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The fall of the dollar has created new opportunities in the real estate market: should you buy or wait? - Infobae
Source:
www.infobae.com
December 07, 2024
This is the question for those who have savings or access to mortgage credit, in a market where property prices are adjusting. What do experts think about this unusual context?
By Jose Luis Cieri
The stable dollar makes it more favorable to buy real estate in an economic context that is unusual in Argentina (Illustrative Image Infobae)
The recent fall of the free dollar to $1,050, close to the official exchange rate, narrowed the exchange gap to less than 3%, an unusual phenomenon in the Argentine economy. This adjustment also affected financial dollars, such as the MEP and the CCL, which were positioned below 1,100 pesos. This contrasts with the levels observed in mid-July, when the free dollar passed $1,500; then, as reported by Infobae , the economic team implemented phase 2 of the economic program, with measures such as fixing the broad monetary base. And the Central Bank reduced interest rates, which reinforces stabilization.
This new scenario is transforming the real estate market. The sector maintains that the narrowing of the gap creates a perception of calm and facilitates purchasing decisions.
Fabián Achával , CEO of Fabián Achával Propiedades, which publishes Radar Inmobiliario, highlighted that for years, exchange rate instability and a high gap paralyzed operations, “but now we see active demand in all segments, especially in lower-value properties and small apartments.”
Buyers are sensing opportunities in a market that is beginning to show signs of recovery in closing prices.
Specialized platforms such as Zonaprop, Cabaprop and Reporte Inmobiliario indicated that the sale prices of used apartments increased between 7% and 9% in 96% of the neighborhoods of CABA. In specific areas of Núñez, Colegiales, Belgrano, Recoleta and Villa Ortúzar, housing registered year-on-year increases of between 12% and 20 percent.
The dollar adjustment also changed the mortgage credit landscape. According to Achával, “a lower exchange rate and the reduction of the gap increase salaries measured in dollars, allowing more people to access financing. This, added to the lower relative cost of properties, boosts operations.”
Although prices have started to rise, they are still at low levels compared to the 2004-2005 period. The value per square meter is USD 2,300 on average in CABA.
Achával explained that this context, together with the exchange rate stability, presents a window of opportunity for those looking to invest.
Although the overall balance is positive, certain costs associated with transactions, such as the costs of writing, calculated at the official exchange rate, increased in dollars, although this effect is smaller compared to the benefits brought by stability.
Achával said that the market is heading towards a phase of greater activity: “If this trend continues, the pressure of demand will continue to rise, driven by mortgage credit , the impact of money laundering and a market that is gradually moving towards the dominance of sellers.”
A couple walks through a home they want to buy. The segment maintains that this is an ideal time to buy, especially before values reach higher levels (Illustrative Image Infobae)
Oscar Puebla , architect and real estate expert, explained: “The stability and even the fall of the dollar generate a significant change in the real estate market, both in prices and in the expectations of buyers and sellers. Clearly, this is starting to put things in order. Today, more than ever, keeping dollars in the mattress is a bad deal. This situation confirms that hoarding in bricks and mortar is the safest option.”
The current context, with growing demand (last October was the best in 7 years with almost 6,000 deeds executed in the city ) and property prices still aligned with last year's values, presents a unique opportunity for those considering taking out a mortgage loan.
In a scenario of falling inflation, accessing financing to acquire properties allows one to take advantage of more affordable prices before the upward trend in real estate values consolidates.
Puebla said that it is the right time to invest, especially with a low dollar that allows maximizing the purchasing power of available pesos. “As the market expands demand, prices will rise,” he said.
According to the sector, for those seeking to protect the value of their savings, buying new properties is a solid strategy. The adjustment in prices due to the increase in dollars in construction costs makes buying properties that are only a few years old an attractive investment.
“High demand will boost the recovery of the values lost in recent years. Remembering the prices of 2003 and 2004 confirms this trend. If a family has savings in dollars, my recommendation is to buy a property now and observe the results in a year,” concluded Puebla.
www.buysellba.com
Source:
La baja del dólar generó nuevas oportunidades en el mercado inmobiliario: ¿conviene comprar o esperar?
