He real estate market continues on the path of recovery after several years with very low sales prices and high rents but with minimal profitability. However, from the sector they assure that hand in hand with the rent deregulationas well as thanks to the return of UVA mortgage loans The market began to rebound and, now, they are seeing a new push from the money laundering.
“Laundering energized the market”assured the market analyst Daniel Brynduring the event Zonapropwhere it was reported that The average price of the City rose 0.3% in October and stands at US$2,321 per square meter (m2). In 2024, the sales price accumulates an increase of 6.6% and, in the last 12 months, it advances 7.2%, the largest increase since the end of 2018.
“The amount declared in cash until yesterday was US$20,085 million. Additionally, they declared US$2,432 million for other reasons,” said the Minister of Economy, Luis “Toto” Caputoupdating the information provided last week by ARCA.
Why does money laundering boost the real estate market?
He money laundering allowed entry up to US$100,000 without penalty and for the surplus a 5% rate was applied if it is within the first stage. “Now, when the US$100,000 The penalty was paid on the total, but if it was invested in a project with less than 50% progress such as real estate, the penalty could be avoided,” explained the taxman. Caesar Litvinwhich also specified that the project must be registered in the Registry of real estate projects (REPI). However, those who entered this phase one of the externalization can now have the money and could buy real estate.
Therefore, the economist Zonaprop, Rodrigo Lejtman highlighted that “There are approximately 190,000 properties for sale between CABA and the North zone, with an average ticket of US$100,000, which could be sold with the money received in the laundering”. Lejtman pointed out that, in addition, They are the most demanded on the marketwith a demand pressure of 37% of total searches in the third quarter of the year, 5 percentage points above the first quarter (32%).
Although money can no longer be externalized, Yes, it is possible to launder, during phase two of asset regularization, an account not declared abroad: “The money is transferred to a CERA account and if the income is greater than $100,000, an investment can be made,” the specialist completed.
Regarding money laundering, Bryn highlighted that unlike other asset regularizations, such as that of the administration of Mauricio Macri who managed to enter US$9,500 millionthat of Javier Milei and Luis Caputo “it’s very cheap” and that’s why he got US$22,000 millionmore than double what was previously raised.
Well properties, the most expensive
Due to the increase in the cost of construction, which so far in 2024 has risen 34.6% in dollars, well projects have made a sharp jump and are just below the cost of brand new properties, with immediate delivery. It should be remembered that well developments are delivered within a certain period since when the investor buys it it is still being built.
Currently the value is US$2,741 average per m2, while a brand new apartment is on average US$2,745 the m2. Meanwhile, the average value of a used apartment is US$2,138 average.
Regarding the recovery of real estate sales prices, driven by mortgage loans and money laundering, real estate sector specialists indicated that the price will grow “little by little”, with a trend similar to that which occurred between 2016 and 2018, the year in which prices reached their highest peak. Even so, they are optimistic about the future and expect prices to continue on the recovery path.
Most searched properties
The properties of up US$100,000 receive between 17% and 55% greater demand pressure than those located between the US$100,000 and US$175,000. In GBA west-south is where the search for these units grows the most, while the demand for units of more than US$350,000. In CABA, demand pressure remains stable between US$100,000 and US$350,000while in GBA North pressure drops as property value increases.
PHs continue to be the most sought after properties in all areas of AMBA. In CABA a PH notice receives a 86% more demand than the average notice for an apartment and it is where the shortage of this typology grew the most compared to the same period in 2023.
Houses in CABA receive 23% less demand pressure than apartments, this is because many times houses in this area are too expensive. In GBA west and south, this typology receives 36% less demand than apartments and in GBA north this number is 20%, which is where demand falls the most compared to a year ago.
The demand structure of the departments changes in all areas. In CABA and GBA north, three-room units are the ones in greatest demand, when two-room units were previously in demand. Specifically in CABA is where the demand for this segment grows the most. In GBA west and south, the two-room units are the ones with the highest demand pressure when previously the one-room units used to be the same.
Source: Ambito
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