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The trend has changed and property prices are rising: the price per square metre in October had its biggest rise since 2018 - Infobae
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www.infobae.com
October 30, 2024
How much does it cost to buy a property today? A Zonaprop report also confirmed that rents will accumulate an increase of 57% in 2024
By Jose Luis Cieri
The five years of constant declines in the real estate market have been reversed, and the values of apartments for sale continue to adjust upwards (Illustrative Image Infobae)
The sale price of properties in the city of Buenos Aires continues to rise and the change in trend has been confirmed: the value of square meters has already reached its lowest point. This was stated in a private report, which indicated a growth in values of 7.2% in the last 12 months .
Zonaprop's work confirmed that 7.2% is the largest year-on-year increase since December 2018, when the Argentine real estate market began a path of crisis that is gradually being forgotten.
In October, the average price per square metre rose by 0.3% to $2,321 . So far this year, the price of apartments for sale has risen by 6.6% .
Thus, a studio apartment in CABA costs an average of USD 102,267, while a two-room apartment costs USD 122,963, and a three-room apartment has an average value of USD 169,082.
The study confirmed that in 94% of the neighborhoods of Buenos Aires, housing prices have risen, while only 6% have seen some declines. However, these decreases are more common during negotiations between the parties to set the final closing of the purchase and sale operations.
Source: Zonaprop
“Demand is rising, the supply of properties for sale is falling and prices continue to rise. It seems that a bull market of rising prices is beginning in the used market,” Santiago Magnin , from Deinmobiliarios and a real estate expert, told Infobae.
Nuñez , Colegiales , San Cristóbal , Saavedra and Palermo , along with Recoleta , lead the increase in prices, with year-on-year increases between 12.3% and 7.5% (see graph).
Source: Zonaprop
This growth is attributed to an influx of capital seeking shelter in properties, an alternative that many see as solid in the face of instability in other markets.
For Magnin, the reason behind this trend is clear: “Disillusioned with other investments, savers decide to move their dollars towards the real estate market. This drives the active sale of properties at considerably higher prices, especially in premium areas such as Recoleta and Núñez.”
In the middle line, Saavedra presents an average valuation of USD 2,454 per m2, followed by Monserrat and Villa Pueyrredón , with USD 2,091 and USD 2,039 per m2, respectively.
At the other end of the spectrum, among the cheapest, Villa Lugano is the most accessible neighborhood, with an average of USD 983 per m2, followed by Nueva Pompeya (USD 1,388) and Villa Riachuelo (USD 1,505 per m2).
Mortgage deeds also grew significantly, representing 14% of the total in September, quadrupling the number registered a year ago and with an increase of 70% compared to August 2024.
Ivan Ginevra , president of the Argentine Chamber of Real Estate, said that the growth trend in the real estate sector will continue “as the country stabilizes and the economy grows. The increase in mortgage loans will boost this trend, reflected in a greater volume of deeds.”
Current data already shows a strong rebound, with writing levels at their highest in 10 years.
“If conditions are favourable, we could see sustained growth in the coming months,” Ginevra said.
Building today in CABA is almost three times more expensive than in October 2020, which raises prices and adjusts the values of properties in the pre-sale stage.
Zonaprop's work confirmed that the average monthly rental price for a one-bedroom apartment is $524,907, while a studio apartment is rented for $440,643 and a two-bedroom apartment for $707,201 per month.
Ariel Champanier , from Re/Max Premium, believes that although rental prices have registered significant increases, the growth in supply has brought a “sincere” attitude to the real estate market. “This adjustment in the sector reflects prices that are more in line with the reality of demand, although the impact has not been entirely positive for those who rent.”
Many tenants, especially those with fewer resources, are struggling to cover these costs.
This phenomenon increases the gap in access to housing. “The situation highlights the need for policies that support both market adjustment and the purchasing power of tenants,” Champanier added.
In the most expensive neighborhoods, Puerto Madero tops the list with average rents of $982,766 per month, followed by Núñez ($592,943) and Palermo ($588,461) per month.
At the other end, Villa Lugano ($391,050), Liniers ($435,474) and Parque Avellaneda ($447,759) present the most affordable rental offers in CABA.
www.buysllba.com
Source:
Cambió la tendencia y suben las propiedades: el precio del metro cuadrado tuvo en octubre su mayor suba desde 2018
Cuánto cuesta hoy comprar un inmueble. Un informe de Zonaprop también confirmó que los alquileres acumulan un incremento del 57% en 2024
www.infobae.com
October 30, 2024
How much does it cost to buy a property today? A Zonaprop report also confirmed that rents will accumulate an increase of 57% in 2024
By Jose Luis Cieri
The five years of constant declines in the real estate market have been reversed, and the values of apartments for sale continue to adjust upwards (Illustrative Image Infobae)
The sale price of properties in the city of Buenos Aires continues to rise and the change in trend has been confirmed: the value of square meters has already reached its lowest point. This was stated in a private report, which indicated a growth in values of 7.2% in the last 12 months .
