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What are the construction cost projections for December 2025? - La Nacion Propiedades
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¿Cuáles son las proyecciones de costos de construcción para diciembre 2025?
Un sector que evidenció una importa suba en sus costos, revela cómo espera que avancen los precios de ahora en adelante
www.lanacion.com.ar
December 02, 2025
A sector that experienced a significant increase in its costs reveals how it expects prices to evolve from now on.
In October, the cost of construction measured in US dollars fell by 1.5%, compared to the previous month.Shutterstock
In a context of uncertainty for the construction sector , some specialists anticipate possible scenarios for the remainder of the year
Indeed, the current outlook for real estate developers is complex , as profitability is in the red. The issue is that construction costs in dollars rose sharply in late 2023 and early 2024, continued to rise in 2025, but this trend reversed in the last month .
While the increase in pesos was 1.6% compared to the previous month, according to the construction cost index compiled by the National Institute of Statistics and Censuses of the Argentine Republic ( INDEC ). This result stems from increases of 2.1% in materials , 1.3% in labor , and 1.6% in overhead costs .
But the result was different in dollars . In October, construction costs measured in US currency fell by 1.5% , according to Zonaprop. However, they remain 94% higher than the level of October 2023, when the presidential elections were held. Building today costs 2.9 times more than it did in 2020—the lowest point in the series.
In more concrete terms, the average price per square meter for saleable used properties in Buenos Aires was US$2,214 in October, according to Zonaprop, while the average price per square meter for properties under construction (off-plan) was US$3,032. This situation complicates developers' profitability, as they sometimes have to sell for less than their construction costs because the public doesn't accept their prices . Another alternative is to wait for the existing stock of used properties to sell off, hoping that demand will accept the off-plan price.
Regarding the October data, the costs to build a typical building in the city of Buenos Aires grew 2.3% points compared to September, according to the Camarco Indicator, and the accumulated total for 2025 reached 18.3% .
The costs to build a typical building in the city of Buenos Aires grew 2.3% in OctoberRicardo Pristupluk
A survey conducted at the end of May among business owners in the sector confirms this indicator of the situation. 69% of them reported experiencing a decrease in their level of activity compared to last year. These figures come from the 26th edition of the Construya Opinion Study, carried out between March 31 and April 25, 2025, with the participation of 506 professionals from across the value chain nationwide
What do the experts say?
“Construction costs are not expected to continue rising significantly. However, with the recent election results, the currency is likely to remain below the projected range, and there are no indications of further increases. It could even experience a slight decrease, bringing costs back to previous levels,” says Juan Manuel Tapiola, CEO of the developer Spazios. “ My projection is that, in the coming months, prices will continue to adjust downwards ,” he adds.For his part, Germán Gómez Picasso, founder of Reporte Inmobiliario, adds that “ no shock is expected for construction costs in pesos in the coming months; they will surely continue at the same pace as the rest of the goods and services.”
However, there is a clear limit: since construction is not operating at full capacity, prices cannot rise too much because the market would not validate them .
On the other hand, there are factors expected to impact prices in the short term . “While mortgage lending has not yet recovered, the sector's expectations have improved considerably. I estimate that developers will begin to reactivate operations and acquire land, given that the outlook for the next two years is favorable: a more balanced Congress, progress on the new labor regulations, and potential tax improvements paint a positive picture,” Tapiola adds.
Issel Kiperszmid, CEO of DYPSA Group and founder and vice president of the Chamber of Urban Developers, maintains that “ the recent increase has not been substantial , because activity was restricted due to pre-election uncertainty. But undoubtedly, based on the effects being seen after the elections, there is a strong positive shift in expectations.”
Developers expect cost stability. Daniel Basualdo
Regarding what's to come, the developer expects cost stability. "Importers have stockpiles of imported supplies, and in general, Argentine plants that produce construction materials have considerable idle capacity; none are operating at full capacity." Therefore, " a substantial increase in costs is not expected in the coming months ."
Along these lines, Tapiola adds that the lower costs of imported products have only a small impact . “Imported finishes, from China for example—flooring, furniture, electrical appliances, and other supplies—allow for a significant reduction in costs. When these materials become cheaper or are imported without restrictions, the potential savings are around 60%. But in a standard building, this represents only 22% of the total construction cost . In other words, that 60% savings ends up translating into an 11% reduction in the overall project cost.”
To that reduction, we must add another key but more difficult-to-import item: iron. If it can also be imported without restrictions, it will impact another 6% of the total cost. Overall, the opening up of imports is starting to make a difference, but in the final cost, it represents a small portion that wouldn't lead to significant price reductions .
In summary, “the climate in the sector is encouraging and everything indicates that a new stage of dynamism for real estate development is coming,” Tapiola summarizes.
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