He real-estate market is at a crossroads of challenges and opportunities in the current year 2024. In a complex economic context like the one Argentina is going through, we face the primary challenge of dealing with the notable increase in the costs of construction materials.
This trend leads to a significant increase in the cost of the works, a situation that is exacerbated by the high inflation rates and the exchange gap that, by narrowing the difference between the official and the financial, continues to generate an increase in the dollar value of the costs. It is estimated that this problem could persist until the import difficulties in the country are resolved.
However, within this cost challenge, opportunities are also visible in the sector. The increase in the cost of the work can lead to a revaluation of the real estate units, which makes them an attractive investment in terms of resale per square meter. ANDIt is crucial to seize this moment before cost increases are fully reflected in prices.
The recent repeal of the rental law opens the possibility of a more favorable scenario for investors to once again consider the real estate sector as a viable option for future income. However, beyond the identified opportunities, it is imperative to address macroeconomic issues to encourage savings and reduce inflation rates. This includes the promotion of affordable mortgage loanswhich allow the population to access their own housing.
For development companies, it is essential to adapt to the new national panorama, carrying out an adequate cost analysis, establishing solid commercial relationships with suppliers to manage and project construction costs, and offering various financing options to guarantee that investors can continue capitalizing at through the real estate market.
While the real estate sector faces considerable challenges in the current year, it also offers opportunities for those willing to adapt and take advantage of changing market circumstances.
Group Director 8.66
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