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Properties at the new official dollar: What will happen to property prices in May 2025? - La Nacion Propiedades
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www.lanacion.com.ar
May 07, 2025
The government established a dollar band system that ranges between $1,000 and $1,400; how it impacts property prices
With the end of the exchange rate restrictions, there are new rules in the real estate market. Shutterstock
With the lifting of the exchange rate restrictions , announced by the government on Friday, April 11, the rules of the financial market in general and the real estate market in particular changed . With this measure, the market began to operate without restrictions after six years, and a dollar band system was established, ranging between $1,000 and $1,400 .
This change directly impacts a market that has been experiencing a recovery since the return of UVA (Purchasing Value Unit) mortgage loans, and consequently, a demand that until recently had no opportunity to access their own homes.
Therefore, the change is noticeable not only in the dynamics of purchase and sale transactions , but also in the value of properties in pesos , particularly those acquired through a bank loan.
The numbers reflect this new market scenario . In March, 4,747 deeds were signed in the City of Buenos Aires , 10.94% more than in February and 39.66% more than the same month last year. Twenty percent of these transactions were carried out with a mortgage , according to the Buenos Aires Notary Association. A year ago, that figure was almost nonexistent. So far this year, nearly 3,000 mortgage transactions have already been registered, compared to fewer than 250 in the same period in 2024. Meanwhile, property listing values grew 8.8% in the last 12 months , according to the April Zonaprop report.
Now, with a more competitive official dollar and exchange rate predictability, the peso value of properties denominated in dollars has dropped significantly in just a few days . This means fewer pesos are needed to convert to dollars and complete the transaction.
The lifting of the restrictions has a direct impact on mortgage purchase transactions. Shutterstock
This is because, until the last day of the currency controls, the exchange rate used to calculate loans was the Mexican peso , which closed at $1,362.74 on Friday, April 11. Today, with the official dollar around $1,190, the price of a financed property drops significantly in pesos.
However, it should not be forgotten that this drop in pesos applies primarily to mortgage purchases , which until now were made using the Mexican peso . In other words, the drop is not due to a drop in the value of properties in dollars, but rather to a change in the exchange rate used for the transaction.
On the other hand, it should not be forgotten that if we take the official dollar as a reference , which is the exchange rate at which free trading is now permitted, the situation was very different in the first days after the end of the currency controls: on the last day of the currency controls, the official dollar was quoted at $1,097.5 , and on the first day without restrictions it opened at $1,250 , which implied an immediate devaluation of 14% . Although in the following days the value fluctuated between $1,100 and $1,250, the initial impact marked a price adjustment.
In other words, if analyzed in terms of the official dollar, there was an increase in the value in pesos of nearly 14% at the start of the new scheme , which was later partially corrected. This shows that the impact on the market can vary depending on the type of transaction and the time of purchase.
With the lifting of the restrictions, the price of a financed property falls significantly in pesos compared to the MEP value on the last day of the restrictions.Gonzalo Colini
When analyzing by neighborhood, using a two-bedroom unit as a reference, Puerto Madero remains on the podium of the most expensive , with a value of US$6,153/m² . Palermo and Núñez follow , with US$3,363/m² and US$3,182/m² , respectively. On the other hand, Lugano is the neighborhood with the lowest listing prices, with values of US$1,118/m² . Nueva Pompeya (US$1,435/m²) and Parque Avellaneda (US$1,519/m²) complete the ranking of the most affordable neighborhoods.
The housing segment is a separate issue. It's priced below apartments per square meter, at US$1,766. In terms of numbers, a two-bedroom home has a median price of US$292,625 , while a three-bedroom home costs US$470,907.
www.buysellba.com
Source:
Propiedades al nuevo dólar oficial: qué pasa con el precio de las propiedades en mayo 2025
El Gobierno estableció un esquema de bandas en el dólar que se mueve entre los $1000 y $1400; cómo impacta en el precio de las propiedades
www.lanacion.com.ar
May 07, 2025
The government established a dollar band system that ranges between $1,000 and $1,400; how it impacts property prices
With the end of the exchange rate restrictions, there are new rules in the real estate market. Shutterstock
With the lifting of the exchange rate restrictions , announced by the government on Friday, April 11, the rules of the financial market in general and the real estate market in particular changed . With this measure, the market began to operate without restrictions after six years, and a dollar band system was established, ranging between $1,000 and $1,400 .
