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Argentina real estate market for investors Investing in Argentina Property
By property | July 11, 2009
Argentina real estate market for investors Investing in Argentina Property
Acceptable level of sales to investors
Operations declined in the middle due to the inaccessibility of mortgage loans
SALTA .- The real estate market maintains sales levels in the acceptable range of investment properties for which prices accompanied the rise of the dollar, but sales fell in the middle of the population even though their valuations preserved the values of a dollar three weights, with no sight that mortgages can reverse the situation because its 19% interest and income requirements are inaccessible to Salta.
So what is the president of the Real Estate Chamber of Salta, Juan MartĂn Biella, when the findings of an analysis conducted on the property market with participation of 50 local references on the variations from the crisis that began in the to hit hard since April.
By then there was the new line of loans on which says: “It is not within reach of the local middle class that gains much lower than in Buenos Aires, on the basis of which was designed for that funding.”
From a work of the commission and valuations of the participants identified the different points of the city to tabulate areas or buildings which have similar values. Thus, on one hand the market is transparent and, secondly, it gives a real estate professional guide who provides them with the task, “explains Biella.
He adds: “The costs of houses, apartments and commercial downtown macrocentro and continue paying in dollars, in line,” the rents of these units was accompanied by changes of the currency. ”
Neighboring buildings, houses or apartments on the outskirts of macrocentro not accompanied the variations in the dollar, because those who live there generally have no ability to purchase by the lack of access to credit. The values in this segment were driven by a strong demand for rents generated in the absence of such units.
“This could be summed up in the middle class can not access housing, and therefore is not built for them,” Biella expands.
Another analysis of this substrate is that the construction cost for this type of houses remained well rents showed the direct impact of the crisis since it was leveled to wages, ie they do not resist increases.
In the case of the properties of the Center, the valuation is based on seniority of the individual building, materials, terrain, location or municipal allotments, which are variations on the same block. Thus, allowing Sarmiento avenue to build 10 apartments in one hand and the front five.
“This obviously does change the values on the same space, in one place,” says Biella, adding that they should expect changes to the Code of the Town City Council and the criteria for enabling the new company providing the water and sewer service to from the termination of the concession of Aguas de Salta, which also affects prices.
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