1. Property prices are down enough
According to the Real Estate Radar report, the published values of real estate in February showed a year-on-year drop of 12.5%. Meanwhile, at the aggregate level, the accumulated drop from the maximums observed in February 2019 was 34%. Nevertheless, not all neighborhoods show the same slowdown prices and the pattern of decline varies by quarter. In this way, Villa Crespo leads the price drop ranking in the last two years accumulating a drop of 42%. The price per m² in this neighborhood is US$1,410. follow him St nicolaswhich had a decrease in values of 39% -with a price of US$ 1,365 m² – and San Telmowhich slowed down the values by 38.5% since 2019 (US$ 1,285 m²).
2. The stability of the dollar cuts speculation
The drop in the blue dollar after the agreement with the International Monetary Fund and after weeks without significant increases, leaves aside all kinds of speculation. As long as the dollar is stabilized, those who have dollars “under the mattress” will choose to protect their money in a good in the midst of a complex economic context.
3. The Rental Law can change the trend
This Tuesday will begin the debate in committee of the Chamber of Deputies on the project that seeks to modify the Rental Law approved in 2020. The commission, headed by Cecilia Moreau, will consist of a round of specialists and must reach an opinion before the end of the month.
According to the agreed schedule, this Tuesday will be the first of the three meetings which were initially established to listen to associations of tenants, owners and real estate.
Next week there will be face-to-face meetings on Tuesday 19 and Wednesday 20; and it would conclude with the internal debate between the deputies, which would take place on Tuesday 26 and Wednesday 27, the date on which it is intended to issue an opinion.
The modifications to the Rental Law could encourage a change in the owners and take their properties out of sale to go to rent with more favorable conditions.
4- Real estate as a refuge of value
A recent Real Estate Report report indicates that investment in dollars is no longer convenient. “Saving dollars in this new global macroeconomic paradigm is not what is recommended. It is clear: with these global levels of inflation, the loss of their purchasing power has accelerated. It is evident that it is much better to protect savings in real assets and Real estate is the first thing to look at”, explained Damián Tabakman, President of the Business Chamber of Urban Developers (CEDU).
5. Construction costs on the rise
The cost of construction continues to rise, although it is still a haven of value to protect against inflation. In February, it registered an increase of 4.9% compared to the previous month, according to the index of the Argentine Chamber of Construction (CAC). Meanwhile, the year-on-year increase was 54.1% and in the first month of the year it was 3.8%.
The indicator that measures the evolution of the construction activity has been prepared by the Construya Group since June 2002 and in its last analysis it registered a year-on-year rise of 10.5%. In addition, in the first two months of the year it has already accumulated a rise of 7.20% compared to the same months of the previous year.
“These positive numbers reflected in the index explain that the consolidation of dispatches is maintained because construction is the most chosen refuge of value against the ongoing inflationary process and the progress of permits granted for residential works is beginning to be observed,” they consider from the Build Group.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