This change directly impacts a market that has been experiencing a recovery since the return of UVA (Purchasing Value Unit) mortgage loans, and consequently, a demand that until recently had no opportunity to access their own homes.
Therefore, the change is noticeable not only in the dynamics of purchase and sale transactions , but also in the value of properties in pesos , particularly those acquired through a bank loan.
The numbers reflect this new market scenario . In March, 4,747 deeds were signed in the City of Buenos Aires , 10.94% more than in February and 39.66% more than the same month last year. Twenty percent of these transactions were carried out with a mortgage , according to the Buenos Aires Notary Association. A year ago, that figure was almost nonexistent. So far this year, nearly 3,000 mortgage transactions have already been registered, compared to fewer than 250 in the same period in 2024. Meanwhile, property listing values grew 8.8% in the last 12 months , according to the April Zonaprop report.
Now, with a more competitive official dollar and exchange rate predictability, the peso value of properties denominated in dollars has dropped significantly in just a few days . This means fewer pesos are needed to convert to dollars and complete the transaction.
The lifting of the restrictions has a direct impact on mortgage purchase transactions. Shutterstock
How the end of the currency controls impacts property prices
"It's a positive sign to know that the amount of pesos you'll need to exchange the same dollars won't continue to skyrocket," explains José Rozados, director of Reporte Inmobiliario. According to the specialist, the exchange rate liberalization reduces uncertainty and the cost of properties in pesos , which facilitates access to mortgage loans, lowers the income requirements for qualification, and reduces installments.This is because, until the last day of the currency controls, the exchange rate used to calculate loans was the Mexican peso , which closed at $1,362.74 on Friday, April 11. Today, with the official dollar around $1,190, the price of a financed property drops significantly in pesos.
However, it should not be forgotten that this drop in pesos applies primarily to mortgage purchases , which until now were made using the Mexican peso . In other words, the drop is not due to a drop in the value of properties in dollars, but rather to a change in the exchange rate used for the transaction.
On the other hand, it should not be forgotten that if we take the official dollar as a reference , which is the exchange rate at which free trading is now permitted, the situation was very different in the first days after the end of the currency controls: on the last day of the currency controls, the official dollar was quoted at $1,097.5 , and on the first day without restrictions it opened at $1,250 , which implied an immediate devaluation of 14% . Although in the following days the value fluctuated between $1,100 and $1,250, the initial impact marked a price adjustment.
In other words, if analyzed in terms of the official dollar, there was an increase in the value in pesos of nearly 14% at the start of the new scheme , which was later partially corrected. This shows that the impact on the market can vary depending on the type of transaction and the time of purchase.
With the lifting of the restrictions, the price of a financed property falls significantly in pesos compared to the MEP value on the last day of the restrictions.Gonzalo Colini
How much does a property cost?
In concrete numbers, according to the latest report from Zonaprop, in the city of Buenos Aires, an average 40 m² studio apartment has a listing value of US$106,031. Meanwhile, a 50 m² one-bedroom apartment averages US$127,531 , while a 70 m² two-bedroom apartment reaches US$175,249 .When analyzing by neighborhood, using a two-bedroom unit as a reference, Puerto Madero remains on the podium of the most expensive , with a value of US$6,153/m² . Palermo and Núñez follow , with US$3,363/m² and US$3,182/m² , respectively. On the other hand, Lugano is the neighborhood with the lowest listing prices, with values of US$1,118/m² . Nueva Pompeya (US$1,435/m²) and Parque Avellaneda (US$1,519/m²) complete the ranking of the most affordable neighborhoods.
The housing segment is a separate issue. It's priced below apartments per square meter, at US$1,766. In terms of numbers, a two-bedroom home has a median price of US$292,625 , while a three-bedroom home costs US$470,907.
www.buysellba.com
