The winds of change and optimism are finally blowing again in the streets and offices of Argentine real estate brokers and developers. One week after the Buenos Aires Notary College reported two consecutive months of sales increases, iProfesional’s Patricio Eleisegui offers five signs of a real estate rebound nationwide after three years of decline.
1. Stability of the Blue Dollar: The fact that it has been hovering around $12 for several months (after having plummeted from the pedestal to $16) reduced the value of properties in pesos and facilitated the closing of more deals.
2. Unwavering Prices: Greater stability in quoted prices has helped speed up deals and bring buyers and sellers together.
3. Diminished Expectations Regarding Devaluation: The reduction of the gap between the official dollar and the blue dollar allayed fears of a massive currency correction and improved the climate for closing deals.
4. Greater Acceptance of the Cedin: The certificates are finally finding acceptance as partial payment for properties. With a value of $11.20, they are gradually luring more undeclared funds into bricks.
5. Consumers Moving Up Purchasing Decisions: In these pre-election months, with the possibility of a future unification of the currency markets, many individuals are opting to close deals at a reasonable price today rather than waiting to see what happens after the elections.
“The general sensation in the real estate sector is that the floor of the crisis is already behind us. Now you are seeing more inquires at the different real estate offices. You are beginning to see deals close that have been on standby, and that has much to do with the tranquility of the dollar,” says Jose Rozados, the CEO of Reporte Inmobiliario.
Armando Pepe, founder of the Argentina Real Estate Chamber (CIA) concurs: “There is evidence of a rebound after months of sales falling into the basement…they could not go any lower. In January, I predicted if the blue dollar would stabilize and not drift below $14, the real estate market would begin to regain strength, and you would begin to see more closings. And that’s precisely what happened.”
“We are seeing a clear recovery. There are months when online inquiries for “for sale” properties are up 35% and 20% for rentals. The election year is generating favorable expectations for change, specifically regarding initiatives to put an end to the currency controls,” says Zonaprop Argentina country manager Christian Brosens. (Full Story in Spanish)
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