With the change in political direction, there is a boom in Buenos Aires Residential Sales with a 53% increase
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The sales registered in October are positioned as the highest in the last six years. November is expected to be even higher.
October was a month full of uncertainty and expectations due to the elections. But far from applying a wait-and-see policy and waiting to define who would be the next president of Argentina to try to predict how the market could evolve, the people kept the real estate market more active than ever.
So much so that in October, 4,559 properties were registered, a record that can be read as an increase of 53.3% compared to the figures collected a year earlier. The number encourages real estate expectations since October was the best in the last six years.
The numbers are encouraging and are measured against the golden era of the real estate market of the last decade. “To find similar figures, you have to go back to the era of the boom of UVAs mortgage loans from the government of former president Mauricio Macri. For example, in October 2018, 3,671 deeds had been carried out,” warns Germán Gómez Picasso, co-founder of Reporte Inmobiliario. October operations surpassed those of 2017 – the climax year for the property world – and were 26.32% away from the record of 6,188 operations in October 2017.
In the tenth month of the year, the average amount of operations was $41,950,154 (US$114,162 according to the average official exchange rate): grew 207.7% in one year in pesos, and it rose 33.2% in US currency.
In general, terms, if the figures recorded in 2017 were set aside, the operations recorded in October would be positioned as the highest in the last 10 years.”, observed from Real Estate Report. The figure for October this year is very much in line with the historical average of the previous 25 years. Furthermore, “the average for October since 1998 is 4,813 contracts.
“The data for October mark a line of three months of a higher volume than the rest and consolidates a quarter of practically more than 4,000 monthly operations. There are almost 32,000 deeds of sale in all of 2023: that glass half full gives an increase of 22% in the accumulated of the 10 months compared between 2023 and 2022″, says Jorge De Bártolo, president of the College of Notaries of the City of Buenos Aires.
The data arises in a context that follows an upward trend in property sales. Compared to September of this year, when the market had also gone through a summer of sales, the upward trend was again validated, and events grew by 15.3%.
“There is a feeling of ‘let’s write now’, so August and September were lived like December in other years, in the one that people want to complete all the pending procedures before the end of the year,” María Magdalena Tato, secretary of the Buenos Aires College of Notaries, had pointed out last month, an argument that was reaffirmed in October.
“Another positive fact is that we have added 18 months of interannual growth. It is a year and a half of not comparing negatively with the previous period, and it gives some peace of mind to get away from a period of three or four years of decline,” said the entity’s President.
On the other hand, in October, 236 deeds were formalized with mortgages. Therefore, the increase is 98.3% compared to the same month last year. In the accumulated 10 months, the growth is 18.7% (1,366).
The reasons behind the boom
Behind the figure that raises eyebrows, there are possible explanations. For Gómez Picasso, the main reason for the increase in operations is the opportunity price at which many properties are published today. “Without a doubt, this is mainly due to the issue of low prices”, says Gómez Picasso, and affirms that “the low prices began to gain momentum recently. one year the purchase of properties.”
In this line, he points out that, on the one hand, prices levelled off due to so much demand and that, on the other hand, in some segments, there are beginning to be moderate reputations of the values. The glimpse of recovery of values was evident in different neighbourhoods of the city.
There are several examples of this revitalization of the market. According to Real Estate Report analysis, values in Palermo Soho recovered barely above one percentage point after three years of consecutive falls. In Flores, they rebounded 1.61%. Palermo Hollywood was revalued by 0.91%, and in the Caballito neighbourhood, they began to rise by 0.77%, to name a few examples.
Other areas, such as southern Palermo, are the ones that show the phenomenon most. In 2023, the price of units in new developments appreciated 3.55% above the price offered in previous years, after three years of a decline that had accumulated 16.2%.
An underlying reason could be the election season and its influence on purchasing decisions. “In the population that had hope that there would be a change in politics and the economy, it could have encouraged the closure of some operations,” analyzed the co-founder of Reporte Inmobiliario.
Aligned with the idea that the elections could have influenced the market is Soledad Balayan, market analyst and owner of Maure Inmobiliaria. “The market has been very active the last two months. People came determined to carry out the operation, some operations were chained, and it is possible that people preferred to write before the elections to minimize exchange rate uncertainty ”, she concluded.
Optimism in the Province of Buenos Aires
The rise in contracts written echoed on the other side of General Paz Avenue. In the Province of Buenos Aires, October showed a year-on-year increase of 20.75% in sales and operations, reaching 9,729, according to the monthly survey carried out by the Buenos Aires College of Notaries.
In this way, the entity celebrates that October was established as the month with the highest number of operations so far in 2023, and it exceeded September’s 8,852 by 9.91%.
“The increase in October operations is a positive fact since it is the highest value this year regarding the number of sales. We hope that in the coming months, the trend continues at this pace and translates into positive signals for the market. The change of government at the national level may represent an opportunity for recovery, for which mortgage credit will be essential,” said Diego Leandro Molina, president of the College. Of Notaries of the Province of Buenos Aires.
Source: La Nacion. ( translated )
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