Property Prices at Lowest Price Since the 2001 Crisis
Those looking to purchase property abroad would be wise to consider purchasing in Argentina at this moment, with the guidance of bilingual (Spanish/English) Argentine lawyers. Currently, Argentines are hesitant to spend before this year’s presidential elections, resulting in some of the lowest property prices in years. But while locals are holding back, foreigners without ties to the local economy can invest now at extraordinary prices. Kier Joffe is the premiere real estate law firm for foreigners in Buenos Aires, and with our expertise and guidance, the buying process is simple, direct and stress-free. We are proud to call ourselves the only bilingual Argentine lawyers with such expertise in the real estate industry.
In January 2015, only 1723 property units were sold in Buenos Aires – 15 percent less than were sold a year ago, serving as the worst numbers for the month in 12 years. The average price was $907,306 Argentine pesos.
The sale and purchasing of property is in a historic low in the City of Buenos Aires. 2014 ended with some of the lowest indicators in 30 years, and 2015 has started with a similar forecast.
2014’s numbers are the lowest since the months immediately following the economic, political and social crisis of 2001 in Argentina. In fact, during the years after the 2001 crisis, it was reported that 67 percent more units were sold than were sold in 2014.
For example, in 2001, 54,493 contracts were signed, in 2001, 56,293, and in 2014, only 33,690. The information comes from the College of Notaries in the city of Buenos Aires, which measures changes in the market. Real estate lawyers in Argentina have noted the same phenomenon, noting that Argentines are buying less than they have in recent years.
Property prices are much lower than they were three years ago. Since the implementation of tight monetary restrictions, the price of properties in dollars fell between 10 and 15 percent, and remain low now, according to reports by the specialized consulting firm, Reporte Inmobiliario.
Analysts consulted by newspaper La Nacion agree that causes for the low level of activity in the sector are due to more than just the restrictions on dollars. There is an existing tendency for sellers to delay activity as they wait for the administration to change this year.
There are also difficulties accessing mortgages, a wider gap between salaries and prices, the recessive nature of the economy and consumers’ perception of high prices. At this time, the square meter in an apartment with two or three rooms costs US$ 1700, on average, while two years ago that price was US$ 1900.
Mortgage lending has practically disappeared from the market, and those that are available are not easily accessible. For example, to qualify for a credit of AR$ 500,000 pesos (or US$ 57,736.00 using the official exchange rate), paying the loan off in ten years requires monthly payments of AR$50,000.00. This type of capital is only enough to purchase half of a two-room unit.
While Argentines are experiencing difficulty obtaining the capital needed to buy a property, the climate is ideal for foreign investors looking for a beautiful property at an accessible price. But it is important to seek the assistance of an expert real estate law firm in Buenos Aires first. If you are interested in learning more about how to buy property in Argentina as a foreigner, contact us. Celebrating 75 years in the business, we are real estate attorneys that specialize in assuring that foreigners in Buenos Aires do not experience any of the headaches that come with working through a new and different legal system.
With an international reputation worthy of mention in The New York Times, Kier Joffe is your one-stop shop for information and legal services related to buying a property in Argentina as a foreigner. The first firm to specialize in providing services to international clients buying property in Argentina, we have assembled a top team of lawyers, accountants and notaries dedicated to making your buying experience as smooth as possible.
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