In the context of strong economic volatility which is added to the readjustment that the real estate market is undergoing after the abolition of the Rental Law, many are wondering What will be the evolution of sales and which niches will present the best opportunities? for investors.
The real estate market has just gone through seven years of crisis. Last year, with the help of a drop in prices, There is an incipient recovery in buying and selling operations: in the city of Buenos Aires, for example, 20.1% more properties compared to 2022. However, that total was practically half compared to the 7,862 documents signed in 2017.
In any case, according to Mariano Garcia Malbrán, president of the Chamber of Real Estate Services Companies (CAMESI), “the real estate sector in Argentina continues to be seen as a safe investment to protect capital from devaluation, given the economic volatility”. “This could keep demand for properties at levels similar to those of the final months of 2023, especially in segments considered value havens, such as properties in premium locations or developments offering unique features“, He says.
High interest rates and credit constraints may continue to exist a barrier to purchasing homes, especially for first-time homebuyers, he adds. Innovation in financing solutions, such as real estate crowdfunding or direct financing arrangements between developers and buyers or with private mortgage lenders, could be key to energizing the sector,” she points out.
The role of rent deregulation
The recent repeal of the rent law has generated an improvement in the supply of rental properties accompanied by a tepid downward trend in prices. In February, rents in current pesos decreased by 2.3% compared to January and by 0.6% for homes in the AMBA, according to surveys by the University of San Andrés and the Mercado Libre.
Therefore, second Garcia Malbran, “buy at rock-bottom prices and have a rental yield in dollars nothing insignificant, for the determined investor a significant profit can be generated. Plus, “there is future appreciation of the property,” he said she said.
For Hugo Koifman, CEO of developer Branson, Buying a property in the well “continues to be a great deal”. And remember that real estate experts have their investments diversified in different areas.
Its promoter sells properties “at a good rate” in highly sought-after areas such as Bajo Belgrano or Cañitas in the city of Buenos Aires. “This tells us that this is the expectation of these buyers In the short term they perceive that they will be able to rent or resell these finished properties at much higher than nominal values.that is, they will have capital that will have significantly increased in a few months.”
According to Leonardo Rodriguez Nader, CEO of the real estate company CMNV-Comunidad de Inversión, “although in the short term there may be some fluctuations, there is no doubt that in the medium and long term all real estate assets will increase in dollars”, He says.
“Decidedly, The opportunity today is unique considering that prices in dollars, at historical values, are low. and the replacement cost — a product of peso inflation and dollar decline — has become significantly more expensive. Furthermore, Buenos Aires has always been in the ranking of the most expensive cities and today, according to current average values, it is only in fifth or sixth place”, he explains.
For his part, Ariel Venneri, specialist in economics and corporate finance, and founding partner of the MAHE Desarrollos Inmobiliarios group, agrees that “anyone trying to save, whether in dollars or pesos, is currently facing an unprecedented situation, because not has investment options that, at least, provide protection against loss of value. He says.
Faced with this context, the real estate market offers alternatives. In addition to low property prices, the values of under-construction and new homes have begun to show a recovery since the middle of last year, marking a great profitability opportunity for investors and buyers who have the savings margin to face the purchase given the total lack of valid credit, the specialist said.
Source: Clarin
