Although many properties previously intended for rental were put up for sale as a result of the low profitability, the purchase of properties did not pick up either.
The total amount of deeds of sale of real estate increased by 7% in April compared to the same month of 2022, but fell by 4.3% compared to March, when in general between these two months increases are seen, according to data from the College of Notaries of the City of Buenos Aires.
If you look at the first four months of the year, you see an increase in operations of 17% compared to the same period of 2022: they went from 7,870 to 9,210 writes. In 2018, the last year with a mortgage loan, more than 20,000 properties were surveyed in the first quarter.
In April, 2,750 deeds were completed, for a total amount of $62,687 million, which represents an increase of 49.6% compared to 2022.
The average amount of the deeds was $22,795,552 ($101,938 according to the official mean exchange rate). Although it grew by 39.6% in one year in pesos, it decreased by 25.9% measured in US currency. This decline explains the drop in values experienced by the real estate market in recent months,
In March, 121 deeds were formalized with mortgages. Therefore, the increase in this sense was 5.2% compared to the same month last year. In the quarter, the decline was 13% (381 in total).
Jorge De Bártolo, president of the College of Notaries of Buenos Aires, declared: “We are in a context of sales in which -by removing the months of November and December- there are no indications that the 3,000 operations have been exceeded per month. In fact, in April there was a slight growth of 7%, but it decreased by 4% in the intra-month variation, when in the other years It was normal for another dynamic to take off at the end of the quarter.”
And I add: “However, if we take the decade, in just 3 years there were more than 3,000 operations and in many of them there was exchange control. When it took off it was because there was credit, but those mortgages are now battling inflation. We hope that living will once again become a fundamental axis in the years to come”.
Charles Arterburn is a seasoned business journalist for News Rebeat, where he provides comprehensive coverage of the latest trends and developments in the world of finance and economics.