pesoficar (PAY · zoh· fee · car) verb 1. the act of converting something into pesos 2. (Argentinean) the process of real estate developers, who have traditionally only accepted payments in dollars, beginning to accept payments in pesos in an effort to counteract the recent slowdown in real estate activity prompted by currency controls which went into effect November 1, 2011.
The pesofication of the Buenos Aires real estate market continues, and now even developers of high-profile luxury residential towers are getting in on the act, according to today’s Cronista: “That strategy (accepting financing in pesos) launched with the clear objective of avoiding currency complications, has expanded and now spread to Puerto Madero.” Towers like Zencity, ArtMaria and Quartier Madero Urbano have all added the peso financing option in recent months.
“We knew it was a necessary, because this issue of barriers to buying dollars was putting the progress of the development at risk. We had to find a solution, and the issue of allowing payments in pesos allowed us to solve this question,” says Rodrigo Fernandez Prieto, the Commercial Director of Zencity which now accepts peso financing for the residential units, as well as for that development’s retail outlets and office space.
Cronista says the new peso-denominated contracts, which are also popping up in Nordelta and San Isidro, are practically identical to the standard dollar arrangements: “Contracts are still signed in dollars…but later (the buyer) is given the option of making payments in pesos. And in general, the terms are for 18-24 months, since it coincides with the developer’s financing.” (Full Story in Spanish)
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