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Why apartment prices in the City of Buenos Aires have risen steadily over the last 10 months - Infobae
Source:
January 01, 2025
The boost in mortgage loans, money laundering and the stability of the dollar reversed the downward trend that prevailed until 2023. What will happen in 2025?
By Jose Luis Cieri
The purchase and sale prices of homes continue to rise in CABA (Illustrative Image Infobae)
The real estate market in the city of Buenos Aires is undergoing a period of considerable transformation, marked by ten consecutive months of increases in apartment listing prices .
A private report confirmed that property purchase and sale values increased between 6.9% and 9.6%, according to different specialized platforms, which shows a complete reversal of the downward trend registered until the end of 2023.
According to the analysis by Radar Inmobiliario , prepared by Fabián Achával Propiedades, this pattern responds to a combination of factors that include exchange rate stability and the reactivation of demand driven by recent economic policies such as the reintroduction of mortgage loans and money laundering ( more than 42,000 properties have already been declared ).
Fabián Achával projected to Infobae that if macroeconomic stability is maintained, the real estate outlook in 2025 will be very positive. “Regarding the evolution of prices, there are two factors that will have a significant impact: the increase in demand and the cost of construction. Therefore, we expect a more generalized increase in prices, no less than 10% on average,” he said.
This growth follows a prolonged period of 55 consecutive months of declines, marking a significant trend change. Closing prices also showed an upward trend, especially for properties with ticket prices of up to USD 100,000, while transaction percentages converged to levels similar to those of the first quarter of 2019.
Source: Real Estate Radar
“In this context, the segment of projects in the pit stands out as one of the most dynamic, driven by the increase in construction costs ( more than 145% year-on-year ) and the appreciation of the dollar,” said Achával.
Compared to October 2024, monthly values also showed increases:
Average dollar values by segment:
However, in year-on-year terms, supply still shows a downward trend, with a decrease of 10.4% in Zonaprop and 12.7% in Argenprop.
This adjustment in supply significantly reduced the absorption time of available properties, which in October 2024 stood at 1.7 years.
Achával added: “While this figure represents an improvement compared to recent periods, it is still far from the levels reached during the UVA credit boom, when the total stock was sold in less than a year.”
These conditions encouraged both local buyers and foreign investors, especially in the segment of projects in progress, which registered a year-on-year increase of 17.2% in listing prices in November.
Money laundering was particularly relevant in channelling funds into residential and commercial developments, encouraging investment in the sector. According to the report, this measure contributed to accelerating purchasing decisions, as current prices are perceived as an opportunity compared to projections of future increases.
Another aspect highlighted in the report is the process of revaluation of properties . In November 2024, 23% of the available real estate advertisements experienced a change in their values, with an average reduction of 6.3%.
While this figure represents a slight increase from previous months, the report notes that price disclosure is still erratic, with new listings entering the market at lower prices than existing stock.
According to Achával, the increase in demand and the rise in construction costs will be the main drivers of a general rise in prices. “In addition, the possibility of improving salaries in dollars and easing exchange controls would further strengthen the sector, facilitate access to mortgage loans and increase the volume of operations, which by November had increased by 30% according to the College of Notaries of Buenos Aires, which monitors this through the deeds report,” he said.
In this context, the used residential property segment is emerging as the most dynamic, given that its prices are still lagging behind the increase in construction costs.
"The potential of divisible mortgages, which would allow for the financing of well-developed projects and would bring greater dynamism to the market," Achával concluded.
www.buysellba.com
Source:
January 01, 2025
The boost in mortgage loans, money laundering and the stability of the dollar reversed the downward trend that prevailed until 2023. What will happen in 2025?
By Jose Luis Cieri
The purchase and sale prices of homes continue to rise in CABA (Illustrative Image Infobae)
The real estate market in the city of Buenos Aires is undergoing a period of considerable transformation, marked by ten consecutive months of increases in apartment listing prices .
A private report confirmed that property purchase and sale values increased between 6.9% and 9.6%, according to different specialized platforms, which shows a complete reversal of the downward trend registered until the end of 2023.
