What to expect within the Argentine realty sector for this year.

Posted by

Ruben Rojkes, expert Argentinian construction Engineer.

Argentina encompasses a housing deficit of about three million homes. This deficit increases at a rate of approximately 36,000 homes per year. In addition, of 12.two million total households, 16 p.c correspond to rental housing, which is like concerning two million families.

When the normalization of the foreign exchange market in 2015, there was a push in construction and also the mortgage sector in Argentina, however soon once, in 2018, the indications of the residential construction sector contracted again significantly, plus investment in infrastructure due to the impact of the exchange rate and the requirement for fiscal adjustment.

Abundant has been said regarding the crisis in the real estate sector in Argentina in recent times, these days we tend to speak with engineer Ruben Rojkés, founder of Avanco, a true estate developer with twenty five years of experience within the Argentine market; who will share with us his vision for Tucumán.

The residential sector, that had boomed in recent times, has suffered from Argentina’s money crisis throughout the last years, with from the high inflation currently existing in the country. Inflation in particular is increasingly changing into the main concern for developers facing new realty projects. As a result of a rise in the worth of land and in the price of construction, investment in the residential sector has significantly decreased over the past months.

During this regard, Rojkés tells us that whereas families grow, young folks become independent and demand moves, all of them face the same drawback: “the lack of financing for the middle class sectors, that may be a chronic downside of the country”.

In keeping with the latest knowledge provided by the Association of Notaries Public of the Town of Buenos Aires, the overall amount of property purchase and sale deeds registered in the tenth month of 2018 a decrease of 40.7% from the level of 1 year before , when adding 3,669 records, whereas the total amount of transactions created grew 18.5% to $ seventeen,728 million.

Regarding expectations, Ruben Rojkés, like several other entrepreneurs in the real estate sector, agrees that the elections will have a great impact on the economy and so have a direct impact on the important estate market.