Real Estate Prices in Buenos Aires are starting to rise
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Real estate prices are rising again after one of the worst drops in living memory. This indicates that the prices have hit the bottom and the “rebound” effect has begun. Despite the worst buying and selling period in 20 years, property values are recovering and overcoming the crisis.
According to a Buenos Aires College of Notaries report from July 2018, 3,357 homes removed their for sale signs from the facades and completed the planned transactions. Since 2023 started, these properties have already accumulated 19,264 transactions.
The data continues to indicate growth of about 15% this year despite the recent strengthing of the US dollar. “The encouraging picture is that every month in 2023 has been positive, which was not the case for 2022,” said Jorge De Bartolo.
This ray of hope comforts the real estate market, which is seen as being at its worst in decades. The last four years have been the longest of the 20 years with the least sales, said Jose Rozados, founder of Reporte Inmobiliario.
He then contrasted it with this period’s best: “The greatest cycle occurred between 2005-2008, when more than 36,000 deeds per year were signed, which is more than twice the current number of transactions.” Volumes of transactions are an indication of what the country’s going through.
In his most recent real estate monitoring, Fabian Achaval – CEO of the company with the same name – analyzes that “they realize today the market operates at maximum levels permitted by an economy under foreign exchange control (stocks).
This is consistent with the period from 2013 to 2015. In a period of uncertainty and paralysis, the real estate thermometer indicates that more sales are occurring than anticipated. We usually wait after the PASO ( Argentine pre-election voting for Governors and some officials), but this time seems to be getting shorter.
Those who need to sell and those who must buy will do so. The macroeconomic environment is certainly not encouraging, but I believe that even though little has been achieved, this will be a positive factor because the operations are being carried out with an increasing dynamic flow”, estimates Veronica Pagola.
She is the CEO of Century 21’s real estate network for Argentina. Prices are rising, which excites property owners about a new cycle. The reversal of the trend in this city is not unique.
In a survey by Reuters, international real estate experts predicted that the average house price in major markets worldwide would fall less in 2019 than initially expected and then rise in 2024.
Zonaprop reports the accumulated decline this year is “less” than in prior years. The trend is confirmed by the price behaviour in the last few months. After 52 consecutive months of declining values, “publication prices rose for the second month running in August after recording a decline of 52 months, and have reached levels comparable to October 2015,” according to their analysis.
Real Estate Report’s observations of used properties show that the value of units between one and three bedrooms rose. Buenos Aires’ studio apartment sales increased by 0.55% over the prior month. Units with two and three bedrooms saw increases of 0.65% and 2.01% respectively. %, respectively. The average price for studios was US$64.975, US$75,000 per one-bedroom apartment, US$106.750 for apartments with three rooms, and US$139.475 for apartments that had four bedrooms.
The city is almost out of stock for four-room rental properties. Zonaprop’s neighbourhood studies also show that certain areas have begun to regain their value. In 2022, 83% of neighbourhoods experienced a monthly price decrease, while 58% saw a monthly increase.
The monthly price trend may rise, but the annual values remain low. Three neighbourhoods have seen an increase in property value. Puerto Madero is the top neighbourhood, where property values have increased by 2.3% over the past 12 months. The average value per square meter in Puerto Madero today is US$5,695. Parque Chas (1,2%) and Coghlan (0.1%) compete for being sought after.
In its most recent report, Zonaprop states that properties along the northern part of the city in July and August showed the most significant recovery, with an increase in the average of 0.6%.
The northwest corridor and the micro centre both saw a 0.4% increase in value. However, the rest of the city remained the same or declined. Fabian Achaval, real estate radar, states that the supply of properties in August continued its downward trend on different portals.
This shows “a market with historically high levels of supply.” Their eyes do not interpret this as a real estate boom but rather identify possible explanations, which can include “purification of portfolios and withdrawal of property advertisements, or a decrease in the entry of properties on the market over the last few months by other times during election periods,” says Achaval.
According to Achaval, this purification may be because according to Achaval, 64% of properties are still not priced correctly. This is because of sentimental attachments that owners may have to the property, which they might have paid a lot to purchase or bought for a higher price than the current market value.
Real estate agents will not work on properties that are difficult to sell, as they incur costs in marketing and advertising.
Invertire’s real estate monitoring service, Invertire, reports that 85,019 apartment listings are available in the city. This figure is based on the Zonaprop publication. Palermo, Caballito and the City of Buenos Aires’s Government published a report based on the Argenprop offer for the current year’s second quarter.
Source: Translated and updated from La Nacion
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