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What are the “forgotten” areas that could be revitalized with the reactivation of mortgage credit? - La Nacion Propiedades
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Cuáles son las zonas “olvidadas” en la que hay que comprar una propiedad porque podrían resurgir con el crédito
El auge de los créditos hipotecarios podría ser la clave para revitalizar barrios “olvidados” por el mercado inmobiliario y darles una nueva vida
www.lanacion.com.ar
August 1st, 2024
The boom in mortgage loans could be the key to revitalizing neighborhoods “forgotten” by the real estate market and giving them a new life
Real estate market analysts hope that the return of mortgage lending in Argentina could revive the market in neighborhoods with less supply and demand
For sale signs rust on properties waiting to be sold , mainly in neighborhoods of the city of Buenos Aires that seem forgotten by the real estate market. People who are willing to live there but do not have the dollars under the mattress to be able to access their housing. Areas such as Caballito, Belgrano, Recoleta, Palermo and Villa Urquiza concentrate the highest searches to buy a property, while in neighborhoods such as La Boca, Nueva Pompeya, Villa Soldati or Villa Riachuelo , the demand is practically zero, according to a report by Mercado Libre.
This is the scenario that market analysts expect the return of mortgage credit in Argentina to revitalize , mainly in areas that are not so in demand and that offer properties at ridiculously low prices compared to the market . For example, in Lugano, the square meter averages US$989, in Nueva Pompeya US$1382/m² and in Villa Riachuelo US$1433/m²; and tickets that defend average values from US$49,450, US$69,100 and US$71,650, respectively. These numbers allow a person with US$20,000 saved to access a loan to buy a two-room apartment in one of these three neighborhoods.
In this way, mortgage credit appears as a viable option for those who want to avoid renting . “As a housing policy, it is something fundamental and elementary, but also as a development and social inclusion policy,” said José Rozados, director of Reporte Inmobiliario, within the framework of the seminar on loans held by the College of Notaries of the city of Buenos Aires. If a person cannot pay for a property in cash, but can qualify to pay a loan installment, “he will be able to buy it ,” he added.
Currently, 21 banks have announced their UVA mortgage credit lines , with annual rates ranging from 3% to 9.5% . The amounts to be lent reach up to $250 million, although in some cases there is no limit. In general, these credits finance between 75% and 80% of the value of the property, with a single entity, the Bank of Córdoba (Bancor), which lends 100% with a limit of $90 million. The financing terms vary between five and 30 years and the installments , being UVA loans, are adjusted for inflation . In addition, the installment committed by the borrower must represent between 20% and 30% of monthly income.
There are already 20 banks that have announced their mortgage credit lines
"Since the first mortgage loan announcement was made , there was a huge expectation within the market and among those interested in being able to access housing," said Rozados.
For his part, his colleague Germán Gómez Picasso, founder of Reporte Inmobiliario, added that “the supply of apartments for sale has fallen at a rate of 25% annually, approaching average levels. Very little goes to rent; most is sold or withdrawn from sale. Today, there is more demand and owners prefer not to sell at current prices , since they see a clear rebound in prices and the arrival of credits generates a lot of expectation.”
Neighborhoods that could be developed by mortgage loans
Therefore, the current state of mortgage credit could lead to an increase in the sale prices of finished units, impacting the value of land and generating interest in developing areas that are currently marginal but with an attractive final value for loan takers .Another effect of the record-breaking launch of the loans is that: “In the last two months, a loan was requested every three days,” said the economist specializing in housing, Federico González Rouco, at the Real Estate event organized by LA NACION . Therefore, developers will begin to focus on areas that they had not considered until now, because the validity of the credit could generate interest in developing marginal areas with an attractive fiscal value for loan takers. “We believe that there will be greater flexibility in areas with lower values, where there is little market mobility,” adds Rozados, adding that “mortgage credit creates a market in areas where there is none today.”
The return of mortgage loans could generate interest in developing marginal areas
In this sense, the average value of the land in the city of Buenos Aires where the projects are being built has stabilized, with an average price of US$450/m². The data collected by Adrián Mercado also reflect that the consecutive decline of the last few years has stopped and has reached values similar to those of 2012. This is due to expectations of an increase in the value of finished m² in the medium term , due to the increase in the cost of construction in dollars (so far this year, the value of m² has increased by 16%) and the appearance of mortgage credit .
For example, the neighborhoods with the lowest prices per square meter of buildable land on the market , according to the latest report by Adrián Mercado, are: Villa Riachuelo (US$125/m²), Villa Soldati (US$125/m²), La Boca (US$140/m²), Villa Lugano (US$145/m²) and Floresta (US$145/m²). However, the supply is also very limited : Villa Riachuelo has four plots available; Villa Soldati, 11; La Boca, 48; and Villa Lugano, 46; while in Floresta there are no plots available.
On the other hand, the most expensive areas are : Puerto Madero (US$128/m²) with four building plots; Recoleta (US$820/m²) with 70 plots available; Belgrano (US$700/m²) and 275 plots in stock; Palermo (US$650/m²) and 379 building plots; and Colegiales (US$600/m²) with 91 plots available.
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