Although the number of loans granted for home purchases is still low, the number of mortgage transactions is expected to grow.
The purchase of real estate in the City of Buenos Aires made through mortgages received encouraging data on Tuesday. In August, There were 416 deeds formalized with mortgage credit, so the increase was 133.7% compared to the same month last year and 31.6% in the year to date.
This August was the best in 6 years, given that 5,297 notarial acts were carried out involving an amount of $515,023 million, which meant an increase of 287.4%. Although they have not yet reached the figures of 2018, mortgage loans have finally begun to take off.
“According to data from the College of Notaries of CABA, 9% of the deeds were with mortgage loanalmost doubling the percentage of the same month in 2023, which was 4%, but still far from 2018, which was 18%. What is relevant is that compared to July 2024, the firms with mortgage credit went from 225 to 416. And in June there were 115. Therefore, the number is growing a lot,” explained Francisco Altgelt, owner of the real estate company of the same name. This shows a 261% increase in property purchases made with mortgage loan between June and August.
“What we are seeing is that there is a significant volume of inquiries and requests for pre-approval from banks, but we still do not see that mortgage loans are a tool for mobilizing deeds. It must be taken into account that the time from credit approval to deeds can be 90 days, so the 9% percentage in August will probably be higher in the remaining months of the year,” said Altgelt.
According to Jorge De Bártolo, president of the College of Notaries of Buenos Aires, the impact has already begun mortgage loanalthough still at a slow pace. “Although these are still low figures, they represent a jump of almost 300% in just two months. This will encourage chained operations and we trust that it will be a virtuous circle,” said De Bártolo.
Why is it a good time to buy a property?
Property prices have started to recover but have not yet reached their peak. In addition, the dollar is calm, making it a good time to buy a property.
“Shopping with mortgage loan “These are growing, although not yet at the expected rate. It is estimated that in the next few months the difference will begin to be noticed because we are at the lowest property prices of the last 7 years, since 2017 the values have been falling. Added to that, the dollar is flat and that always attracts investors,” explained Iván Ginevra, president of the Argentine Real Estate Chamber. “The most important thing is the low dollar. With the dollar as it is, there are more chances that, if it eventually settles, the debt in pesos will be liquidated.” mortgage loan“, he added.
How much does a two-room apartment cost in CABA?
According to the brokers consulted, the majority of borrowers are young people who are buying their first home. Generally speaking, they buy one-room or two-room apartments.
As for prices, according to Zonaprop data, a 40 m2 studio apartment costs US$101,284, a 50 m2 two-room apartment costs US$121,748 and a 70 m2 three-room apartment costs US$167,802.
Source: Ambito
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