Without a floor: the sale price of Buenos Aires properties continues to plummet

According to a private report, closing prices for housing deals average $1,713 for all used 1- to 3-bedroom apartments. This price remains below 1,800 USD per square meter for the seventh consecutive month.

The difference between the price per m2 of the operations carried out in January 2023, compared to the last publication of the property, commonly called the counter-offer range, was positioned at 7.07%; This figure is the differential between the published value of the property and the value that ends up closing the deal. This percentage remains firm at around 7% with minimal variations depending on the agreements concluded.

This was clarified by an analysis called Real M2 Index carried out by the University of the Center for Macroeconomic Studies of Argentina (Ucema), Real Estate Report and Re/Max, based on a methodological, technical and statistical study in which the prices means are disclosed effective per square meter with information on the specific values ​​in which transactions in the real estate market are agreed.

The report confirmed that stocks have slowed their depreciation. German Picasso Gomezof Real Estate Report, commented to GlobeLiveMedia that “the work has confirmed that the decline in values ​​has been moderating for 6 months. Given the way the scenario unfolds, we could speak of a plateau of closing values.

In some types of housing a small upward correction was even noted, for example the three main rooms increased from December to January.

“That is why since the real estate report, we are talking about a slow landing a few months ago, it would seem that little by little the decline is slowing down more strongly”, developed Gómez Picasso.

The three environments better defend their price because they are the ones that have been the least built in recent years in CABA. As these new dwellings are few in number, the total supply is lower than in the case of T1 and T2.

Breaking down the prices by number of rooms, in the purchase and sale of studio apartments, a price per m2 of 1,728 USD was recorded, while the closing value of the 2 and 3-room units was 1,741 USD per m2 and USD 1,804 (against USD 1,775 in December) per m2 respectively; the 3 main rooms being the only apartments that show a slight appreciation over the last month.

In January, the College of Notaries of Buenos Aires registered 1,848 deeds, a figure that marks a clear drop from the 4,253 in December and 3,369 in November, which are usually the best months.

In general, January and February do not have good numbers because the holidays and the heat tend to postpone real estate buying decisions.

Regarding what is to come, Gómez Picasso explained that he does not see major changes for the segment. “You have to be prepared for the levels that are happening, a low number of transactions compared to the historical average, but this year with less predisposition of owners to lower values. The public buying and taking advantage of the current price level n is what the department needs for a specific case and obviously has the dollars saved”.

Experts argue that now is a good time to invest in bricks in Argentina and those who can finally allocate savings to “their own roof”.

“Although the city of Buenos Aires is struggling to recover in terms of sales despite the fall in values. They only buy from dollar note holders who see an opportunity based on a specific need. It would seem that a slow process of decentralization is underway starting from the implementation by part of the population and some teleworking companies”, developed Gómez Picasso.

Faced with a volatile scenario in various markets and cryptocurrencies not performing as before, real estate specialists claim that betting on housing is a good destination to protect money.

Geronimo Odriozolaa Re/Max Roble broker, said GlobeLiveMedia that “housing always offers high returns. “Buying an apartment in a well, in a medium-rise building, with a term of work of 24 months can start from 10% in dollars. This is the way to an investment that is safer and simpler than the rest: you don’t have to be a specialist to join a project”.

It is tangible property and can be offered for rental or inhabited if purchased by an end user. The property can be used as collateral. And he has the ability to inherit.

There are many departments in the Opportunity Zone. Today, for less than 100,000 USD, one can access T2 and T3 apartments in the good neighborhoods of CABA at values ​​of more than 8 years ago.

“In 2023, despite the instability of our economy and the election year we are going through, anyone who enters projects, whether in apartments in wells, building complexes, and does so with developers with verifiable experience , I have no doubt that they will get a lot more high dividends compared to other types of investments How those who acquire used units and profit from the drop in values ​​from 2018 to date will also get good benefits,” concluded Odriozola.

Continue reading: