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What are the expectations of the real estate market - Infobae
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www.infobae.com
November 27, 2023
Specialists highlight the positive response of the sector after the libertarian victory. What is expected in the short term and why a large-scale return to mortgage credit for access to housing is crucial
By José Luis Cieri
The real estate market welcomed Javier Milei's electoral victory and there is optimism for what is to come.
Just as bonds and stocks had a first positive reaction, the real estate market welcomed the electoral victory of Javier Milei in last Sunday's runoff. The scenario was going at a good pace in the week before the election and the best stage of purchase and sale operations is also going through, which always occurs in the last quarter of each calendar.
Attention is focused on his assumption after December 10 and on the measures that can have a positive impact on the brick sector. Fabián Achával , of Fabián Achával Propiedades, pointed out that this aspect was the most difficult to imagine in practice, especially due to the wide range of important economic measures that Milei announced, but without clarity about the implementation times and, above all, how carry them forward. “In the very short term, her victory will generate a first challenge, which is the transition until December. Given that Milei insisted on dollarization and that the Central Bank has no reserves, we expect greater exchange turbulence,” he said.
The positive performance of Argentine financial assets on the New York Stock Exchange gradually, but surely, anticipates a rebound in national physical assets, especially in properties and real estate activity, which has experienced a constant decline over the last 5 years.
“Now, we can affirm that a new cycle has begun that will bring with it the long-awaited recovery of our industry. In the short term, it is the right time to take advantage of the opportunities that the cycle that we leave behind offers us, and while the macroeconomy readjusts, wait for a sure change of trend in the dynamics of our industry," Gustavo Ortolá Martínez from Like Properties.
The impact of the recent election result is favorable on the market. In the current macroeconomic context, the challenge is to create an attractive environment to attract investors to the sector and stimulate an economic flow beneficial to all.
Verónica Pagola , CEO of Century 21 Argentina, told Infobae that “The expectation created by the announcement of the repeal of the Rental Law during the campaign and its initial support by the elected president, Javier Milei, is favorable for several reasons. The previous regulation, in its attempt to protect the tenant, had the opposite effect, discouraging investment in rental properties and generating a shortage of supply with the consequent increase in values. By allowing the autonomy of the will to prevail in this contract, a favorable response from the market is expected with a greater supply.”
The Paseo del Bajo between Puerto Madero and neighborhoods such as San Telmo and Monserrat hope to continue consolidating with new projects and sales of homes currently under construction
“The real estate market will react positively. There is great expectation, since a process of recovery of confidence begins, focusing on the fight against inflation. This will allow many Argentines to recover savings capacity, damaged in recent years. New credit lines will facilitate access to home purchases. Progress is expected, and those who, due to uncertainty, were postponing purchase decisions, will begin to complete operations shortly,” Diego Migliorisi of Migliorisi Propiedades told Infobae.
In the last 20 years, the real estate market showed its best performance when state participation adopted a collaborationist and non-interventionist approach.
In order to analyze the impact on the economy and the real estate market, we will have to wait until we know who will take over as economy minister and what the first measures to be taken will be.
To date, used property prices between the city of Buenos Aires and Greater Buenos Aires have decreased between 35% and 45% in five years, while brand new property prices have decreased by 32% on average.
Although there is currently stability with minor adjustments since last July, a positive reversal of the economic cycle with the new government could contribute to the recovery of property values for sale
So far, the prices of used properties in Buenos Aires and Greater Buenos Aires have fallen between 35% and 45% in five years, while new ones have fallen by 32% on average.
It is premature to determine the short-term impact on the market, as this will depend on variables such as exchange rates, inflation and economic expectations.
Currently, the sector remains active with inquiries to buy in consolidated Buenos Aires neighborhoods such as Villa Urquiza, Paseo del Bajo, Villa Crespo and Palermo, among others, as well as in private neighborhoods located in different corridors such as Tigre, Pilar and Canning.
Marcelo Alexander , from RED, concluded: “In the medium term, if clear rules are established and greater stability is achieved, both should boost the number of operations in the market.”
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Source:
Tras el triunfo electoral de Milei, cuáles son las expectativas del mercado inmobiliario
Especialistas destacan la respuesta positiva del sector tras la victoria libertaria. Qué se espera a corto plazo y por qué es crucial un retorno a gran escala del crédito hipotecario para el acceso a la vivienda
www.infobae.com
November 27, 2023
After Milei's electoral victory, what are the expectations of the real estate market
Specialists highlight the positive response of the sector after the libertarian victory. What is expected in the short term and why a large-scale return to mortgage credit for access to housing is crucial
By José Luis Cieri
The real estate market welcomed Javier Milei's electoral victory and there is optimism for what is to come.
