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The Buenos Aires real estate market is recovering: in September the number of mortgages was double that of a year ago - Infobae
Source:
www.infobae.com
November 04, 2024
In addition to mortgage lending, which grew by 14% compared to the previous month, the total number of transactions also increased. The reasons behind the recovery
By Jose Luis Cieri
One-bedroom properties are among those for sale in the province of Buenos Aires
In September 2024, the province of Buenos Aires experienced a sharp increase in the number: there were 854, an increase of 14% compared to the previous month, according to data from the deeds surveyed by the Buenos Aires Notary Association, and almost double the 428 mortgages registered in September 2023, which marks a clearly positive trend in the real estate market.
Furthermore, in terms of value, last month the amount generated through mortgage deeds had a strong inter-monthly growth: it reached $142,036 million, an increase of 50% compared to the $94,662 million of the previous month.
The number of sales and purchases translated into notarial acts increased by 12.45% year-on-year, with 9,954 transactions carried out in September, compared to 8,852 in the same month in 2023, although in relation to August (10,507 deeds) a decrease of 5.3 percent was observed.
Guillermo Longhi , president of the College of Notaries of Buenos Aires, highlighted that the year-on-year growth is an important indicator of the greater movement of the market. “The greater supply of mortgage loans is beginning to be reflected in an increase in the number of mortgages, which is crucial for access to housing.”
Despite these signs of recovery, Longhi warned that current values are still far from the sector's expectations.
Source: College of Notaries of the Province of Buenos Aires
The re-emergence of mortgage loans (already granted by more than 20 banks) and measures such as money laundering were key to reviving interest in property. They facilitated the completion of sales, especially in properties that had not found a buyer for some time, and created a favourable environment for transactions.
Alejandro J. Altamirano , from Altamirano Properties, from Villa Ballester, highlighted to Infobae that in recent months a significant change has been observed. “Of the last 10 reservations we took, 5 are with credit, something that has not been seen for 6 years. For a real estate company dedicated to the residential sector, credit is vital,” he stated.
This increase is due to interest rates that, although updated by UVA, remain competitive, as long as inflation remains under control.
The profile of those who access mortgage loans is very diverse. According to Altamirano, it ranges from 25-year-olds with good salaries who are buying their first apartment, to families who, due to the need for space, see this opportunity as the right time to move to a house with a garden.
This growth in the province of Buenos Aires is attributed to the stability of the exchange rate, which provided greater predictability, and the need for buyers to protect their savings in an inflationary context.
Santiago López Gastesi , managing partner of López Gastesi Properties, said that the increase in mortgages has boosted the market: “The greater willingness of banks to grant UVA loans has allowed more people, especially middle class people, to acquire a home. This has boosted demand, not only in urban areas, but also in emerging neighborhoods where prices are more affordable,” he said.
The sources consulted indicate a clear trend towards the acquisition of larger homes with open spaces, especially in suburban areas of the province, such as Tigre, Pilar, Escobar and La Plata.
“Buyers are looking to improve their quality of life by moving away from denser areas to have more space and tranquility. This trend was also seen in early-stage developments, where users find better payment opportunities and appreciation potential,” explained López Gastesi.
Many investors feel the urgency to complete their transactions before prices rise further or credit conditions tighten. The expectation of future increases in prices or interest rates creates pressure, especially in the middle class segment.
“Several buyers prefer to close transactions in cash. This reflects the high level of informality and the need to secure investments as quickly as possible,” concluded López Gastesi.
www.buysellba.com
Source:
Se recupera el mercado inmobiliario bonaerense: en septiembre el número de hipotecas fue el doble que hace un año
Además del crédito hipotecario, que creció 14% respecto del mes anterior, también aumentó el número total de operaciones. Las razones detrás de la recuperación
www.infobae.com
November 04, 2024
In addition to mortgage lending, which grew by 14% compared to the previous month, the total number of transactions also increased. The reasons behind the recovery
By Jose Luis Cieri
One-bedroom properties are among those for sale in the province of Buenos Aires
In September 2024, the province of Buenos Aires experienced a sharp increase in the number: there were 854, an increase of 14% compared to the previous month, according to data from the deeds surveyed by the Buenos Aires Notary Association, and almost double the 428 mortgages registered in September 2023, which marks a clearly positive trend in the real estate market.
Furthermore, in terms of value, last month the amount generated through mortgage deeds had a strong inter-monthly growth: it reached $142,036 million, an increase of 50% compared to the $94,662 million of the previous month.
The number of sales and purchases translated into notarial acts increased by 12.45% year-on-year, with 9,954 transactions carried out in September, compared to 8,852 in the same month in 2023, although in relation to August (10,507 deeds) a decrease of 5.3 percent was observed.
Guillermo Longhi , president of the College of Notaries of Buenos Aires, highlighted that the year-on-year growth is an important indicator of the greater movement of the market. “The greater supply of mortgage loans is beginning to be reflected in an increase in the number of mortgages, which is crucial for access to housing.”
Despite these signs of recovery, Longhi warned that current values are still far from the sector's expectations.
Why the scenario improved
The Buenos Aires real estate market is showing greater predictability compared to 2023, when uncertainty prevailed and properties were perceived as overvalued. This stability allowed for greater confidence in the sector, boosting activity and inquiries from buyers.
Source: College of Notaries of the Province of Buenos Aires
The re-emergence of mortgage loans (already granted by more than 20 banks) and measures such as money laundering were key to reviving interest in property. They facilitated the completion of sales, especially in properties that had not found a buyer for some time, and created a favourable environment for transactions.
Alejandro J. Altamirano , from Altamirano Properties, from Villa Ballester, highlighted to Infobae that in recent months a significant change has been observed. “Of the last 10 reservations we took, 5 are with credit, something that has not been seen for 6 years. For a real estate company dedicated to the residential sector, credit is vital,” he stated.
This increase is due to interest rates that, although updated by UVA, remain competitive, as long as inflation remains under control.
The profile of those who access mortgage loans is very diverse. According to Altamirano, it ranges from 25-year-olds with good salaries who are buying their first apartment, to families who, due to the need for space, see this opportunity as the right time to move to a house with a garden.
Prices
As for the prices in Villa Ballester, a two-room apartment in the center of the town, in the district of San Martín, is already around USD 85,000, while duplexes are priced at around USD 130,000. Houses range between USD 150,000 and USD 600,000, depending on the features and location. “And with credit, properties were sold from USD 60,000 to USD 252,000,” said Altamirano.This growth in the province of Buenos Aires is attributed to the stability of the exchange rate, which provided greater predictability, and the need for buyers to protect their savings in an inflationary context.
Santiago López Gastesi , managing partner of López Gastesi Properties, said that the increase in mortgages has boosted the market: “The greater willingness of banks to grant UVA loans has allowed more people, especially middle class people, to acquire a home. This has boosted demand, not only in urban areas, but also in emerging neighborhoods where prices are more affordable,” he said.
The sources consulted indicate a clear trend towards the acquisition of larger homes with open spaces, especially in suburban areas of the province, such as Tigre, Pilar, Escobar and La Plata.
“Buyers are looking to improve their quality of life by moving away from denser areas to have more space and tranquility. This trend was also seen in early-stage developments, where users find better payment opportunities and appreciation potential,” explained López Gastesi.
Many investors feel the urgency to complete their transactions before prices rise further or credit conditions tighten. The expectation of future increases in prices or interest rates creates pressure, especially in the middle class segment.
“Several buyers prefer to close transactions in cash. This reflects the high level of informality and the need to secure investments as quickly as possible,” concluded López Gastesi.
www.buysellba.com
