The Argentinean Real Estate Sector is Optimistic for 2010
The Recuperation of the Real Estate Sector, Slow but Sure.
from El Argentino Newspaper (Feb. 2010)
Nobody will deny that the last year was tough for real estate in Argentina. By the end of 2008, it was apparent that 2009 would be rough for all involved. Today, however, it is recognized that the past is behind us, and brokers and developers are optimistic for what 2010 holds for the industry.
2009 was a rough year for many reasons. First, pre-election madness brought everything to a standstill, as Argentines and foreigners alike weren’t sure of where the country was going. Most obviously, however, was the international financial crisis. As markets all over the world floundered, nobody was too keen on spending what little money they had left. Housing activity dropped between 15 to 20 percent, quite the decline for a single year.
Prices, however, did not follow suit. Owners of Argentine property refused to give into the market, resulting in a stand off. Buyers weren’t able to pay what the properties were once worth, and owners weren’t willing to lower their prices to meet the new demands of the market. Even still, for the market to recuperate, owners are going to have to bend some.
The second half of 2009, however, saw some leeway given on both sides. Negotiations that had started in the first half of the year finally came to a close, and owners generally came down 15% from their original asking price to accommodate the buyers’ offers. More buyers started to emerge, looking for real estate once again. Those who were, at one point, turning to other forms of investment, are now looking back to properties. The dollar has somewhat stabilized, especially in terms of the peso, and people are once again looking at a real estate as a solid investment. In general, most of the decline was in new business development, although housing did see some damage, as well.
But that second half of 2009 marked the beginning of a slow upswing, and professionals are optimistic for 2010. There have been many signs on an international level that show the rapid overcoming of the financial crisis, and with that will come more willingness to buy. Locally, as well, the dollar seems to be stable and economic activity is growing, both indicators of increases in real estate activity.
Many organizations are working hard to make sure all parties involved do what is necessary to keep moving upward, from legal regulations to funding for a climate that is conducive to investing. For now, they are predicting stability in the first part of the year, followed by an increase in the later months. Nobody is expecting things to move rapidly, rather slowly but surely.
Some industry professionals are calling for mortgage loans and incentive plans for construction in underdeveloped areas. In any case, things are definitely looking better than they were a year ago, and little by little, uncertainty is leaving the scene, allowing possibilities and opportunities to present themselves.
MORE NEWS: read more news about Argentina real estate market's conditions.
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