08/26/2020 - 12:30
- Clarín.com
- Economy
The real estate market remains in intensive care. In July, only 573 purchase and sale operations were closed , for a total of $ 11,258 million. This volume represents an 82% drop in the amount of deeds and a 41.9% drop in amount. The number of transactions also fell 59.2% compared to June, according to data compiled by the College of Notaries of the City of Buenos Aires.
“We registered 26 consecutive months of year-on-year decline , which denotes the seriousness of the situation. If clearly 2019 had been the worst indicator, this year will be much worse. In an effort to find solutions, we are meeting with entities related to the real estate sector and we have approached proposals to the local and national government in terms of promotions and other tax solutions, "said Carlos Ignacio Allende, president of the Buenos Aires Bar Association.
The average amount of the acts was $ 19,647,591 ($ 279,521 according to the average official exchange rate): it rose 225% in one year in pesos, while in US currency it rose 102%.
Evolution of deeds in the City of Buenos Aires in the months of July in recent years. Source: College of Notaries of the City of Buenos Aires
In July, there were 32 deeds formalized with a bank mortgage. So the fall in that sense is 86.4%.
Taking out the month of April - when only 7 deeds were signed, July was the worst month in history. As indicated in the College, it is most likely the floor. In August, you may see some drag on operations that were closed in July but could not be signed due to the quarantine.
Evolution of deeds in the City of Buenos Aires in the last 12 months. Source: College of Notaries of the City of Buenos Aires
In any case, in the accumulated of the year, only less than 7,000 operations were carried out throughout the year, which in other times corresponded to a single month. It is a drop of 63.4% against 2019, with the aggravating circumstance that last year - with 33,000 transactions - was the worst year in the history of the sector.
The College estimates that, at this rate, the year will close with 12,000 signed deeds, 30% of what the market was last year. The record year had been 1998, with 75,000 transactions. And a normal year they represented 60,000.
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