He Branson CEO Hugo Koifman mentioned the importance of credit for the sector, during the first panel of Scope Debate about Real Estate, moderated by the director of Ámbito, Julian Guarino.
“We are going through a very optimistic moment in which transactionality increased a lot”, Koifman highlighted and appreciated that the company sees “a significant increase in rents and sales in all areas and that is because people were encouraged to make a decision that they had been putting off, added to super positive measures such as money laundering and the reduction in inflation.”
“On a personal level, the Argentine, the investor or the final consumer, said I have dollars and pesos and I am encouraged to take a step forward to buy or rent something. At Lex we saw a lot of change in terms of tenants who came asking and now were encouraged to rent, make improvements and tell clients ‘we’re moving,’” he highlighted the change in society’s mood.
In the debit, Branson’s reference raised the fact that “beyond the fact that inflation is being overcome, it is a delicate issue and in the construction sector it has hit hard,” although he acknowledged: “We hope that it will begin to slow down in the future.”
Prices and profitability
Focusing on values, Koifman pointed out that “the price per square meter has been rising, with significant increases” and countered: “Unfortunately in Argentina there is little information because we have information on deeds and the purchase ticket is not public until it is written.”
“But you see a lot of development in the City of Buenos Aires, on every block there is a new building. There you can see the optimism of the developer and buyer that accompanies it,” he stated.
At the same time, he maintained that “an interesting thing is that with low rates and inflation, the market changes. The buyer or investor has to look for profitability and the traditional financial market as a fixed term is not the best of results.”
“So, people go to more sophisticated financial instruments or they go to real deals. “There appears Real Estate, which is a great possibility to be able to get a positive return on money,” defined.
On that point, Branson’s CEO indicated: “A positive issue is that Imports opened up quite a bit and the material cost matrix began to change. Instead, the labor component remains a little high and we have to stabilize it little by little.”
The reactivation of the office sector and rentals
On the other hand, Koifman referred to the “radical change” in the office sector. “I was always reluctant about the concept that the office had died due to the pandemic. It took a little while, but if it hadn’t happened in the world, why would it happen in Argentina? he reflected.
And he highlighted: “There were many changes due to remote and hybrid work, but this year companies made the business decision. There were readjustments, companies that reformulated themselves and others that decided to move. If the company decides to hire staff, move the company and invest money, it means that they see the horizon as much more interesting.”
Regarding housing rental, he indicated: “We build residential buildings, we do not rent, but our clients do. Before they said that they preferred to keep it empty until they sold it and, as a result of the DNU change, They can rent it and rest assured that the contracts will be reasonable for both parties. Those who did not want to were able to sell it because the market was reactivated and prices rose. It was a win win for the person who had property and was undecided.”
Optimism for the future thanks to credit
Regarding the future outlook, Koifman expressed his optimistic view by arguing: “Argentines are quite strange creatures. The Real Estate part is done without credit, all with our own money, from investors or clients.”
“The moment credit starts to flourish a little, the change can be enormous. The region is managed with credits for the builder, for the supplier to buy machinery, for the client. “That is starting to happen,” he indicated.
With all this, he concluded: “If the macro continues to settle down and people continue in a positive mood, very good things will come and one will dedicate time to ideas for new projects and take more care of the client, instead of meaningless issues such as the importation of an elevator or the lack of material and people, as happened to us last year.”
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
