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The rebirth of real estate in Buenos Aires: should you anticipate 2025 and buy a home now? - Infobae
Source:
www.infobae.com
November 05, 2024
With prices recovering and demand firm, the market is showing signs of change. Smaller apartments are the most valued. What the experts say
By Jose Luis Cieri
The return of mortgage loans and recent regulations, such as the money laundering law, were driving forces behind the recovery of prices and sparking interest among end users and investors (Illustrative Image Infobae)
The real estate market in the Autonomous City of Buenos Aires has seen a marked increase in housing prices over the past year, driven by a growing demand for both new and used units.
Apartment prices have increased by between 5% and 12% year-on-year in 94% of Buenos Aires neighborhoods. Although this percentage increase may seem low, it is significant when compared to the downward trend that began in October 2018, when values fell by approximately 45% for used properties and 32% for brand new units.
According to Zonaprop, this phenomenon reflects a 51% increase in demand for properties in the last twelve months, an upturn that, according to analysts, responds to factors such as the reactivation of mortgage loans and the Money Laundering Law ( the Government extended the first stage until next Friday ), which allows capital to enter the Real Estate market .
According to the platform in question, "the neighborhoods in the north of the city, such as Núñez, Colegiales and Palermo, are those that experienced the greatest appreciation, with year-on-year increases between 11.4% and 10.7%," Leandro Molina , country manager of Grupo QuintoAndar (Zonaprop) for Argentina and Peru, told Infobae.
These neighborhoods offer a strategic location, direct connection to the north of the Metropolitan Area of Buenos Aires (AMBA) and proximity to commercial and gastronomic centers, which is key to their value.
Molina explained that this increase in value is part of a trend that has been consolidating since mid-2023, when the market reached its lowest level in terms of price per square meter.
“Currently, property values are 7.9% above the minimum recorded in June 2023, although they are still 17.1% below the historical maximum of 2019, when the market reached USD 2,800 per square meter in the context of UVA credits,” said Molina.
Currently, the market price is 7.9% above the minimum recorded in June 2023 (USD 2,151 per m2) but is still 17.1% below the maximum reached, according to records from the real estate portal.
According to a survey by Mercado Libre and the University of San Andrés (Udesa), apartment prices in the AMBA rose 6.5% year-on-year, while CABA, with 10%, leads the increases with the highest values in the region.
A 40 m2 studio apartment has an average price of USD 102,267, while a one-bedroom apartment costs USD 122,963 and measures 50 m2. These types of units have gained ground especially in high-demand neighborhoods.
However, there is still a disparity in the increases: while the northern corridor (Núñez, Belgrano, Palermo) is rising in line with the average, neighborhoods such as Caballito show a greater appreciation.
Fabián Achával , CEO of Fabián Achával Properties and head of Radar Inmobiliario, said that the short and medium-term projections for the real estate sector in CABA are optimistic, driven by factors such as the reactivation of mortgage loans.
“The stable exchange rate, together with the increase in construction costs, indicate that this upward trend in prices will continue,” Achaval said.
Rising construction costs also suggest that “prices will continue to rise in the future,” Achával said.
“This increase contrasts with the increase of only 6% in the published values in the area. The reason behind this difference lies in the strong demand, which has reduced the gap between the published value and the final closing price,” Santiago Magnin , from Deinmobiliarios and a Real Estate expert, told Infobae .
Unlike previous years, where listing prices were often well above actual closing values, the current market is showing faster absorption of properties, which are in line with what buyers are willing to pay.
Magnin explained that the average price in Recoleta for two- and three-room units is USD 2,200 per square meter, so a 45 m2 apartment closes at approximately USD 99,000.
The Avenida Alvear area in Recoleta is one of the points that most appreciated in the closing values of purchase and sale operations
“I don’t give investment advice, but in 2023 everything that could be sold was sold because prices were at historically low levels. Even with the recent increase, Recoleta is still below its historical average, which makes it attractive for those looking to capitalize on this high-value area,” Magnin added.
Values, still at historically low levels, reflect the decline of recent years, but the revival of demand and the increase in construction costs suggest that the trend could continue upward.
Fabián Achával said that these factors make up a unique “zone of opportunity.” “Property prices, in real terms, are at levels comparable to those of 2004. The rising cost of construction also anticipates that prices could continue to rise, so those who buy now will probably get a better investment.”
As a recommendation for those considering investing in bricks and mortar, Achával suggests “acting quickly and with professional advice, highlighting that there is still a price dispersion that could cause buyers to miss opportunities or pay more than necessary.”
As for the sectors with the highest demand, Achával highlights that smaller properties, such as studios and two-room apartments, are the most sought after, because they offer attractive profitability for those who wish to invest with an income focus.
real estate market
Plaza Félix Lima, one of the plazas in the Núñez neighborhood. It is among the areas that has seen the greatest increase in property values and is undergoing a renovation phase.
For new investors, the recommendation is simple: acquire properties in high-demand neighborhoods (such as Palermo, Villa Crespo, Chacarita, Caballito, Almagro, among others) where prices are still affordable and seek help from a real estate broker with experience in identifying opportunities.
“Current conditions present a favorable opportunity for purchasing. With a year of sustained growth in the sales market and regulations that encourage acquisition, such as money laundering and mortgage loans, it is a good time to acquire properties. The trend indicates that prices could continue to rise due to growing demand and consolidate after the first quarter of 2025,” concluded Leandro Molina.
www.buysellba.com
Source:
El renacer del ladrillo en Buenos Aires: ¿conviene anticiparse al 2025 y comprar la vivienda ahora?
