Developers request mortgage loans to finance well projects

98% of CABA neighborhoods register price increases. Regarding the typology, the well departments are the ones that registered the greatest increases.

It should be noted that the construction cost measured in dollars, it rose 42.1% in 2024, a factor that drives the increase in the prices of well units. Given the drop in sales of these ventures, developers are asking banks to grant loans to finance projects.

So far, only the mortgage loans for final buyers of used properties. Although divisible mortgages were also recently announced, which are expected to give a strong boost to the sector.

Expedite work permits and credits for developments, keys to the sector

In an event held yesterday at the Stock Exchange, the Argentine Chamber of Urban Developers (CEDU) and the Association of Housing Entrepreneurs (AEV), announced the merger of the two entities that represent the sector. The main objective is to consolidate itself as the only representative entity of the sector before the government and other organizations and to be able to obtain, among other things, better financial instruments for the purchase of properties in well

“We see the need to set up a joint work table with the Housing Secretariat and the banks so that the new tools are implemented as quickly as possible to have demand financing in place,” said Carlos Spina, president of the Business Association. of Housing (AEV).

“Among the main topics of our work agenda are initiatives to optimize the construction costs and streamline processes related to permitting. Moving forward in obtaining permits to start construction, subdivide them and guarantee that each unit is deedable, as well as to develop urbanizations, represents a challenge that we are addressing with commitment and seeking practical solutions that benefit the sector and the community. On this we work with the different governments in each of the jurisdictions,” highlighted Damian Tabakman, president of CEDU.

Government officials were present at the meeting, such as the Minister of Economy Luis Toto Caputo and Rodrigo Aybar, Secretary of Territorial Development and Habitat of the Nation. Among other topics, Aybar spoke about securitization and post-securitization. “There are encouraging signs and the potential for growth is infinite,” he said. Securitization is a financial process, which does not yet exist in Argentina, through which an entity (such as a bank or a company) groups financial assets, such as loans, mortgages, or accounts receivable, and converts them into negotiable securities that They can be sold to investors.

Divisible mortgages

The Central Bank recently carried out the regularization of divisible mortgages for projects under development, which excites the sector. “The announcement of divisible mortgages raised great expectations in the sector and in society, marking significant progress in access to housing. The representatives of the banks present at the event highlighted that the measures are moving in the right direction and that the results will occur gradually. The process is underway and with prospects for constant evolution,” said Damián Tabakman, president of CEDU.

“Therefore, our responsibility is to help accelerate this process as much as possible. It is essential to give visibility to witness cases and continue generating concrete milestones that encourage banks to participate with greater confidence,” added Carlos Spina, president of AEV.