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In the midst of the adjustment of the economy, is it advisable to invest in well-situated homes? - Infobae
Source:
April, 3, 2024
The acquisition of units under construction is an option for those who have savings. The current values in different Buenos Aires areas
By José Luis Cieri
There are currently more than 50,000 apartments under construction in the city of Buenos Aires
In the current economic scenario, purchasing homes under construction, also known as “under construction,” can be an attractive option for potential buyers who have savings. In the city of Buenos Aires it is possible to access proposals with fixed dollar fees, which provides financial stability throughout the construction process.
However, purchasing with installments in pesos raises uncertainties in an inflationary context, and its convenience will depend on the evolution of the market in the future.
Patricio Rozenblum , of PBG Desarrollos, told Infobae that, as sales values increase in the best areas, “the opportunity to acquire well units at attractive prices could gradually close; Values are expected to adjust to historically reasonable levels in dollars, which could influence buyers' decision-making as new operations and construction costs are consolidated.
In the market there is an increase in prices per square meter of properties, reflecting the increase in construction costs. This situation is enhanced by the fluctuation in the exchange rate, which generates a significant window of opportunity for the acquisition of homes under construction.
In the current market, due to the increase in construction costs, the prices of properties in progress are rising.
“Flexible financing plans are designed and adapted to the needs of each client. In the current context, where the exchange gap is reducing while inflation rates remain high, the increase in the costs of construction materials creates optimal conditions for safe and profitable investments in the real estate market. This scenario translates into a perspective of increasing property values in the medium and long term,” said Kevin Savelski , from Grupo 8.66.
Operations and rentals
It is favorable to opt for purchasing in the project or construction stages, especially in the residential housing segment. A trend is observed towards values close to historical lows both in the used property market (according to Zonaprop in CABA they average USD 2,202 per m2) and in ventures in the construction or pre-sale phase.Leonardo Rodríguez Nader , from CMNV, pointed out that in CABA, where traditional and temporary rentals play a relevant role, the repeal of the Rental Law stimulated demand in both sectors. "However, in the Buenos Aires residential market, the choice of a project is influenced by various factors, such as design, construction quality, location in sought-after neighborhoods and accessibility to means of transportation, points of interest, amenities and services.”
With the relaxation of regulations in the rental market, the sector argues that it is a favorable time for owners to allocate their properties to traditional rentals (especially those that will be delivered before the end of the year), which can offer an annual return of up to 7% in dollars.
Preferences
Historically, small apartments, with 1 and 2 rooms, were the most in demand, mainly due to their price accessibility compared to larger units. The growing demand in recent years was largely driven by investors interested in temporary rental units.
In the last 2 or 3 years, a significant part of the demand for purchase in well was generated by investors interested in units intended for temporary rental
Rozemblum added: “There is a greater number of people who have between USD 80,000 and $120,000 in hand. Over the past 2-3 years, much of the demand was driven by investors interested in units intended for temporary rental. In several projects, these units were the first to be acquired. Typically, buyers of larger units, with the intention of using them as a primary residence, tend to enter the final stage of marketing, when delivery is near.”
Currently, part of the demand is focused on 3 and 4 room apartments. This surge in interest is partly attributed to a shift in buyer preferences, especially after the impact of the pandemic.
“Many are looking for more spacious homes, including the need to have an extra room to use as a study or work space, which drives the search for apartments with more rooms. Own and common amenities are privileged. From terraced balconies that promote an integration between inside and outside to spaces designed specifically for each need, such as event rooms, wine cellars, gyms and saunas,” said Savelski.
Securities and financing
Among the proposals, there are options in different areas both on Paseo del Bajo and in Balvanera, near Congress another mixed-use proposal is advancing, combining housing, workspace and commerce, according to Rodríguez Nader.
Part of the demand favors the demand for spacious and bright properties such as Terre La Imprenta, in Palermo.
The first offers studio apartments of 41.83 m2 and two-room apartments of 54.27 m2, with prices of USD 139,535 and USD 205,306 respectively. It can be financed with a 50% advance and 11 installments in pesos + Index of the Chamber of Construction (CAC). On the other hand, Balvanera, in the initial stage of construction, offers units of 1 (29.76 m2), 2 (59.52 m2) and 3 rooms (81.84 m2), with 30% advance financing. and 36 installments in pesos + CAC.
In Palermo, there are units with 2 well rooms starting at USD 2,950 per m2 and valuations starting at $143,700.
While in Caballito, a two-room apartment fluctuates depending on the project between USD 2,500 and USD 2,800 per m2.
Savelski concluded: “These prices may vary depending on the progress of the project and the characteristics of each unit. There are down payment options of 30% of the value of the property, with the remaining balance financed in installments until the keys are handed over.”
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