Con precios en recuperación y demanda firme, el mercado muestra signos de cambio. Los departamentos de menor superficie son los más valorizados. Qué dice los especialistas
www.infobae.com
November 05, 2024
With prices recovering and demand firm, the market is showing signs of change. Smaller apartments are the most valued. What the experts say
By Jose Luis Cieri
The return of mortgage loans and recent regulations, such as the money laundering law, were driving forces behind the recovery of prices and sparking interest among end users and investors (Illustrative Image Infobae)
The real estate market in the Autonomous City of Buenos Aires has seen a marked increase in housing prices over the past year, driven by a growing demand for both new and used units.
Apartment prices have increased by between 5% and 12% year-on-year in 94% of Buenos Aires neighborhoods. Although this percentage increase may seem low, it is significant when compared to the downward trend that began in October 2018, when values fell by approximately 45% for used properties and 32% for brand new units.
According to Zonaprop, this phenomenon reflects a 51% increase in demand for properties in the last twelve months, an upturn that, according to analysts, responds to factors such as the reactivation of mortgage loans and the Money Laundering Law ( the Government extended the first stage until next Friday ), which allows capital to enter the Real Estate market .
According to the platform in question, "the neighborhoods in the north of the city, such as Núñez, Colegiales and Palermo, are those that experienced the greatest appreciation, with year-on-year increases between 11.4% and 10.7%," Leandro Molina , country manager of Grupo QuintoAndar (Zonaprop) for Argentina and Peru, told Infobae.
These neighborhoods offer a strategic location, direct connection to the north of the Metropolitan Area of Buenos Aires (AMBA) and proximity to commercial and gastronomic centers, which is key to their value.
Molina explained that this increase in value is part of a trend that has been consolidating since mid-2023, when the market reached its lowest level in terms of price per square meter.
“Currently, property values are 7.9% above the minimum recorded in June 2023, although they are still 17.1% below the historical maximum of 2019, when the market reached USD 2,800 per square meter in the context of UVA credits,” said Molina.
Currently, the market price is 7.9% above the minimum recorded in June 2023 (USD 2,151 per m2) but is still 17.1% below the maximum reached, according to records from the real estate portal.
According to a survey by Mercado Libre and the University of San Andrés (Udesa), apartment prices in the AMBA rose 6.5% year-on-year, while CABA, with 10%, leads the increases with the highest values in the region.
The properties that appreciated the most
In the last year, smaller properties, such as studios and two-room apartments, showed a more pronounced appreciation trend in CABA.A 40 m2 studio apartment has an average price of USD 102,267, while a one-bedroom apartment costs USD 122,963 and measures 50 m2. These types of units have gained ground especially in high-demand neighborhoods.
However, there is still a disparity in the increases: while the northern corridor (Núñez, Belgrano, Palermo) is rising in line with the average, neighborhoods such as Caballito show a greater appreciation.
Fabián Achával , CEO of Fabián Achával Properties and head of Radar Inmobiliario, said that the short and medium-term projections for the real estate sector in CABA are optimistic, driven by factors such as the reactivation of mortgage loans.
“The stable exchange rate, together with the increase in construction costs, indicate that this upward trend in prices will continue,” Achaval said.
Rising construction costs also suggest that “prices will continue to rise in the future,” Achával said.
A classic, a surprise
Recoleta stood out as the Buenos Aires neighborhood with the highest price increase, with a 23.9% year-on-year rise, especially in some sections of the Avenida Alvear, Avenida Quintana and the aristocratic La Isla corridor .“This increase contrasts with the increase of only 6% in the published values in the area. The reason behind this difference lies in the strong demand, which has reduced the gap between the published value and the final closing price,” Santiago Magnin , from Deinmobiliarios and a Real Estate expert, told Infobae .
Unlike previous years, where listing prices were often well above actual closing values, the current market is showing faster absorption of properties, which are in line with what buyers are willing to pay.
Magnin explained that the average price in Recoleta for two- and three-room units is USD 2,200 per square meter, so a 45 m2 apartment closes at approximately USD 99,000.
The Avenida Alvear area in Recoleta is one of the points that most appreciated in the closing values of purchase and sale operations
“I don’t give investment advice, but in 2023 everything that could be sold was sold because prices were at historically low levels. Even with the recent increase, Recoleta is still below its historical average, which makes it attractive for those looking to capitalize on this high-value area,” Magnin added.
Expectations
In a context where property prices in Buenos Aires are showing signs of recovery, several specialists agree that this could be a good time to enter the market.Values, still at historically low levels, reflect the decline of recent years, but the revival of demand and the increase in construction costs suggest that the trend could continue upward.
Fabián Achával said that these factors make up a unique “zone of opportunity.” “Property prices, in real terms, are at levels comparable to those of 2004. The rising cost of construction also anticipates that prices could continue to rise, so those who buy now will probably get a better investment.”
As a recommendation for those considering investing in bricks and mortar, Achával suggests “acting quickly and with professional advice, highlighting that there is still a price dispersion that could cause buyers to miss opportunities or pay more than necessary.”
As for the sectors with the highest demand, Achával highlights that smaller properties, such as studios and two-room apartments, are the most sought after, because they offer attractive profitability for those who wish to invest with an income focus.
Plaza Félix Lima, one of the plazas in the Núñez neighborhood. It is among the areas that has seen the greatest increase in property values and is undergoing a renovation phase.
For new investors, the recommendation is simple: acquire properties in high-demand neighborhoods (such as Palermo, Villa Crespo, Chacarita, Caballito, Almagro, among others) where prices are still affordable and seek help from a real estate broker with experience in identifying opportunities.
“Current conditions present a favorable opportunity for purchasing. With a year of sustained growth in the sales market and regulations that encourage acquisition, such as money laundering and mortgage loans, it is a good time to acquire properties. The trend indicates that prices could continue to rise due to growing demand and consolidate after the first quarter of 2025,” concluded Leandro Molina.
www.buysellba.com
