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The real estate market is in full recovery: What is the price gap between large cities? - Infobae
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El mercado inmobiliario está en franca recuperación: cuál es la brecha de precios entre grandes ciudades
Con el mejor inicio en 6 años en CABA, se advierte contagio en localidades como Córdoba, Rosario, Mar del Plata y Mendoza. El impacto del crédito hipotecario y la expectativa por el blanqueo
www.infobae.com
July 21, 2024
With the best start in 6 years in CABA, contagion is noted in localities such as Córdoba, Rosario, Mar del Plata and Mendoza. The impact of mortgage credit and the expectation of money laundering
By Jose Luis Cieri
The number of sales and purchase operations is increasing and is strengthened by the return of mortgage loans and money laundering
After a prolonged and unprecedented crisis in the real estate market, the trend began to reverse in 2024. Purchase and sale operations are increasing and are strengthened by the return of mortgage loans and money laundering , which will allow up to USD 100,000 to be cleared in the acquisition of properties, from used to brand new and under construction from scratch.
In the country's main cities, such as the Autonomous City of Buenos Aires, Córdoba, Mendoza, Rosario and Mar del Plata, a notable change can be seen, with more than 10,000 operations completed in the last 60 days.
Interest in investing in property has picked up significantly, driven by both savers and those seeking financing through secured loans from a bank. In addition, those who have sold a property and are looking to expand or downsize are also contributing to the market's momentum.
In CABA, increased confidence and low prices are key to recovery. José Rozados , from Reporte Inmobiliario, told Infobae that these factors, together with mortgage loans and money laundering, will drive more operations. “Since the beginning of the year, demand has had a positive evolution, although incipient,” he said.
Last June, the average price of a used studio apartment was USD 69,800, rising to USD 78,000 for a two-room apartment, and starting at USD 110,000 for more rooms, always on average.
Rozados pointed out that the price of houses is more variable, depending on the surface of the land and its development potential. However, he emphasizes that Buenos Aires, with positive prospects, offers unique opportunities at current prices. There are houses that start at USD 150,000 with three rooms.
The trend to allocate money to bricks and mortar was consolidated as a solid response to the recovery of the sector
According to Rozados, although the effect of the money laundering will be temporary, it will bring a significant number of operations in the short term.
“On the other hand, the availability of mortgage loans represents a more lasting transformation, laying the foundations for exponential growth in the real estate market,” he added.
In cordoba
The housing sales outlook in Córdoba capital is in line with the rest of the country, showing signs of recovery and an increase in demand.According to the Real Estate Statistics Center of the Professional College of Real Estate Agents of Córdoba (CPI), in June, real estate preferences in the province were distributed among apartments (33.6%), land (lots) (40.5%) and houses (16.4%).
Source: The real estate activity monitor through data and variables collected by the Real Estate Statistics Center-CEI of Córdoba
Virginia Manzotti , president of the Federal Council of Real Estate Associations (CofeciI) of Argentina and of the real estate agency of the same name, said that "although prices are slowly recovering, the second half of the year is expected to show a more defined trend in demand."
Córdoba is a highly sought-after province thanks to its excellent educational offering and good job opportunities for professionals.
“The most popular areas for students are Nueva Córdoba, and for new professionals, Barrio General Paz and the Center. For young families, the southern and northern areas with duplex complexes are the most popular,” said Manzotti.
As for prices, the agency said that a two-room apartment in Nueva Córdoba, in good condition, ranges between USD 70,000 and USD 78,000, while those with three bedrooms go up to the range of USD 86,000 to USD 100,000.
The units in Chacabuco and Entre Ríos, in the central area of Córdoba capital, are the most in demand (Google Maps)
Newly built properties have risen in price in response to rising construction costs.
Three-room homes start at USD 110,000 and four-room homes range from USD 125,000 to USD 165,000, depending on the area and features.
In gated communities, properties start at USD 270,000 and vary depending on the built area and location.
Manzotti recalled that the loans from Banco de Córdoba (Bancor) had previously greatly boosted the sector. However, there is concern about whether future borrowers will have sufficient income to be able to access these opportunities.
