BuySellBA
Administrator
"Price them right and don't ruin Doña Rosa's pocket": The surprising claim from those building real estate projects - La Nacion Propiedades
Source:
www.lanacion.com.ar
May 19, 2025
Industry experts analyze rising construction costs and possible measures to adjust prices.
By Maria Josefina Lanzi
Developers say real estate agents underprice used apartments.Gonzalo Colini
In the midst of a market that is on fire after the mortgage credit boom in Argentina a year ago , some sectors of the real estate industry remain concerned about the sharp rise in construction costs over the last year and the relative inconsistency in property prices .
In the midst of a market that has seen a 98% increase in construction costs in dollars since October 2023 , according to data from Zonaprop, average prices per square meter have increased by only 11.13% in the same period, something that has developers on edge as they analyze how to face this situation with resilience.
Ari Milsztejn, CEO of Grupo AM Internacional, encouraged people to focus on the film and not just the photo, which represents only a moment. He stated: "Our business is long-term; we have projects lasting around four years."
He also addressed the importance of addressing construction costs, noting: “ It's important to lower costs, although prices also need to rise. We need to get the market to reconsider prices that were realistic and understand that the values being handled weren't. At the same time, we need to work together with other sectors, importing together, so as not to kill the domestic industry.”
Both concepts were part of one of the panels held at Expo Construir, a meeting that brought together more than 30,000 members of the industry over two days.
Lucas Salim, CEO & Founder of Grupo Proaco, agreed with Milsztejn, noting: " The sector is not facing accelerated cost increases, but rather a return to normal . Today, with these costs, we no longer resemble Venezuela."
Speaking about the sector's timeframe, he noted: "Our business is long-term. We have projects we're delivering now, but which we started four years ago, so you can't stop a project today and restart it tomorrow, due to a rise in the dollar or in costs. If you're in this industry, I recommend not thinking about the day-to-day ; it's a long-term business. I think it's a mistake to keep looking at the snapshot every day."
Construction costs in dollars have increased by 98% since October 2023, according to data from Zonaprop.Rodrigo Nespolo
Another indicator that bodes well and was identified as essential by several players in the sector is the absorption of the stock of used properties for sale .
Milsztejn acknowledged on his panel that " there are no more than six months of used stock left, mortgage lending will drive it, and new stock will have to come next to offset this lack of stock."
Duel between real estate agents and developers?
" The real estate brokers were having a party, they got tired of selling, they forgot about the real estate developers . But three or four months ago, they rang our doorbell again because stock was running out," Salim added.
He also noted that "Doña Rosa is going out to restock, but she can't afford it. A message to our real estate partners is: Guys, the prices we had in Argentina are gone. Let's price it right, don't break Doña Rosa's pocket , because she'll go looking for properties to buy, and since there's little stock left, she won't buy anything for the prices she sold it for."
Industry experts say the stock of properties for sale is running out.ricardo-pristupluk-11511
In numbers, Issel Kiperszmid, head of DYPSA Group, revealed that “ in 2022, there were 165,000 units for sale in CABA; today there are 103,000, but at the pace we're going, we'll probably drop to 65,000 by September of this year , i.e., stock levels from 2017.”
At the same time, demand is growing: the absorption time for real estate supply is around 1.6 years, more than six times lower than the maximum (10.3 years in mid-2020) and "also below the historical average of three years," says Fabián Achával of the eponymous real estate agency. In other words, in February, it took 1.6 years to sell all the properties listed at that time on Zonaprop, while in mid-2020, that number rose to more than 10 years, according to figures from Radar Inmobiliario.
He also alluded to the importance of developing public policies to promote this: “ It's not just about banks getting their act together and lending, but about the government understanding how access to housing and credit works. In other countries, there are state policies regarding access to housing; in the interior, we have an average income far below what you'd find in large urban centers, so the income-to-income ratio is extremely strong; we're not doing anything.”
They also agreed on the importance of lowering rates and improving conditions so that everyone can access them. “ Mortgage lending is absolutely dynamic, but obviously we still need to improve interest rates (as they have a significant impact on the payment) and conditions, since per capita income in most inland cities is still low,” Milsztejn concludes.
www.buysellba.com
Source:
“Tasen bien y no maten el bolsillo de Doña Rosa”: El sorpresivo reclamo de los que construyen proyectos inmobiliarios
Especialistas del sector analizan el aumento de los costos de la construcción y las posibles medidas para que los precios se acomoden
www.lanacion.com.ar
May 19, 2025
Industry experts analyze rising construction costs and possible measures to adjust prices.
