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Zonaprop's top official predicts how the end of the restrictions will impact properties - La Nacion Propiedades
Source:
April 16, 2025
The decision to end the exchange rate controls once again changes the rules in a sector that is recovering.
By Leandro Molina
The recent lifting of the currency controls changes the rules of the game in the real estate market.Ricardo Pristupluk
The recent decision to lift the exchange rate controls marks a turning point for the Argentine economy. After years of restrictions that limited access to the dollar and distorted investment, this new scenario raises questions and well-founded expectations . How will this measure impact the real estate market ? What does the future hold for those looking to build, invest, or purchase a home?
First, the end of the currency controls implies a unification of the exchange rate . Although the initial devaluation may be pronounced , it gains predictability. With a single exchange rate reference, real estate transactions can be valued more transparently , which rekindles confidence between buyers and developers.
In the new property segment , the impact will be significant . The lifting of the currency controls will increase construction costs in dollars , as many inputs and services were pegged to an artificially low dollar. This will translate into higher prices for new units. However, greater cost clarity and exchange rate normalization will allow developers to plan projects more solidly in the medium and long term.
The resurgence of mortgage lending , particularly through instruments such as UVAs, adds to this openness. With greater supply and the possibility of legally accessing foreign currency , it is feasible to boost both demand and investment in loans. However, it is imperative that these lines of financing evolve toward more balanced systems , capable of mitigating the risks inherent in persistent inflation and the mismatch between wages and real estate values.
According to the specialist: "In the new property segment, the impact will be significant."Shutterstock
As for the used property market, a selective recovery is forecast . Well-located properties with impeccable documentation and prices in line with the market will once again be in high demand. On the other hand, those with overvaluation or less prime locations could face a prolonged adjustment.
The big unknown remains real wages . Even in an environment of greater confidence and access to credit, wage increases are unlikely to keep pace with rising property values , deepening market segmentation. Indeed, while formal buyers with savings capacity will be able to take advantage of emerging opportunities, a significant segment will be left behind without public policies that facilitate their access.
We are, without a doubt, on the threshold of a new cycle in which bricks and mortar —historically a safe haven and a benchmark of confidence—regains its central role in the national economy. The key will be to accompany this change with clear rules, smart incentives, and a long-term vision, aware that without restoring confidence, investment and development are jeopardized.
www.buysellba.com
Source:
April 16, 2025
The decision to end the exchange rate controls once again changes the rules in a sector that is recovering.
By Leandro Molina
The recent lifting of the currency controls changes the rules of the game in the real estate market.Ricardo Pristupluk
The recent decision to lift the exchange rate controls marks a turning point for the Argentine economy. After years of restrictions that limited access to the dollar and distorted investment, this new scenario raises questions and well-founded expectations . How will this measure impact the real estate market ? What does the future hold for those looking to build, invest, or purchase a home?
First, the end of the currency controls implies a unification of the exchange rate . Although the initial devaluation may be pronounced , it gains predictability. With a single exchange rate reference, real estate transactions can be valued more transparently , which rekindles confidence between buyers and developers.
In the new property segment , the impact will be significant . The lifting of the currency controls will increase construction costs in dollars , as many inputs and services were pegged to an artificially low dollar. This will translate into higher prices for new units. However, greater cost clarity and exchange rate normalization will allow developers to plan projects more solidly in the medium and long term.
The resurgence of mortgage lending , particularly through instruments such as UVAs, adds to this openness. With greater supply and the possibility of legally accessing foreign currency , it is feasible to boost both demand and investment in loans. However, it is imperative that these lines of financing evolve toward more balanced systems , capable of mitigating the risks inherent in persistent inflation and the mismatch between wages and real estate values.
According to the specialist: "In the new property segment, the impact will be significant."Shutterstock
As for the used property market, a selective recovery is forecast . Well-located properties with impeccable documentation and prices in line with the market will once again be in high demand. On the other hand, those with overvaluation or less prime locations could face a prolonged adjustment.
The big unknown remains real wages . Even in an environment of greater confidence and access to credit, wage increases are unlikely to keep pace with rising property values , deepening market segmentation. Indeed, while formal buyers with savings capacity will be able to take advantage of emerging opportunities, a significant segment will be left behind without public policies that facilitate their access.
We are, without a doubt, on the threshold of a new cycle in which bricks and mortar —historically a safe haven and a benchmark of confidence—regains its central role in the national economy. The key will be to accompany this change with clear rules, smart incentives, and a long-term vision, aware that without restoring confidence, investment and development are jeopardized.
www.buysellba.com
