The construction of a home or a commercial project is one of the most important and significant decisions in life. One of the most relevant aspects at the time of making this investment is find out the price per square meter.
Over the years, the price per m2 has varied depending on various economic, political and social factors that influence the Argentine real estate market, which is why in this article we will analyze the current situation that awaits us in 2023. .
What is the price per square meter in Argentina?
In Argentina, the value of the square meter is an economic indicator that has undergone changes based on various factors.
According to data from the National Institute of Statistics and Censuses (INDEC), in January 2022 there was a 50.3% year-on-year increase in the cost of construction. In turn, in December 2022, the total amount of work amounted to $22,391,759.72and the value of the square meter with social charges and taxes reached $221,482.
Already, by January 2023, there has been a rise of 6.2% in reaction to the previous month. These figures show the relevance of monitoring and understanding the evolution of construction prices in the country.
Although the price per square meter has been increasing in recent years, it is important to note that there have also been fluctuations in the market. For example, in the year 2019, the cost of construction registered an increase of 40.8% year-on-year in the month of Decemberwhile in 2020 the year-on-year increase was 31.5% in the same month.
All this makes the price per square meter variable and difficult to predict in the short term.
Factors that influence the price per square meter in Argentina
Besides the material shortages and increased taxes and fiscal costsamong others, in general, inflation and currency devaluation are the most important factors, since they impact the cost of materials and labor.
All this makes the price per square meter variable and difficult to predict in the short term. Knowing this, it is essential to be aware of market fluctuations and keep in mind that although the cost may go up, it is still a good time to build.
The reasons behind this phenomenon are diverse and complex. However, we can identify some key factors.
Inflation, lack of inputs and demand
Inflation is one of the most important factors to consider in construction, since it its impact can be caused by various reasonssuch as the increase in the demand for goods and services, the scarcity of resources, the increase in production costs, political instability and the devaluation of the currency, among others.
In Argentina, inflation is a recurring problem that significantly affects the cost of construction, raising the price of materials, labor and other inputs necessary to build homes and buildings.
The lack of resources increases this problem due to the distortion of prices due to the current economic situation. For example, the lack of materials to build swimming pools for a house, such as iron mesh, concrete and tiles or ceramics, as well as the necessary materials to equip gardens, has led to an increase in the prices of these inputs.
The price of building increased in pesos more than 60% in one year
Another factor that can influence the increase in the price per square meter, especially in the best urban areas, is demand. The growing population and urbanization in Argentina have generated an increasing demand for housing and buildings, which can contribute to the price increase.
What the real estate reports say
Various real estate reports provide information on the prices of the real estate industry in Argentina and its trends.
One of them is the report of the Argentine Chamber of Construction, which carries out a quarterly survey of construction costs in the country. According to the report for the third quarter of 2022, the cost per square meter in Argentina increased by 5.7% in relation to the previous quarter.
On the other hand, the construction cost index (ICC) prepared by INDEC shows that in October 2022 the cost per square meter amounted to $62,531, which represents an increase of 58.3% year-on-year.
In addition, the report from the Real Estate Observatory of the City of Buenos Aires indicates that the cost of construction in the city increased by 4.4% during the second half of 2022.
In general, these reports agree that the price per square meter in Argentina has had a sustained increase in recent years, mainly driven by the increase in the costs of materials and labor, as well as the devaluation of the currency and inflation.
Although housing construction is high, the demand has not fully recovered
The trend for 2023
The experts of the real estate sector project a square meter price increase in Argentina during 2023, expecting the demand for properties to remain high, driven by the inflation, the devaluation of the peso and the need for a safe haven of value.
Also, it is estimated that the price per square meter will continue to increase in important cities such as Buenos Aires and Córdoba, while in smaller cities there could be a moderate growth or stabilization in prices.
Planning and design of future real estate projects
In conclusion, the price per square meter in Argentina is a complex and constantly evolving issue. But although there are factors that influence the price increase, such as inflation, selection of the construction site, as well as the size and design of the project, there are also a series of trends and predictions that point to a growth scenario in the sector. real estate.
It is important to be informed and up-to-date on the latest real estate news and reports to make informed decisions when building and buying property.
