique Shaw (Pinamar SA)
"A property for rent in CABA is listed for an average of 23 days. In the north of the GBA, it is 26 days, while in the west and south, the average is 22 days. This is a very different number from a year ago, when properties offered were often rented on the same day."
Leandro Molina (Zonaprop)
"Pinamar experienced a population explosion and many people moved permanently. Our 250-hectare project was very well received."
Enrique Shaw (Pinamar SA)
"Prices are still far from 2017 sales values, but they are slowly recovering. And the negotiation margin between owners and buyers has dropped from 15% or 10% to 5%."
Gabriela Goldszer (Ocampo Properties)
"The conversation has changed: last year, the suggestion was to sell because prices were going to fall. Today, the advice is to buy because tomorrow it will be more expensive. The perception is that the market is 'cheap'."
Sebastian Sosa (Re/Max)
"Last year was a transition year with prices stopping falling, 2024 is a recovery period where prices are starting to rise. Soon there will be no properties for less than US$100,000. Properties have higher ticket prices and the increase in values could move more slowly."
Leandro Molina (Zonaprop)
"Since it is a dollarized market, where the buyer already has the dollars, fluctuations do not impact demand. Meanwhile, the construction business improves costs measured in dollars and thus compensates inflation somewhat."
Leandro Molina (Zonaprop)
"We are looking for land in the Palermo area to replicate the model we created in the OM project that we built on the land where Polka used to operate. We are targeting a young segment with units at US$3,000/m2 and financed with up to 40 installments after possession."
Marcos Juejati (Northbaires)
"The cost-based trust model of our projects is resistant to all circumstances; we do not start it until it is completely sold and the investor who enters one of these projects knows that they will be completed within the proposed time frame because we must remember that time is a cost."
Carlos Spina (Argencons)
"In the case of tax-free money laundering, the cash must be deposited in a special bank account before September 30. Although the Executive Branch should extend this period to carry it out in a context of better economic indicators."
Sebastian Dominguez (SDC Tax Advisors)
"The old chalet in Pinamar where people would spend a whole month is less in demand; now people are asking for buildings with amenities, services and security. We have a segment that has changed and that is changing the technology of the houses."
Enrique Shaw (Pinamar SA)
Sunday Speranza (Newmark)
"Currently, in our market there is an inventory of logistics warehouses of around 2.5 million square meters -with the latest works that were recently incorporated-, but if we compare it with the GDP or with the inhabitants we are between 35% and 40% below capitals such as Santiago or Lima."
Sunday Speranza (Newmark)
"The fall of the rental law brought legal security to the business, in addition to making renting more attractive. In this context, there is a client willing to buy now."
Gabriela Goldszer (Ocampo Properties)
"The number of apartment listings for sale on the portal is decreasing month by month, while the number of rental listings has been increasing since December 2023. There are people who are converting their properties for sale to rental since the law was repealed."
Leandro Molina (Zonaprop)
Gonzalo Meira from JLL
"Another office complex that is gaining ground is the new Paseo Gigena, a mixed-use complex that required a total investment of US$28 million and has 14,000 square meters of offices. There, we recently signed a contract with a record price of US$37/m², when in Catalinas it is around US$25/m²."
Gonzalo Meira (JLL)
"After the success of Azzurra Tortugas, we launched another smaller project of 25 hectares in Pilar and now we have two more in our portfolio, one of 25 and another of 40 hectares, also in the northern area."
Mariano Galeazza (Northern Developments)
"In the first six months of the year we sold the same number of lots as in the first half of 2023 in Puertos, Escobar, where we have 500 houses under construction. We believe it was due to the flexible financing in fixed dollars that the buyer can put together based on their own flow."
Gonzalo de la Serna (Consultation)
"A developer from the northern area told me that many municipalities ask for red, green, and all kinds of colored papers... and that they ask for bribes to get projects done. These are the things that need to change: corruption."
Luis Ramos (LJRamos)
"Behind every product, including the Internet that we all consume, there is a logistics center. All sectors of the different industries have some logistics activity behind them, at some stage of their process. This allows us to understand the consolidation of this sector."
Sunday Speranza (Newmark)
"Rentals are the way in which new square meters entering the market are channeled. But the business entered into crisis at the same time that rents were converted into pesos and divorced from the dollarized prices in which the real estate market is expressed."
Miguel Ludmer (Interwin)
"We have 45% more rentals than last year, but the number of deeds within our universe is still at 30%. It is the first time that Argentina has a growth rate and beats Uruguay, in a more general picture."
Sebastian Sosa (Re/Max)
"Laundering up to US$100,000 at no cost can be an opportunity to buy a studio or two-room apartment in a more affordable area, or a garage."
Sebastian Dominguez (SDC Tax Advisors)
"The cost of construction measured in dollars registered an increase of 15.8% in 2024 while the average price of apartments rose by 4.3%. Today, a condominium is at US$2,649/m2. Building today costs 2.5 times more than it did in October 2020, the minimum in the series and 11.6% above the 2012-2023 average."
Leandro Molina (Zonaprop)
"We have a project in Punta del Este on one of the best plots of land in Manantiales with a view of the sea and Laguna Blanca. We didn't look for it, but it happened and in principle it would be the landing of the Casa Living brand in that city."
Mariano Galeazza (Northern Developments)
"It is important that, as suburban projects are consolidated, they are accompanied by infrastructure. Today, fuel prices have increased and, looking at the numbers, the number of tolls crossing the Panamericana every day has decreased. The Mitre train route is ready, but the investment in the train is lacking, for example."
