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With expectations for the expansion of mortgage credit, the real estate market expects to grow in 2025 - Infobae
Source:
www.infobae.com
January 15, 2025
After having shown a clear rebound in 2024, businessmen in the sector expect a year with recovery in sales transactions and a greater supply of properties
By Jose Luis Cieri
The Argentine real estate market experienced a significant rebound in 2024 , driven mainly by the return of mortgage loans and the development of economic incentives such as money laundering . However, this growth faces challenges.
According to figures shared by Zonaprop, the demand for loans among real estate agencies grew throughout the year due to the growing supply of loans and the money laundering that brought new properties to the market. The portal reported that “ 78% of those surveyed noticed an increase in inquiries for credit-appropriate transactions,” which highlights the strong impact of financing on the activity.
Credits reached their highest monthly disbursement in six years during December, with USD 240 million . And at the same time, price behavior also registered a transformation. According to Zonaprop, the value per square meter in CABA stopped falling at the end of 2023, and reversed a downward trend from previous years. By 2024 , sales prices increased by 6.8%, and placed the average cost per square meter at USD 2,325 in the city.
This data generated a greater movement in the high purchasing power segments that favor properties in high-value neighborhoods. Ignacio Mel , director of Mel Inmobiliario, commented: “Generally, the ABC1 segments , which look for neighborhoods with high value per m2, are the ones that have the most possibilities of paying this type of credit.”
The preference for small and medium-sized properties was also evident. Mel pointed out that smaller units are usually sought as first homes, where the buyer uses a large proportion of the mortgage loan to finance the purchase. “In the case of larger properties, the loans are used to cover what is missing, but do not exceed 80% of the value of the property, which is the maximum allowed by current credit lines.”
Property searches vary depending on the needs of buyers. Young people looking for their first home tend to focus on price ranges between $40,000 and $60,000. Couples with children prefer two-bedroom properties, with prices ranging from $100,000 to $120,000.
One - and two-bedroom apartments are among the most in-demand for purchase with a mortgage loan
Vanesa Ibarra , from Salguero Properties, highlighted that the market is showing signs of stabilization. “It was not a boom, but there was an improvement compared to previous years. Today, between 25% and 30% of sales inquiries come from buyers with a mortgage loan,” she said.
The characteristics of the properties sought do not depend so much on having a mortgage, but on the budget limited by the amount available. Buyers adjust their needs and expectations based on this factor.
“Location is key in purchasing decisions. Ibarra says that the most sought-after areas in CABA are the central areas of most neighborhoods, with good mobility and access that facilitate the daily life of buyers,” Ibarra added.
55 % expect growth in sales transactions along with an increase in the supply of properties. However, 59% insist that additional state measures are needed to sustain this recovery. They propose strengthening financial tools and promoting access to more affordable housing to expand the possibilities of the less favored sectors.
On the other hand, the possibility that banks will maintain their restrictive criteria for granting loans creates uncertainty. This could increasingly exclude lower-income sectors, since currently “the initial installment must represent between 25% and 30% of the debtor's income , which leaves out a large number of workers.”
In the case of a property worth USD 80,000, a loan of $70.4 million is granted. The initial savings required are USD 16,000 plus additional expenses , the value of the first installment is almost $500,000 and a minimum income of 2 million pesos is required.
www.buysellba.com
Source:
Con expectativas por la expansión del crédito hipotecario, el mercado inmobiliario espera crecer en 2025
Tras haber mostrado un claro repunte en 2024, los empresarios del sector esperan un año con recuperación en las transacciones de compraventa y una mayor oferta de propiedades
www.infobae.com
January 15, 2025
After having shown a clear rebound in 2024, businessmen in the sector expect a year with recovery in sales transactions and a greater supply of properties
By Jose Luis Cieri
The Argentine real estate market experienced a significant rebound in 2024 , driven mainly by the return of mortgage loans and the development of economic incentives such as money laundering . However, this growth faces challenges.
According to figures shared by Zonaprop, the demand for loans among real estate agencies grew throughout the year due to the growing supply of loans and the money laundering that brought new properties to the market. The portal reported that “ 78% of those surveyed noticed an increase in inquiries for credit-appropriate transactions,” which highlights the strong impact of financing on the activity.
Credits reached their highest monthly disbursement in six years during December, with USD 240 million . And at the same time, price behavior also registered a transformation. According to Zonaprop, the value per square meter in CABA stopped falling at the end of 2023, and reversed a downward trend from previous years. By 2024 , sales prices increased by 6.8%, and placed the average cost per square meter at USD 2,325 in the city.
This data generated a greater movement in the high purchasing power segments that favor properties in high-value neighborhoods. Ignacio Mel , director of Mel Inmobiliario, commented: “Generally, the ABC1 segments , which look for neighborhoods with high value per m2, are the ones that have the most possibilities of paying this type of credit.”
The preference for small and medium-sized properties was also evident. Mel pointed out that smaller units are usually sought as first homes, where the buyer uses a large proportion of the mortgage loan to finance the purchase. “In the case of larger properties, the loans are used to cover what is missing, but do not exceed 80% of the value of the property, which is the maximum allowed by current credit lines.”
Property searches vary depending on the needs of buyers. Young people looking for their first home tend to focus on price ranges between $40,000 and $60,000. Couples with children prefer two-bedroom properties, with prices ranging from $100,000 to $120,000.
One - and two-bedroom apartments are among the most in-demand for purchase with a mortgage loan
Vanesa Ibarra , from Salguero Properties, highlighted that the market is showing signs of stabilization. “It was not a boom, but there was an improvement compared to previous years. Today, between 25% and 30% of sales inquiries come from buyers with a mortgage loan,” she said.
The characteristics of the properties sought do not depend so much on having a mortgage, but on the budget limited by the amount available. Buyers adjust their needs and expectations based on this factor.
“Location is key in purchasing decisions. Ibarra says that the most sought-after areas in CABA are the central areas of most neighborhoods, with good mobility and access that facilitate the daily life of buyers,” Ibarra added.
Projections and challenges for 2025
Despite the adjustments in rates and conditions, Zonaprop respondents' projections for 2025 are optimistic.55 % expect growth in sales transactions along with an increase in the supply of properties. However, 59% insist that additional state measures are needed to sustain this recovery. They propose strengthening financial tools and promoting access to more affordable housing to expand the possibilities of the less favored sectors.
On the other hand, the possibility that banks will maintain their restrictive criteria for granting loans creates uncertainty. This could increasingly exclude lower-income sectors, since currently “the initial installment must represent between 25% and 30% of the debtor's income , which leaves out a large number of workers.”
In the case of a property worth USD 80,000, a loan of $70.4 million is granted. The initial savings required are USD 16,000 plus additional expenses , the value of the first installment is almost $500,000 and a minimum income of 2 million pesos is required.
www.buysellba.com
