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The sale of new property construction has reactivated in CABA: prices by neighborhood - Infobae
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www.infobae.com
September 26, 2024
Currently, values have accumulated an increase of 13.6% since last November and are 12% below the maximum reached in August 2018, according to a market analysis of real estate developments.
By Jose Luis Cieri
There are currently more than 50,000 homes under construction in the city of Buenos Aires, Palermo, Belgrano, Núñez and Caballito, the neighborhoods where most construction is taking place.
The money laundering and the confidence of those looking to invest in housing have driven operations and increased interest in the purchase of units under construction in the city of Buenos Aires. A private analysis confirmed that currently a one-bedroom apartment in a pit, with 50 square meters, costs USD 132,864 on average. While a two-bedroom apartment, with a balcony and 70 m2, costs USD 209,204.
According to the report on new developments in CABA carried out by Zonaprop, the average price of the units in the pit is USD 3,689 per m2. Since the change in trend, in November 2023, the values have increased by 13.6% and are 12% below the maximum reached in August 2018, when it climbed to USD 3,024 per square meter.
“In 2024, construction costs increased by 13.1%; this indicator explains the increase in prices for projects in the pit, which also began to rise due to replacement. In the coming months, as a result of mortgage loans and money laundering, an increase in demand is expected, which will impact market values,” Leandro Molina , country manager of Grupo QuintoAndar for Argentina and Peru, told Infobae.
The survey also confirmed that a used apartment is 27% more affordable (USD 2,122 per m2). However, it remains 0.3% below brand new apartments (USD 2,696 per m2).
The figures reported by the survey contradict what has historically happened, which is that the prices of wells have always been much cheaper than those of brand new homes. What's more, many considered them an investment that they would sell after the work was finished.
But “it is not necessary to have all the money to invest in off-site units,” said Molina, referring to the fact that the issue of money can be an incentive. He added: “Unlike brand new or used constructions, you can make an advance payment and continue in installments during the duration of the construction, which can generally extend between 24 and 36 months.”
On the other hand, this type of investment can generally be made in pesos and dollars. Although the advance payment must be in dollars, the installments can be paid in pesos.
Caballito, Villa Crespo and Constitución, with USD 2,775, USD 2,468 and USD 2,326 per m2, respectively, are in the middle range in terms of prices.
On the other hand, Villa Riachuelo is the most affordable neighborhood for acquisition, with an average of USD 1,574 per m2. Parque Avellaneda and Vélez Sarsfield complete the podium of the most affordable, with prices of USD 1,620 and USD 1,706 per m2, respectively.
A project in Belgrano, one of the neighborhoods with the most projects underway
“After Palermo, Belgrano is the second neighborhood with the highest presence of apartments in condominiums; it represents 10.7% of the supply. Next are Núñez, with 6.8%, and Caballito, with 6.6%. These neighborhoods have in common easy access to public transportation, highways, shopping centers, educational centers, restaurants and parks, factors that increase their potential,” said Molina.
In the ranking by neighborhoods, Palermo leads with the largest market share, concentrating 20.6% of the total supply of units in the condominium. Monserrat (1.6%), on the other hand, is the area with the lowest supply.
“The supply of apartments in condominiums grew by 5% in August, reflecting the recovery of confidence among developers and investors, who see better economic and profitability prospects,” said Molina.
The value of land, which has fallen by 30%, has not yet recovered. Although the market has not approved the costs, an increase in operations is expected in the next half year.
Alejandro Furst , CEO of Landmark Development, said that this situation will generate a greater demand for land, which in turn will increase its cost. In the medium term, real estate assets will adjust in terms of their value, so investing in a property today represents an opportunity to capitalize on this delay.”
Money laundering is another factor that has boosted demand for apartments under construction.
Furst added: “In some projects, enquiries were received and in others, transactions were carried out with money from money laundering, and this did not significantly impact the sales prices.”
Demand was lagging, but with the return of mortgage lending, an increase in operations and prices is expected for the first half of 2025.
“This is a good time to invest and take advantage of prices before they rise,” Furst said.
www.buysellba.com
Source:
La venta de viviendas en pozo se reactivó en CABA: los distintos precios, según el barrio
Actualmente, los valores acumulan un aumento del 13,6% desde noviembre pasado y se ubican un 12% por debajo del máximo alcanzado en agosto de 2018, según un análisis del mercado sobre los desarrollos inmobiliarios
www.infobae.com
September 26, 2024
Currently, values have accumulated an increase of 13.6% since last November and are 12% below the maximum reached in August 2018, according to a market analysis of real estate developments.
