The trend that had been emerging since the middle of the year was finally confirmed.
Last year,
real estate activity in the City picked up
.
The significant drop in apartment prices and uncertainty combined so that, after five years, property sales grew.
According to the City Notary Association, 40,539 deeds were signed during the year, which represented
a jump of 20.1%
compared to the 33,753 operations that had been completed in 2022.
Furthermore, 2023 ended up being
the best year of the last five
, because in 2018 55,892 had been signed and since then the number has always been decreasing.
“In numbers, it was the best year since 2018. And it reflects a last quarter that had more operations than expected in the context of electoral uncertainty.
It also clearly states that it is a market without credit, because there are no more than 5% of transactions with mortgages.
The expectation is on how to stabilize the economy so that tools are generated that promote access to housing,” said Jorge De Bártolo, president of the College of Notaries of the City of Buenos Aires.
The retraction of previous years had occurred for three reasons: the end of the boom in UVA credits due to inflation and devaluation;
the restoration of the exchange rate at the end of Mauricio Macri's presidency, and finally the pandemic.
Now, this change in trend had a very obvious reason:
property prices fell last year by 21.9% in dollars
, a drop that was added to what they had been accumulating in previous years.
Always, according to the numbers of the College of Notaries.
Last year, transactions averaged
$73,632.
This, in terms of the asking price.
At Colegio de Martilleros Buenos Aires, for example, they say that between the value that is published and the one that is finally closed there is approximately 10% less.
"There is no doubt that the rebound occurred due to the price.
There is no other factor that could be seen as driving
more demand, such as credit, a substantial increase in real income, very strong economic growth, etc. Without a doubt, the effect mobilizing factor was the level of real estate values, which were judged attractive, along with a greater degree of positive expectations that could precisely reverse that price level and make it increase following the change of government," said José Rozados, head of the consulting firm Real Estate Report.
In the market they mention another important factor: politics.
And starting in August, after the PASO, the number of operations began to grow.
Until July included, no month had exceeded 3,400 writings.
But from August onwards, none fell below 4,000.
And that occurred despite the rise in the dollar in the final months of last year.
The explanation is the same as always: given the uncertain political situation, many people chose to protect their savings by buying apartments,
a traditional and conservative but very safe decision
.
What can happen next?
With this drop in prices, the real estate market believes that this year will be positive.
"The dollar looks more stable, in March you will surely be comfortable with politics and the expectation is for a good year. It is a very good time to buy, because prices found a floor. They are
not going to go down, and if there is more movement they will return to go up
," said Marta Liotto, former president of the Unique College of Real Estate Brokers of the City of Buenos Aires.