Argentina real estate developers are looking to 2016 as the year market activity will finally rebound after three consecutive years of currency controls and sluggish sales. Make that four if you throw 2015 into the mix which most analysts are wont to do.
How Will The Real Estate Market Recover After Another Difficult Year? is the headline of Leandro Ferreyra and Juan Pablo Marino’s sweeping analysis in today’s Ambito Financiero which finds optimistic players from architects to developers to farmers searching for opportunity (and premium land) amid the crisis: “What is certain is that this is not the time to be making major decisions. The opportunity is to take possession of land in order to be on the front line when the economy rebounds.”
The vice president of the Argentina Real Chamber, Armando Pepe, shares this anecdote: “In the last few days I’ve received several phone calls from architects looking for lots. One of them gave me an analogy that I liked: ‘Armando, the train is passing and we are on the platform.’ What did he mean? He meant that if we buy a lot now, while we go through the process of getting approvals for titles and floor plans eight months will have passed then we commence construction and finish in late 2016 with the market, and the country, in its best possible moment.”
The president of the Rural Real Estate Chamber, Cristian Belaustegui, says Argentine farmers that are closing deals are seeking to take advantage of opportunities “to purchase a neighbor’s farm, to add crop activity to a cattle farm, to open a new line of business in a region with less climate risk, to move to a region with higher productivity, etc. A crisis offers an opportunity to reorganize a businsess.”
Finally, the cautious optimism of a developer is offered by Adrian Donozo: “Even though inflation and currency controls have been a major blow to the market, we are not lowering our expectations. For 2015 we have a sense of greater optimism for the elections that will bring a change to the national landscape and overall improvement in economic conditions which will spur investment by foreign investor groups who, sensing a growth opportunity in this country, come looking for lots and properties with prime locations.” (Full Story in Spanish)
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