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What are the construction cost projections for November 2025? - La Nacion Propiedades
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Cuáles son las proyecciones de costos de construcción para noviembre 2025
Un sector que experimentó una fuerte retracción en su actividad en el 2024, revela cómo espera que avancen los precios de ahora en adelante
www.lanacion.com.ar
October 31, 2025
A sector that experienced a sharp decline in activity in 2024 reveals how it expects prices to move forward from now on.
Construction costs continue to rise, and their values are increasingly diverging from used market prices.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, while construction costs in dollars rose sharply in late 2023 and early 2024, accumulating an 82.43% increase from January 2024 to September 2025, the average price per square meter of saleable space in the city only increased by 11.95% during the same period.
Regarding the September increases, the cost of constructing a typical building in the city of Buenos Aires rose 3.3% compared to August, according to the Camarco Indicator, while the accumulated increase for 2025 reached 15.7% . This contrasts with the 3.09% accumulated increase for used apartments.
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.
A survey conducted at the end of May among business owners in the sector confirms this trend. 69% of them reported a decrease in their activity levels 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.
The costs to build a typical building in the city of Buenos Aires in September increased by 3.3% compared to August.
What do the experts say?
“Construction costs are not expected to continue rising significantly: September saw a slight increase of around 3%, linked to the rise in the dollar. However, with the recent election results, the currency is expected to remain below the projected range, and there are no forecasts indicating 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; the doubt lies in the costs in dollars, with the dollar in the current bands, they will inevitably remain at high levels.”
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 .
Experts expect cost stability. Daniel Basualdo
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 increase in the last month has not been substantial , because activity was restricted due to pre-election uncertainty. But undoubtedly, the changes we are seeing after the elections have led to a strong positive shift in expectations.”
Looking ahead, the developer expects stable costs. “Importers have stockpiles of imported materials, and in general, Argentine plants that produce construction materials have considerable idle capacity; none are operating at full capacity.” Therefore, “no substantial increase in costs is expected in the coming months.”
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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