Different players in the real estate sector share their balance sheet for 2022 and their projections for the coming year. Everyone agrees that there will be opportunities
For Florence Tuchin
12/29/2022 – 7:54 p.m.
2022 shows a recovery in relation to 2021, in terms of completed operations and it is expected that in 2023 this will become even more consolidated. The maximum monthly deeds of sale registered by the College of Notaries of the City of Buenos Aires this year is 3,369. They were carried out in November.
The president of the Argentine Real Estate Chamber, Alejandro Bennazar, explains that 2022 ended with writing levels similar to 2015 or 2016. He considers that the sales trend in the last stretch of the year was good on all counts.
Real estate market: will it recover in 2023?
Bennazar points out that 2023 is a pivotal year, where a plateau of the fall in value would begin and an incipient recovery would begin. “2024 and 2025 should be more encouraging years,” she muses.
Along these lines, the CEO and co-founder of the Argentine proptech, Mudafy Franco Forte, says: “In 2023 we hope that the recovery that we witnessed in 2022 will take hold. However, although 2023 will be an election year, there are no strong signs that the trends we are seeing are going to register big changes. We expect there to be a small increase in the number of transactions.”
The president of the Chamber of Real Estate Services Companies (CAMESI), president of Keymex Argentina, lawyer and notary public Mariano García Malbrán suggests that the forecast of what will happen in the market will go hand in hand with the Argentine political and economic context and of course the global recession expected in 2023.
“Despite all this, 2023 will be a better year than 2022 in the Argentine real estate market because It will be the year of opportunities. The main players in the real estate sector (sellers, buyers, developers, investors, real estate brokers and builders) are aware that it is an excellent time to buy real estate or carry out real estate developments. Real estate dollar prices are at a historic low in certain cities and locations, this is the best time to buy in almost 20 years.”express.
A good portion of the properties for sale and rent register their historical floor.
Regarding expectations for 2023, the Commercial Director of Grupo Coria, Daniela Pérez de Graffe, says: “We hope that the reactivation of sales in CABA in recent months will continue. TYou can also feel more movement in the north and we hope it will continue, Well, with the sale value of a small property in a central neighborhood of CABA, in Pilar you can buy almost double the square meters, with 10-year financing in pesos and with many more amenities and services to enjoy at probably half of the value of expenses”.
What will happen to real estate prices in 2023?
From Mudafy they believe that the prices in dollars are going to be maintained. “For prices to rise, demand would have to rise, through new loans or greater stability and a stronger peso, but we don’t see a radical change in the short term. On the other hand, For prices to fall, either supply must increase or demand decrease. As for demand, we are already at historic lows and the trend is growing, so we don’t think they will drop either,” says Forte.
The former president of the Professional Real Estate Association, Armando Pepe, points out that prices in dollars fell between 25% and 30%. He doesn’t think they can go any lower because it’s selling below cost. That is, there is no replacement value.
In Mudafy they believe that The opportunities will be in the purchase of units for temporary rental, since today it is possible to achieve around 10% annual profitability. In addition, they note that there are still opportunities to buy property on the cheap and greatly increase its value with a small investment. “Obviously, we are talking about opportunities that do not last long in the market, because buyers are attentive to this income, but they do not stop being available,” adds Forte.
Regarding the opportunities, García Malbrán adds: “Today in many cities in the country it is possible to buy used apartments, in central locations, for 700 or 800 dollars per m2 and well developments for 1,100 dollars per square meter. In luxury real estate, there are buildings in Puerto Madero that historically sold for $8,500 or $9,500 per m2, which today can be bought in premium tower developments for $6,500 and perhaps a little less. It is always advisable to enter real estate developments of companies that have history and support and also contract with real estate brokers that provide security for the legal business. Buying today in buildings under construction or in a well is going to generate unexpected capital gains for investors in a short period of time.”