Zonaprop's work confirmed that 7.2% is the largest year-on-year increase since December 2018, when the Argentine real estate market began a path of crisis that is gradually being forgotten.
In October, the average price per square metre rose by 0.3% to $2,321 . So far this year, the price of apartments for sale has risen by 6.6% .
Thus, a studio apartment in CABA costs an average of USD 102,267, while a two-room apartment costs USD 122,963, and a three-room apartment has an average value of USD 169,082.
The study confirmed that in 94% of the neighborhoods of Buenos Aires, housing prices have risen, while only 6% have seen some declines. However, these decreases are more common during negotiations between the parties to set the final closing of the purchase and sale operations.
Source: Zonaprop
“Demand is rising, the supply of properties for sale is falling and prices continue to rise. It seems that a bull market of rising prices is beginning in the used market,” Santiago Magnin , from Deinmobiliarios and a real estate expert, told Infobae.
Nuñez , Colegiales , San Cristóbal , Saavedra and Palermo , along with Recoleta , lead the increase in prices, with year-on-year increases between 12.3% and 7.5% (see graph).
Source: Zonaprop
This growth is attributed to an influx of capital seeking shelter in properties, an alternative that many see as solid in the face of instability in other markets.
For Magnin, the reason behind this trend is clear: “Disillusioned with other investments, savers decide to move their dollars towards the real estate market. This drives the active sale of properties at considerably higher prices, especially in premium areas such as Recoleta and Núñez.”
More expensive and cheaper
Puerto Madero leads prices in the city with a value of USD 5,985 per square meter, followed by Palermo with USD 3,212 and Belgrano with USD 3,030 per m2.In the middle line, Saavedra presents an average valuation of USD 2,454 per m2, followed by Monserrat and Villa Pueyrredón , with USD 2,091 and USD 2,039 per m2, respectively.
At the other end of the spectrum, among the cheapest, Villa Lugano is the most accessible neighborhood, with an average of USD 983 per m2, followed by Nueva Pompeya (USD 1,388) and Villa Riachuelo (USD 1,505 per m2).
Rising deeds and increased mortgage demand
The volume of deeds in CABA in September reached 5,157 transactions, which represents an increase of 30.4% compared to last year and the best month in terms of volume since 2017.Mortgage deeds also grew significantly, representing 14% of the total in September, quadrupling the number registered a year ago and with an increase of 70% compared to August 2024.
Ivan Ginevra , president of the Argentine Chamber of Real Estate, said that the growth trend in the real estate sector will continue “as the country stabilizes and the economy grows. The increase in mortgage loans will boost this trend, reflected in a greater volume of deeds.”
Current data already shows a strong rebound, with writing levels at their highest in 10 years.
“If conditions are favourable, we could see sustained growth in the coming months,” Ginevra said.
Construction in dollars and its effect on prices
The cost of construction in dollars rose by 34.6% in 2024 , which directly influences the price of the units in the pit, which are currently around USD 2,741 per m2.Building today in CABA is almost three times more expensive than in October 2020, which raises prices and adjusts the values of properties in the pre-sale stage.
What is happening with rental prices?
Rental prices in the City rose by 3.4% in October , and have accumulated a rise of 57% in the year , almost half that of inflation, which reached 101.6% until September ( the measurement for October will be known in approximately 15 days ).
Zonaprop's work confirmed that the average monthly rental price for a one-bedroom apartment is $524,907, while a studio apartment is rented for $440,643 and a two-bedroom apartment for $707,201 per month.
Ariel Champanier , from Re/Max Premium, believes that although rental prices have registered significant increases, the growth in supply has brought a “sincere” attitude to the real estate market. “This adjustment in the sector reflects prices that are more in line with the reality of demand, although the impact has not been entirely positive for those who rent.”
Many tenants, especially those with fewer resources, are struggling to cover these costs.
This phenomenon increases the gap in access to housing. “The situation highlights the need for policies that support both market adjustment and the purchasing power of tenants,” Champanier added.
In the most expensive neighborhoods, Puerto Madero tops the list with average rents of $982,766 per month, followed by Núñez ($592,943) and Palermo ($588,461) per month.
At the other end, Villa Lugano ($391,050), Liniers ($435,474) and Parque Avellaneda ($447,759) present the most affordable rental offers in CABA.
www.buysllba.com
