Agro, Retail and Banking in Argentina. Why Professional Real Estate asset valuations have become more diversified
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Generally accentuated at the end of the year by business balance sheets, in 2023, an unusual increase was observed in requests for real estate valuations during the first semester, most of them related to the rise in investments due to the surplus of pesos that many companies have.
The world of corporate Real Estate has been pointing this out for some time: exchange restrictions have caused many companies to accumulate a surplus of pesos and allocate them to real estate investments. In this 2023 of economic and electoral uncertainty, the novelty is that these movements led to an increase in requests for valuations in general and also in unexpected areas such as Agriculture and Retail.
“This year, particularly, we had many appraisals for the purchase and sale of real estate. It is known that there are companies with pesos and many invest them in real estate,” comments Fermín Laborde, Senior Appraiser at Cushman & Wakefield. “Many of our clients, for example, have purchased premises they had been renting and located in premium areas. In addition to that particular movement, this year, we also had an extraordinary increase in requests for rural asset valuations. Some companies have chosen to invest in fields to diversify the typologies,” adds the specialist.
In this way, the traditional Valuation service offered by a company like Cushman & Wakefield, which is usually activated towards the end of the year when companies need to draw up balance sheets or report to their parent companies, 2023 showed great activity throughout the year. “In numbers, last year we valued 600 assets worth approximately USD 2.45 billion. In the first half of 2023, we value 573 properties for USD 811 million, so everything indicates that the increase will be notable,” summarizes Laborde.
Real estate investments for surplus pesos have led many companies to form an actual portfolio of retail properties, that is, to have a group of stores that may have a different function, even from the category or sector they serve. Although banks tend to have the most real estate assets (branches, offices, etc.), the search for protection has also reached rural land and fields.
Why Use a Valuation Company
When it comes to knowing what the real value of a package of real estate assets is, the first thing you need to know is that the valuation service is much finer and more precise than knowing the value of the square meter of the area where the property is located. “As a company at Cushman & Wakefield, from the Research area, we do general analyses with precise and updated market data, but from the Valuations area, the value of an asset arises from a much more specific and particular analysis of the property. The square meter values per area we present in our quarterly market reports are informative. Still, we must consider a series of variables that can result in the value of a property being above or below the average,” Fermín details. The edge.
There are many reasons why companies need to value their assets, such as starting commercial sales or rental operations, presenting balance sheets or fiscal years, completing cadastral and/or succession procedures, determining the potential and best use of a property or identifying the value of machinery and equipment that are part of a property, among others. But most importantly, valuations allow you to make informed decisions and better protect the value of your assets and business.
With over 20 years of valuation experience and certification from the Royal Institution of Chartered Surveyors (RICS), an internationally endorsed reporting quality standard that ensures neutrality and accuracy, the Cushman & Wakefield team assesses intrinsic and extrinsic factors. That impacts the value of the properties with the most appropriate methodology for each case. Agricultural companies, real estate developers, banking and financial services, insurance companies, retailers, energy and automotive companies, among many others, entrust him with the valuation of their assets year after year.
Source: La Nacion
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