BuySellBA
Administrator
The decline in land prices slows for the first time since 2018 - Ambito Financiero
Source:
Mercado inmobiliario: se frena la baja del precio de la tierra por primera vez desde 2018
La incidencia promedio del m2 se ubica en u$s450, según un relevamiento del sector de Real Estate. A su vez, esperan que aumente al menos un 50% de cara a fin de año y se duplique en 2025 en algunas zonas.
www.ambito.com
June 22, 2024
By Nazarena Lomagno
The average incidence per m2 is US$450, according to a survey of the Real Estate sector. In turn, they expect it to increase by at least 50% by the end of the year and double in 2025 in some areas.
Rentals
The macroeconomic context has an impact on the third activity that generates registered employment: real estate services . According to a private report, after six years the downward trend in the average value of land incidence stopped .
The data arises from the latest survey by Adrián Mercado , the platform specialized in online auctions. According to the report, the average incidence per m2 went from US$453 in 2023 to US$450 in 2024 , registering a slight decrease of 0.6%.
The indicator determines the price corresponding to the land per salable m2 in a real estate development. Its variation depends on the location, construction capacity and the existing offer.
The upward trend was broken in 2018 , reaching US$657 , and from then on it evolved downwards, until the last data mentioned. Thus, the average value of the incidence is at similar values to that of 2012 , when it was US$444 .
The stabilization of the price is explained by two reasons: the expectations of an increase in the value of the finished m2 in the medium term, as a result of the increase in the cost of construction in dollars , and the advent of mortgage credit , announced in mid-May.
In turn, Alejandro Bennazar, representative of the Argentine Real Estate Chamber (CIA), added that the price per m2 could increase once the money laundering discussed in Congress begins, while the agribusiness “is pushing very well in the different sectors” because “ taking cultural tasks out of the countryside, what is left over normally goes to real estate investment.”
For Bennazar, the expectation is that land prices will increase by around 50% between now and the end of the year , even doubling values by 2025 .
According to the real estate market leader, the DNU that deregulates rental prices “allows negotiation between parties” and that brought “ a lot of stability to the market .”
The average incidence value of the land is closely linked to both its location and the construction quality of the developer.
The neighborhoods that register the apartment, according to Adrián Mercado, are Villa Riachuelo and Villa Soldati , both with an average incidence value of US$125 . It is followed by La Boca for US$140 , Villa Lugano and Floresta for US$145.
At the other extreme, the highest prices are found in Puerto Madero , with an average value of US$1,286, Recoleta of US$820 , Belgrano of US$700 , Palermo of US$650 and Colegiales of US$600 .
As the data shows, in CABA there is a wide variety of land prices. However, according to Real Estate Report , a platform dedicated to the analysis of Real Estate, only 2.9% exceed US$1,000 .
Mariano Malbrán , president of the Chamber of Real Estate Services Companies (CAMESI), tells Ámbito that the incidence value of the lots “ has begun to recover after six years of consecutive decline ” thanks to the increase in the value of the m2 of construction, which is effectively transferred to the price of the properties.
In this sense, it highlights that the zoning that the State determines on the lot also affects the price per m2 of land, since " it will set the number of functional units, possible subdivision into lots or the required destination in said sector (commercial, industrial, multifamily)”.
At the same time, he expects that mortgage loans will have an impact on the price of land because “ they will be a boom ” as long as macroeconomic stability is achieved since “ there is a lot of pent-up demand .” At the moment, the banks recognize that inquiries about loans are high, but the level of execution is not significant.
The view of Marta Liotto , president of CUCICBA , on the impact of mortgages on the price of m2 is different: “The credits offered by banks speak of a finished property, not construction. I understand that this will come in a second stage , as the economy settles in,” the specialist understands.
At the same time, he warns that due to the increase in products for the completion of a work, finishing it “ leaves you out of the market in relation to the value of the m2 ”, and admits that the offer to build is there, but that “the construction is not moving the ammeter of good marketing.”
This same logic runs through Adrián Mercado's report when he points out the sharp rise in the cost of construction in dollars as the cause of the concentration on larger works in m2. In that sense, he understands that the SME developer segment is “ more cautious ” than the large volume players when deciding to start a new project.
www.buysellba.com
