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Real estate activity in the city of Buenos Aires is in decline
By property | July 11, 2009
Real estate activity in the city of Buenos Aires is in decline. According to market report conducted by the firm Cushman & Wakefield, the number of work permits was reduced by 16% in 2009, while the deeds of sale were reduced by 39% in the first quarter of the year for the same period of 2008 .
After several years of a chronic unmet demand and insufficient supply, the office market has now reversed its position because it is a clear demand reduction and begin to enter the market is developing projects in the past .
The rental prices began falling from the values of 2008 and showed a slow increase in the vacancy, the product of two phenomena: first, the entry of new buildings on the market, and secondly, the removal or reduction space companies following the economic crisis.
For example, emphasizes the sale of offices IRSA signature with a value of $ 39.8 million, amounting to 15,144 m2 to the market. Another factor was the disaffection of square meters belonging to the AFJPs before the state’s pension system, which extended the offer. Were also free spaces in the downtown area formerly occupied by Repsol YPF, now grouped in the building located in Puerto Madero dock III.
The opening of Dot Baires Shopping, in late April, the full development of this new shopping area Saavedra, in addition to the existing building has two offices on site. Also advancing the construction of Office Madero, Puerto Madero, and projects Urban Panamerican Bureau, Optima officio and Edison on the Panamerican Highway.
“Today, the market entered a new phase, with reduced demand, the product of local and international. New projects, gestures in recent years, entering the market and find the need to adapt their expectations to a different reality,” Faigenbaum said Herman, CEO of the firm.
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