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The big driver behind the surge in property sales - La Nacion Propiedades
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El gran motor detrás del aumento de la venta de propiedades
Las operaciones de compraventa en la provincia de Buenos Aires siguen creciendo y registraron el mejor mayo en 6 años
www.lanacion.com.ar
July 21, 2024
Purchase and sale operations in the province of Buenos Aires continue to grow and recorded the best May in 6 years
By Maria Josefina Lanzi
Property sales continue to increase in the Province of Buenos Aires and in CABA
In the midst of a market that continues to show signs of recovery , the figures for property sales in the province also speak of hope for the real estate world. Thus, with 9,459 transactions, the best May since 2018 was recorded .
This was reported by the College of Notaries of the Province of Buenos Aires , with figures showing a year-on-year growth of 22% and 24.18% compared to the previous month. Reporte Inmobiliario clarifies that these figures “do not include the transfer of tickets, something very common in the Province, especially in the suburban segment markets (countries and gated communities).”
Property sales in CABA and the Province of Buenos Aires experienced their best May in 6 yearsHernan Zenteno - THE NATION
The CABA numbers also showed good signs, since in the same month the year-on-year increase was 36% with 4,590 deeds and the cumulative figure from January to May was the highest in the last 6 years. In addition, the total amount of transactions reached $346,713 million in the last record.
“ The main factor driving the market is the current low prices ,” explains Germán Gómez Picasso, founder of Reporte Inmobiliario, adding: “Those who had some savings are seeing that prices are at very low historical levels , which have fallen by around 50% in real terms, so they are buying.”
"It should be noted that these figures are from May, when mortgage loans were just being discussed ," warns Gómez Picasso, adding: "When sales begin to be influenced by mortgage loans, they will be much higher."
“The Argentine real estate market is showing a good level of activity, even better than in 2018, and the province of Buenos Aires is no exception,” shares Martín Boquete, director of Toribio Achával. He adds that it is important to keep in mind that the number of deeds represents only a part of the market , “since there are many operations that are carried out through tickets, whose deeds are postponed for quite a long time, something typical of the sale of projects under construction.”
Properties under construction usually sign the contract and register a deed a long time later.Shutterstock
Daniel Salaya Romera, president of the real estate company of the same name, believes that the expectation of an increase in property values in the short and medium term may be one of the reasons that is driving the market to carry out operations in the Province. He adds to these reasons “the exchange rate lag of the dollar compared to inflation in pesos in the last six months and the sharp increase in construction costs measured in dollars,” which will lead to property values increasing over time.
A market in recovery
After three years of decline, sales values hit rock bottom in June last year, when the square meter in the city of Buenos Aires reached US$2,151 on average, according to data from Zonaprop. But the real estate market, in general, shows hopes of recovery: there are positive signs of sales, more monthly transactions, an increase in demand and a decrease in supply.“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 that context, we identified that interest turned to the segment of finished and used projects,” said Gabriela Goldszer, director of Ocampo Properties, at the ninth Real Estate Summit organized by LA NACION.
Both CABA and the northern zone show an increase in sales prices, with the price per square meter in the city rising by 4.3% in the first half of the year and in the northern zone it accumulated an increase of 2.1% in the first half of 2024.
It is important to highlight that the oversupply of properties is also declining , a factor that could influence the increase in prices : in May, Zonaprop recorded a reduction in the available stock of 26.9% year-on-year and, compared to the maximum reached in June 2022, the decrease was 45.4% (according to Radar Inmobiliario). In this sense, Salaya Romera points out: “ The DNU regarding the contractual freedom to rent caused many properties put up for sale by the previous bad law to be put back on the rental market, reducing the stock of units for sale.”
Added to this scenario is the offer of mortgage credit , which surprised the market when the first lines of this type of loan began to be launched at the end of April this year. Almost six years have passed since the existence of this tool, which, according to real estate experts , will encourage many to carry out transactions.
Added to this board is the money laundering scheme, another tool that can boost sales. Last Wednesday, July 17, the Federal Public Revenue Administration (AFIP) regulated the procedure to adhere to money laundering. This implies that taxpayers who do not have their assets declared in the country will be able to launder up to US$100,000 without paying any fixed tax , and without any type of penalty for assets that have not been declared, until March 31, 2025, with the possibility of extending it until July 31, 2025. For those amounts that exceed US$100,000, the project proposes progressive rates; the sooner you enter the regime, the lower the rate to pay.
A curious fact about the properties
The market is slowly recovering, although a recent Mercado Libre report for June showed that in the case of house sales, the numbers show falls in values . Considering the year-on-year changes , there are falls in the price in dollars per m² of houses of -2.4% in CABA, -8.3% in GBA Norte, -6.2% in GBA Sur, and -9.4% in GBA Oeste. For apartments, in CABA, GBA Norte, and GBA Sur, positive year-on-year variations in the sales price of 6.6%, 0.5%, and 1.7% are observed, respectively, although in GBA Oeste a negative variation of -3.1% is recorded compared to June 2023.The report adds that something to highlight in the sales market is the increase in demand (measured through contacts). In this sense, they assure that the demand for properties for sale registers an increase of 68.8%, compared to June 2023. “This increase would be explained by a combination of factors, among which are the greater dynamism of the industry in recent times, to which is added the reactivation of mortgage loans,” the report states.
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