Es la pregunta de quienes cuentan con ahorros o acceso al crédito hipotecario, en un mercado donde los precios de los inmuebles se van ajustando. Qué opinan los expertos sobre este inusual contexto
www.infobae.com
December 07, 2024
This is the question for those who have savings or access to mortgage credit, in a market where property prices are adjusting. What do experts think about this unusual context?
By Jose Luis Cieri
The stable dollar makes it more favorable to buy real estate in an economic context that is unusual in Argentina (Illustrative Image Infobae)
The recent fall of the free dollar to $1,050, close to the official exchange rate, narrowed the exchange gap to less than 3%, an unusual phenomenon in the Argentine economy. This adjustment also affected financial dollars, such as the MEP and the CCL, which were positioned below 1,100 pesos. This contrasts with the levels observed in mid-July, when the free dollar passed $1,500; then, as reported by Infobae , the economic team implemented phase 2 of the economic program, with measures such as fixing the broad monetary base. And the Central Bank reduced interest rates, which reinforces stabilization.
This new scenario is transforming the real estate market. The sector maintains that the narrowing of the gap creates a perception of calm and facilitates purchasing decisions.
Fabián Achával , CEO of Fabián Achával Propiedades, which publishes Radar Inmobiliario, highlighted that for years, exchange rate instability and a high gap paralyzed operations, “but now we see active demand in all segments, especially in lower-value properties and small apartments.”
Buyers are sensing opportunities in a market that is beginning to show signs of recovery in closing prices.
Specialized platforms such as Zonaprop, Cabaprop and Reporte Inmobiliario indicated that the sale prices of used apartments increased between 7% and 9% in 96% of the neighborhoods of CABA. In specific areas of Núñez, Colegiales, Belgrano, Recoleta and Villa Ortúzar, housing registered year-on-year increases of between 12% and 20 percent.
The dollar adjustment also changed the mortgage credit landscape. According to Achával, “a lower exchange rate and the reduction of the gap increase salaries measured in dollars, allowing more people to access financing. This, added to the lower relative cost of properties, boosts operations.”
Although prices have started to rise, they are still at low levels compared to the 2004-2005 period. The value per square meter is USD 2,300 on average in CABA.
Achával explained that this context, together with the exchange rate stability, presents a window of opportunity for those looking to invest.
Although the overall balance is positive, certain costs associated with transactions, such as the costs of writing, calculated at the official exchange rate, increased in dollars, although this effect is smaller compared to the benefits brought by stability.
Achával said that the market is heading towards a phase of greater activity: “If this trend continues, the pressure of demand will continue to rise, driven by mortgage credit , the impact of money laundering and a market that is gradually moving towards the dominance of sellers.”
Instead
The convergence of the dollar and its different exchange rates towards a possible currency unification, together with the end of the currency controls, suggests that this could be the ideal time to buy instead of waiting.
A couple walks through a home they want to buy. The segment maintains that this is an ideal time to buy, especially before values reach higher levels (Illustrative Image Infobae)
Oscar Puebla , architect and real estate expert, explained: “The stability and even the fall of the dollar generate a significant change in the real estate market, both in prices and in the expectations of buyers and sellers. Clearly, this is starting to put things in order. Today, more than ever, keeping dollars in the mattress is a bad deal. This situation confirms that hoarding in bricks and mortar is the safest option.”
The current context, with growing demand (last October was the best in 7 years with almost 6,000 deeds executed in the city ) and property prices still aligned with last year's values, presents a unique opportunity for those considering taking out a mortgage loan.
In a scenario of falling inflation, accessing financing to acquire properties allows one to take advantage of more affordable prices before the upward trend in real estate values consolidates.
Puebla said that it is the right time to invest, especially with a low dollar that allows maximizing the purchasing power of available pesos. “As the market expands demand, prices will rise,” he said.
According to the sector, for those seeking to protect the value of their savings, buying new properties is a solid strategy. The adjustment in prices due to the increase in dollars in construction costs makes buying properties that are only a few years old an attractive investment.
“High demand will boost the recovery of the values lost in recent years. Remembering the prices of 2003 and 2004 confirms this trend. If a family has savings in dollars, my recommendation is to buy a property now and observe the results in a year,” concluded Puebla.
www.buysellba.com