By Maria Josefina Lanzi
Developers say real estate agents underprice used apartments.Gonzalo Colini
In the midst of a market that is on fire after the mortgage credit boom in Argentina a year ago , some sectors of the real estate industry remain concerned about the sharp rise in construction costs over the last year and the relative inconsistency in property prices .
In the midst of a market that has seen a 98% increase in construction costs in dollars since October 2023 , according to data from Zonaprop, average prices per square meter have increased by only 11.13% in the same period, something that has developers on edge as they analyze how to face this situation with resilience.
Ari Milsztejn, CEO of Grupo AM Internacional, encouraged people to focus on the film and not just the photo, which represents only a moment. He stated: "Our business is long-term; we have projects lasting around four years."
He also addressed the importance of addressing construction costs, noting: “ It's important to lower costs, although prices also need to rise. We need to get the market to reconsider prices that were realistic and understand that the values being handled weren't. At the same time, we need to work together with other sectors, importing together, so as not to kill the domestic industry.”
Both concepts were part of one of the panels held at Expo Construir, a meeting that brought together more than 30,000 members of the industry over two days.
Lucas Salim, CEO & Founder of Grupo Proaco, agreed with Milsztejn, noting: " The sector is not facing accelerated cost increases, but rather a return to normal . Today, with these costs, we no longer resemble Venezuela."
Speaking about the sector's timeframe, he noted: "Our business is long-term. We have projects we're delivering now, but which we started four years ago, so you can't stop a project today and restart it tomorrow, due to a rise in the dollar or in costs. If you're in this industry, I recommend not thinking about the day-to-day ; it's a long-term business. I think it's a mistake to keep looking at the snapshot every day."
Construction costs in dollars have increased by 98% since October 2023, according to data from Zonaprop.Rodrigo Nespolo
When will the developers' tables turn?
Speaking about costs, Magdalena Day, director of Grupo Mday, revealed that half of Argentina's construction sector has been in China, seeking price advantages. " In mid- and high-end products, the technology, design, and quality are greater and make a difference . On the low end, between the costs of nationalization and freight, it's not worth it," Day stated, adding: " I was surprised by the interest of Chinese companies in coming and locating part of their assembly here ."Another indicator that bodes well and was identified as essential by several players in the sector is the absorption of the stock of used properties for sale .
Milsztejn acknowledged on his panel that " there are no more than six months of used stock left, mortgage lending will drive it, and new stock will have to come next to offset this lack of stock."
Duel between real estate agents and developers?
" The real estate brokers were having a party, they got tired of selling, they forgot about the real estate developers . But three or four months ago, they rang our doorbell again because stock was running out," Salim added.
He also noted that "Doña Rosa is going out to restock, but she can't afford it. A message to our real estate partners is: Guys, the prices we had in Argentina are gone. Let's price it right, don't break Doña Rosa's pocket , because she'll go looking for properties to buy, and since there's little stock left, she won't buy anything for the prices she sold it for."
Industry experts say the stock of properties for sale is running out.ricardo-pristupluk-11511
In numbers, Issel Kiperszmid, head of DYPSA Group, revealed that “ in 2022, there were 165,000 units for sale in CABA; today there are 103,000, but at the pace we're going, we'll probably drop to 65,000 by September of this year , i.e., stock levels from 2017.”
At the same time, demand is growing: the absorption time for real estate supply is around 1.6 years, more than six times lower than the maximum (10.3 years in mid-2020) and "also below the historical average of three years," says Fabián Achával of the eponymous real estate agency. In other words, in February, it took 1.6 years to sell all the properties listed at that time on Zonaprop, while in mid-2020, that number rose to more than 10 years, according to figures from Radar Inmobiliario.
What will happen to mortgage loans?
All the brokers discussed the importance of developing secondary lending markets to boost mortgage lending. "If there isn't a securitization market, banks won't lend money," Day asserted.He also alluded to the importance of developing public policies to promote this: “ It's not just about banks getting their act together and lending, but about the government understanding how access to housing and credit works. In other countries, there are state policies regarding access to housing; in the interior, we have an average income far below what you'd find in large urban centers, so the income-to-income ratio is extremely strong; we're not doing anything.”
They also agreed on the importance of lowering rates and improving conditions so that everyone can access them. “ Mortgage lending is absolutely dynamic, but obviously we still need to improve interest rates (as they have a significant impact on the payment) and conditions, since per capita income in most inland cities is still low,” Milsztejn concludes.
www.buysellba.com
