“The cost of construction rose 40% in dollars during the first quarter,” said Miguel Ludmer, CEO of Interwin, at the Real Estate Summit, an event organized by El Cronista and Apertura magazine this Wednesday. In this context – in addition to the lack of some inputs – the creation of new ventures is affected and, as a consequence, the sale of housing units.
In turn, Ludmer explained that “the market has a lot of supply and demand. However, since we do not have bank credit, the number of people we can deal with to buy a property is limited.”
In addition, he commented: “All real estate ventures are done with credits. The idea of buying land with cash does not exist in the world. It is something rare and in Argentina it happens. Therefore, the day we recover mortgage loans, we are going to have a lot more work.”
And he continued: “Now, we see an upward trend. Both in construction costs and in the sales prices of the apartments. It is worrying because the costs have to be transferred to the sales prices. The problem is that demand can absorb those increases.”
Miguel Ludmer, CEO of Interwin, together with Hernn de Goi, journalistic director of El Cronista
For his part, Ivn Ginevra, CEO of GNV Group and president of the Argentine Real Estate Chamber, explained: “I don’t know if today the real estate market is dynamic. If we compare it with other sectors, we do continue to have movement. But we have had moments better not long ago.
Thus, he highlighted that “what maintains the dynamism of activity today is the expectation of an improvement in the medium term. It is similar to what is happening in the financial market: we are seeing how assets rise in price and, although they do not reflect “the current situation in Argentina does demonstrate an expectation of improvement.”
In this context, Ginevra explained that, currently, whoever invests in the real estate market in Argentina, “does so with the expectation that this political change will generate some transformation.” However, she explained that there are still difficulties in this context: “Everything that has to do with the cost of construction is a problem. It causes many projects to be delayed and that is affecting us.”
Despite this situation, the activity of the sector has remained relatively stable since 2023: “Beyond the fact that it was an electoral year, and that inflation exceeded 200%, last year was very active and this year it started from the same way. We see a eager market and that means that developers are eager to do ventures,” said Ludmer.
Looking to the future, meanwhile, Ginevra said: “There is a trend coming that is all the rage in Europe and Asia. These are companies that build their own residential buildings. Today, there are more than 100 firms that are making buildings with their own brands. Such are the cases of Gucci, Aston Martin, Porsche and Armani.” The businessman explained that they are residential buildings, but that they allow you to live “the brand experience.”
2024-04-11 04:22:33
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