In Greater Buenos Aires, as in other parts of the country such as CABA, La Plata, Rosario and Córdoba, there was a pronounced decrease in the prices of properties for sale
The pandemic and the economic downturn hit the real estate market like few times before. In the three axes of Greater Buenos Aires (GBA), both in the North, as well as in the West and South, the valuations of houses fell 30% on average.
They only managed to sustain and boost the prices of land located in private neighborhoods and countries pushed by a third exodus of young families. Those who activated purchases preferred to move to points close to the green and services, with the option of teleworking from there and having a swimming pool and barbecue a few steps from the house. To be able to release the home, several chose to build with dry construction systems through steel frame or panels with wood and plates, which allow speeding up steps over traditional wet construction.
Industry sources estimate that the prices of land in gated communities rose between 50 and 60% on average by the end of 2021 in relation to pre-pandemic values.
Prices and footage
Due to what was revealed, the Zonaprop platform reported what the values of each zone are. In the North, buying an average two-room, 50-square-meter apartment costs $112,000. A 3-room, 70-m2 apartment costs $170,000.
Location and area are great determinants of the price of a home
From the company they reported that last December, the north zone did not register changes in the value of m2, it remained at 2,282 dollars. The municipalities with the highest costs are Vicente López (USD 2,887 per m2), San Isidro (USD 2,718) and Tigre (USD 2,447). The cheapest are José C Paz (USD 1,221 per m2), Malvinas Argentinas (USD 1,486) and San Miguel (USD 1,601).
The municipalities with the highest costs are Vicente López, San Isidro, and Tigre. The cheapest, José C Paz, Malvinas Argentinas and San Miguel. The values per m2 range from almost 2,900 to about 1,200 dollars
Mariano Igarzábal, from the real estate company of the same name, told Infobae that several parts of the northern zone had to be honest with their valuations. “A house that in Vicente López, near the Panamericana (Munro or Olivos) and with 3 bedrooms ranges at USD 250,000 when at the end of 2019 it was at USD 315,000, but it costs to market it the same. Before they could be sold within a year; now several had been published for more than 2 years and had to reduce the price”.
“Near the Panamericana (Munro or Olivos), a 3-bedroom house costs USD 250,000 for three bedrooms when at the end of 2019 it was 315,000, but it is difficult to market” (Igarzábal)
What is close to the river, both in the corridor of Avenida del Libertador, between Vicente López and San Isidro maintained the price a little better. Real Estate experts specified that the values fell by 20%, especially if the properties are located less than three blocks from the water.
In Tigre and Escobar, lots for sale in gated communities and apartments in condominiums built in Nordelta, Villanueva area (the majority made by the developer Eidico) and in other points close to the Panamericana Escobar branch were also promoted, beyond the km 35.
Brokers near the river maintained the price better
“The condominium thing is surprising, many young people look for them and manage to access one or bedroom apartments for USD 90,000 or 110,000, even for less money, and most of them are brand new. For married couples or newly formed couples, it is an option to start. Sometimes the parents help to buy them or the interested parties make payment plans in installments that the developers themselves propose between 24 and 48 months in pesos or dollars, adjusted by the index of the Argentine Chamber of Construction (CAC)”, Igarzábal expanded.
What happens in other axes
In the south and west of Greater Buenos Aires, the cost per square meter fell by 0.4% in the last month of 2021 and stands at 1,775 dollars. The level of prices today is similar to that of January 2017.
In Monte Grande, demand is low despite the decrease in values for sale. From the sector claims for the return of mortgage loans
The average apartment with two rooms and 50 m2 has a value of 89,000 dollars. To buy one of 3 main rooms and 70 m2, according to Zonaprop, 128,000 dollars are needed.
In the south and west of the GBA, the cost per m2 fell 0.4% in December 2021, averaging USD 1,775 dollars, a value close to January 2017
The highest sales price is found in the municipality of Lomas de Zamora (USD 2,066 per m2), followed by Almirante Brown (USD 2,055) and Quilmes (USD 1,860). The lowest value is found in Hurlingham (USD 1,265 per m2), Moreno (USD 1,362) and Merlo (USD 1,488).
Carlos Gotelli, owner of Gotelli Properties & Associates, told Infobae that “the areas of Monte Grande and Ezeiza, in the used market, have been declining for a long time. In some cases there were decreases of 35% of the value that was before the pandemic. And despite the decrease, there are few inquiries, and as the blue dollar continues to climb, the situation will become more complicated and it is likely that the sales values will fall even more.”
“There were decreases in the prices for sale of 35% compared to the pre-pandemic. There are few queries, and if the blue dollar continues to climb, the situation will get complicated” (Gotelli)
From the sector they urgently demand that the mortgage loan be returned, there are people who have USD 50,000 or 60,000 in hand, but they lack between 30 and 40% to be able to access an apartment or their own house, they argued.
It is vital, for example in Monte Grande, so that it is reactivated and that chain operations can be carried out as they were historically done. Someone selling a two-bedroom apartment is looking to move into a house, and the owner of that house jumps into some neighborhood in Canning.
“If there are consultations, where many people want to deliver a lower value home in part payment in order to make the leap in quality. But of course, who sells, is not predisposed to receive it and prefers the money to do another business. Without credit, it will be difficult for the scenario to turn to the positive side,” added Gotelli.
You can get a two-room apartment in Monte Grande or Ezeiza for USD 70,000, and there you pay between $5,000 and 7,000 for expenses, and a two-bedroom house on a 10 x 30-meter lot between 120,000 and 130,000 dollars.
In the Mirasoles neighborhood near the center of the city, the head of Esteban Echeverría’s party, 2 or 3-bedroom homes with garages that were at USD 200,000 have dropped to USD 145,000/150,000, but demand is low.
“The most sought-after urban neighborhoods in Ezeiza are those with large lots and good afforestation, such as El Trébol, Links, El Bosquecillo in Carlos Spegazzini and Las Lomas, among others,” concluded Gotelli.
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