Just as bonds and stocks had a first positive reaction, the real estate market welcomed the electoral victory of Javier Milei in last Sunday's runoff. The scenario was going at a good pace in the week before the election and the best stage of purchase and sale operations is also going through, which always occurs in the last quarter of each calendar.
Attention is focused on his assumption after December 10 and on the measures that can have a positive impact on the brick sector. Fabián Achával , of Fabián Achával Propiedades, pointed out that this aspect was the most difficult to imagine in practice, especially due to the wide range of important economic measures that Milei announced, but without clarity about the implementation times and, above all, how carry them forward. “In the very short term, her victory will generate a first challenge, which is the transition until December. Given that Milei insisted on dollarization and that the Central Bank has no reserves, we expect greater exchange turbulence,” he said.
More queries
Experts point out that after the long weekend, inquiries from potential buyers increased, who seek to take advantage of the context as an opportunity. Mainly, these are end users with availability of dollarsThe positive performance of Argentine financial assets on the New York Stock Exchange gradually, but surely, anticipates a rebound in national physical assets, especially in properties and real estate activity, which has experienced a constant decline over the last 5 years.
“Now, we can affirm that a new cycle has begun that will bring with it the long-awaited recovery of our industry. In the short term, it is the right time to take advantage of the opportunities that the cycle that we leave behind offers us, and while the macroeconomy readjusts, wait for a sure change of trend in the dynamics of our industry," Gustavo Ortolá Martínez from Like Properties.
The impact of the recent election result is favorable on the market. In the current macroeconomic context, the challenge is to create an attractive environment to attract investors to the sector and stimulate an economic flow beneficial to all.
Verónica Pagola , CEO of Century 21 Argentina, told Infobae that “The expectation created by the announcement of the repeal of the Rental Law during the campaign and its initial support by the elected president, Javier Milei, is favorable for several reasons. The previous regulation, in its attempt to protect the tenant, had the opposite effect, discouraging investment in rental properties and generating a shortage of supply with the consequent increase in values. By allowing the autonomy of the will to prevail in this contract, a favorable response from the market is expected with a greater supply.”
Will credit return?
In most of the protagonists there is caution but also optimism for what is to come, and it is also expected that in 2024 and after the macroeconomic corrections, sustainable mortgage loans tied to the Salary Variation Coefficient can be generated, not due to inflation like UVA.
The Paseo del Bajo between Puerto Madero and neighborhoods such as San Telmo and Monserrat hope to continue consolidating with new projects and sales of homes currently under construction
“The real estate market will react positively. There is great expectation, since a process of recovery of confidence begins, focusing on the fight against inflation. This will allow many Argentines to recover savings capacity, damaged in recent years. New credit lines will facilitate access to home purchases. Progress is expected, and those who, due to uncertainty, were postponing purchase decisions, will begin to complete operations shortly,” Diego Migliorisi of Migliorisi Propiedades told Infobae.
In the last 20 years, the real estate market showed its best performance when state participation adopted a collaborationist and non-interventionist approach.
Francisco Altgelt , of Altgelt Negocios Inmobiliarios, told Infobae that “the perspective of a new collaborationist presidency is well received by the market. Regarding the movement of the operations prior to the runoff, it does not seem that they are in danger, since the rules of the game are maintained.”
Prices
The reaction of international markets suggests that all assets should rise, including property prices.In order to analyze the impact on the economy and the real estate market, we will have to wait until we know who will take over as economy minister and what the first measures to be taken will be.
To date, used property prices between the city of Buenos Aires and Greater Buenos Aires have decreased between 35% and 45% in five years, while brand new property prices have decreased by 32% on average.
Although there is currently stability with minor adjustments since last July, a positive reversal of the economic cycle with the new government could contribute to the recovery of property values for sale
So far, the prices of used properties in Buenos Aires and Greater Buenos Aires have fallen between 35% and 45% in five years, while new ones have fallen by 32% on average.
Where
Periods of uncertainty are never favorable for the real estate market. The conclusion of the prolonged pre-election stage should gradually lead to an adaptation and increase in activity.It is premature to determine the short-term impact on the market, as this will depend on variables such as exchange rates, inflation and economic expectations.
Currently, the sector remains active with inquiries to buy in consolidated Buenos Aires neighborhoods such as Villa Urquiza, Paseo del Bajo, Villa Crespo and Palermo, among others, as well as in private neighborhoods located in different corridors such as Tigre, Pilar and Canning.
Marcelo Alexander , from RED, concluded: “In the medium term, if clear rules are established and greater stability is achieved, both should boost the number of operations in the market.”
www.buysellba.com
