The demand for real estate began to revive in the interior of the country due to a fall in property prices, the purchasing power of sectors with income in dollars and the prospect of recovery that generates investment opportunities, according to specialists. consulted by Télam.
“In the interior, the prospects are very interesting in terms of recovery of the sale,” the president of the Argentine Real Estate Chamber (CIA), Alejandro Bennazar, told Télam.
“The properties are very cheap and the yields increased”, to which is added “the inflation that the dollar has”, which “encourages investors to get rid of different business portfolios and move on to tangible assets” such as properties, said the manager.
Regarding the profitability of rental properties, he maintained that “it exceeds 3 percent per year and we were coming from 1.5-2%; it increased to an income that is beginning to be within the normal range for the investor.”
On the other hand, he affirmed that “especially in agribusiness there are international players making inquiries” and that “this is a great possibility for Argentina and generates expectations.”
Along the same lines, Claudio Vodanovich, Secretary General of the CIA, told Télam that “today is a time of opportunity to invest in Argentina because the big cities are at very cheap relative values.”
“We had been in a plateau and today we see a trend of investment opportunities”he added.
He said prices plateaued after “an average 30 to 40 percent drop in relative dollar value”along with a decrease in “the cost of construction, which is around $600 to $800 for a standard build.”
Meanwhile, Sebastián Rodríguez Metayer, director of the Center for Real Estate Brokers of Córdoba (Cecin), stated that there is “greater profitability in rentals and in this way we are encouraging more properties to be put on the rental market and that investors believe again in the brick.”
He explained that in the Mediterranean province, the area known as “Nueva Córdoba” is the most sought after by investors, with a price of around 1,200 dollars per square meter and a return of around 5.5% per year, which “rose a lot because I was at 2%.
Speaking to Télam, the manager maintained that “many works under construction that were stopped have been reactivated due to the low cost we have in construction in dollars; materials and workmanship are at their lowest level in the last 20 years”.
“We have become the cheapest country to invest in the region; we are being consulted by foreigners to see how investors bring their capital back to Argentina”, he assured.
For his part, the Cecin market analyst, Juan Pablo Baca, told Télam that “in Córdoba, in the first half, a general recovery in sales was perceived, after a complicated 2020 and the ‘rebound’ of 2021” .
“The residential sector has improved approximately 35% since January of this year, and in the field of developers (apartments under construction and lots, especially) the improvement was around 25%,” he detailed.
He pointed out that “despite these positive rates, we are far from the optimal activity of previous years” given that the activity shows “40% less sales than those made in the 2017/2018 biennium.”
“Evidently July will show a drop in activity, due to the political and economic crisis we are experiencing, but August and the following months will resume the path of slow but progressive recovery,” he projected.
In Mendoza, Estanislao Puelles Milan, president of the province’s Association of Public Brokers, told Télam that “approximately two months ago there began to be more queries for sales and some began to translate into concrete operations; if we make a relationship to what It was the first semester, the rebound is notorious, but we come from an important stop”.
“Many small or medium-sized savers have seen an opportunity in the real estate market for two fundamental reasons: the truthfulness of prices in dollars, in Mendoza of the order of 25-30 percent, and the few alternatives for safeguarding capital, since the terms Fixed rates don’t seem to be an option and people don’t want to have their dollars hoarded forever,” he analyzed.
He added that the most sought after properties are “1 or 2 bedroom apartments and land for constructionis what has moved the most in the last 45 days”.
Regarding Santa Fe, Walter Govone, president of the local Chamber of Real Estate Brokers, told Télam that “after the pandemic, real estate operations gradually increased, which are far from the best times but much better than 2020, which He was paralyzed.”
He affirmed that “many opportunities are presenting themselves not only for the local investor but also for the foreign investor, because they see Argentina very cheaply” and added that “the market is gradually recovering and the values are being validated in a 20-30 percent below 2018”.