Slowly, the real estate market manages to sustain its recovery. Last month, in the city of Buenos Aires the number of writings increased by over 30% done compared to what we saw a year ago. The appearance of mortgage credit in banks serves as a driving force: the 13% of the operations carried out in the Municipality had a bank loan behind them. In the sector, the recovery is expected to consolidate with further loans and deeds in the last quarter of 2024.
As reported by the City Notary Association, 5,157 properties were registered in September, which means an increase of 30.4% compared to the same month in 2023. In total, transactions worth $484,692 million were carried out, which represents an increase of 232.7%, in line with the inflation accumulated over the last year.
The data from the professional chamber shows that, measured in dollars, the prices at which the properties were sold fell by 6.1% while in pesos it increased by 155%. On average, property values were approximately $94,278.
Furthermore, official data shows an incipient recovery in bank credit taking advantage of the improvement in sales in Buenos Aires. 13% of the deeds carried out were formalized with a mortgage. As the organization specifies, this implies an increase of 317.2% compared to what was observed in 2023. This year there have already been registered in the City 1,970 mortgages, or a cumulative increase of 74.3%
Credit and money laundering lead the recovery
Jorge Bartolo, president of the Association of Notaries of Buenos Aires, said: “It is a month that reflects the year-on-year increase: 30% compared to September 2023 and 30% in the 9 consolidated months compared to last year. Despite a slight decline on an annual basis, we have once again exceeded 5 thousand cases and we are confident that the last quarter will add more activity thanks to recycling operations and a greater number of mortgages”
“Mortgage credit is growing month over month and if we measure it compared to four months ago there is a 500 percent jump. The encouraging data is that there are 700 mortgages and we believe that this number must increase significantly: this would trigger new sales”, said Bartolo.
Since the beginning of the year, even starting from very low levels, the stock of mortgage loans in banks has grown by 80%. Last Thursday, according to the latest available data from the Central Bank, real estate loans amounted to $1,086,184 billion.
There are already more than that 20 banks have come to offer financing this year to access a first or second property. The entities agree that interest is very high, but that transactions still take time to complete.
Overall, a major foreign capital entity has reported nearly 343 deals since mid-June. “About 60 requests arrive daily, demand that has stabilized and remained in recent months,” they specified in the entity, adding: “There is a growing demand that is not yet reflected in the completion of operations due to the market situation which has not yet materialized. energized.
They have already placed in another of the country’s main banks 110 loans but there are more than 1,000 cases under analysis. A third top body said that since mid-September the number of transactions carried out has increased by 27% and that 139 mortgages have already been granted since the launch of the new line.
Source: Clarin
