Water is always agitated when the elections approach, even if they are legislative. The result ends up working as a partial examination to government management and their policies.
But, in every crisis, some cry and others sell scarves. Real estate development is in this second group. Not because it is immune to the situation, but because it already cried too much in 2024: because of the costs that rose, for the prices that did not accompany, for the imports that did not arrive and for the permits that were delayed.
With the exception of permits, most of those obstacles found a new balance. Maybe not in the desired terms – the cost did not fall, but stopped increasing. Today there is no other: you have to project with the current cost and stop waiting for a relief that will not come in the short term.
The new paradigm: less profitability per unit, more volume
Sales prices from the well begin to show a recovery: slow, but sustained. Each centimeter won in price is margin that returns to the developer. However, the numbers are still fine and are not enough to compensate for themselves the Argentine risk.
The key is to understand the change of model. Before, profitability was in the price; Today is in quantity.
A single project is no longer enough to seduce. But it does the possibility of projecting with stable costs, foreseeable budgets, more orderly macro variables and financing tools that multiply operations.
Someone in the sector already understood: the traditional real estate market had a 2024 record thanks to the mortgage credit. Not because their fees have increased, but because they multiplied the number of operations. Do more with the same resources: that is the scheme that developers must import.
Invisible amenitie: financing
In the short term, the activity already feels the blow of instability through the shortage of liquidity, the volatility of fees and the absence of a secondary market for mortgage loans. That will reduce the volume of primary operations and, in chain, that of secondary schools.
Faced with this scenario, real estate agents look at the projects from the well, added to increasingly developers they evaluate to offer long -term financing. It is not an optional strategy: whoever does not sell will be left out of the photo. Financing ceased to be a differential; It is the new market amenitie.
What’s coming: three milestones to follow closely
From here at the end of the year, three factors can redefine the stage:
- Legislative elections That after the Buenos Aires, he opened a new panorama that functioned as a political thermometer.
- The loss of rates in the US (September and possibly December), with impact on the expectation of investors.
- The Fiscal and Labor Reform Package (scheduled for December), key to the local business cost and the Argentine country risk.
They are not isolated facts. The interaction between them will mark the pulse of the sector and force them to be attentive to anticipate movements.
Conclusion
Real estate development does not face a dead end, but a bifurcation: staying waiting for the conditions of the past to return or adapt to the new logic.
The cost is no longer the variable to fight, but the data with which you have to play. The real difference will be how to take advantage of relative predictability to multiply projects and hold margins through volume and financing.
The water is turbulent, yes. But those who learn to navigate in this current will be the ones who arrive first to port.
By Santiago Vitali, founder of the
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.
