The stagnation of real estate market activity in Argentina brought on by currency controls has been offset in recent months by the “pesofication” of the market for new condo, home and lot sales.
Pent-up demand and Argentines’ preference for real estate was evident two weeks ago when one BA developer launched a new phase in Pilar and set a company record by selling 140 peso-denominated units within hours.
A bit more complicated in today’s dollar-depleted environment are those sales contracts signed within the last two years where buyers are obligated to make all payments in dollars, writes Paula Martinez of La Voz. Many contracts have a clause which give the buyer the option of paying an amount of pesos equivalent to what would be needed to purchase dollars in New York or Montevideo. Many developers have chosen the path of pesos and flexibility in order to get a building sold and move on to the next project.
The sale of existing properties between individual buyers and sellers, however, is by far the most paralyzed sector writes Martinez, but it has created a buying opportunity for those with dollars in hand. If sellers insist on being paid in dollars, Argentina buyers are requesting and often receiving discounts up to 25% off asking prices, she writes, although most sources say the average discount is 10 to 15% off original price. (Full Story in Spanish)