BuySellBA
Administrator
Property prices without the exchange rate controls: here's what you need to know - La Nacion Propiedades
Source:
www.lanacion.com.ar
May 24, 2025
After six years of this restriction, the world of properties is being reconfigured.
By Maria Josefina Lanzi
The impact of the end of the currency controls on property prices
In a market bursting with demand for properties, the lifting of the restrictions was "the milestone" that remained pending for the real estate sector to fully take off, according to experts.
In a context where mortgage lending was on the rise in Argentina , thanks to 24 banks , and where the government finalized the agreement with the International Monetary Fund (IMF) , the elimination of the exchange restriction was one of the missing milestones to streamline operations and help keep the hornet's nest of demand alive. But, one month after the elimination of the currency controls, how did the market react, and what must be taken into account when operating in an economy where American currency is freely available?
“The quality of consultations has improved, and buyers are more determined,” says Martín Boquete, director of Toribio Achával, adding: “Furthermore, I see that demand has begun to accept higher prices , and I notice anticipation regarding the expected announcements regarding being able to use the dollars under the mattress to purchase.”
“The news was better than expected , and inquiries remain at very high levels. Many imagined that the official free exchange rate would be close to or closer to the upper exchange rate band (the floating band system established that the dollar would move between $1,000 and $1,400), but the opposite happened , as it positioned itself in the lower middle band,” says Fabián Achával, of the eponymous real estate agency. “This shows that there is a lot of confidence in the government and that it is managing to maintain macro and exchange rate stability, which is key to the real estate market.”
The elimination of the exchange restriction was one of the missing milestones to streamline operations and help keep the hornet's nest of demand burning.Shutterstock
The broker also highlights that the devaluation was very low : "In fact, the CPI is converging to levels lower than the initial point, something that was not expected, since they anticipated that inflation would rise between 3.5 and 6%, but we are again below 3%, something very important for confidence, for the macroeconomic situation and for the entrepreneurial market that is adjusted by CAC."
They also highlight the positive impact of last Sunday's elections (in the City of Buenos Aires). "During election times, there is usually greater exchange rate volatility and fewer transactions, but the fact that the results were favorable to the government implies support and positive expectations," Achával adds.
Other specialists , however , don't see much of an impact on the market . "The elimination of the clamp is positive, but it doesn't move the needle. We're seeing more inquiries, but they're due to stability, as the current market continues to be favorable relative to the well," analyzes Diego Cazes, general manager of LJ Ramos.
"It's a good sign to know that the amount of pesos you'll need to apply for a loan for the same amount of dollars won't continue to skyrocket. This speaks to stability, openness, certainty, and streamlining operations . It also means lower incomes to qualify for a loan and lower monthly payments," explains José Rozados, director of Reporte Inmobiliario.
In other words, the credit application process has become simpler , since, given the fluctuation range established between $1,000 and $1,400, it is known that the dollar will not exceed that barrier and, therefore, there is one less factor of instability when making the transaction.
Furthermore, Rozados clarifies that, “in this scenario, the used dollar was not devalued, but rather depreciated (decreased in value) in pesos compared to last week.” Given that the dollar used for mortgage loan transactions was the MEP and it closed on Friday, April 11, prior to the end of the currency controls at $1,362.74, when compared to the official rate today - which is the one being used now to buy dollars and thus acquire properties with the money from the credit - which is $1,175 (although it has fluctuated since the elimination of the currency controls): if someone wanted to buy a property with a mortgage of US$100,000 on the Friday before the currency controls were lifted, they needed $136,274,000, but today they would need $117,500,000, that is, $18,774,000 less .
In recent weeks, 12 banks have again raised interest rates for mortgage loans.Gonzalo Colini
It's no small matter that, in recent weeks, 12 banks have again raised mortgage interest rates , making this tool more expensive and reducing the number of people who can access this instrument and, consequently, own a home.
Indeed, 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 increased by only 11.13% in the same period, something that keeps developers on tenterhooks as they analyze how to sell, obtaining a profit that allows them to face a project again.
"The sector that benefits the most within the real estate market is, without a doubt, the used residential sector, because it still has prices at 2006 real estate prices and there is still a lot of supply ," explains Fabián Achával, of the real estate company of the same name.
One of the indicators 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 . Ari Milsztejn, CEO of Grupo AM Internacional, recently acknowledged at Expo Constructor: " There are no more than six months of used stock left. Mortgage loans will drive it, and new stock must come next to leverage this lack of stock."
www.buysellba.com
Source:
Precio de las propiedades sin el cepo cambiario: esto es lo que hay que saber
Luego de seis años de que existiera esta restricción, el mundo de las propiedades se reconfigura
www.lanacion.com.ar
May 24, 2025
After six years of this restriction, the world of properties is being reconfigured.