According to the analysis by Radar Inmobiliario , prepared by Fabián Achával Propiedades, this pattern responds to a combination of factors that include exchange rate stability and the reactivation of demand driven by recent economic policies such as the reintroduction of mortgage loans and money laundering ( more than 42,000 properties have already been declared ).
Fabián Achával projected to Infobae that if macroeconomic stability is maintained, the real estate outlook in 2025 will be very positive. “Regarding the evolution of prices, there are two factors that will have a significant impact: the increase in demand and the cost of construction. Therefore, we expect a more generalized increase in prices, no less than 10% on average,” he said.
Dynamic
According to Radar Inmobiliario, listing prices on platforms such as Zonaprop and MercadoLibre registered year-on-year increases of 6.9% and 9.6%, respectively, in November 2024.This growth follows a prolonged period of 55 consecutive months of declines, marking a significant trend change. Closing prices also showed an upward trend, especially for properties with ticket prices of up to USD 100,000, while transaction percentages converged to levels similar to those of the first quarter of 2019.
Source: Real Estate Radar
“In this context, the segment of projects in the pit stands out as one of the most dynamic, driven by the increase in construction costs ( more than 145% year-on-year ) and the appreciation of the dollar,” said Achával.
Values
According to the evolution of listing prices in dollars per square meter in November 2024, significant variations were observed according to the property segment:- Properties in the works: Led the increase with a year-on-year rise of 17.2%, consolidating itself as the fastest growing segment.
- Brand new properties: They showed an increase of 11.5% year-on-year.
- Used properties: They had a more moderate increase of 5.3%, placing them below the general average in CABA.
Compared to October 2024, monthly values also showed increases:
- Properties in the pipeline and already under construction registered increases of 1.1% and 0.1%, respectively.
- Used apartments had a positive variation of 0.1%.
Average dollar values by segment:
- Brand new: USD 2,772 per m2.
- In well: USD 2,749 per m2.
- Used: USD 2,142 per m2.
- General average (INDEX CABA): USD 2,321 per m2.
Slight increase in supply
The report noted that, after a sharp decline in the number of properties offered for sale, the market registered slight growth in the last four months. As of November, there were approximately 71,000 units available in all Buenos Aires neighborhoods.However, in year-on-year terms, supply still shows a downward trend, with a decrease of 10.4% in Zonaprop and 12.7% in Argenprop.
This adjustment in supply significantly reduced the absorption time of available properties, which in October 2024 stood at 1.7 years.
Achával added: “While this figure represents an improvement compared to recent periods, it is still far from the levels reached during the UVA credit boom, when the total stock was sold in less than a year.”
Factors driving demand and prices
The report attributes the strong market dynamics in 2024 to several key factors. These include historically low real-term prices per square metre, access to mortgage loans, the money laundering regime approved in early 2024 and exchange rate stability.
These conditions encouraged both local buyers and foreign investors, especially in the segment of projects in progress, which registered a year-on-year increase of 17.2% in listing prices in November.
Money laundering was particularly relevant in channelling funds into residential and commercial developments, encouraging investment in the sector. According to the report, this measure contributed to accelerating purchasing decisions, as current prices are perceived as an opportunity compared to projections of future increases.
Another aspect highlighted in the report is the process of revaluation of properties . In November 2024, 23% of the available real estate advertisements experienced a change in their values, with an average reduction of 6.3%.
While this figure represents a slight increase from previous months, the report notes that price disclosure is still erratic, with new listings entering the market at lower prices than existing stock.
Outlook for 2025
Looking ahead to 2025, the outlook is optimistic, provided economic stability is maintained.According to Achával, the increase in demand and the rise in construction costs will be the main drivers of a general rise in prices. “In addition, the possibility of improving salaries in dollars and easing exchange controls would further strengthen the sector, facilitate access to mortgage loans and increase the volume of operations, which by November had increased by 30% according to the College of Notaries of Buenos Aires, which monitors this through the deeds report,” he said.
In this context, the used residential property segment is emerging as the most dynamic, given that its prices are still lagging behind the increase in construction costs.
"The potential of divisible mortgages, which would allow for the financing of well-developed projects and would bring greater dynamism to the market," Achával concluded.
www.buysellba.com
