But we could say that this phenomenon has already been occurring since August, the month in which the Simultaneous, Open and Mandatory Primaries (PASO)despite the fact that there was approximately a week of paralysis after the devaluation. The eighth month of the year marked a rebound in the purchase and sale of real estate in CABAa total of 4,135 deeds were reached, 33% more than the same month in 2022.
Can we talk about a rebound in the real estate purchase and sale market?
The truth is that the real estate sales market has been going through a sharp decline for at least 5 years. The real estate consultant Alan Schachter explained to Ambit that for this to mean a “upturn“, should at least be maintained for 6 months. “To reach a conclusion in the real estate market, A trend of at least 6 months is necessary in which the amounts of oppression increase so that there is a sustained change and that it has not been an isolated phenomenon due to the uncertainty generated by the electoral period.
For her part, the president of the Unique College of Real Estate Brokers of the City of Buenos Aires (CUCICBA) Marta Liotto He assured this medium that “there were a greater number of purchase and sale operations, with the exception that they occurred in properties that were really “on offer”, at very low prices compared to the rest of the market.”
Is it time to buy a property? When this question arises, the quick answer seems easy: yes, it is time to buy, since real estate prices are facing a strong depression due to the crisis that is plaguing the sector. The square meter is cheap, although prices began to rise in recent months.
Until September, The m2 of an apartment in CABA with between one and three rooms cost between US$2,248 and US$2,162.according to the latest report of Zonapropwhich represented the third consecutive monthly increase, but In the accumulated of 2023, a year-on-year decline of 1.6% is observed.
In this sense, Schachter He highlighted that the drop in m2 prices also benefits those people who are thinking about moving to a larger property, since although their property’s cost dropped, so did larger properties and they may need a smaller investment.
If before a studio apartment was worth US$115,000 and a two-bedroom US$140,000, the person had to make an investment of US$25,000, but now that their property costs US$94,400 and the property they aspire to US$113,670, in this way the investment to be able to move to the larger place has a lower investment (US$19,270).
In August, there was a 24.5% drop in year-on-year terms in the number of property sales transactions.
In Argentina there is a conservative tendency to invest in bricks facing scenarios of strong economic uncertainty. At that point, Schachter He pointed out that the tickets that increased were the “premium” ones and that this indicates that perhaps the real estate purchases occurred in better valued neighborhoods.
In line with what was evaluated by the analyst, Manuel Bartolome Micieli Galeazzi director of MCL Studio He highlighted that he observed an increase in inquiries and sales in recent weeks. He attributes this to the fact that the projects offered in neighborhoods such as Bajo Belgrano are highly recognized and allow investors to hedge against the country’s exchange rate and political instability.
Why is the reduction in offers positive?
From the real estate market they point out that the reduction in supply, together with the correction in publication prices, are positive indicators for the sector. Before you had 160,000 properties and now there are 120,000, he estimated Schachter and he listed that this could be due to several factors: because operations were closed or because the actors do not validate market prices.
The estimates of Zonaprop indicate that 64% of properties for sale are overvalued, while 36% are within a market price range or represent an investment opportunity.
What can be expected after the elections?
At this point, the president of CUCICBA It does not observe a very auspicious scenario in case a runoff scenario is confirmed. “At the City Real Estate College we believe that The market will be paralyzed until it is definitively revealed who will be the next President and, therefore, what trend the next Government will have,” he concluded.
On the other hand, Schachter He avoided talking about possible political scenarios, but assessed that the real estate market always grew strongly at times when the “stock” on foreign currency did not exist.
Source: Ambito
