Argentina: They expect that in 2022 property prices will continue to fall
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Loading... - Juan Alvarez
- 20 Jul 2022
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After a year of almost total shutdown due to the pandemic and a 2021 where the dollar prices of real estate were revealed due to the devaluation and the drop in the cost of construction, the expectation of the sector is that the values ​​continue to fall. This, which seems like bad news for a hard-hit segment of the economy, may represent a buying opportunity for those who have savings in dollars and decide to invest.
In the last twelve months, Argentine property prices fell more than 20%. Ariel Champanier, CEO of Remax, anticipated that during this year values ​​could contract between 5% and 7% more.
In addition, he gave a dark outlook for the local real estate segment: “It takes a long time for the panorama to be reversed and prices go up again,” he said, adding: “As long as this government is there, it will not happen because there is no type of economic incentive or measures that provide security to the investments made and the demand is not going to grow, it is going to be maintained, or at most it will increase a little”.
The warning signs are for the businessman the exchange rate gap, which remains close to 100% between the official dollar and the blue and lack of mortgage loans and government policies that improve the purchasing power of Argentines. In this scenario, the expectation is that more properties go on sale, but buyers are still lacking.
As an example, Champanier said that in December 2021 the four offices that his real estate agency has (two in Palermo and two in Villa Devoto) took 256 new properties to sell and completed around 200 operations. “We had 50 units left over, which represents more than 20%. And this will continue in the coming months”, projected the real estate expert.
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