What to expect in the Argentine real estate sector for this year
Ruben Rojkes, expert Argentinian construction Engineer
Argentina has a housing deficit of about 3 million homes. This deficit increases at a rate of approximately 36,000 homes per year. In addition, of 12.2 million total households, 16 percent correspond to rental housing, which is equivalent to about 2 million families.
After the normalization of the foreign exchange market in 2015, there was a push in construction and the mortgage sector in Argentina, but soon after, in 2018, the indicators of the residential construction sector contracted again significantly, as well as investment in infrastructure due to the impact of the exchange rate and the need for fiscal adjustment.
Much has been said about the crisis in the real estate sector in Argentina in recent years, today we talk with engineer Ruben Rojkés, founder of Avanco, a real estate developer with 25 years of experience in the Argentine market; who will share with us his vision for Tucumán.
The residential sector, which had boomed in recent years, has suffered from Argentina's financial crisis during the last years, as well as from the high inflation currently existing in the country. Inflation in particular is increasingly becoming the main concern for developers facing new real estate projects. As a result of an increase in the price of land and in the cost of construction, investment in the residential sector has considerably decreased over the last months.
In this regard, Rojkés tells us that while families grow, young people become independent and demand moves, they all face the same problem: "the lack of financing for the middle-class sectors, which is a chronic problem of the country".
According to the latest data provided by the Association of Notaries Public of the City of Buenos Aires, the total amount of property purchase and sale deeds registered in the tenth month of 2018 a decrease of 40.7% from the level of one year before, when adding 3,669 records, while the total amount of transactions made grew 18.5% to $ 17,728 million.
With regard to expectations, Ruben Rojkés, like many other entrepreneurs in the real estate sector, agrees that the elections will have a great impact on the economy and therefore have a direct impact on the real estate market.