The end of Procrear has been announced and the severance mortgage has been launched

This new mechanism that is expected to be implemented at national level will allow real estate projects to be mortgaged by functional unit, instead of waiting for the completion of a complete project. The government released the trust fund that supported the Procrear program and implemented divisible mortgages for real estate projects in development, better known as “in-well” real estate.

Procrear, created in 2012 under the leadership of Cristina Fernández Kirchner, offered credit lines subsidized by the national State for access to housing. Now the trust fund that supported it has been dissolved, but the works in progress will be liquidated for third parties until they are finished and then they can only be obtained through credit.

Likewise, the beneficiaries of the Procrear program who still have debts will continue to pay the loan but through the Mortgage Bank, “under the same payment conditions as those established in the Agreement of Trust signed on July 18, 2012 for these efforts.”

This new project of divisible mortgages allows real estate projects in the hands of developers to be mortgaged by a functional unit, instead of the whole building or the whole lot as happened until now. This prevented the units from being sold on credit as they could not be executed. Now that possibility will be open to small investors.

“This means that construction companies will be able to pay off their loans little by little, and as they do so, apartments will be released for activity. Buyers will also have access to mortgage loans to get any functional unit in a well,” he explained. former president of the Specialized College of Real Estate Brokers in the City of Buenos Aires (CUCICBA), Marta Liotto.

On the one hand, the construction company had requested a loan to develop the project and had to pay in full to be able to execute the building in the name of the buyer and, according to Liotto, this “disgusting sale”.

From the real estate market they expect improvements to be “accelerated” thanks to the mortgage sector. In addition, they emphasize that it is a deregulation that they have been waiting “for years” and position themselves as “the first market in the world”.

“It’s something that we in the property sector, along with developers and construction companies, have been calling for for a long time. We have been asking for it from the Mauricio Macri administration when they launched mortgage loans and it was not possible at that time. This initiative will accelerate developments and access to housing,” said Liotto.

Ezequiel Wierzba, from WGW Desarrollos, said that this measure will help “sales” and “funding” of functional units in well projects. This would help “invigorate” the property market and provide “more flexibility” for developers and buyers, while expanding supply.

The value of the square meter (m2) in a well is currently in a strong upward trend after rent deregulation and is close to the price of a new apartment, between US$2,741 and US$2,745, respectively according to the Zonaprop study . On the other hand, the m2 of used ones is much lower at US$2,138.

“With this measure, the Government aims to make the market for subsidized properties even more active and this could not only increase demand, but is also likely to put pressure on prices, to especially if more customers are able to take advantage of divisible mortgages. to get units in new projects,” said Wierzba.