Gonzalo de la Serna (Consultation)
"There was a very strong push after the pandemic but then the wave came back, however the demand from families looking for a new life project remains active and the best projects are the ones that manage to capture it."
Mariano Galeazza (Northern Developments)
"The average rent in the city of Buenos Aires represents 50% compared to the average income today. It is still well above the 40% average of recent years, but well below what was the worst moment, when it reached more than 70%. Salaries still have room to grow above rental contracts."
Federico Gonzalez Rouco (Empiria)
Alejandro Reyser (Toribio Achaval)
"Until a decade ago, companies made decisions (such as moving to a new location) for the next 10 or 20 years. Today, they make five-year or three-year rental contracts. And they are reviewing the layouts they renewed in 2021. The new paradigm seems to come hand in hand with a ruling: companies must be changing, flexible and agile."
Alejandro Reyser (Toribio Achaval)
"The worst moment was the first semester and things are going to change. Selling in dollars sounded too bold and today it seems that things are starting to get better. We are going to a better moment"
Carlos Spina (Argencons)
"The announcement of mortgage credit lines is a bet on the economic plan. It may go well or badly, but there is a bet that inflation will go down as the economy will stabilise."
Federico Gonzalez Rouco (Empiria)
"We made an agreement with the Accor group to add one of its brands to the luxury project that we are going to build on the land we have in dock four of Puerto Madero."
Marcos Juejati (Northbaires)
"Another problem for the activity that involves prices is the lack of materials. In addition, they ask you for anything. There were those who stockpiled at high prices and today they want to recover and do not sell, which results in shortages. "A title for this Argentine moment? I think there is money, but people do not want to spend it."
Luis Ramos (LJRamos)
"Property values are still low, so anyone who starts today is setting property values low, which shows that anyone who buys today with credit has room to gain, even if this is not the goal, but rather to have their own home."
Federico Gonzalez Rouco (Empiria)
"A deal has been reached with Melia for the chain to open 80 rooms in the US$215 million investment project in Bajo Retiro, where, in addition to the arrival of the Spaces office brand, a 1,100-square-meter Sports Club will be opened."
Carlos Spina (Argencons)
"In the northern area, the balance is positive, today it has expanded from Vicente López to Pilar and Escobar, but new concepts of life have also been consolidated, such as, for example, housing in suburban areas."
Santiago Mieres (Mieres Properties)
"The uncertainty of what will happen with UVA loans is over. Anyone who wants to lend money knows that this tool will be sustainable at least for a while."
Federico Gonzalez Rouco (Empiria)
"Consultatio is negotiating with a bank to offer mortgage loans for a project. This would apply to Huergo 475. It would serve as a “pilot and bridge” so that this possibility becomes a reality in more developments."
Gonzalo de la Serna (Consultation)
Rafael Valera (Cushman & Wakefield)
"Now, we see that some companies are generating movements, relocations, with the aim of driving employee retention and talent acquisition."
Rafael Valera (Cushman & Wakefield)
"In the past, companies requested spaces of a certain number of square meters. Nowadays, what they are looking for are comprehensive solutions, which require the participation of teams of architects and consultants, as well as research and real estate brokers to be able to satisfy all their needs."
Gonzalo Meira (JLL)
Fernando Novoa Uriarte (Newmark)
"The environment surrounding an office has become as important as the building itself. Nowadays, attention is paid to both the accessibility of the area and the services."
Fernando Novoa Uriarte (Newmark)
"Today, companies are asking themselves what role they want the office to play both in the lives of people (their employees) and in the business. In this sense, not only the location is important but also the interior design (work stations, work formats, etc.) and the way the office connects both with its occupants and with clients."
Alejandro Reyser (Toribio Achaval)
"Another vital issue is the benefits of the office complex, not only in terms of amenities but also in terms of its sustainable features. More and more companies are focusing on the carbon footprint of buildings."
Fernando Novoa Uriarte (Newmark)
Matias Gonzalez Orcoyen (From Stefano)
"The kitchen is a space that is more open today and plays a central role in the home because one shares it with friends and family. This leads people to look for materials with good design and better properties when designing a kitchen."
Matias Gonzalez Orcoyen (From Stefano)
Kevin Saramaga (Patagonia Flooring)
"Natural coverings bring significant value to new real estate developments, both in terms of economics and well-being, emphasizing the integration of biophilia and neurointerior design. Biophilia, or the innate human connection with nature, has been shown to reduce stress, improve mood and increase productivity."
Kevin Saramaga (Patagonia Flooring)
Ezequiel Pascual (Rehau)
"Windows used to be something that covered a hole, but now they are an element that takes on an important role in a property. The reason for this new role has to do with aesthetic issues and the sustainability agenda, and specifically with energy efficiency. In numbers, this can generate savings in energy consumption of up to 60%."
Ezequiel Pascual (Rehau)
Romina Parquet (CEO of CIMC Wetrans in Argentina)
"Modular construction has become popular in the rest of the world, but it has been difficult to reach Argentina due to tax restrictions. It is a system with great opportunities for the construction of social housing."
Romina Parquet (CEO of CIMC Wetrans in Argentina)
"Neurointeriorism is a trend that is gaining ground. It involves developing environments that are not only visually attractive but also stimulate people's emotional and mental health. And neuroarchitecture is concerned with analysing how built spaces have an impact on people's cognitive, emotional and behavioural aspects."
Kevin Saramaga (Patagonia Flooring)
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