By Maria Josefina Lanzi
The impact of the end of the currency controls on property prices
In a market bursting with demand for properties, the lifting of the restrictions was "the milestone" that remained pending for the real estate sector to fully take off, according to experts.
In a context where mortgage lending was on the rise in Argentina , thanks to 24 banks , and where the government finalized the agreement with the International Monetary Fund (IMF) , the elimination of the exchange restriction was one of the missing milestones to streamline operations and help keep the hornet's nest of demand alive. But, one month after the elimination of the currency controls, how did the market react, and what must be taken into account when operating in an economy where American currency is freely available?
“The quality of consultations has improved, and buyers are more determined,” says Martín Boquete, director of Toribio Achával, adding: “Furthermore, I see that demand has begun to accept higher prices , and I notice anticipation regarding the expected announcements regarding being able to use the dollars under the mattress to purchase.”
“The news was better than expected , and inquiries remain at very high levels. Many imagined that the official free exchange rate would be close to or closer to the upper exchange rate band (the floating band system established that the dollar would move between $1,000 and $1,400), but the opposite happened , as it positioned itself in the lower middle band,” says Fabián Achával, of the eponymous real estate agency. “This shows that there is a lot of confidence in the government and that it is managing to maintain macro and exchange rate stability, which is key to the real estate market.”
The elimination of the exchange restriction was one of the missing milestones to streamline operations and help keep the hornet's nest of demand burning.Shutterstock
The broker also highlights that the devaluation was very low : "In fact, the CPI is converging to levels lower than the initial point, something that was not expected, since they anticipated that inflation would rise between 3.5 and 6%, but we are again below 3%, something very important for confidence, for the macroeconomic situation and for the entrepreneurial market that is adjusted by CAC."
They also highlight the positive impact of last Sunday's elections (in the City of Buenos Aires). "During election times, there is usually greater exchange rate volatility and fewer transactions, but the fact that the results were favorable to the government implies support and positive expectations," Achával adds.
Other specialists , however , don't see much of an impact on the market . "The elimination of the clamp is positive, but it doesn't move the needle. We're seeing more inquiries, but they're due to stability, as the current market continues to be favorable relative to the well," analyzes Diego Cazes, general manager of LJ Ramos.
And the mortgage loan?
Experts explain that, in the case of used properties, which are currently available for purchase with a mortgage loan, the end of the restrictions always speeds up transactions and provides greater predictability . "The most positive effect is that credit signings are faster," says Soledad Balayan, owner of Maure Properties."It's a good sign to know that the amount of pesos you'll need to apply for a loan for the same amount of dollars won't continue to skyrocket. This speaks to stability, openness, certainty, and streamlining operations . It also means lower incomes to qualify for a loan and lower monthly payments," explains José Rozados, director of Reporte Inmobiliario.
In other words, the credit application process has become simpler , since, given the fluctuation range established between $1,000 and $1,400, it is known that the dollar will not exceed that barrier and, therefore, there is one less factor of instability when making the transaction.
Furthermore, Rozados clarifies that, “in this scenario, the used dollar was not devalued, but rather depreciated (decreased in value) in pesos compared to last week.” Given that the dollar used for mortgage loan transactions was the MEP and it closed on Friday, April 11, prior to the end of the currency controls at $1,362.74, when compared to the official rate today - which is the one being used now to buy dollars and thus acquire properties with the money from the credit - which is $1,175 (although it has fluctuated since the elimination of the currency controls): if someone wanted to buy a property with a mortgage of US$100,000 on the Friday before the currency controls were lifted, they needed $136,274,000, but today they would need $117,500,000, that is, $18,774,000 less .
In recent weeks, 12 banks have again raised interest rates for mortgage loans.Gonzalo Colini
It's no small matter that, in recent weeks, 12 banks have again raised mortgage interest rates , making this tool more expensive and reducing the number of people who can access this instrument and, consequently, own a home.
What will happen to real estate developers?
Although demand for used properties is growing (since these properties can be accessed with a mortgage), real estate developers' concerns are also growing . "One month after the lifting of the restrictions, I'm noticing developers' concern about the cost of construction in dollars; they're all traveling to China to prepare for imports," Boquete shares.Indeed, 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 increased by only 11.13% in the same period, something that keeps developers on tenterhooks as they analyze how to sell, obtaining a profit that allows them to face a project again.
"The sector that benefits the most within the real estate market is, without a doubt, the used residential sector, because it still has prices at 2006 real estate prices and there is still a lot of supply ," explains Fabián Achával, of the real estate company of the same name.
One of the indicators 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 . Ari Milsztejn, CEO of Grupo AM Internacional, recently acknowledged at Expo Constructor: " There are no more than six months of used stock left. Mortgage loans will drive it, and new stock must come next to leverage this lack of stock."
www.buysellba.com