In Rosario
Demand for housing in Rosario has been very strong since the beginning of the year, with peaks in foreclosures. Buyers focused on three- and four-room apartments, while two-room units outpaced demand for studio apartments, which are oversupplied and have higher negotiation margins.Diego Ferreyra , treasurer of the Rosario College of Real Estate Brokers (Cocir) and director of Diego Ferreyra Bienes Raíces, told Infobae that “in values, there is a change in trend: they are no longer falling, but they are not rising significantly either. Expectations prior to the jump in the free dollar suggested a possible rebound in the most in-demand units, although this has not yet materialized. However, the increase in construction costs pushed up the price of brand new apartments.”
Brand new apartment in the Fisherton area, another of the destinations near Rosario that is in full expansion
The main interest in buying real estate is driven by savers who want to turn their dollars into homes. “The increase in the cost of living in dollars has boosted the decision to invest, especially in changing from two to three-room apartments,” added Ferreyra.
Mortgage credit is driving the market. The Banco Municipal de Rosario line had 20,000 registrations in one week due to its low interest rate (3% per year). Although few transactions were made, the volume of enquiries remained active.
Prices for used and non-antique two-room apartments start at USD 55,000 to USD 65,000, while three-room apartments range from USD 75,000 to USD 90,000.
Ferreyra added that “The most sought-after areas are Parque España, Lourdes and Pichincha. Compared to CABA, prices are 30% / 35% higher, due to operations driven by savers with dollars in hand. The projection for the second half of the year is positive, especially for those who have access to mortgage loans.”
Near the sea
During the last quarter of 2023 and the first half of 2024, the Mar del Plata real estate market showed remarkable activity. Many transactions were carried out for one- and two-room apartments whose values fell since 2017 and stabilized six years later.“The cheapest units were sold in 2023 and are no longer available. The initial prices for a one-room apartment are around USD 30,000, up 10%, according to Rodrigo Alejandro Sanz , from the Sanz y Ordoqui Properties real estate agency.
In Mar del Plata, two-room apartments start at $40,000
Sanz points out that real estate loans generated good expectations and some transactions were completed, which halted the fall in prices.
Starting prices for two-bedroom properties in the downtown area start at $40,000, and three-bedroom properties start at $55,000. Homes in Perla Norte start at more than $100,000, and in Chauvin they exceed $180,000.
Chauvin neighborhood, one of the fastest growing real estate neighborhoods in Mar del Plata in the last 4 years
“The improvement in the Mar del Plata real estate market is estimated at 10%, seen more as a recovery than as a price increase. This trend is expected to continue and consolidate a solid base for future investments,” Sanz added.
Close to the mountain range
After a great November 2023 with more than 1,400 deeds in Mendoza capital, demand fell in the following months due to rising construction costs and the volatility of the dollar, but it has picked up again in recent weeks.
Intersection of Colon Avenue and Mitre, three blocks from Plaza Independencia in Mendoza capital
Anahí González Caro , an analyst of the Mendoza real estate market, highlighted that the quality of life, the offer of services and location are the main attractions of the Quinta Sección and Luján de Cuyo, the most sought after. The Quinta has high prices and a profitability of up to 6% annually in dollars for “premium” projects. Luján de Cuyo offers low land values in suburban areas, which showed a high potential for revaluation.
Mortgage loans generated expectations and activity in the market increased, although the transactions carried out were few, similar to other markets in the country.
Source: Anahí González Caro-Pulso Inmobiliario Mendoza
González Caro told Infobae that the market is gradually recovering, with an increase in inquiries and lower negotiation margins. Economic improvements and tax benefits, such as the repeal of the Real Estate Transfer Tax , could contribute to a more transparent and bank-based market.
List prices for 2- and 3-room apartments in the most sought-after areas of Mendoza range from USD 1,800 to USD 3,000 per m2 (especially near Emilio Civit Avenue).
A home in Chacras de Coria, with quality finishes, 300 m2 covered and 1,000 m2 total in a private neighborhood, costs around $400,000.
Source: Anahí González Caro-Pulso Inmobiliario Mendoza
Compared to CABA, a 2-room apartment in the Fifth Section of Mendoza has average prices of USD 2,000 per m2, while in Recoleta, CABA, prices are up to 50% higher.
“Despite the reactivation and more closures in Mendoza, there is no general increase in prices, except in specific units and high-demand areas,” concluded González Caro.
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