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The unknown reason why property prices are still an opportunity - La Nacion Propiedades
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La desconocida razón por la que los precios de las propiedades todavía son una oportunidad
En un contexto en que la compraventa de propiedades sigue creciendo, otro dato muestra que los precios podrán seguir aumentando
www.lanacion.com.ar
April 24, 2025
In a context where property sales continue to grow, another piece of data shows that prices may continue to rise.
By Maria Josefina Lanzi
The data that confirms that waiting to sell or buy is losingGonzalo Colini
In a market where prices continue to rise, one piece of data confirms that real estate is on fire. Although listing values for used properties rose 5.14% in 2024, according to Zonaprop, and 6.2%, according to Reporte Inmobiliario, over the 12-month period (February 2024 to February 2025), another market variable reveals a surprising reality.
To understand the dynamics of the sector, it's important to distinguish between asking prices (published on real estate platforms) and closing prices. Since every real estate transaction involves negotiation between buyer and seller, the final closing price is often lower than the published price. In other words, there is "haggling" or counteroffers. This final figure is known as the "closing price," an indicator that shows the actual values at which transactions are being negotiated in the real estate market, beyond what is advertised on property sales platforms.
If we analyze the publication values of the used ones, as mentioned before, they increased 5.14% in 2024, according to Zonaprop (a platform that takes an average of the square meter in CABA, taking the values of a two-room apartment), and 6.2% according to Reporte Inmobiliario from February 2024 to February 2025, a platform that takes an average value of used one to three-room apartments in CABA). Now, if we look at the closing prices, according to the index carried out by Reporte Inmobiliario, UCEMA/Remax, they grew 17.7% in that same period, and, according to the Real Estate Operations Survey of the Selectia real estate network , they increased 11.7% in 2024 compared to the previous year.
Publishing prices rose 6.8% in 2024, according to ZonapropFreePik
The relevant point is that closing prices increased more than double the increase in listing prices. In numbers, the listing price surveyed by Zonaprop increased 5.14% in 2024, while closing prices grew 11.7%, according to the ROI survey. According to Reporte Inmobiliario, the asking price increased 6.2%, but the closing price grew 17.7% (data from Reporte Inmobiliario, Remax, and CEMA). All data corresponds to used properties .
Although they are different indicators, both show a rising difference between listing and closing, and they are key data when analyzing the dynamics of the real estate market. However, we should ask ourselves what the causes behind this phenomenon are.
Why are closing prices rising more than listing prices?
Lucas's case illustrates this reality: he wants to buy a two-bedroom apartment in Buenos Aires with a mortgage. He found a property he liked that met his needs, but at a price that didn't seem very reasonable: US$145,000. He wanted to negotiate the price, but when he got down to it, he realized there were three other people interested in buying the same property, and the owner wasn't willing to lower the price.The situation described reflects that in a scenario of high demand, the way of negotiating is changing. Counteroffer margins are currently below the historic low (5%), and in February they averaged 4.18%, according to a survey conducted by the University of CEMA and RE/MAX Argentina, in conjunction with Reporte Inmobiliario. This shows that properties are selling at prices very close to the listed prices.
Fabián Achaval, from the eponymous real estate agency (one of the companies that performs ROI), explains that the increase in sales is occurring across all market segments (high and low ticket prices). However, in the case of "the lowest ticket prices, below US$200,000, the negotiation rate is lower, and this is explained by the fact that the bulk of demand and mortgage loans are oriented toward this segment." This means that, for the lowest ticket prices (which are selling more), the closing price increases more in relative terms (closer to the originally advertised value).
Counteroffer margins on properties today are below the historic low (5%), as they stood at 4.18% on average in February.Uladzimir Zuyeu - Shutterstock
Germán Gómez Picasso, founder of Reporte Inmobiliario, explains that there are areas where this increase in closing prices is concentrated: "The properties that are selling are the good ones and in good locations. This raises the closing price, since they have a higher value relative to the entire inventory, and the survey only includes those that actually sold," he analyzes. On the other hand, when comparing listing prices , everything on offer on the market is considered, where there are very different values between neighborhoods and types, which causes the average square meter to rise, but at a slower rate.
It's also important to keep in mind that real estate is currently experiencing a period of supply absorption . Although monthly growth in the supply of properties for sale was recorded between July and November 2024, the year-over-year downward trend persists, with a 7.2% decrease compared to the same period last year (second half of the year), marking 28 consecutive months of decline.
“Conversation about the real estate market has re-established itself among people. Today, the topic is present in everyday conversations, in family decisions, in get-togethers with friends. The possibility of buying a home has returned to many people's radar,” shares Sebastián Sosa, president of RE/MAX Argentina and Uruguay. He adds that key factors have begun to align, such as greater macroeconomic stability —not taking into account the market volatility of recent days—which generates predictability and confidence, which is essential for encouraging buyers to make decisions.
In this sense, in a context where supply is declining and, on the demand side, there has been a sharp increase in interest in property purchases (due to changing expectations, historically low prices, the availability of mortgage loans, and a stable exchange rate), the possibility of haggling to lower the price of a property is lower, since buyers are competing with many other interested parties, so the seller doesn't need to offer a discount to close the deal . In fact, some brokers estimate that purchase decisions for properties with many interested parties are made in less than a day. Thus, prices at closing are higher. And they have plenty of room to rise.
The reason? Between 2019 and 2023, listing prices fell by 24%, but in that same period, “closing prices decreased by 50% in real terms ,” Achaval shares, adding: “This shows that there is still plenty of room for improvement, as they remain at 2006 levels, which also demonstrates how attractive these prices continue to be.”
Properties: Last year's sales exceeded 2023 by 35%.Santiago Cichero/AFV
The keys to a booming market
The real estate market experienced a significant boost in 2024, and the numbers across all sectors speak of positive results. The average metro listing price grew by almost 7% in one year in the city of Buenos Aires, and so far in 2025, apartment prices for sale have already risen by almost half of what they increased in all of 2024 (up 3.1% in the first three months).Compared to last year, sales transactions were 35% higher than in 2023. According to the latest data published by the Buenos Aires Notary Association, 4,293 deeds were registered in February 2025, representing a 94% increase compared to the same month last year. Mortgage loans are not far behind, as 22% of deeds in February were executed with a mortgage, a phenomenon that could continue to boost sales.
Another number that anticipates green shoots for this year is the number of searches on real estate portals. Visits recorded on the main property listing sites reached a total of 16,670,000 in December, representing a 73% increase compared to December 2023 and marking 11 consecutive months of year-over-year increases, according to figures from Daniel Bryn, a broker at Zipcode and Monitor Inmobiliario. The sector remains optimistic and expects 2025 to surpass 2024, which was already a great year.
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