In the real estate market, hope is reborn to generate a good movement of operations thanks to the reintroduction of mortgage credit, particularly in the main places of the country, such as the Autonomous City of Buenos Aires, Córdoba, Mendoza capital, Rosario and Mar del Plata.
A survey of the values and interest of the demand for buying two- and three-room units reveals significant differences in the different parts of the country surveyed.
Real estate agencies highlight that in May queries increased 25% month-on-month and maintain that thousands of families with some savings in hand are beginning to make reservations with the intention of qualifying to be able to buy with the help of mortgage credit. From there the question arises: How much is an apartment in Argentina worth?
According to Real Estate Report, in the last 12 months the value per square meter of used apartments with 1 to 3 rooms increased in Córdoba Capital by 6.4%, while in Rosario and Mar del Plata they decreased by 3.6% in each case. While in Mendoza they showed minimal variations.
While in CABA, two-, three- and four-bedroom units quoted an average of USD 1,835, USD 1,719 and USD 1,628 per square meter, respectively.
“With respect to the average price of CABA for a two-room apartment, which are the ones that sell the most, the m2 in Córdoba is quoted 36.7% below, while in Rosario and Mar del Plata it is 27.8% and 18.7%,” he told Infobae José Rozadosfrom Real Estate Report.
In CABA it is estimated that a used two-room apartment ranges at USD 115,000 and a three-room apartment at USD 160,000, on average.
Those thinking about buying focus on an opportunity market, with home values similar to 2010. In CABA and the province of Buenos Aires, prices have fallen almost 50% since 2018 and stopped falling in the last eight months, starting a slight rise from 4% to 7%, according to different consulting firms.
In the fourteen banks that already offer credit plans with real guarantee to buy homes, they are receiving thousands of weekly queries.
“Mortgage loans symbolize economic recovery and reduced inflation, and are expected to boost demand and property values. This positive cycle could contribute to the improvement of Argentina,” he commented. Sofia Gancedograduate in business administration and Bricksave.
Mortgage loans symbolize economic recovery and reduction in inflation, and are expected to boost demand and property values (Gancedo)
Market experts consider that demand and prices will vary with the revival of credit: some areas will see more interest in used units, but it also opens the opportunity to access brand new properties.
According to Rozados, “if there are additional price increases, that will be determined by the interaction between supply and demand. It would not be favorable for the initial market value in the property acquisition process to anticipate situations and fuel overvaluations due to future expectations.”
The values of the two-room apartments in Córdoba capital range between USD 55,000 and USD 70,000, while the three-room apartments vary between USD 72,000 and $110,000.
These prices are determined by the location, age and amenities of the buildings. The most expensive properties are in the Nueva Córdoba neighborhood, which maintains its popularity due to its proximity to the University City.
Virginia Manzotti, president of the Federal Council of Real Estate Associations (Cofeci) of Argentina, said: “In the last year, we observed a moderate increase in the values of used apartments and a greater increase in brand new units. Demand in the used sector remained stable, while new properties saw greater interest from buyers.”
With the return of mortgage loans, there was an increase in inquiries, both to qualify with banks and for the purchase of second-hand properties.
This phenomenon is due to end users, “and in part, to the growing profitability of rentals that is attracting investors. However, confidence in these credits will gradually grow with the stabilization of the macroeconomy and the reduction of interest rates,” Manzotti added.
In Rosario the values of used two-room apartments range between USD 55,000 and $65,000. As for those with three rooms, prices vary between USD 75,000 and $90,000. The most expensive areas include Parque España, Lourdes and Pichincha, which continue to be the most sought-after areas by buyers.
Diego Ferreyra, a member of the College of Real Estate Brokers of Rosario (Cocir) and the real estate company of the same name, pointed out that “in the last 12 months, the Rosario real estate market saw moderate fluctuations in the prices of used properties. Although no substantial increases were noted, the adjustments responded mainly to economic instability and low supply in certain areas of high demand.”
New properties showed a more stable price trend during this period. The reintroduction of mortgage loans increased inquiries at local real estate agencies.
“Interest rates and improved income are having a positive influence. Expectations for the Rosario real estate market are encouraging, similar to CABA. However, the evolution depends on the general economic situation of the country,” added Ferreyra.
In Mar del Plata, apartments located in areas such as Centro, La Perla and Plaza Colón, mostly built in the 60s and 70s, are considered original used with an average value of USD 1,000 per m2.
“In the Center, the closing prices of apartments with two internal rooms range between USD 33,000 and USD 55,000, with higher values for those that have a balcony and are oriented to the street,” he said. Rodrigo Sanzfrom Sanz y Ordoqui Properties.
Areas with more modern and prestigious buildings, such as Playa Grande, have higher values, especially seafront properties.
During 2023, apartment prices in Mar del Plata were slightly lower than in 2022.
Sanz explained: “Although in CABA there were nominal increases, this was not replicated in Mar del Plata. For 2024, we expect a slight increase, as we see more inquiries and sales operations.”
“In the last month, since this measure was announced, we received 11 inquiries from people with pre-approved mortgage loans, mostly young people who were previously excluded from the buying and selling market. This increase in consultations could raise values in the medium-long term,” commented Sanz.
In the downtown area and its surroundings, Mendoza presents two-room units of approximately 35 m2 that are for sale between USD 35,000 and USD 40,000, and three-room units between USD 55,000 and $70,000.
For its part, the most sought-after is close to Avenida Emilio Civit and even more so when approaching Parque San Martín and its surroundings. Other expanding areas include Godoy Cruz, Guaymallén and Maipú.
Eduardo Rostapresident of the Association of Public Real Estate Brokers of Mendoza, commented that “as you move a little further from the center, but still within the city, such as in the fifth section and parts of the sixth section, prices increase up to 30% depending on the improvements and characteristics of the departments.”
The disappearance of the Rental Law allowed people to once again opt for normal locations, generating an opportunity for agreement between the parties regarding the profitability of the apartments.
The end of the speculative scheme linked to fixed terms and the purchase of dollars led many people to consider investing in properties (Rosta)
“The end of the speculative scheme linked to fixed terms and the purchase of dollars led many people to consider investing in properties. Mortgage inquiries come mostly from people between 30 and 45 years old, who are mostly looking for three-bedroom apartments with a garage,” Rosta added.
This age group also shows interest in houses with two and three bedrooms, seeking to maximize the amounts and terms offered by banks for mortgage loans.
Regarding sales expectations for next year, a very dynamic market is expected in Mendoza. Several purchase and sale operations are expected to be carried out, driven by the receptivity and attractiveness of mortgage credit. “Although a significant increase in property prices is not anticipated, greater activity is expected in the market due to the opportunities these loans provide,” Rosta concluded.
