A new market survey of Buenos Aires condominium prices shows the rising trend of property owners and renters closing deals at the “dolar ladrillo” or “brick dollar” exchange rate.
The ZonaProp analysis of negotiated prices for existing rental properties suggests that more owners are accepting pesos at the brick dollar rate of $8.3 pesos per dollar which is $3.4 pesos more than the official rate ($5.9) and just shy of the blue dollar rate of $9.9…also known as the Messi Dollar when it rises above “10.”
With dollars in short supply and sales in Capital Federal down 32% compared to last year, the director of ZonaProp tells Cronista’s Matias Bonelli that more owners of existing properties are looking at their properties as an asset to store value. Signing two-year leases at the brick dollar rate adjusting for inflation in Year 2 is the preferred buy-and-hold strategy until greenbacks come back into the picture.
In the case of new condominiums, most developers are selling units in pesos at either the official rate or at an intermediate value ($7.7) somewhere between the official rate and the brick dollar rate. Selling units at the higher rate is the main reason the price of new condos in Buenos Aires have risen 39% in the ten-month period from January to October. In the Province of Buenos Aires, the increase was 30%. (Full Story in Spanish)
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