By Jose Luis Cieri
There are currently more than 50,000 homes under construction in the city of Buenos Aires, Palermo, Belgrano, Núñez and Caballito, the neighborhoods where most construction is taking place.
The money laundering and the confidence of those looking to invest in housing have driven operations and increased interest in the purchase of units under construction in the city of Buenos Aires. A private analysis confirmed that currently a one-bedroom apartment in a pit, with 50 square meters, costs USD 132,864 on average. While a two-bedroom apartment, with a balcony and 70 m2, costs USD 209,204.
According to the report on new developments in CABA carried out by Zonaprop, the average price of the units in the pit is USD 3,689 per m2. Since the change in trend, in November 2023, the values have increased by 13.6% and are 12% below the maximum reached in August 2018, when it climbed to USD 3,024 per square meter.
“In 2024, construction costs increased by 13.1%; this indicator explains the increase in prices for projects in the pit, which also began to rise due to replacement. In the coming months, as a result of mortgage loans and money laundering, an increase in demand is expected, which will impact market values,” Leandro Molina , country manager of Grupo QuintoAndar for Argentina and Peru, told Infobae.
The survey also confirmed that a used apartment is 27% more affordable (USD 2,122 per m2). However, it remains 0.3% below brand new apartments (USD 2,696 per m2).
The figures reported by the survey contradict what has historically happened, which is that the prices of wells have always been much cheaper than those of brand new homes. What's more, many considered them an investment that they would sell after the work was finished.
But “it is not necessary to have all the money to invest in off-site units,” said Molina, referring to the fact that the issue of money can be an incentive. He added: “Unlike brand new or used constructions, you can make an advance payment and continue in installments during the duration of the construction, which can generally extend between 24 and 36 months.”
On the other hand, this type of investment can generally be made in pesos and dollars. Although the advance payment must be in dollars, the installments can be paid in pesos.
Neighborhood ranking
Puerto Madero (see chart) has the most expensive offer in CABA, with an average price of USD 6,310 per m2. It is followed by Palermo (USD 3,624) and San Telmo (USD 3,604 per m2).
Caballito, Villa Crespo and Constitución, with USD 2,775, USD 2,468 and USD 2,326 per m2, respectively, are in the middle range in terms of prices.
On the other hand, Villa Riachuelo is the most affordable neighborhood for acquisition, with an average of USD 1,574 per m2. Parque Avellaneda and Vélez Sarsfield complete the podium of the most affordable, with prices of USD 1,620 and USD 1,706 per m2, respectively.
In recovery
The supply of units in the pipeline is recovering after two years of decline. In 2024, the supply of projects has accumulated an increase of 2.4%. In August, it rose by 5% after two years of decline.
A project in Belgrano, one of the neighborhoods with the most projects underway
“After Palermo, Belgrano is the second neighborhood with the highest presence of apartments in condominiums; it represents 10.7% of the supply. Next are Núñez, with 6.8%, and Caballito, with 6.6%. These neighborhoods have in common easy access to public transportation, highways, shopping centers, educational centers, restaurants and parks, factors that increase their potential,” said Molina.
In the ranking by neighborhoods, Palermo leads with the largest market share, concentrating 20.6% of the total supply of units in the condominium. Monserrat (1.6%), on the other hand, is the area with the lowest supply.
Rebound and whitewashing effect
The increase in the supply of developments in the works, after two years of decline, has a positive impact on the real estate market in CABA.“The supply of apartments in condominiums grew by 5% in August, reflecting the recovery of confidence among developers and investors, who see better economic and profitability prospects,” said Molina.
Scenery
In the Buenos Aires real estate market, the current time is a good time to invest in properties in the red. Although the cost of construction rose until May, low inflation, lower activity and a drop in sales reduced the cost of materials by between 10% and 15% since the beginning of 2024.
The value of land, which has fallen by 30%, has not yet recovered. Although the market has not approved the costs, an increase in operations is expected in the next half year.
Alejandro Furst , CEO of Landmark Development, said that this situation will generate a greater demand for land, which in turn will increase its cost. In the medium term, real estate assets will adjust in terms of their value, so investing in a property today represents an opportunity to capitalize on this delay.”
Money laundering is another factor that has boosted demand for apartments under construction.
Furst added: “In some projects, enquiries were received and in others, transactions were carried out with money from money laundering, and this did not significantly impact the sales prices.”
Demand was lagging, but with the return of mortgage lending, an increase in operations and prices is expected for the first half of 2025.
“This is a good time to invest and take advantage of prices before they rise,” Furst said.
www.buysellba.com
