BuySellBA
Administrator
Real estate paradox: Why in some neighborhoods it is cheaper to buy an already built property than to pay for it from the well - Infobae
Source:
Paradoja inmobiliaria: por qué en algunos barrios es más barato comprar una propiedad ya construida que pagarla desde el pozo
En qué barrios se puede encontrar propiedades listas para habitar que ofrecen precios más accesibles que las aún en construcción. Una tendencia que redefine la inversión
www.infobae.com
April 17, 2024
Real estate paradox: Why in some neighborhoods it is cheaper to buy an already built property than to pay for it from the well
In which neighborhoods can you find ready-to-move-in properties that offer more affordable prices than those still under construction. A trend that redefines investment
By José Luis Cieri
In CABA, a phenomenon is being observed: in some neighborhoods, the price of purchasing brand new homes can be cheaper than buying off-the-shelf units. This is due to a combination of economic and market factors such as the evolution of construction costs
In the city of Buenos Aires, a trend is observed that breaks with tradition in the real estate market: in certain neighborhoods, the value per square meter of brand new properties is cheaper compared to units under construction, known as well, which historically They were always 20 or 30% cheaper on average than those that are ready to move into.
This phenomenon responds to a series of factors related to supply and demand, material costs that rise due to inflationary inertia (they are only now falling because product sales fell 11.2% month-on-month ) and risks associated with well projects, the strategic location and the dynamics of competition between developers.
The neighborhoods of San Nicolás, Caballito, Núñez, Recoleta, Coghlan, Villa Lugano and Villa Pueyrredón stand out within CABA for presenting this particular characteristic. This was confirmed by an analysis carried out by Daniel Bryn , a Real Estate expert and who conducts Real Estate Monitor.
In this context, Núñez is emerging as one of the neighborhoods with the greatest projection , even being compared with Puerto Madero for its potential for development and real estate appreciation. There, the average price per square meter for homes ready to move in is USD 2,777, in contrast to properties in the construction stage, whose value amounts to USD 2,874 per m2.
Bryn highlighted to Infobae : “In 14 neighborhoods of CABA, brand new apartments are offered at lower prices than those under construction. There it is cheaper brand new than buying from a well. Without going into comparisons of quality or location, given that each project has its particularities, it represents a challenge to disengage from certain ventures or start new ones.”
In Chacarita, another layout with potential, the value per brand new m2 is USD 2,576, while in the well it is $2,780.
The comparison, neighborhood by neighborhood
“Villa Lugano surprises with a large gap, where the value is USD 1,639 brand new and USD 2,001 under construction,” Bryn explained. In the San Nicolás neighborhood, brand new is USD 2,188 and vacant is USD 2,449, per m2.
Look at Palermo
Another example of this situation is also seen in the Palermo neighborhood where the average price per m2 for brand new units is around USD 3,000, while well-developed properties reach $3,330.Andrea Borges Do Canto , director at Alianza Urbana, said that “this discrepancy in prices is due to the high demand that remains in force in these areas, also adding the expectation of appreciation that accompanies the projects once completed. The possibility of financing and the volatility of construction costs in a fluctuating economic context establish an intrinsic value in the well properties, which potentially offers a return between 25% and 30% on the investment during the development of the work.
Trend
The real estate market is going through an adjustment process, emerging from a period of uncertainty that had slowed down investments and kept active, on the other hand, the demand for brand new properties.“In a more cautious ecosystem, there is a preference for two- and three-bedroom units in attractive areas, both for residents and tourists, and those that offer technological innovations in their finishes,” added Do Canto.
The purchase decision, whether for investment reasons or personal use, must consider additional aspects such as the possible depreciation of a new apartment once occupied, the initial expenses for its adaptation, the availability of the subdivision plan to proceed with the deed. , and other associated costs that may affect the final profitability of the investment.
Decision
Buying a brand new property in CABA presents several advantages that can be decisive for certain buyers, especially those looking for certainty and speed in the acquisition process, as well as the possibility of immediate occupation or putting the property up for rent.
Brand new properties allow prior visits to evaluate conditions and make specific observations before purchasing (Illustrative Image Infobae)
Brand new properties offer the opportunity to make prior visits, which allows interested parties to make specific observations before making the purchase, evaluate the lighting conditions, views and construction quality directly.
Do Canto explained: “This option attracts traditional investors with their own capital, favoring more advantageous negotiations and avoiding the risks of delays or changes in conditions, typical of well investments.”
Cost
The average value per m2 for brand new homes in CABA is around USD 2,500; Given these values, the total price of a brand new two-bedroom property is estimated on average at $130,000.This figure positions brand new homes as a competitive option within the real estate market, considering the cost-benefit relationship compared to well-stocked properties.
Brand new properties not only allow immediate occupancy, eliminating the need to carry out renovations or improvements before moving or renting, but they are also presented as a value proposition that stands out for being the most modern and attractive projects on the market.
“The preference for brand new homes over well-developed projects can be particularly marked in times of economic uncertainty, where buyers value the security and tangibility that a finished property offers,” Do Campo concluded.
www.buysellba.com
